A predictable and resilient model

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goods andservices, andchanging legislation in the countries where it operates.

To manage these challenges, Holland says GoldFieldshasa greatdealoftwo - way en gagement .

“Making sure our key stakeholders —gov ernments, trade unions and communities — understandthe risksand opportunitiesto our business iscritical, so we cancome up with joint solutions.”

Giventheunknownsat play,hesaysthe businessis structuredin accordancewith these andplanning is basedon a setof conservative economic assumptions. “For example, wewouldn’t be usinga goldprice of $1,900 an ounce. We’re using $1,300 an ounce to work out our business plans. At that price, we want to make a guaranteed minimum margin of about 15%.”

While few, if any,businesses were prepared for the Covid-19 pandemic, how they managed the impact is key.

Holland says that in Western Australia — wherealmosthalf thegroup’s production takes place—notasingle caseofCovid - 1 9 was recorded,and there wasno requirement to shut or curtail operations.

In Ghana,mining wasdesignated anessentialbusiness, sothere wasno needto shut operations thereeither. Though there were infections, there was a 96% recovery rate. As these countriestogetheraccountfor 80% of Gold Fields’production, the company was not hard hit.

In SAand in Peru, interruptionsto operationsweresignificant, buttheseregionsaccountfor only20% ofproduction, andinterruptions were temporary, and full pro duction resumed quickly.

On the outlook forthe company, Holland saystheSalares Norteprojectisprobably “the next big event”for the company.

“We should be bringing it into production in about threeyears from now. Thatis going to add another 450,000 ounces a year, which could takeour annual2-2.5-million-ounce target quitea bit higher.And thatwill come in at half the cost base, at sub $500 an ounce , which will be a significant milestone for us.

“I thinkwe’ll alsosee furthergrowth in productionat SouthDeepaswe continueto realise the vast potential of that asset.

“I’m pretty excited. If gold prices hold up we ’re poised to do even better than we ’ve done overthe past year,and we’repoised to become debt-free. We used to have over $2bnindebt,but now we could be debt-free within 18 months.

“And we ’repoised topay reallygood dividends. I think we’re in good shape.”

Customers come first in this innovative technological enterprise

By LYNETTE DICEY

● A leadingprovider ofmobility solutions forassetmanagement, assetrecoveryand workforce optimisation,Cartrack continues to deliver solid results.

The software technology company, which commenced operations in SAin 2004 and listed in December 2014, operates in 23 countries on five continents. It delivered stronggrowth insubscribers,sub s cri ption revenue andoperating profitin theyear to end - February.

Thefirst quarterofthe company’s financial year 2021 —ending inMay2020—wa s thequartermost affectedbytheCovid-19 pandemic as a resultof the hard lockdown imposedon anumber ofthe territoriesin which the company operates, says group CEO ZakCalisto. However,it appearseven a global pandemichas not lessenedinterest in its software, and the business has proved its resilience .

In October thecompany again reported robust year-on-year subscriber growth of 13%anda21% increasein headline earnings pershare inits half-yearresults. Totalrevenue rose 16% and operating profit increased by 16% to R368m—up from R316m.Thes e strong results were achieved despite the limited capacity, due to Covid-19 restrictions, to install the in-vehicle Internetof Things (IoT) technology the company specialises in.

“Thisreportingperiod wasmateriallyaffectedbyasubstantial numberofourcustomers facingcash-flow andoperational difficultiesdue tothesevere globallockdowns and travel restrictions,” says Calisto. “We stood byour customers andhave afforded them all reasonable assistance where possible . ”And despitethedifficulties, therewas strongdemandfor thegroup’s Software-asa-Service(SaaS) telematicsplatform,which deliversessential, real-timedata,visibility and impact for fleet operators.

Group CEO Zak Calisto.

Thepast fewmonthshavebeen some of Cartrack ’s bestyet interms ofnew subscribers, primarily frommedium and large fleet managers and owners, says Calisto.

“Our subscription-based model remains predictable and resilient.”

Itscustomers,who operateacrossindus tries and geographies, continue to derive significantly improved insightsand value from its single-integrated SaaS platform, with the result that subscriber churn has not spiked.

As lockdown restrictions have been eased, collections improved, andthecompany ’s healthy balance sheet and prudent capital allocationremain keystrengths, says Calisto, withthe resultthat Cartrackremai ns highlycash-generativewith astrongcash flow forecast for the foreseeable future.

The company continues to invest significantly inresearch and development, operational efficiency and distribution.

One ofits biggest challengesin SAis that whilethe countryhassome excellentsoftware developmenttalent, thereis ascarcity of skills in this area for the company to maintain andenhance itsSaaS platform,says Calisto. Asa result,Cartrackhasinvested in growingadevelopment hubinSingapore, whichhasenabledit tosourceglobaltalent to ensure global competitiveness.

