The current weakness in the PGM basket price remains a concern as it is too low to sustain the industry at these depressed levels.

Understanding the future demand for our products, and the corresponding industry supply-side profile. Scanning the environment for technological advances that may affect the demand for Implats’ products (substitution), and instituting appropriate responses where possible.

• Excellence: Deliver operational excellence
• Wisely preserve cash

Short-term challenges include: ramping up to full production; maintaining our ability to achieve completion of the mining cycle; speeding up the establishment of face length in new mining areas; ensuring increased productivity.

Ensuring the safe return to work for all employees by implementing the detailed start-up plan for the operations.

Implementing initiatives relating to: mechanised off-reef development, management of critical spares, detailed work procedures, team mobilisation, training, mine planning protocols, production planning, quality mining and visible felt leadership.

• Excellence: Deliver operational excellence
• Consistently deliver on production targets

The financial impact of the protracted strike has been far reaching. The cash reserves have been largely consumed by the start-up and ramp-up process. Implats is currently operating in a cash constrained mode, as are our peers.

Proactive and rigorous review of the short and long-term business planning process and parameters, together with ensuring that appropriate debt and equity funding is available or in place.

• Excellence: Deliver operational excellence
• Continually improve operational efficiency

There is an exposure to high taxation as a result of the unique Zimplats taxation, particularly the special mining lease (SML). There are multiple and sometimes conflicting interpretations of this piece of taxation legislation, giving rise to taxation risks.

Ensuring compliance through external tax audits and the use of specialist tax advisory services.

Strong commitment to tax training and awareness, resolution of historical tax matters and the tax risk management framework.

• Together: working together for the benefit of all our stakeholders
• Strive to be a good corporate citizen

Section 54 stops have cost Impala Rustenburg and Marula approximately R833 million in direct forgone revenue during the 2015 financial year. The indirect cost of these stops in terms of management time and start-up difficulties are of a similar magnitude.

Rigorous interrogation of the impact of Section 54s, along with participation in the initiative by the Chamber of Mines. Strong commitment to training of management, as well as to incentivise safe working conditions.

• Behaviour: Safe and effective people

Safety is the primary priority for the Implats leadership. The increase in the number of fatalities is unacceptable. It must be noted that there has been an improvement with regard to NLTIs and LTIs, but not with fatalities this year. Mine safety is receiving high priority at a national political level and any significant deterioration in performance carries significant risk. Since the end of the strike, we have had six fatalities at our Impala Rustenburg operations.

Strong strategic commitment to develop an appropriate safety culture, driven through initiatives relating to people, practices and the physical environment.

• Behaviour: Safe and effective people

In South Africa, the electricity supply industry is dominated by Eskom, which owns and operates the transmission grid. Eskom has a net installed generation capacity of 42 000MW. Given planned and unplanned outages it is able to bring a maximum of 36 000MW on line at present. 60% of the generating capacity is beyond the 30 years design life.

Maintaining regular contact with Eskom to ensure we are aware of any situation that may affect us.

Ensuring appropriate emergency evacuation plans.

Implementing initiatives to reduce energy consumption.

• Sustainability: Conserving natural resources

The current cash constrained environment has necessitated the review and reconsideration of a number of our capital projects. Current capital constraints run the risk of affecting not only delivery of current projects, but also the project pipeline as a whole.

Continual review of project prioritisation along with stringent application of professional project management principles and methodologies.

Rigorous risk management is practiced at every level of capital projects.

• Excellence: Deliver operational excellence
• Wisely preserve cash

Following the profound impacts of last year’s five-month strike, we need to shape relationships with trade unions based on shared values and mutual interest, allowing unions/managers to share information more freely/openly and to resolve conflicts seeking mutually beneficial outcomes.

Striving to provide an enabling work environment that fosters open, honest and effective relations between management, employees and elected union representatives.

Engaging with various government departments directly, working with the Chamber of Mines and labour representatives to find sustainable solutions to industrial relations challenges in the country.

• Behaviour: Safe and effective people
• Together: Social capital investment