Sunday Times Top 100 Companies

Sunday Times TOP 100 COMPANIES

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Sunday Times TOP 100 COMPANIES

11 Gold helps H armony g l itter

METHODOLOGY

Contents 6... Chasing value, not ounces 7... Unexpected route to a good end 8... Flexibility, resilience and discipline 10... Sibanye stays agile in green metal drive 16... ‘The world needs what we produce’ 19... Aiming to create long-term value 20... Winning formula, enterprising spirit 21... Pan African Resources shoots up the ladder 22... Kumba set for sustainable future 14 Li feti me Ach iever

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18 Busi nes s L ea d e r of the yea r

Scope, size and investment period ● Companies listed on the JSE with a minimum market capitalisation of R5bn as at August 31 2023 with a track record of five years trading from August 31 2018 are included. ● Selected companies that meet the aforementioned criteria but are no longer listed on the JSE or the share is suspended at August 31 2023 are excluded from the analysis. ● The executive management of Arena have also considered certain subjective qualifying criteria, relating to the Top 100 Companies’ perceived compliance with good governance and ethical conduct. ● The share performance analysis assumes an initial investment of R10,000 at the closing price on August 31 2018 and held for a period of five years from September 1 2018 to August 31 2023. ● The companies are ranked based on the compound annual growth rate over the fiveyear period. This analysis assumes that a fraction of a share can be purchased.

Corporate action The share price performance is adjusted for corporate actions during the review period as follows: ● Ordinary and special dividends: The gross dividend per share is assumed to be reinvested in the company on the dividend payment date at that date’s closing share price. ● Scrip dividends: It is assumed that the cash option was elected and that the gross dividend is reinvested in the company as described above. ● Capitalisation issue: Shares received are held until the end of the review period. ● Unbundling: The shares in “NewCo” received are assumed to be received on the last date to trade and are tracked separately. The compound annual growth rate is calculated based on the basket of shares held at the end of the period as a result of the original R10,000 investment. ● Share split/consolidation: Share price data is adjusted for these corporate events. ● Rights issue: It is assumed that rights are not taken up and lapse, therefore no adjustment is made. ● The Sunday Times Top 100 Companies

results were compiled by Vestra Advisory.

Vestra is a corporate advisory firm which provides regulatory, strategic and financial advice to its clients. Vestra assists its clients in providing bespoke solutions through the introduction of innovative ideas and comprehensive strategies founded on sound regulatory understanding, relationships, structural expertise and knowledge of structured and specialised instruments.

Cover design: Nolo Moima/AI

Sunday Times TOP 100 COMPANIES

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TOP 100 COMPANIES OVER FIVE YEARS* Share name

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

Market cap as at Aug 31 2023 (Rbn)

217.01 Gold Fields 16.53 DRD Gold 88.05 Impala Platinum 81.35 Sibanye-Stillwater 48.71 Harmony Gold Mining Company 49.38 Northam Platinum 135.45 Anglogold Ashanti 8.43 Datatec 7.47 Pan African Resource 133.79 Kumba Iron Ore 2,771.00 BHP Group 8.93 Afrimat 40.22 African Rainbow Mining 24.43 Sirius Real Estate 58.62 Exxaro Resources 1,403.12 Compagnie Fin Richemont 678.14 Anglo American 175.38 Anglo American Platinum 1,376.85 Glencore 26.42 Montauk Renewables Hosken Consolidated Investments 19.60 7.71 Alexander Forbes Group 77.88 Investec plc 32.75 Investec 61.30 OUTsurance Group 183.98 Capitec Bank 18.02 PSG Konsult 73.34 Woolworths 226.72 MTN Group 7.41 Grindrod 96.96 Bidvest 5.97 Stor-Age Prop REIT 11.44 ADvTECH 154.54 Absa Group 79.23 Reinet Investments S.C.A 142.49 BID Corporation 65.96 Clicks Group 156.01 Shoprite 1,401.03 Naspers -N11.37 AECI 188.54 South32 28.68 Momentum Metropolitan 411.74 Firstrand 323.78 Standard Bank 14.90 MAS Real Estate 83.64 Remgro 1,545.79 British American Tobacco 5.36 Tharisa 29.60 Truworths International 72.07 NEPI Rockcastle

Total return (%)

668.27 638.43 610.22 317.98 240.04 219.56 193.80 190.45 175.56 174.09 170.40 166.54 144.94 138.29 136.94 132.22 130.32 121.60 108.40 97.38 88.03 86.29 78.70 78.33 73.82 71.70 63.67 61.48 58.91 53.90 53.69 52.97 50.98 50.57 50.26 48.63 48.56 48.54 43.06 41.38 40.57 39.84 37.47 37.23 35.93 33.06 26.08 23.27 22.31 19.91

*Final Compound value annual growth (R) rate (%)

76,827 73,843 71,022 41,798 34,004 31,956 29,380 29,045 27,556 27,409 27,040 26,654 24,494 23,829 23,694 23,222 23,032 22,160 20,840 19,738 18,803 18,629 17,870 17,833 17,382 17,170 16,367 16,148 15,891 15,390 15,369 15,297 15,098 15,057 15,026 14,863 14,856 14,854 14,306 14,138 14,057 13,984 13,747 13,723 13,593 13,306 12,608 12,327 12,231 11,991

50.3 49.2 48.0 33.1 27.7 26.2 24.1 23.8 22.5 22.3 22.0 21.7 19.6 19.0 18.8 18.4 18.2 17.3 15.8 14.6 13.5 13.3 12.3 12.3 11.7 11.4 10.4 10.1 9.7 9.0 9.0 8.9 8.6 8.5 8.5 8.2 8.2 8.2 7.4 7.2 7.0 6.9 6.6 6.5 6.3 5.9 4.7 4.3 4.1 3.7

Share name

51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

Market cap as at Aug 31 2023 (Rbn)

