Performance against objectives
Objective | KPIs | Performance in 2013 |
---|---|---|
Safe, profitable production |
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Safety performance improved – fatal injury frequency rate (FIFR) reduced by 41% and lost-time injury frequency rate (LTIFR) by 11% Safety statistics approaching global benchmarks Sibanye won most South African industry safety awards in 2013 Initial productivity gains from organisational restructuring support sustainable production levels in long-term Total headcount reduced by 14%; contractors reduced by 37%; contractors comprised only 7% of workforce Increased operating margin from 35% to 38% |
Arrest declining production profile |
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Turnaround successful; ore milled increased by 12% and gold production by 17% Increased focus on operational perfomance and quality of mining Gradual shift to shallower mining and extended life of mine (LoM) facilitated by acquisitions |
Reverse increasing cost trends, reduce paylimits and increase margins |
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Combined corporate and regional structures Removed layers of management at the operations Reduced spans of control by separating KDC into Kloof and Driefontein Introduced new operating model – multi-disciplinary, empowered teams Flattened organisational structures to ensure more experience and higher levels of skill closer to the face Rightsized the support services function Average underground operating cost decreased by 6% to R1,623/t (US$169/t) All-in cost reduced by 7% to R354,376/kg (US$1,148/oz) |
Optimise capital and increase flexibility |
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Reduced gross debt by over 50% Restructured debt on more favourable terms and without restrictions Optimised allocation of capital – increased development rates Reinvesting in ore reserve development (ORD) Ongoing assessment of potential to safely mine secondary reef resources, remnant areas and pillars Gold reserves increased by 6Moz – maintain higher production levels for longer 4Moz gold and 43Mlb uranium unlocked in West Wits tailings storage facilities (TSFs) as a result of the proposed acquisition of the Cooke Operations Future of Beatrix secured by acquisition of Wits Gold |
Improve and embed relationships, as well as management focus |
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Implement service level contracts Win the hearts and minds of employees by re-establishing direct communication channels Invest in skills development and transformation Deliver on Mining Charter requirements |
Deliver value-accretive consolidation opportunities |
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Enhancing acquisitions with cash flow and earnings Strategic acquisitions are consistent with strategy to extend operational life |