Strategy and business model


Every year the Board and the Executive Committee review our strategy and the key material issues that need to be addressed if we are to achieve our strategic objectives.

We measure our achievements in terms of our four strategic pillars by annually setting key financial and non-financial performance indicators. We continually measure our performance against these indicators.




Click on the icons below to see how we use our business model to deliver against the four pillars of our strategy and create value beyond financial return.

Sensitivity analysis (10% change) — EBIT impact R(million)
BRPM Joint Venture’s breakeven cash cost versus its revenue basket price


How we use our stock of capitals to create value
        The stock of capital we had at the beginning of the year   The outputs we achieved from employing our stock of capitals     The outcomes we achieved   Trade-offs and actions to enhance outcomes
Financial capital   Financial
  • R836 million in cash on hand
  • R500 million available in revolving credit facility
  • R458 million general banking facilities of which R202 million was used for guarantees
  • NAV of R11.2 billion
  • R1.3 billion in cash on hand
  • R1.5 billion available in term and revolving credit facilities
  • R508 million general banking facilities of which R119.4 million was used for guarantees
  • NAV of R10.7 billion
  • Saleable product in the form of PGM concentrate
  • Cash flow generated by the sale of our concentrate achieved by employing financial, human, manufactured and natural capital
  Issuing of new RBPlat ordinary shares to fund the purchase of Maseve. Due to RBH not participating its shareholding in RBPlat will be reduced. This will increase the free float which is important for the liquidity of the RBPlat stock.
Manufactured capital   Manufactured
  • Mining infrastructure above and below ground at BRPM
  • Mining infrastructure above and below ground at Styldrift I
  • BRPM concentrator infrastructure
  • Stock of natural capital (reserves)
  • 2 992kt of ore delivered
  • IMS flexibility of 1.68 above our target of 1.5
  • 6.8km of development at Styldrift I
  • 3 021kt milled
  • 212koz Pt metal in concentrate
  • 328koz 4E metals in concentrate
  • North shaft Phase III replacement project at BRPM 96% complete at year-end

Stock of manufactured capital increased through:

  • 8.4% increase in tonnes delivered
  • Development at Styldrift I aligned with project progress
  • Mineable reserves available on a sustainable basis
  • Mining of unprofitable UG2 at BRPM's South shaft suspended
  The completion of the overland conveyor between Styldrift I and the BRPM concentrator during 2018 will provide a more cost-effective method of transporting ore and reduce the wear and tear on local roads.

Suspension of South shaft UG2 mining, which resulted in margin enhancement.

The acquisition of Maseve will extend the life of the South shaft Merensky and facilitate the ramping up of Styldrift I to 230ktpm.
Human capital   Human
  • 7 400 employees**
  • Effective agile leaders
  • R62 million invested in training and development
  • Skilled employees
  • 8 372 employees**
  • R73.5 million invested in training and development
  • Zero fatalities
  • Safety leadership improving
  • Retained the skills we require
  • R2 billion invested in human capital in the form of salaries, wages and benefits and human resource development provided us with a workforce qualified to mine and process our natural capital
  • Focus on safety leadership skills training
  • Reduced size of workforce by means of voluntary severance packages (VSPs) and section 189 retrenchments
  While we achieved a reduction in enrolled employee numbers at BRPM of 17.7% through our restructuring process, there was a 71.7% increase in enrolled employees at Styldrift I as a result of the increase in activity at the mine.
Intellectual capital   Intellectual
  • Sustainability, risk management, assurance and governance structures
  • Systems, controls and processes
  • Geological model
  • Digitalisation of Styldrift I
  • Ability to innovate
  • Effective decision-making resulting in strong governance, proactive risk management, ability to react rapidly to changing business conditions
  • Increased understanding of ethical culture in RBPlat
  • Ability to rapidly identify and address safety risks
  • Integrated thinking
  • Innovative ways of working
  • Risks and opportunities identified and responded to
  • Effective corporate governance
  • Status of ethical culture assessed
  • Mechanised mining processes at Styldrift I increase safety
  • SILO safety, health and environment (SHE) risk database system further developed
  • Ability to view and immediately correct activities in the mine, if necessary, provided by digitalisation
  • New strategy development process in place
  The proposed purchase of Maseve will provide a number of options for the further development of our operations.
Social and relationship relationship   Social and

  • Social licence to operate
  • Investment of R287.1* million in SLP commitments during 2016
  • R1.65 billion invested in HDSA discretionary procurement in 2016
  • R513.7 million spent on local HDSA discretionary procurement
  • Effective stakeholder relationships
  • R40.5 million invested in SLP commitments
  • 315 community members trained in portable skills
  • R2.3 billion in HDSA discretionary procurement
  • R924.6 million spent on local HDSA discretionary procurement
  • R2.4 million spent on enterprise and supplier development
  • Poverty alleviation
  • Enhanced community skills and employability of community members
  • Improved maths and science results
  • Increased HDSA, and in particular local HDSA, procurement
  • Enterprise and supplier development programme provided training for local entrepreneurs
Natural capital   Natural
  • Mineral reserves increased 8%
  • 40% reduction in potable water consumption as a result of commissioning of a water treatment plant
  • Energy and water use efficiency targets met at BRPM concentrator
  • Effective environmental management
  • Efficient use of the energy and water we employ in our operations
  • Effective waste management
  • Established the vulnerability of our operations and local communities to climate change through the commissioning of a climate change vulnerability assessment
  • 16.1% increase in potable water usage as a result of increased production
  • Impact of our mining activities minimised
  • Disturbed land rehabilitated
  • 1% increase in our Merensky mineral reserves ounce content and 2.5% decrease in UG2 mineral reserves ounce content year-on-year
  • Waste material treated and correctly disposed of
  • Energy efficiency targets were met at the BRPM concentrator, but not at the mine
  • Water efficiency targets were met at the concentrator and Styldrift I but not at BRPM
  Knowledge regarding the vulnerability of the area in which we operate to climate change allows us to put in place a strategy and plans to address its future impact on our operations and communities.