34.38 Santam 9.04 Oceana Group 224.12 Vodacom Group 16.06 Italtile 14.47 Resilient REIT 5.01 Liberty Two Degrees 150.13 Sanlam 11.11 Reunert 16.07 Barloworld 13.86 Vukile Property Fund 15.84 Fortress REIT A 105.34 Nedbank Group 61.54 Old Mutual 9.84 Equites Property Fund 59.78 Pepkor 9.64 Lighthouse Capital African Rainbow Capital Investments 7.53 9.38 Adcock Ingram 28.66 Quilter 153.41 Mondi plc 12.93 Tsogo Sun Gaming 11.80 Super Group 31.50 Life Healthcare Group 7.34 Astral Foods 24.53 AVI 98.77 Discovery 1,880.83 Anheuser-Busch InBev SA NV 11.20 Coronation Fund Managers 8.36 JSE 5.96 Investec Property Fund 8.06 Wilson Bayly Holms-Ovcon 29.47 Tiger Brands 40.52 Growthpoint Properties 9.81 RCL Foods 9.69 Sun International 20.56 Dis-Chem Pharmacies 6.35 Attacq 33.97 Mr Price Group 6.70 Fortress REIT B 34.58 The Foschini Group 6.03 Famous Brands 11.49 Globe Trade Centre S.A. 76.84 Aspen Pharmacare 19.79 The Spar Group 54.88 Shaftesbury Capital 17.20 Pick n Pay Stores 13.83 Telkom SA SOC 9.19 Omnia 25.25 Redefine Properties 19.05 Netcare

Total return (%)

19.86 17.81 16.92 15.88 12.49 11.87 11.43 9.28 8.93 8.10 4.74 3.94 0.36 -2.60 -2.78 -3.45 -5.08 -7.80 -8.39 -8.88 -9.43 -10.16 -10.85 -10.93 -12.72 -12.76 -14.79 -15.11 -15.46 -17.20 -20.23 -20.74 -24.32 -24.62 -25.00 -25.29 -28.87 -29.86 -30.40 -31.15 -33.62 -34.34 -37.69 -39.62 -40.90 -41.69 -42.02 -43.34 -45.11 -46.21

*Final Compound value annual growth (R) rate (%)

11,986 11,781 11,692 11,588 11,249 11,187 11,143 10,928 10,893 10,810 10,474 10,394 10,036 9,740 9,722 9,655 9,492 9,220 9,161 9,112 9,057 8,984 8,915 8,907 8,728 8,724 8,521 8,489 8,454 8,280 7,977 7,926 7,568 7,538 7,500 7,471 7,113 7,014 6,960 6,885 6,638 6,566 6,231 6,038 5,910 5,831 5,798 5,666 5,489 5,379

3.7 3.3 3.2 3.0 2.4 2.3 2.2 1.8 1.7 1.6 0.9 0.8 0.1 -0.5 -0.6 -0.7 -1.0 -1.6 -1.7 -1.8 -2.0 -2.1 -2.3 -2.3 -2.7 -2.7 -3.1 -3.2 -3.3 -3.7 -4.4 -4.5 -5.4 -5.5 -5.6 -5.7 -6.6 -6.8 -7.0 -7.2 -7.9 -8.1 -9.0 -9.6 -10.0 -10.2 -10.3 -10.7 -11.3 -11.7

*Return over five years from September 1 2018 to August 31 2023, on a theoretical R10,000 investment. The results were compiled by Vestra Advisory. The executive management of Arena Holdings have also considered certain subjective qualifying criteria, relating to the Top 100 Companies’ perceived compliance with good governance and ethical conduct.

Graphic: Ruby-Gay Martin.

PREVIOUS WINNERS 2022 Montauk Renewables

2017

Finbond Group

2012

Capitec Bank

2007 DAWN

2021

2016

Calgro M3

2011

Assore

2006 Mittal Steel SA

2020 DRDGOLD

2015

Fortress Income Fund B

2010

Capitec Bank

2005 Grindrod

2019

Capitec Bank

2014

Coronation Fund Managers

2009 Basil Read

2004 Grindrod

2018

Capitec Bank

2013

Coronation Fund Managers

2008 Basil Read

2003 Mvelaphanda Resources

Kumba Iron Ore

Sunday Times TOP 100 COMPANIES

5

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Sunday Times TOP 100 COMPANIES

Chasing value, not ounces Aggressive cost containment, asset optimisation key to Gold Fields’ winning strategy

A Gold Fields operation. Picture: Philip Mostert

relating to increasing female representation in its global workforce, reducing carbon emissions and using more recycled water.

The five-year A$500m syndicated credit facility, with a A$100m accordion option, is one of the first sustainability-linked loan transactions in the Australian mining industry and the first for a gold mining company in the country.

The sustainability-linked indicators are the same as those being used by Gold Fields in its five-year $1.2bn revolving credit facility announced in May this year. They are also aligned to the company’s strategy and its 2030 ESG targets, which prioritise gender diversity, decarbonisation and water stewardship.

Preece says the company is confident its Salares Norte project in Chile, a high-grade,

epithermal gold-silver open-pit deposit situated high in the Andes in northern Chile, will start to generate returns before the end of the ● A challenging operating environment year. characterised by high mining cost inflation As one of the world’s lowest-cost mines, and competition for skills in its key mining the inclusion of Salares Norte will have a sigjurisdictions hasn’t held Gold Fields back nificant impact on Gold Fields’ profile by acfrom delivering solid results. The 130-yearold diversified gold producer was ranked No 1 celerating production growth and reducing in the Sunday Times Top 100 Companies. all-in costs, it will materially improve the Gold Fields owns and operates mines in value of the group’s portfolio.

South Africa, Ghana, Australia and Peru and “We’re not chasing ounces at all costs but two projects in Canada and Chile. In recent instead looking at where we can get the best years the company has transformed itself invalue,” says Preece, adding that the group plans to keep investing in growth opportunto a modern and global business that has embedded environmental, social & governance ities to improve the quality of its portfolio.

The company’s safety performance re(ESG) into its business.

In line with its plans, it decreased attributmains a challenge, he says. The company reported one operational fatality and three serable production by 4%, with all-in costs rising ious injuries during the first half of 2023, and only 3% in the first half of 2023. Though norone non-operational fatality in Ghana. malised earnings decreased 9% year on year, the company generated free cash flow of “We recognise that we still have work to do regarding safety, despite the exponential $140m, allowing it to declare an interim diimprovements we have made in this area in vidend of R3.25 a share, up from R3 a share in recent years.” the first half of 2022.

Another challenge is finding approA strong balance sheet means when oppriate skills. Its Australian operations portunities present themselves, the company is in a position to take them, says interim CEO are the most affected by a shortage of requisite skills, he says.

Martin Preece.

