Material issues

Our reporting is informed by our business model and strategy and the risks to the business. We also take into account the needs and concerns of our internal and external stakeholders.

This year we are reporting in terms of our material issues – those issues that are most material to the business and stakeholders, and which fundamentally influence the assessments and decisions of stakeholders.

We take the determination process of our materiality seriously and see it as an opportunity to assess whether we are focusing our energy and resources in the correct areas. We identified our material issues through a series of workshops which analysed our internal and external environments, information from the company’s risk register and stakeholder feedback. These issues are reviewed by management on an ongoing basis.

Our material issues should be read in conjunction with the company’s business risks.

Our material issues for 2015 were determined as follows:

Material issue 1

Ensuring the successful delivery and execution of our business strategy

It is the responsibility of executive management to set realistic and achievable strategic targets for the business (see business model and strategy). As a public company, the success of this strategy affects shareholders, or the providers of capital, and a range of other stakeholders, most importantly the group’s employees. In terms of this material issue we discuss these challenges and our response.

Business strategy

Material issue 2

Creating and maintaining safe workplaces that support our employees’ and contractors’ health and livelihoods

We aim to create and maintain safe and healthy environments for our employees and contractors. We will do this by continuously seeking to reduce injuries, applying appropriate technologies, through communication and training, and reinforcing operational standards and responsibility.

Safe workplaces

Material issue 3

Establishing and maintaining constructive communication channels with our employees and their representative bodies

We understand the importance of establishing and maintaining constructive communication channels with our employees and their representative bodies, both for our employees’ sake and that of the sustainability of our business. We do this through stakeholder engagement and sound employee relations based on direct channels of two-way communication.

Communication channels

Material issue 4

Ensuring that our stakeholders benefit, where appropriate and possible, from the value created by our company

We create value for stakeholders in many ways, including increasing production and sales; increasing earnings and growth; through taxes and royalties; transformation; salaries and wages; training and development; housing and accommodation; and investing in communities in the form of local economic development, preferential procurement and corporate social investment. We recognise that stakeholders, be they shareholders, employees, communities or government, have certain expectations of the company, not all of which may be appropriate or possible to meet. We need to understand and manage stakeholders expectations through credible and effective stakeholder engagement.

Value for stakeholders

Material issue 5

Maintaining our legislative and regulatory compliance, and in so doing, protecting our licence to operate

We recognise that we do business within the legal framework of the various South African government departments. We aim for full compliance with the laws of the land. In terms of this material issue we discuss the most relevant aspects of legislation as they apply to Northam and its operations. Given the nature of our business these remain the Mineral and Petroleum Resources Development Act (MPRDA) and the associated Mining Charter.

Compliance

Material issue 6

Acting as responsible environmental stewards and conserving resources

We understand the importance of being responsible environmental stewards. As responsible environmental stewards, we make optimal use of and conserve our natural resources (our focus is on water and energy, areas where we are most exposed); we make every effort to minimise our environmental impacts; where possible we conserve land; and we seek to comply strictly with all environmental legislation.

Environmental stewardship