Sales – Platinum Ounces Sold
Performance
Definition
Platinum ounces sold are the metal we sell either as refined ounces or recoverable ounces sold in concentrate.
Comment
For ten of the twelve months of the year our business delivered according to plan and we achieved our revised platinum sales guidance of 720,000 ounces. These results are particularly pleasing given the safety issues and illegal strike we experienced.
Underlying EBIT (Earnings Before Interest and Taxation)
Performance
Definition
For any business the ultimate aim is to grow underlying EBIT and deliver value to shareholders. We track our performance by looking at our EBIT from continuing operations. Underlying EBIT is calculated on profit for the year and excludes the effect of one off and non-trading items.
Comment
This significant increase in profitability reflects improved PGM and base metal prices, higher volumes partially offset by the stronger Rand and increased costs.
Lonmin Costs – C1 Costs of Own Production
Performance
Definition
Cost per unit is key to allowing us to operate profitably for far longer through any down cycle. C1 costs are defined as cash operating costs per PGM ounce produced.
Comment
The illegal stoppage at Karee impacted unit cost – we met our revised guidance of an 11.2% increase in unit cost
as momentum in production was restored.
Free Cash Flow
Performance
Definition
We believe that a key metric of how successful we are as a business is ultimately the amount of cash we generate before dividends and acquisitions.
Comment
The improved free cash flow is due to improved operating profits coupled with a much improved working capital position.
Safety LTIFR – (Lost Time Injury Frequency Rate)
Performance
Definition
As a Company we are committed to Zero Harm to our employees and contractors. We also regard safety performance as a lead indicator of the health of any business. LTIFR is measured per million man hours worked and reflects all injuries sustained by employees which mean that the injured party is unable to return to work on the next shift.
Comment
Our safety performance following the cluster of fatalities mid year improved and our LTIFR for 2011 showed a 19.8% annual improvement.
Development – Immediately Available Ore Reserves
Performance
Definition
We have placed a renewed focus on mine development, using a metric of immediately available ore reserves in square metres or centares. In 2009 we changed our reporting methodology for ore reserve development, in line with industry best practice, to exclude partially developed ore reserves. We have reported on this basis since then.
Comment
Our immediately available ore reserves at our Marikana operations were a remarkable 8.8% higher than last year. This level of preparedness allows us to plan our future growth with confidence.
PGM Instantaneous Recovery Rate
Performance
Definition
The instantaneous recovery rate is the product of the recoveries achieved at each step of the processing cycle and measures the efficiencies in the recovery of all metals.
Comment
We have seen consistent improvements in our instantaneous recovery rate, as the rate increased to 82.5% as we continued to focus on improved efficiencies.
Energy Efficiency
Performance
Definition
We continue to closely monitor and measure our energy usage and efficiency. We are running a number of initiatives across our operations to ensure energy efficiency levels are improved.
Comment
This year our total energy consumption increased by 5.1% in 2011 to 6,533 Terajoules. However, our energy per unit of production has decreased by 11.1%
from the 2007 baseline.