Across the globe, inflation is eroding min“Ultimately Gold Fields is a ing margins. Gold Fields has not been impeople business, employing 23,000 mune from these cost pressures and has repeople around the world,” says Preece. sponded by aggressively managing “We’re working on developing our culefficiencies to contain costs. It has also ture journey, including ensuring a sense of launched an asset optimisation programme belonging for all our people. We’re cognisant Martin Preece to remove wastage. that young people don’t want to work in the Interim CEO In Australia, the company has consistently old ways.” committed at least $30m a year to exGold Fields was in the news this ploration to replenish reserves. The year after releasing a report highnature of gold mining in Australia, says lighting worrying levels of sexual TOP 100 COMPANIES harassment, racism and bullying.

Preece, requires ongoing exploratory drilling, which is ultimately a more cost- Gold Fields Preece says the company takes these effective strategy than acquiring new Share price, daily (cents) allegations extremely seriously, August 2023: R76,827 mines. adding that even one allegation is too 30000 September 2018: The company recently agreed to ammany.

R10,000 investment 23000 bitious targets in a new sustainability“All the allegations were deeply linked loan backed by a syndicate of 10 disturbing,” he says.

16000 Australian and international banks. Un“At a board and leadership level 9000 der the facility agreement, Gold Fields we have zero tolerance for sexual 2000 will receive a margin adjustment based harassment, racism and bullying. Reon its performance against sustainabil2019 2020 2021 2022 2023 To Page 7 ➛ ity-linked key performance indicators Graphic: Ruby-Gay Martin

By LYNETTE DICEY

We’re not chasing ounces at all costs but instead looking at where we can get the best value

1

Sunday Times TOP 100 COMPANIES ➛ From Page 6

leasing that report transparently was an important first step towards rebuilding trust with our people.

“We spend the majority of our waking hours at work and being at work needs to be

a positive experience. We are working hard to implement the actions recommended by the report, build a more respectful workplace culture and build leadership capacity.”

In October the group announced the appointment of Mike Fraser as CEO and executive director, with effect from January 1 2024.

7

Fraser is currently CEO of AIM-listed Chaarat Gold and before that was president and COO of South32’s key metal businesses.

Preece will continue as interim CEO until December 31 and will remain part of the group’s executive management team once Fraser comes on board.

Unexpected route to a good end DRDGold leaps up to second place on back of unabating global appetite for gold

sues and crime. Over the past decade and a half, we’ve made strategic investments to address specific, prevalent risk factors in South Africa. These efforts have enhanced the inherent resilience of our operations.”

According to Pretorius, the specific product blend approach employed by the company played a pivotal role in mitigating the volume challenges it encountered.

DRDGold has clinched the second spot in “We remain hopeful we will reach our tarthe Sunday Times Top 100 Companies.

By LIESL VENTER geted gold production goal for the year, capitPicture: DRDGOLD website alising on the enduring attractiveness of gold ● In a display of resilience and sound busiin the global currency market relative to ness strategies, DRDGold has clinched the Continued investment in its solar our currency. We have sustained second spot in the Sunday Times Top 100 project can be expected. healthy margins, which reflected Companies, up from 14th place last year.

“We have made significant positively in our share price.”

The gold producer, valued at about progress on the first 20MW Pretorius says suppliers play R15.5bn on the JSE, reported an operating phase of the project,” says a pivotal role in achieving sucprofit of R1.8bn for the year ended June 30 Pretorius. “That is now nearcess as logistics and the supply 2023, producing 169,820 ounces. ing completion and over the chain continue to face pressure.

“This was 180 ounces shy of our mid- next two years we will add a “We are all mindful of the inrange guidance of 170,000 ounces,” says CEO further 40MW. A 160MWh flationary pressures, risks and Niël Pretorius, adding that a stronger gold power storage facility will also challenges that prevail. Now more price worked in the company’s favour. be added, feeding back into the than ever, maintaining strong DRDGold specialises in the recovery and grid and setting us up to offDRDGold CEO relationships is of utmost imreclamation of mine waste. set power consumption in Niël Pretorius portance, particularly with spe“The global outlook for the gold price has the rest of the business cialised suppliers who handle bulk goods been consistently positive, with strong fun- through wheeling.” damentals supporting gold. Factors such as Commenting on operational conditions, movement.”

Pretorius says DRDGold continuously an oversupply of fiat currency and changing he says: “You must adeptly navigate the local buying patterns have contributed to this risks and effectively handle the volatility tied communicates and collaborates with its suptrend,” says Pretorius. to the gold price. The uncertainties that inev- pliers to improve efficiency and mitigate the “Gold’s value is no longer solely bolstered itably surface require you to make calculated challenges posed by escalating costs.

The mining sector is increasingly aware of

by Western demand, as accumulation in the decisions, pinpointing the areas with the the importance of not excluding local comEast also plays a significant role. In recent most substantial risks.” years, we observed gold prices reaching Power is one such area, and Pretorius says munities to avoid potential disruptions $2,000, then retreating to about $1,100, and miners will increasingly invest in power sup- caused by perceptions of corporate South bouncing back to higher levels. This erratic ply. “This represents one of the most signific- Africa being the adversary, he says.

“Given our operations within cities and behaviour reflects a new and distinct appet- ant challenges we face, along with water iscommunities, we have observed a ite for gold. This shift disrupts the congrowing trend of greater community ventional patterns, particularly in We place substantial growing economies.”

TOP 100 COMPANIES accommodation. effort into nurturing these relationHigher throughput is expected for ships, recognising that social equity the coming year.

DRD Gold plays a significant role in our success“The past year proved to be interest- Share price, daily (cents) August 2023: R73,843 ful operations within South Africa. ing,” says Pretorius. “Few things unfol- 3000 September 2018: “It’s about achieving social equity ded according to our initial plans but, R10,000 investment without assuming the role of being in a way, they fell into place. Ultimately, 2300 everything to everyone, as this is we reached our desired destination, 1600 neither feasible nor a substitute for not exactly after the route we charted.”

900 government responsibilities.”

DRDGold paid R515.3m in di200 In terms of the government, Pretorividends, reinvested R1.1bn in capital 2019 2020 2021 2022 2023 expenditure and paid R314.8m in inTo Page 8 ➛ Graphic: Ruby-Gay Martin come tax.

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Sunday Times TOP 100 COMPANIES

➛ From Page 7

us says the prevailing trend for corporate South Africa extends beyond strategic involvement to include execution. Adopting an

enclave mentality — focusing only on one’s own interests — is no longer sustainable, he says. This represents uncharted territory for the private sector.

“We can’t deny the challenges we con-

Flexibility, resilience and discipline

front in South Africa. Nevertheless, our outlook remains optimistic. There’s no reason we can’t position ourselves to continue mining gold successfully within our business for at least another 30 years.”

