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Johannesburg, 17 February 2009
TRADING STATEMENT
In respect of the six month period ended 31 December 2008
In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited a listed company is required to publish a trading statement as soon as it is satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on next will differ by at least 20% from those of the previous corresponding period.
In comparison to the corresponding period to 31 December 2007 the ARM financial results for the six months to 31 December 2008 have been impacted by the following:
- Sales volume increases in Platinum Group Metals (PGMs), iron ore and domestic thermal coal. The remaining commodities reflected decreased sales volumes due to a slow down in demand;
- Significant commodity price decreases for the duration of this reporting period for PGMs and nickel;
- A 28% weaker Rand/US Dollar exchange rate; and
- Increased expenditure at TEAL.
Accordingly, ARM announces that it expects headline earnings per share to increase for the six months ended 31 December 2008 to between 950 and 1 100 cents per share (headline earnings for the six months to December 2007 were 353 cents per share). Basic earnings per share are expected to be in the range of 950 and 1100 cents per share (basic earnings for the six months to December 2007 were 414 cents per share).
The financial information on which this trading statement is based has not been reviewed or reported on by the external auditors of ARM.
The company's interim results will be released on Monday 23 February 2009.
Update regarding the proposed acquisition by ARM of TEAL minorities and formation of a 50:50 Joint Venture with Vale
ARM shareholders are referred to the announcement dated 17 December 2008 in which ARM announced the proposed transaction to acquire the shares held by minority shareholders in TEAL Exploration & Mining Incorporated ("TEAL") and to simultaneously introduce Companhia Vale do Rio Doce ("Vale") as a 50% strategic joint venture partner ("the proposed transaction").
ARM is pleased to announce that at a general meeting of TEAL shareholders held in Johannesburg on 13 February 2009, TEAL shareholders overwhelmingly voted in favour of the resolutions necessary to implement the proposed transaction. Shareholders unable to attend in person at the meeting in Johannesburg were permitted to attend the meeting via conference telephone made available in Toronto, Canada.
Shareholders are reminded that completion of the proposed transaction remains subject to a final hearing by the Supreme Court of the Yukon Territory, currently expected to take place on February 17, 2009, as well as the satisfaction of other regulatory approvals and other specific closing conditions. A further announcement will be made once the requisite approvals have been obtained.
For further details please refer to the TEAL website: www.tealmining.com
For all investor relations queries please contact:
Monique Swartz
Corporate Development and Head of Investor Relations
Office: +27 11 779 1507
Mobile: +27(0)83 411 2881
E-mail: monique.swartz@arm.co.za
or
Corn� Bobbert
Office: +27 (0) 11 779 1478
Mobile: +27 (0) 11 83 380 6614
E-mail: corne.bobbert@arm.co.za |