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ACL - Short-form: Reviewed condensed consolidated financial statements for the year ended 31 December 2024
ArcelorMittal South Africa Limited
Registration Number: 1989/002164/06
Share Code: ACL
ISIN: ZAE000134961
(ArcelorMittal South Africa, the Company or the Group)
Short-Form Announcement: Reviewed condensed consolidated financial statements for the year ended 31 December 2024
SALIENT FEATURES
• The South African steel industry is facing its greatest challenge since the events of the financial crisis of
2008/09, as international steel-to-raw material price spreads remain under pressure, and countries rush to
protect their steel industries against unfair trade and policy practices
• Commencement of the Longs Business wind down implementation plan (initially scheduled to start by end
January 2025) has been delayed by approximately one month to enable:
- fulfilment of the higher than anticipated outstanding order book (prioritising automotive and other
customers)
- continuing discussions with the South African Government on the future of the Longs Business, with an
announcement expected in the second half of February 2025
- Extended operations have been enabled through funding support of R380 million from the IDC in the
form of a shareholder loan
• H2 2024 crude steel production levels up 12% due to improved asset utilisation in the Flats Business
• Sales volumes down 6% to 2,3 million tonnes (crude steel production down 6% to 2,6 million tonnes)
• Realised rand steel prices down 4% (down 3% in US Dollar terms)
• Raw material basket (RMB) flat in Rand terms (international RMB down 13% in Rand terms)
• Value Plan added R910 million (2023: R2 093 million)
• Fixed costs up 2% to R6 783 million (2023: R6 619 million), in support of additional maintenance and
environment cost
• Operational EBITDA loss - before the Longs Business wind down charge, severance packages charge and
the write down of inventory – of R1 816 million (2023: R56 million profit), includes R670 million of losses
relating to the Q2 2024 Blast Furnace instability and R1 514 million of inventory disposal losses in support of
improved liquidity
• Operational EBITDA loss (before wind down and impairment charges) for the Longs Business amounted to
R1,1 billion (2023: R0,6 billion)
• Longs Business wind down charge, severance packages charge, write down of inventory and impairment
charges amount to R1 813 million (2023: R2 115 million of impairment charges)
• Headline loss of R5 102 million (2023: R1 890 million)
• Net borrowings prior to the capitalisation of multi-year accrued interest and fees payable (R1,355 million) to
the ArcelorMittal group, were flat for the last three quarters at R3 756 million (2023: R3 215 million); R5 111
million after accruals capitalisation
• Continued support from the ArcelorMittal group with shareholder loan (included in net borrowings) increased
to R5,055 million (2023: R3 700 million), and now fully sub-ordinated (2023: R2 700 million sub-ordinated)
• As a non-adjusting subsequent event, the outstanding R950 million at year-end of the R1 000 million secured
short-term loan received from the IDC in June 2024, was restructured with final settlement extended from 1
June 2025 to 1 September 2026. This excludes the R380 million IDC shareholder loan to enable the extended
operations of the Long Business for approximately one additional month
• The Company continues to advance the bankability of its high-payback investment portfolio, which includes
addressing its balance sheet resilience through a potential recapitalisation
ArcelorMittal South Africa Limited (ArcelorMittal South Africa, the company or the group) Registration number: 1989/002164/06 Share code: ACL ISIN: ZAE 000134961
This report is available on the ArcelorMittal South Africa's Web site at: http://www.arcelormittal.com/southafrica/. Share queries: Please call the ArcelorMittal South Africa Share care toll free on 0800
006 960 or +27 11 370 7850.
KEY STATISTICS
Year ended
31-Dec-24 31-Dec-23 % Change
Financials (R million)
Revenue 38 596 41 637 -7%
EBITDA (loss)/ profit before exceptional items -1 816 56 -3343%
EBITDA (loss)/ profit -2 947 56 -5363%
Loss from operations 4 447 2 937 -51%
Net loss 5 837 3 915 -49%
Headline loss 5 102 1 890 -73%
Net borrowings 5 111 3 215 59%
Net asset value 1 963 7 799 -75%
Financial ratios (%)
EBITDA margin -4,70 0,10 -4800%
Return on ordinary shareholders' equity -119,60 -40,30 -197%
Net borrowings to equity 260,20 41,20 -532%
Share statistics (cents)
Loss per share 458 170 -169%
Dividends per share - -
Net asset value per share 1,76 7,00 -75%
Safety
Lost time injury frequency rate 1,14 0,77 -48%
Operational statistics ('000 tonnes)
Crude steel production 2 589 2 767 -6%
Steel sales
- Local 1 753 1 898 -8%
- Export 523 514 2%
Commercial coke sales 140 33 324%
Segment performance (R million)
Steel operations
- Revenue 37 263 40 885 -9%
- EBITDA -1 921 -373 -415%
Non- steel operations
- Revenue 1 626 907 79%
- EBITDA 324 534 -39%
Corporate and other (including eliminations and adjustments)
- EBITDA -219 -105 109%
HJ Verster GA Griffiths
Chief Executive Officer Chief Financial Officer
6 February 2025
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the board of directors of ArcelorMittal South Africa and is a
summarised version of the Group's full announcement and as such, it does not contain full or complete details pertaining to
the Group's results. This short-form announcement is itself not reviewed but extracted from the reviewed condensed
consolidated financial statements which were reviewed by Ernst & Young Inc. who issued an unmodified review conclusion
on the reviewed consolidated financial statements for the year ended 31 December 2024.
There review conclusion report can be obtained from the Company's registered office and on the Group's website at
https://southafrica.arcelormittal.com/InvestorRelations/AnnualResults.aspx. Any investment decisions by investors and or
shareholders should be made after taking into consideration the full announcement. The full results announcement is
available for viewing at https://senspdf.jse.co.za/documents/2025/JSE/ISSE/ACL/AMSA-FYE24.pdf and on the Group's
website at https://southafrica.arcelormittal.com/InvestorRelations/AnnualResults.aspx. The full announcement is available
for inspection, at no charge, at the registered office (ArcelorMittal South Africa Limited, Room N3-7, Main Building, Delfos
Boulevard, Vanderbijlpark) and the offices of the sponsor (Absa Bank Limited (acting through its Corporate and Investment
Banking Division), 15 Alice Lane, Sandton), from 09:00 to 16:00 on business days.
Copies of a full announcement can be requested from the registered office by contacting (016) 889 2352. The short-form
announcement has not been audited or reviewed by the Company's auditors.
Company Secretary
FluidRock Co Sec (Pty) Ltd
Sponsor to ArcelorMittal South Africa Limited
Absa Bank Limited (acting through its Corporate and Investment Banking division)
Date: 06-02-2025 08:00:00
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