PGM pricing,” he said. The business’s ability to do so was underpinned by a careful approach to balance sheet management, capital ● Despite a challenging operating environallocation and the group’s investment framement, metals producer Impala Platinum (Imwork, which collectively guided the current plats) managed to deliver a strong performcapital expenditure profile. ance for its year ended June 30 2023 and was Muller said Implats’ expansion projects ranked No 3 in the Sunday Times Top 100 are focused on the lowest-cost and most capCompanies. ital-efficient producing assets.

Amid softening rand platinum group “To ensure each operation generates posmetals (PGM) pricing and lower refined proitive margins through the cycle, we’re impleduction and sales, Implats recorded earnings menting targeted capital and cost intervenbefore interest, tax, depreciation and amorttions in response to the current market isation (ebitda) of R36bn, headline earnings conditions and will sustain investment of R18.8bn and generated free cash flow of across projects key to ensuring strategic R14.2bn, after funding capital expenditure of value creation.”

R11.4bn and R4.9bn for the acquisition of The commitment, he said, is to prioritise Royal Bafokeng Platinum (RBPlat). shareholder returns, with a dividend policy The board declared a final dividend of founded on a minimum allocation of free 165c a share, resulting in a total dividend for cash flow generated before growth capital.

2023 of 585c a share.

In response to the rising cost and unreliCEO Nico Muller says enhanced operaable supply of electricity, Implats has detional flexibility, resilience and disciplined veloped an energy security and decarbonisaexecution allowed the company to successtion strategy which includes forwardfully navigate a series of domestic and relooking energy requirements and energy gional challenges which compounded the technology options for each operation. impact of the softening dollar pricing, rand Its decarbonisation strategy targets cardepreciation and persistent inflation. bon neutrality by 2050, with a short-term This, he says, is testament to the skills and target to reduce carbon emissions by 30% by strength of the group’s people and standout 2030, using 2019 as the baseline year. All new performances at Impala Canada, Zimplats mines will have at least 30% renewable enand Impala Rustenburg. ergy and each operation with at least five “We’ve improved our safety metrics and years of life-of-mine remaining will have a our sustainability journey is gaining morenewable energy source by 2025. mentum, with several accolades recognising Implats CEO Nico Muller Picture: Gareth Muller reports that good progress has environmental, social & governance [ESG] Gilmour been made on several renewable energy promanagement,” he said.

A highlight was securing ownership of Implats continues to be focused on deliv- jects and initiatives.

Power reduction agreements are in place RBPlat — now called Impala Bafokeng. Muller ering consistent and safe production, collabsaid the business is advancing its plans to in- orating with key stakeholders and entrench- between its South African operations and Eskom to mitigate the safety risk to employtegrate and optimise Impala Bafokeng to en- ing operational agility and flexibility, he said. sure it receives maximum value.

“We’ve reviewed each operation in the ees and contractors through timely commu“The combined asset base of Impala context of current pricing and aligned their nication. Power-saving initiatives have been Rustenburg and Impala Bafokeng will result operating and capital plans to ensure an ap- implemented across all operations.

Zimplats concluded a power securitisain a more secure and sustainable Rustenburg propriate response to the reality of current tion agreement with the Zimbabwe operating complex in years to come,” Electricity Transmission and DistribuMuller said. tion Co and a 50MW hydropower Implats’ impressive results were TOP 100 COMPANIES agreement with the Zambia Electricity achieved against a backdrop of an unSupply Corp, increasing its proportion certain macroeconomic environment Impala Platinum of renewable energy use to 67%. and the recent material decline in dol- Share price, daily (cents) August 2023: R71,022 lar PGM pricing. The latter has heral- 27000 Zimplats is midway through conSeptember 2018: structing a $37m (R704m) solar plant at ded a period of rapid margin compresR10,000 investment sion across the sector which, said 20500 the Selous Metallurgical Complex, while feasibility studies are under way Muller, requires decisive action to pre14000 serve business sustainability. at Impala Rustenburg (140MW) and 7500 It’s worth noting, he added, that the Marula (30MW) for the construction of 1000 pricing decline is taking place in the photovoltaic facilities. Impala Canada’s context of a robust medium-term out2019 2020 2021 2022 2023 To Page 10 ➛ Graphic: Ruby-Gay Martin look for Implats’ primary products.

By LYNETTE DICEY

RBPlat buyout the highlight of Implats’ stellar year

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10 Sunday Times TOP 100 COMPANIES ➛ From Page 8

grid-supplied energy is 100% renewable, while the operation uses carbon-based fuels for mobile equipment and heating.

Understanding that businesses can only be profitable if sustainability is a key strategic focus, Implats is committed to being a responsible metals producer, creating economic opportunity for its communities and pro-

tecting its natural environment.

The recipe for Implats’ success, says Muller, are the skills and strength of its people, a fit-for-purpose strategy and a clearly defined purpose.

Sibanye stays agile in green metal drive Strategy to expand ● Mining and metal-processing group global footprint is Sibanye-Stillwater earns a place in the top 10 in this year’s Sunday Times Top 100 Compan- powering ahead ies Awards, moving up to fourth place from

By MAX MATAVIRE

Sibanye-Stillwater’s East Boulder mine in Montana, US. Picture: Sibanye-Stillwater website

last year’s 16th.

The group, with a diverse portfolio across mitigated through implementing compre- larly in the education sector, Sibanye-Stillwafive continents, is building a portfolio of hensive protocols. These included reschedul- ter partnered with Wits University in July on green metals and energy solutions to address ing energy-intensive activities to lower de- a project called “Bridging the gap between climate change, says CEO Neal Froneman. mand periods and using its own generation mining and people”. This involved refurbishSibanye is the world’s largest primary pro- capacity at its South African operations. ing the university’s engineering and built enducer of platinum and second-largest “Our self-generation strategy has pro- vironment faculty, a R51m donation for primary producer of palladium and, over the gressed, with construction already having bursaries and learnerships within Sibanye’s past 10 years, Froneman has transformed the started on our first renewables project, the mining operations, graduate internship procompany from a 1.5-million ounces a year 89MW Castle wind farm, announced in July grammes and staff development. mine into a leading diversified metals produ- this year. This is a measurable milestone in The partnership “represents an enduring cer with an international footprint. our implementation of the company’s investment in human capital and future en“Some of our strategic differentiators,” 600MW renewable energy progineering skills”, says Froneman. says Froneman, “are to be recognised as a gramme expected to be completed Since 2014, Sibanye has enabled force for good: we have a unique global port- in 2026,” says Froneman. more than 500 students to study at folio of green metal and energy solutions that Wits by providing bursaries and Froneman says work stopreverse climate change and we are inclusive, pages, inclement weather, load allowances amounting to R19.4m. diverse and bionic. We have four strategic curtailment, In addition, the group has conillegal mining, differentiators that represent the opportunit- crime, low commodity prices and tributed R68.5m in funding for the ies we have identified to be distinctive in the regulatory inconsistencies are DigiMine digital laboratory, with a global minerals industry.” further R5.5m committed for this challenges the company faces.

