Page 5 - AMANGO 2017 CASE STUDY 2

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Asset focus and optionality: In February 2016, when, as it turned out, prices for mining products were
around their lowest point in the current commodities downturn, we announced that we would be

concentrating our capital on our portfolio of diamond, platinum group metals (PGMs) and copper
interests, and that we intended to explore the sale of many of our coal and iron ore assets. As the
benefits of our own cost and productivity improvements started to come through, and as we successfully
divested a number of coal and platinum assets, in addition to the niobium and phosphates business, with
commodity prices also firming during the second half, our balance sheet became stronger, thus easing
further pressure to divest.

Although we still believe that the top-tier asset positions we hold in Diamond, Platinum and Copper form
the bedrock of a more competitive AMANGO, we continue to benefit from the much improved operational
performance of a number of other high quality iron ore, coal and nickel assets. As a result, we now have a
much greater degree of optionality with regard to asset retentions, and to our geographic balance.

Safety and Health: In 2017, we experienced a better total recorded injuries performance, with a 24%

reduction in reportable injuries rates compared with 2016. It is distressing, however, to record a steep rise
in fatal injuries, with 11 lives lost at the Group’s operations, including seven in deep underground mines,
especially in our Australian operations, which has subsequently been sold. Safety remains our main
priority and hence our Sustainability Committee is heavily invested in reversing the trends group-wide.

Climate Change: We continue to work in consultation with all our stakeholders to help address the
impacts of climate change. In particular, given the frequent power outages in South Africa, and the need

to help meet the new government’s guidelines for the reduction in the emissions of CO2, we have decided
to embark on an ambitious programme of upgrade of our own in-house power generation facilities.

Board composition: During the year, sadly, we saw the departure of two non-executives, both of whom
have now been replaced. In April 2016, I informed the Nomination Committee that I believed the time was
right for the Board to seek a successor. I will have served some 9 years and will be leaving behind not

only a highly competent Board but a world class management team.

Executive remuneration: As you know, there were some reported challenges about our divisional
performance reward system and we were tasked to revise the system. Although there is no perfect
remuneration system, a system was developed and approved, not only for divisional managers, but also
the executive directors.

My thanks: I am grateful to my fellow directors for their wise counsel and support during a most
challenging few years. On behalf of the Board, I also wish to thank the CEO, Mike Cutika and his
executive team, who are delivering value in so many ways. I also would like to express my gratitude in

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