Another shortageis the availabilityof au tomotive technicians to fit the smart IoT devices. “The necessaryauto-electricalskills

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requiredto fitthesedevices isin short supply and we rely on our internal Cartrack Academy intake of trainees, whichwe trainforover 18 monthsto befully accreditedCartrack automotivetechnicians,”Cal Interim CEO says the firm is reliably conservative in its planning assumptions ● Prioritisingsustainable marginsandfree cash-flow growthover scalehas been the keyto driving totalreturnsto AngloGold Ashanti ’s shareholders overtime, says interim CEO Christine Ramon.

“We ’ve workedhard tobalance thecapital needsfor bothsustaining productionand bringing in new ounces,”she says.

“Atits core,ourstrategyis focusedon careful capital allocationthrough the economic cycle.We produce asingle product, the price of which we don’t control, so we really do prioritise costcontrol and a flexible balance sheet —with less debt.

“We have for many years worked to diversify our portfolio, and we’re reliably conservativein ourplanningassumptions. Allth at conservatism means we ’ve nothad to lurch in anew direction —ourlong-term strategy isclear, andwe’ve continuedto executeon it , ”Ramon says. AngloGold Ashanti interim CEO Christine Ramon.

“We havea uniqueadvantage —the companyand theportfolioarein goodshape;the gold price is strong, and we can focus on makingsure wegetthebest valueinthe markets while also maintaining discipline.”

Thisyearthe companyworkedtostreamline its portfoliowhilestepping up investments in assetsthathavehigh geologicalpotential. Ramon says this is already paying off.

“Since our 2014 peak in net debt at $3.1bn, we have aggressively paid down more than50% of this throughseveral self-

5

TOP 100 COMPANIES Cartrack Holdings C

Share price, daily (cents)

2,800

September 2015: R10,000 August 2020: R52,746

2,300

success. Thefive pillarsof Cartrack’s cultureare customerfirst,innovation, meritocracy and transparency, centralised decision-making and loyalty. The local market remains u nderp enetrated, with substantial potential for growth, Calisto says. Car isto says. The company plans to 1,800 marketissupported byadditional sergrow its mobile workshopsin SA to over 700 in the next months . 1,300 vicesprovidedthrough theSaaSplatform. Theseincludeshort-term insur-

Cartrack ’s success,says Calisto, 800 ance, atrading platform,an emergencyis theresult ofinnovative technology and a business model and culture 201920182017 2016 2020 Graphic: Ruby-Gay Martin safety app, “Mi Fleet ”(a vehicle adminthat combine to deliver results. istration model designed to save costs),

A founder-run business,the company’s “Our systems are all proprietary and we “Communicator ”(a jobs and messaging culture promotesentrepreneurial behaviour avoidthird-party systemdependency. Ou r platform toimprove fleetcustomers’s ervice accompanied by strong business ethics. businessiswhatis referredtoasvertical levelsandefficiencies) and“Live Vision (a “We ’regearedfor organicgrowth,”says Cal- software. We control thefull customer cycle, real-time video solution). isto. “We ’re in full control of all the elements startingatclient acquisitionwithourown Calisto saysCartrack willremainfocused ofour incomestatementand balancesheet. CRM [customer relationship management] on innovation forsmart mobility, actionable We design anddevelop all of ourown tech- platform, to the SaaS platform delivery of our business intelligence and the expansion of nology and don’t outsource any parts of our core fleet management services.” the IoT, while benefiting from the megatrend business . Culture,headds,is keytothecompany’s of connectivity and digital transformation.

No lurching in a new direction

By ANGELIQUE ARDÉ

track ’s continued expansion in the help measures, taking our net debt to $1.43bn atthe end ofJune 2020while reinstituting dividend payments.”

All of this has been achieved without asking shareholders toraise equity capital, whichshe saysisa rarity,evenin thisstrong gold price environment.

“Eveninthe turbulencecreatedbythe pandemic, we’ve managedto advancethe redevelopment of our Obuasi project in Ghana, withminimal delayand withinour original budget. That’s no mean feat in a project ofthis size, whichwill seemore than $500m invested in redeveloping the mine thatwill tapintooneof Africa’s largest ore reserves, providingbenefit toa multitudeof stakeholders . We ’reimmensely proudof this achievement . ”

Ramon says the coronavirus pandemic remainsa significantchallengeand hasoffered somevaluable lessons.“The operating environment is now more complex, with newoperating andregulatory challengesin addition to the impact on everyday life.”

Notwithstanding these impacts, a geographically diverseportfolio with amix of open-pit mines, underground mines and surfaceprocessinghas providedameasure

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