Sibanye-Stillwater Sibanye’s portfolio consists of PGM operayear. The company has also In September, it issued secCEO Neal Froneman tions in the US, Zimbabwe and South Africa; tion 189 notices with the intendonated R50m worth of technical gold operations in South Africa; copper, gold tion to retrench about 3,000 workers at its equipment to the university’s engineering and PGMs in North and South America; and a Kloof 4 shaft gold mine at Carletonville. This and built environment faculty. zinc treatment facility and copper property is due to losses over an extended period and “The Sibanye-Stillwater Wits partnership in Australia. symbolises the fusion of industry and acaoperational constraints.

As part of its strategy, Froneman says, Last month it also announced retrench- demia as we join forces to shape the future of Sibanye must adapt to the demands and op- ments at some platinum operations. mining and create a lasting, positive impact portunities posed by the transition to green In giving back to communities, particu- on our planet. It is a commitment to the metals and clean energy solutions. He shared values of excellence, integrity says the company has to stay agile to and collaboration,” says Froneman. capitalise on emerging opportunities.

The project is also part of Sibanye’s TOP 100 COMPANIES 10-year celebrations.

On expansion plans, Froneman says: “We are involved in a process with the Sibanye-Stillwater Froneman says the fourth industriZambian government aimed at the po- Share price, daily (cents) al revolution presents opportunities August 2023: R41,798 tential acquisition of the Mopani copper 7500 for the group to “rewire” its business September 2018: mine ... We have a strong balance sheet operations to embrace the global valR10,000 investment and high-quality assets and intend 5750 ues of human rights and environmentgrowing our battery metals energy 4000 al stewardship in distinctive ways. solutions exposure.”

“New technology applied in an in2250 Froneman says though the increasclusive culture to augment human ca500 ing frequencies of load curtailment pacity can help us save lives, uplift posed a significant risk to operations in communities, reduce emissions and 2019 2020 2021 2022 2023 the past financial year, their impact was Graphic: Ruby-Gay Martin protect the environment.”

4

Sunday Times TOP 100 COMPANIES

11

Gold helps Harmony glitter Miner reaps rewards of investment in its human and mineral resources

to higher costs such as diesel usage in Papua New Guinea and cyanide in South Africa — but this has been well managed and we were able to keep our all-in sustaining cost below the guided R900,000/kg.”

Harmony’s safety transformation journey has yielded results. The loss of life and injury frequency rate improved to 0.06 per million hours worked this financial year compared with 0.13 in the previous year.

By MAX MATAVIRE Digitisation and modernisation have also enabled the company to proactively monitor ● Harmony continues to be ranked one of leading indicators in real time through varithe top companies in South Africa and this ous dashboards. All these efforts have been year takes the fifth spot in the Sunday Times complemented by Harmony’s humanistic Top 100 Companies Awards. culture transformation programme called It is South Africa’s largest gold mining “Thibakotsi”, Sotho for accident prevention. company by volume and, globally, it’s the On costs, Steenkamp says prices have stalargest gold producer from the treatment of A shaft at Harmony Gold’s Doornkop bilised. The prolonged drought in Papua New old tailings dams, making it a major player in mine. Picture: Siphiwe Sibeko Guinea has abated and hydroelectric power the circular economy.

Harmony CEO Peter Steenkamp says the “We manage those factors in our control, generation and supply has improved.

Harmony is investing in copper “as we unpast financial year was filled with highlights which includes safety, production and costs. derstand the critical role that this metal has as the company delivered on its strategic ob- We have improved our safety performance.” jectives of producing safe, profitable ounces The company delivered to plan and met in future in transitioning towards a low-carthrough operational excellence and value- production, costs and grade guidance, he bon economy”, he says.

The company is allocating capital toaccretive acquisitions. says. Cash generation has improved, and the wards high-margin, long-life operatThe company is fortunate to not be reliant company has an effective hedge ing assets while progressing its two on the country’s dysfunctional rail network strategy in place. key international projects — the to move its products. “Harmony has been relHarmony is allocating capital to Eva Copper project in Australia, atively insulated from the rail infrastructure those mines and projects that will and the Wafi-Golpu copper-gold challenges,” says Steenkamp. improve the quality of gold, project in Papua New Guinea.

“Fortunately, we are also not exposed to thereby improving margins and “To achieve carbon net zero by load-shedding like the rest of the country. We lowering costs. By investing in its 2045, we are investing in renewable have load-curtailment, [whereby] Eskom ad- human resources and mines, says energy and reducing consumpvises us to reduce demand by a certain per- Steenkamp, the company has Harmony Gold CEO tion through various energy efficentage based on a two- to three-day de- been able to deliver a strong set of Peter Steenkamp ciency programmes. mand average. This allows us time to switch results this financial year.

“Phase 1 of our renewable energy prooff certain services to reduce demand.

Among challenges the company has en“Due to the size, degree of flexibility and countered are safety and high consumable gramme has been commissioned, delivering redundancy of our operations, we are able to prices. “As regards to safety, our goal is for 30MW of generation capacity to our Free switch off a number of items without affect- zero loss of life, and while we have an im- State operations. This will reduce our peak ing safety and production activities.” proved safety performance in the 2023 finan- Free State operations’ daytime demand by With eight underground operations and cial year, we have to strive for zero loss of life. about 20%, or 6% of our South African operaone open-pit mine, Harmony aims to pro“The shortage of electricity and failure of tions’ total demand. These initiatives will alduce between 1.4-million and 1.5-million other key infrastructure such as potable wa- leviate pressure on the national grid while ounces of gold this financial year. ter supply, particularly in the Free State, are furthering our decarbonisation strategy.”

