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Report scope and boundary

This integrated report addresses the sustainability of the business in an holistic way, including both financial and non-financial performance and forms part of a suite of reports prepared for stakeholders.

Joint review of the
chairman and the CEO

Glyn Lewis, chief executive and Lazarus Zim, chairman

The platinum mining business has been particularly challenging during the past year with poor economic fundamentals, safety stoppages and labour relations issues to deal with.  

 

F2012 salient features

  • Corporate and
    financial
    Operating margin [graph]
    • Macro economic fundamentals weigh on PGM prices
    • Improved production supports sales revenues
    • 4% Drop in earnings to R301 million
    • R1.1 billion paid to employees in salaries, benefits – 56% of total value distribution
    • Decline in BEE equity levels – discussions in progress to restore levels to 26% ahead of 2014
    • Total funding of R2.25 billion secured for Booysendal capex requirements
    • Final dividend passed to promote cash preservation
  • Operational
    • Modest operational recovery at Zondereinde
    • Higher grades and tonnages
    • 15.4% improvement in PGM output to 289 000oz
    • 28 production days, or R300 million in revenue lost owing to DMR stoppages
    • Furnace rebuild at Zondereinde prompted by run-out at smelter
    • Uninterrupted capex programme at Zondereinde and Booysendal
      • Feasibility studies into additional smelting facilities
      • Booysendal mining and infrastructure – R1.5 billion
      • Concentrator plant – R1 billion
    • Almost 5 000 metres of development completed at Booysendal
    • Reverse declines connected with on-reef declines
    • Conveyor installation in progress
    • Ongoing community engagement to secure Eskom power supply
  • Employees, communities
    and environment
    Value distribution F2012 [graph]
    • Northam operations provide 11 673 employment opportunities
    • Two-year wage agreement effective 1 July 2011
    • Two fatalities occurred during the year. Key safety indicators show deterioration in performance
    • Continued participation in the CDP and CDP 2012 water survey
  • Governance and
    compliance
    • Social, ethics and human resources committee established in February 2012
    • Progress in King III compliance
    • New order mining rights in place at both Zondereinde and Booysendal
    • Northam remains a constituent of the JSE SRI Index
    • Zondereinde granted integrated water use licence (IWUL)