Assore Limited : Results for the half-year ended 31 December 2011

? Interim profit up 52,4% to R2,1 billion

? High US Dollar iron or e prices

? All BEE o wnership no w broad-based

Assore Limited

Company Registration Number : 1950/037394/06

Share code: ASR

ISIN: ZAE000146932

RESU LTS FOR T h E h ALF-YEAR ENDED 31 DECEMBER 2011

("Assore" or "Group" or "Company")

COMMENTARY

RESULTS

Headline earnings for the six months to 31 December 2011 have increased by 48,5%, to R2 067 million, compared to the same period in the previous financial year. This is due mainly to increased earnings for the period of Assmang Limited ("Assmang"), together with increased commissions earned on improved sales volumes of Group commodities.
Assore holds a 50% interest in Assmang, which is propor tionately consolidated in accordance with International Financial Repor ting Standards ("IFRS"). Assmang's headline earnings increased by 57,2% to R3 949 million compared to the same period in the previous financial year. Higher average US Dollar selling prices for iron ore and increased sales volumes for Assmang's commodities compared to the
six-month period ending 31 December 2010, combined with a weaker average Rand/US Dollar exchange rate for the period, contributed positively to the increased level of earnings.
Market conditions for most of the Group's commodities have deteriorated, mostly due to the sovereign debt issues in Europe. With the exception of iron ore, demand has declined, with resultant price erosion in the current period under review, compared to the same period in the previous financial year. Prices for iron ore were higher, although pricing in the current period was more volatile. The weaker Rand/US Dollar exchange rate compensated for some of the impact of the price erosion, while additional expor t volumes of iron ore resulted in an increased level of contribution to the Group's earnings. Turnover for the period under review improved in comparison to the same period in the previous financial year with an increase of 40,2% amounting to R6,4 billion from R4,6 billion in 2010.
On 8 December 2011, shareholders were advised of the Company's intention to enter into the second phase of its third empowerment transaction, which was approved by shareholders in a meeting convened for this purpose on 19 January 2012. As a result, all of Assore's black-controlled shares, amounting to
26,07% of the Company's ordinary shares, are now controlled by broad-based BEE groupings, increasing the Group's weighted number of treasury shares to 31,97 million. The bridging loan pursuant to the first phase of the transaction will be settled by the issue of preference shares to the Standard Bank of South Africa Limited ("SBSA"). Refer "Event after the repor ting period" below.

CONSOLIDATED INCOME STATEMENT

Half-year ended Year ended

SALES VOLUMES

Sales volumes for the current period were higher for iron ore and manganese commodities, while sales of charge chrome and chrome ore were lower than for the comparable period.
The table below sets out Assmang's sales volumes for the current period:

Half-year ended Increase/

Metric tons '000	31 December 2011	31 December (decrease) 2010 %
Iron ore Manganese ore* Manganese alloys* Charge chrome Chrome ore*	6 781 1 590 104 86 211	4 039 68 1 456 9 87 20 91 (5) 213 (1)

* Excluding intra-group sales to alloy plants.

CAPITAL EXPENDITURE

The bulk of the Group's capital expenditure occurs in Assmang, where more than R2,1 billion was spent on capital items in the period. R928 million was spent on Assmang's Khumani Expansion Project ("KEP"), which remains within budget and ahead of schedule. An additional R669 million was spent at Khumani Mine on ramp-up capital, enabling the mine to produce the intended 14 million tons of iron ore per annum for the expor t market. The conversion of ferrochrome capacity to ferromanganese capacity at the Machadodorp Works continues, and R39 million was spent on the conversion of two furnaces. The bulk of the remainder of Assmang's capital expenditure is of an ongoing replacement nature.

OUTLOOK

Chinese steel production has declined for the second consecutive quar ter, while sovereign debt issues in Europe persist. Prices for iron ore appear to have settled in a band lower than the high levels experienced in the second half of the previous financial year. Certain high cost Chinese iron ore miners have stopped production as a result, causing reasonably strong demand for seaborne iron ore. Slow economic growth
in Europe and elsewhere is also placing pressure on prices of the Group's other commodities. Since most of the Group's commodities continue to be expor ted, it remains significantly exposed to fluctuations in the Rand/US Dollar exchange rate. These factors make it difficult to predict the future performance of the Group in the second half of the financial year with any cer tainty.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Half-year ended Year ended

DIVIDENDS

The results in the announcement include the final dividend relating to the previous financial year of 250 cents
(2010: 240 cents) per share, which was declared on 24 August 2011 and paid to shareholders on
19 September 2011. The board intends declaring an interim dividend in April 2012 of 250 (2011: 200) cents per share, having regard to the requirements of the Companies Act and other regulatory requirements.

ACCOUNTING POLICIES AND BASIS OF PREPARATION

The financial results for the period under review have been prepared under the supervision of Mr CJ Cory, CA(SA) and in accordance with IAS 34 - Interim Financial Repor ting. The accounting policies applied are consistent with those adopted in the financial year ended 30 June 2011. Revisions and amendments to, and interpretations of IFRS effective in the period have not had any impact on the results or disclosures of the Group.