Besides its recognition in the Sunday Steenkamp says the gold price, which has some of the challenges. We also had to adapt Times Top 100 Companies Awards, been resilient, especially in rand terms, other accolades for Harmony are its inhas provided Harmony with a strong in the FTSE4Good index for the tailwind. In addition, the company proTOP 100 COMPANIES clusion sixth consecutive year and in the top duces silver at Hidden Valley in Papua 5% of the subsector, and in the New Guinea and uranium at Moab Harmony Gold Mining Bloomberg Gender-Equality index for Khotsong, a deep-level mine near Share price, daily (cents) August 2023: R34,004 the fifth consecutive year.

Orkney and Klerksdorp in North West.

13000 September 2018: “At Harmony we choose action over The prices of all these commodities R10,000 investment 10000 words. Protecting our planet, caring for have been favourable to Harmony. our people and conducting ethical “Our strategy is aimed at long-term 7000 mining is embedded in how we opervalue creation. To achieve this, we fo4000 ate,” adds Steenkamp. cus on four strategic pillars: respons1000 “Delivering on our promises while ible stewardship, operational excelleaving a positive, lasting legacy is our lence, cash certainty and effective 2020 2021 2022 2023 Graphic: Ruby-Gay Martin way of ‘mining with purpose’.” capital allocation,” he says.

5

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14

Sunday Times TOP 100 COMPANIES

Lifetime achiever

By the time Whitey Basson retired from his role as CEO of the Shoprite Group in 2016, it was ranked the 86thlargest retailer in the world.

SA’s retail revolutionary

Picture: Martin Rhodes

The king of takeovers and turnarounds, who transformed Shoprite into a R114bn giant, is willing to apply his astute financial mind to turning around the country

By LYNETTE DICEY

● Credited with taking an eight-store grocery chain in the Western Cape and growing it to be Africa’s largest retailer, Whitey Bas-

son’s reputation in retail circles is unparalleled.

He redefined the retail landscape in South Africa with strategies that saw Shoprite’s value grow to a market capitalisation of

R114bn, with 2,300 stores across 15 African countries and employing more than 140,000 people by the time he retired in 2016.

To Page 15 ➛

30 years and counting….

Northam’s Zondereinde mine and metallurgical operations in the Limpopo Province first started producing metal in 1993, and have reliably been delivering some 300,000 precious PGM ounces annually for almost 30 years.

Our brownfields expansion project – the Western Extension and its #3 Shaft – will absorb capex of R4.7 billion in total – and, will add a further 30 years of life to the Zondereinde mine, securing continued employment for some 11,000 people and adding another 600 permanent positions. The long-term stability of this project will have a beneficial impact on the the mine, its stakeholders and the local economy for years to come, while earning valuable foreign currency for our country and securing returns for our investors.

www.northam.co.za

Sunday Times TOP 100 COMPANIES

15

➛ From Page 14

Born in 1946 in Porterville, Western Cape, Basson attended Rondebosch Boys’ High School and then Stellenbosch University, where he graduated with a BCom (CTA). He qualified as a chartered accountant after completing his articles at ER Syfret & Co (now Ernst & Young). After a stint at Brink, Roos & Du Toit (now PwC), Basson joined Pep Stores as its financial manager in 1971. In 1974, he was promoted to financial director and joined the board, a position he retained until 2004.

In 1979, Pep acquired a modest grocery retailer called Shoprite. Under Basson’s leadership, Shoprite focused on the middle- to lower-LSM market and moved into rural markets. He quickly realised that to grow the business required acquiring and turning around struggling companies. In 1984, the group acquired six Ackermans food stores.

The Shoprite Group listed on the JSE in 1986 and, in 1990, acquired Grand Bazaars, giving the group a degree of market dominance in the Western Cape.

In 1992, Shoprite acquired Checkers, which was losing R45m a year. At the time, it consisted of 169 stores and was one of the three biggest grocery retailers in the country, along with Pick n Pay and OK Bazaars. After the acquisition, Basson closed the Checkers head office, resized the stores and turned Checkers around in nine months, in the process saving 16,500 jobs.

He did the same thing a few years later, when Shoprite acquired a struggling OK Bazaars in 1997 for R1. Before the acquisition, OK Bazaars had been making a loss of R20m a month. Returning the former OK Bazaars stores to profitability included converting and modernising more than 150 of OK’s food stores and converting Hyperama stores to Checkers Hyper stores.

Ultimately, the takeover and turnaround saved more than 14,000 jobs.

In 2001, a decision was made to operate Shoprite and Checkers under two brands, with Checkers serving higher LSM consumers and positioned more closely to Pick n Pay’s market focus. The remaining OK stores and brand were franchised, with the result that OK is now a corporate franchise business. The repositioning of Checkers saw it become the fastest-growing retail brand in South Africa.

After South Africa’s first democratic elections in 1994, Shoprite expanded beyond the country’s borders, opening stores in Zambia, Nigeria, Ghana, Mozambique, Madagascar, Mauritius, Angola, Malawi and Uganda.

Though attempts to open stores in Egypt, India and Tanzania were ultimately unsuccessful, Basson never regretted trying, always maintaining that retail companies need to invest a portion of their earnings in risk capital

Pictures: Breadbin Productions/ Martin Rhodes

er to grow a retail business then than it is now.

“There were far fewer risks and no real Whitey dark clouds that we had to contend with in Basson in those days,” he says.

1991. Picture: ss “We weren’t dragged down by onerous Catherine Ro board reporting. Many of the opportunities we were presented with fell into our laps. Not many people today get an opportunity to pick up several struggling businesses and turn them around.”

The risks today, he says, are that much greater. In addition to an uncertain electricity supply, many local municipalities are looking unsustainable, and the government doesn’t appear to have the ability to solve the multiple crises taking place. Business leaders have to answer to board members, many of whom have little or no understanding of the actual business.

His concern for the trajectory of the local economy saw him offer his services to the government in late 2022 to help address some of the many challenges facing the country.

“The government appears to have as many shortcomings as some of the companies we took over in the 1970s, 1980s and 1990s,” he says. “Not only is it financially constrained, but it’s also constrained in terms of talent pool and systems. As a Whitey result, infrastructure is on the verge of colBasson lapsing, we have a high unemployment rate Former Shoprite and no meaningful economic growth.”

Whitey Basso CEO n in 1999.

Changing the economic trajectory of the country, he says, requires fixing what can be fixed systematically to ensure more busito develop new markets. ness-friendly regulations and to encourage Basson retired from his role as CEO of the private investment and competition.

