Business model

BUSINESS
INPUTS

FINANCIAL CAPITAL

R2,902 million
Capital expenditure
R9,145 million
Procurement
44,474kg (1.43Moz)
Gold produced
R434,663/kg (US$1,408/oz)
Average gold price

HUMAN CAPITAL

36,274
Number of employees
R316 million
Training and development

SOCIAL CAPITAL

Beatrix Social and Labour Plan approved
Kloof and Driefontein Social and Labour Plans submitted
Identification of and engagement with stakeholders
R1,050 million
socio-economic development expenditure

NATURAL CAPITAL

76,636Ml
Water used
14,298TJ
Energy used
6,905,373t
Rock mined

MANUFACTURED CAPITAL

19.7Moz
Reserves
65.0Moz
Resources
Improving operational productivity and efficiencies

ACTIVITIES
 

Exploration [icon]

EXPLORATION AND NEW BUSINESS

Prospective targets are identified and exploration or due diligence is undertaken. Worthwhile opportunities undergo intensive evaluation.

Underground mining [icon]

UNDERGROUND MINING

Vertical shafts are in place to transport people and equipment to and from orebodies (more than 1,000m below surface) and to bring the ore mined to surface. Gold-bearing ore is drilled, blasted and the ore is brought to surface.

Treatment and processing [icon]

TREATMENT AND PROCESSING

Once mined, gold ore is processed into doré (unrefined gold bars) at the operations and dispatched to Rand Refinery for further beneficiation.

Refining [icon]

REFINING

At Rand Refinery, the gold doré is refined and sold to bullion banks in South Africa and internationally, or to jewellery-fabrication industries. Gold is a significant component in a number of medical applications and lends itself to recycling.

Retreatment [icon]

RE-TREATMENT

The surface operations re-treat tailings, a product of processing, for residual gold and uranium. This re-mining serves as a form of rehabilitation as the tailings storage facilities are permanently removed.

Rehabilitation [icon]

REHABILITATION AND CLOSURE

Rehabilitation of the land disturbed by mining is an integral aspect of a mine plan from the beginning and throughout the life of an operation. Closure plans take the livelihoods of communities into account.

WHAT MAKES US DIFFERENT?

MATURE HIGH QUALITY OPERATIONS

  • Proven operating methods, track record, well-understood geology
  • Capital sunk into existing, quality infrastructure
  • Excess capacity provides opportunity to increase throughput at minimum cost
  • Opportunities to reduce unit costs and increase effectiveness

LARGE HIGH-GRADE RESOURCES Provide opportunity to bring to account vast resources at an appropriate cost structure

Low capital to maintain production levels

Mature operations offering possibilities for significant cash generation

Superior long-term dividend yield an area of focus

FIRST-MOVER ADVANTAGE AND STRATEGIC LOCATION

  • Regional presence potentially offers value-accretive consolidation opportunities

OPERATING
STRATEGY

REDUCE Costs and payments

INCREASE Flexibility

INCREASE Margins

OPTIMISE All capital including balance sheet

STRONG Cash flows

ROBUST Dividends