EVENT AFTER ThE REPORTING PERIOD

The special and ordinary resolutions tabled at the general meeting of shareholders on 19 January 2012 relating to the second phase of the Group's third empowerment transaction were approved by the requisite majorities of shareholders. In terms of the transaction, the Company will issue preference shares to SBSA on
21 February 2012, which will replace the bridging loan provided to a special-purpose vehicle ("SPV"), while subscribing for preference shares in the same amount in the SPV. Accordingly, an amount of R2,2 billion will be transferred to interest-bearing long-term liabilities from interest-bearing current liabilities.

DIRECTORS

Since 1 July 2011, the following changes to the board of directors have taken place:
? 19 August 2011 - following the conclusion of the first phase of the third empowerment transaction,
Mr MC Ramaphosa (and his alternate, Mr RM Smith) resigned as a non-executive director ;
? 7 October, and 1 November 2011 respectively, Ms ZP Manase was appointed and resigned as an
independent non-executive director, due to a potential conflict of interest;
? 10 October 2011 - Messrs AD Stalker and BH van Aswegen were appointed as alternate directors to
Messrs CJ Cory and PC Crous respectively; and
? 31 December 2011 - Dr JC van der Horst retired from the board, after an aggregate tenure of
17 years' service.
On behalf of the board
Desmond Sacco CJ Cory Johannesburg

Chairman Chief Executive Officer 15 February 2012

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	31 December 2011 Unaudited R'000	31 December 30 June 2010 2011 Unaudited Audited R'000 R'000
Revenue	6 843 807	4 768 682 11 180 037
Turnover Cost of sales	6 386 024 (3 337 372)	4 553 507 10 547 806 (2 420 111) (6 044 740)
Gross profit Other income Other expenses Finance costs	3 048 652 626 209 (476 455) (126 199)	2 133 396 4 503 066 221 785 848 731 (205 493) (457 797) (40 137) (77 790)
Profit before taxation and State's share of profits Taxation and State's share of profits	3 072 207 (934 057)	2 109 551 4 816 210 (706 284) (1 566 524)
Profit for the period	2 138 150	1 403 267 3 249 686
Earnings attributable to: Shareholders of the holding company Non-controlling shareholders	2 129 171 8 979	1 392 501 3 219 754 10 766 29 932
As above	2 138 150	1 403 267 3 249 686
Earnings as above Adjusted for : Profit on disposal (net of tax): - on available-for-sale investments - of proper ty, plant and equipment	2 129 171 (61 057) (646)	1 392 501 3 219 754 - - (537) (407)
headline earnings	2 067 468	1 391 964 3 219 347
Earnings per share (basic and diluted - cents) Headline earnings per share (basic and diluted - cents)	1 978 1 921	1 164 2 691 1 163 2 690
Dividends per share declared in respect of the profit for the period (cents) - Interim - Final Weighted average number of ordinary shares (million) Ordinary shares in issue Weighted impact of treasury shares	139,61 (31,97)	200 450 200 200 250 139,61 139,61 (19,94) (19,94)
Average for the period	107,64	119,67 119,67

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Half-year ended Year ended

SEGMENTAL INFORMATION

Joint venture mining and beneficiation Other Marketing mining and Consolidation R'000 Iron ore Manganese Chrome Sub-total and shipping benefication Treasury adjustments* Consolidated

half-year ended 31 December 2011 - unaudited

Revenues

- third party 7 518 677 3 457 439 962 441 11 938 557 603 162 248 877 22 490 (5 969 279) 6 843 807

- inter-segmental - - - - 387 818 129 410 - (517 228) - Total 7 518 677 3 457 439 962 441 11 938 557 990 980 378 287 22 490 (6 486 507) 6 843 807

Contribution to after-tax profit 3 125 669 834 030 (9 706) 3 949 993 202 303 (1 759) (31 080) (1 981 307) 2 138 150

Half-year ended 31 December 2010 - unaudited

Revenues

- third par ty 3 987 044 3 204 236 921 297 8 112 577 567 865 129 675 14 854 (4 056 289) 4 768 682

- inter-segmental - - - - 268 770 1 680 - (270 450) -

CONSOLIDATED STATEMENT OF CASH FLOW

Half-year ended Year ended

Total 3 987 044 3 204 236 921 297 8 112 577 836 635 131 355 14 854 (4 326 739) 4 768 682

Contribution to after-tax profit 1 749 747 849 501 (87 159) 2 512 089 170 260 6 551 (23 351) (1 262 282) 1 403 267

* Consolidation adjustments mainly give effect to the elimination of the 50% share attributable to the other joint venture party in Assmang.

Directors:

Executive: Desmond Sacco (Chairman), CJ Cor y (Chief Executive Officer), PC Crous (Technical and Operations)

Non-executive: EM Southey, (Deputy Chairman and Lead Independent Director), RJ Carpenter, DMJ Ncube, WF Urmson

Alternate: PE Sacco, AD Stalker, BH van Aswegen

Registered office: Assore House, 15 Fricker Road, IIlovo Boulevard, Johannesburg, 2196 Transfer office: Computershare Investor Ser vices Proprietar y Limited, 70 Marshall Street, Johannesburg, 2001 Company secretaries: African Mining and Trust Company Limited Sponsor: The Standard Bank of South Africa Limited

www.assore.com

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