Shoprite Group in 2016. At the time, Shoprite “We need to make it more comfortable for was ranked the 86th-largest retailer in the citizens to live and operate in the country. A world. Analysis by Daily Investor revealed priority is to address the debt issue and then that Basson enabled a 2,450% total return in return the economy to an annual growth trashareholder value during his tenure at the jectory of at least 5% to 6% to resolve the unhelm of Shoprite. employment crisis. Our current fiscal situWhat made Basson such a successful re- ation requires that we urgently combat tailer was his attention to detail. He never corruption to ensure money is not diverted stopped regarding himself as a storekeeper from the fiscus.” and was a frequent visitor to the shop floor.

Given his track record with turning He knew what customers wanted and he de- around ailing businesses, is it such a stretch livered on that expectation. He pioneered of the imagination that Basson could add central distribution and paid attention to ad- some valuable insights into how to turn vertising — including that of competitors.

South Africa’s fortunes around? The presidHe is the first to concede it was much easi- ent should give him a call.

Not many people today get an opportunity to pick up several struggling businesses and turn them around

16

Sunday Times TOP 100 COMPANIES

‘The world needs what we produce’ Growth strategy and ● Northam Platinum has again demon- risk reduction help strated robust operational and financial performance, moving up one spot in the Sunday Northam weather Times Top 100 Companies list, securing the sixth position from last year’s seventh.

PGM price downturn Reporting record revenue of R39.5bn, un-

ity and, being a fixed-cost producer, it increases production costs per unit and consequently decreases profitability,” said Dunne. “However, the combination of our comprehensive load-management protocols and on-demand self-generation capacity through renewable energy and generators has limited consequential production losses.

A programme to increase self-generation caderpinned by a 13% increase in production, the platinum group metals (PGMs) produpacity is well advanced.” cer’s gross profit margin remained strong in Other challenges included achieving its 2023 at 39%, notwithstanding the high-cost objectives in managing the impact of operainflation and lower metal price environment. tions on the environment and the people Earnings before interest, tax, depreciation within the organisation. and amortisation (ebitda) remained un“Northam remains vigilant in monitoring the group’s compliance with environmental, changed at R16.5bn, free cash flow (after social and governance [ESG] standards,” he R5.5bn of capex) amounted to R8.5bn, with said. “Our environmental strategy focuses on headline earnings per share at R24.15. key elements which are visible and tangible.

“We attribute our strong performance in a These include leadership, climate change, challenging PGM mining environment to our energy, land stewardship, rehabilitation, strategy of growing production down the inbiodiversity, waste and emissions. dustry cost curve while being disciplined and Paul Dunne, CEO of Northam Platinum “We seek to comply with environmental consistent in our cost management and cap- Holdings. Picture: Denvor de Wee legislation and mitigate our environmental ital allocation,” said CEO Paul Dunne.

“As miners, growing our production base the recent sale of our noncontrolling interest impact through careful planning, operational is one of our main defences in a high infla- in Royal Bafokeng Platinum [RBPlat] has po- efficiencies, environmental rehabilitation and, where necessary, establishing and contionary environment.” sitioned the group in a net cash position.”

Northam identified the need to grow its Northam sold its 34.5% stake in RBPlat to serving biodiversity offset areas.”

Dunne highlighted the effectiveness of the production base and reduce its operational Impala Platinum (Implats) after a prolonged continuous safety and wellness strategy, sayrisk profile through diversification in the struggle for control of the company. mid-2000s. Since 2015, its views on the long“Ultimately, the best defence in a weak ing Booysendal achieved a milestone of 8.6term supply and demand of PGMs have driv- metal price environment is to position the million shifts without fatalities.

He said the outlook for PGMs remains en it to accelerate its growth trajectory, and it business in the lower half of the industry cost is on track to achieve a production target of 1- curve. We have successfully accomplished bullish, with the global importance of the million ounces 4E by June 2027. this through our growth strategy, all the while metal for a cleaner, greener world underpinThis growth trajectory, said Dunne, has reducing risk by diversifying our operations,” ning Northam’s business strategy. “The suppositioned Northam well to weather the cyc- Dunne said. He cited a cyclical downturn as ply of these metals is, however, constrained lical downturn in PGM prices. “Our growth the reason behind the sale. and will reduce over the coming decade due has focused on developing new shallow Northam has announced a cash dividend to a general lack of mining investment globmechanisable ore bodies and optimising ex- of R6 per share (R2.4bn) for the financial year ally since 2008 and the ongoing depletion of isting operations. It includes the develop- ending June 30, and revealed plans for a developed ore bodies. These factors drive our ment of the Booysendal mine complex, the share buyback programme of up to R1bn. operational and investment strategies.”

Western extension at our Zondereinde mine, Fundamentally, said Dunne, the world The past year, however, was not without expansion and improvements at our metal- challenges and energy supply remained a needed the metals Northam produce. lurgical complex, and the recommissioning foremost concern.

“PGMs are special metals that aid the atand development of the Eland mine.”

“Load-shedding and load curtailment ad- tainment of a cleaner, greener, fairer world.

He said the company’s growth was versely affect Northam’s production capabil- They are among the rarest and most precious primarily funded through cash from metals, and they possess unique properties essential to a growing number of inoperations, available banking facilities and its domestic medium-term dustrial applications. PGMs will also TOP 100 COMPANIES play an essential role in the hydrogen note programme. This approach aligned with its commitment to Northam Platinum economy, becoming increasingly important as internal combustion engines maintaining a net-debt-to-ebitda ra- Share price, daily (cents) August 2023: R31,956 tio of no more than 1x. are phased out through legislation.”

27000 September 2018: However, PGM prices had declined He emphasised the advantages of R10,000 investment over the past year. “The depressed global this funding strategy, particularly in 21000 contrast to issuing additional shares 15000 economic environment, slower than expected recovery in China, distribution of for equity. “This strategy is evident in 9000 the remarkable growth, with a more Russian PGMs to China, metal substitu3000 tion and the continued rise in electric than 200% increase in production vehicles are key factors which have afounces [4E] per Northam share from 2019 2020 2021 2022 2023 fected the demand for PGMs.” June 2015 to June 2023. Furthermore, Graphic: Ruby-Gay Martin

By LIESL VENTER

6

“I am honoured to receive the Sunday Times Business Leader of the Year award, which I accept on behalf of every Bidvest employee, who made this possible.” – Mpumi Madisa, CEO

THANK YOU

To our 128 461 Bidvest family members across South Africa, Swaziland, Namibia, Mozambique, Mauritius, the United Kingdom, Ireland, Spain and Australia, CONGRATULATIONS! This award recognises your collective energy, determination and unwavering commitment to excellence. I am honoured to be part of this team and will continue to do my best to serve you.

