Reviewed group results for the year
ended 31 December 2011

Notes to the reviewed condensed consolidated financial statements

1.	Basis of preparation
	The condensed reviewed consolidated financial statements have been prepared in compliance with the Listings Requirements of the JSE Limited, the recognition and measurement requirements of International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), the AC500 standards as issued by the Accounting Practices Board and the South African Companies Act. These statements were compiled under the supervision of Mr RH Torlage, the Chief Financial Officer.
2.	Significant accounting policies
	These condensed reviewed group financial results for the year ended 31 December 2011 have been prepared on the historical cost basis, except for the revaluation of financial instruments. The accounting policies and methods of computation applied in the presentation of the financial results of the group are consistent with those applied for the year ended 31 December 2010, except for the adoption of the following Amendments and Interpretations in advance of their effective date with no impact on the group’s financial results or disclosures: • IAS 12 (Amendment): Deferred Tax – recovery of underlying assets; • IFRS 1 (Amendment): First Time Adoption of IFRS – severe hyperinflation and removal of fixed dates for first-time adopters; • IFRS 7 (Amendment): Financial Instruments: Disclosure – offsetting financial assets and financial liabilities; • IAS 32 (Amendment): Financial Instruments: Presentation – offsetting financial assets and financial liabilities. The results for the year ended 31 December 2011 included the results from Coal of Africa Limited for the period 1 October 2010 to 30 September 2011.
3.	Independent review by the auditors
	The condensed consolidated financial results have been reviewed by the company’s auditors, Deloitte & Touche, in accordance with International Standards on Review Engagements 2410. They expressed an unmodified review opinion on the financial information for the 12 month period ended 31 December 2011. No opinion is expressed on the quarterly information disclosed herein. A copy of their report is available for inspection at the company’s registered office. Any reference to future financial performance included in this announcement has not been reviewed or reported on by the company’s auditors.

		Quarter ended (Unaudited)			Year ended 31 December
	Rm	31 December 2011	30 September 2011	31 December 2010	2011 Reviewed	2010 Audited
4.	Finance costs	106	74	158	168	507
	Interest expense on bank overdrafts and loans	24	5	3	32	8
	Interest expense on finance lease obligations	17	17	19	71	77
	Discounting rate adjustment of the non-current provisions	25	31	24	22	100
	Net foreign exchange (gains)/losses on financing activities		(23)	76	(124)	150
	Unwinding of the discounting effect in the present
	valued carrying amount of the non-current provisions	40	44	36	167	172
5.	Income tax (credit)/expense	(82)	(97)	(258)	118	492
	Current normal and deferred tax (credit)/expense	(82)	(119)	(210)	101	476
	Normal and deferred tax expense recognised in relation to tax of prior years			(41)	(5)	(44)
	Secondary tax on companies		22	(7)	22	60
6.	Borrowings and other payables
	Leave pay	328	311	282	328	282
	Loan	20	20	30	20	30
	Total	348	331	312	348	312
	Disclosed as:
	– non-current	241	227	224	241	224
	– current	107	104	88	107	88
7.	Capital expenditure
	Incurred	525	329	962	1 190	1 714
	Contracted	887	621	641	887	641
	Authorised but not contracted	728	877	1 045	728	1 045
8.	Contingent liabilities
	Guarantees	1	1	1	1	1
9.	Operating lease commitments	278	270	313	278	313
	Less than one year	83	88	148	83	148
	More than one year and less than five years	190	175	161	190	161
	More than five years	5	7	4	5	4

10.	Related party transactions
	The group is controlled by ArcelorMittal Holdings AG which effectively owns 52.02% of the company’s shares. During the year, the company and its subsidiaries, in the ordinary course of business, entered into various sale and purchase transactions with associates and joint ventures. These transactions occurred under terms that are no less favourable than those arranged with third parties.
11.	Corporate governance
	The group subscribes to the Code on Corporate Practices and Conduct as contained in the third King Report on corporate governance.