18

Sunday Times TOP 100 COMPANIES

By LIESL VENTER

● Bidvest CEO Mpumi Madisa is the 2023 Sunday Times Business Leader of the Year.

The accolade recognises Madisa’s outstanding contributions to the business community and her remarkable leadership skills that have steered Bidvest towards new heights.

Madisa, who took the helm of Bidvest in 2020, has been a driving force behind the company’s remarkable growth and transformation. She has helped guide the company through the challenging economic landscape with vision, dedication and innovative strategies that have positioned Bidvest as a resilient and adaptable industry leader.

The services, trading and distribution group posted a strong 17.6% growth in trading profits for the year to end-June 2023, solidifying its status as a prominent global conglomerate. Over the past 35 years, the group faced profit declines only twice — during the 2008 financial crisis and again during the Covid-19 pandemic, both attributable to global problems.

“There are essential principles within Bidvest that make it successful,” says Madisa.

“The power of our decentralised model is evident. Centralising it would erode value.

We have 250 businesses in the group, all operating independently. This autonomy means that when we need to pivot, we’re not manoeuvring a huge entity. A single message can simultaneously engage 250 teams, providing us flexibility and the ability to adapt.”

Madisa says the company’s entrepreneurial spirit is another driving force.

“When we acquire family-owned businesses, the original owners stay on. They avoid the constraints of the corporate world and retain the freedom to make their own decisions. This autonomy is a significant asset; we don’t have to brainstorm and innovate for everyone. Each business operates independently, within the framework of our governance and ethics guidelines.”

She also attributes the continued success to diversification, highlighting that with a wide range of products and services spanning various sectors, at least one area is thriving when others may need to perform better.

“Our consistent financial management approach is probably the fourth element I would add to the mix to create the magic at Bidvest. We maintain simple and understandable metrics across the board. When we look at the finances, no matter where the business is or in what sector, we are all looking at the same things. We know what our businesses’ returns, cash management and inventory management look like.”

As a CEO and business leader, Madisa emphasises the importance of shared understanding and effective communication, particularly within an organisation as large as Bidvest. She acknowledges her biggest chal-

Business Leader of the year

Bidvest CEO Mpumi Madisa at her office in Melrose Arch. Pictures: Masi Losi/Supplied

Driving force for growth and transformation CEO Mpumi Madisa has created an empowering working environment to keep Bidvest growing

lenge is ensuring she connects with everyone in a company of 130,000 employees.

“The risk I want to avoid is a communication breakdown, where my message is distorted or misunderstood as it passes through various levels of the organisation,” she says.

Her primary goal is to inspire people to realise their full potential, even within a vast and complex organisation such as Bidvest.

She acknowledges the inherent challenges in achieving this goal, particularly regarding effective communication.

“The importance of finding a way to have employees hear my message and truly understand it was important to me when I took

over the CEO role. We opted to leverage technology by launching an app to address this challenge. This technological solution improves communication and ensures the messages can be consistently delivered throughout the organisation.”

Madisa’s primary concern at Bidvest is its people. She recognises they operate in a high-pressure environment. As CEO she feels it’s vital to ensure employees do not experience such intense pressure that they can’t make mistakes or take a moment to reflect.

“My goal is to create a workplace where employees feel supported and empowered,” she says. “We have to keep the balance, delivering an exceptional and profitable company, but also ensuring people are happy and comfortable working at Bidvest.”

Not only are Bidvest’s employees essential but the broader communities in which the organisation functions also hold significance, she says. “I have a background in the corporate world, essentially an MBA environment, where the focus is primarily on results, shareholders and financial matters. However, I’m clear about my stance — we must shift this approach. Our priority should be taking care of our people within the organisation and extending that care to the communities where they reside and our business operates.

This approach has a ripple effect, much like any other aspect of our operations.”

Another continuous priority for Madisa is the aspect of transformation. Through her efforts in the past three years, Bidvest has achieved the distinction of having the most transformed board on the JSE. “We are not limiting this discussion to our South African To Page 19 ➛

Sunday Times TOP 100 COMPANIES ➛ From Page 18

operations but extending it globally. When we enter a room filled with Bidvest members, it should mirror the demographics of the local community in which it operates. We are purposeful in our approach and have made substantial advancements in this direction.”

Bidvest’s board comprises more than 80% black members, with female representation exceeding 80%. At the executive level, the numbers have risen to 58% in black and female representation. The same trend applies to senior and middle management positions,

with more than 60% of these roles occupied by women.

“I am often asked whether there will be more women in Bidvest when I retire, and if my answer isn’t a resounding ‘yes’, it’s a matter of concern. This isn’t just about my gender; it’s our responsibility to foster profound transformation and drive essential change within our organisation.”

Madisa expresses a strong, positive outlook for Bidvest and South Africa as a whole.

“I am not concerned about our business’s growth trajectory; we are in good health and a strong position. We’ve successfully navig-

19

ated challenges beyond our control, such as high-interest rates and inflation. We are well aware of the pressure on consumers.

“Certainly, South Africa faces significant macro-challenges, including energy, transport, logistics issues, rail infrastructure challenges and concerns about crime and corruption. However, despite these challenges, I remain optimistic about the future of South Africa.

“As Bidvest, we are investing billions in this country, actively contributing to job creation, supporting our communities and delivering increased value to our stakeholders.”

Aiming to create long-term value AngloGold Ashanti still runs a corporate office in Joburg

optimisation of our operating assets and by introducing new lower-cost production sources to our portfolio,” says Calderon.

“Our greenfields exploration tenements cover over 9,500km2 of highly prospective ground in six countries — Australia, Argentina, Brazil, Guinea, Tanzania and the US.” Like many other mining companies, CalBy MAX MATAVIRE Obuasi is located in Ghana’s Ashanti deron says challenges include inflationary region, approximately 60km south of pressures on input costs across the com● Despite selling its remaining assets in Kumasi. Picture: Anglogold Ghana pany’s global portfolio. In response, AngloSouth Africa in 2020 as it streamlines its portfolio, AngloGold Ashanti still runs a cor- ation of AngloGold Ashanti’s asset base into a Gold Ashanti has implemented programmes to optimise the performance of each asporate office in Johannesburg, which does diversified global portfolio of highset, which are starting to bear fruit. administration for the company’s African op- quality producing assets and proThe company has developed a erations. jects. The company has a longplan to reduce greenhouse gas This year, the company ranks No 7 in the standing and growing presence emissions from its activities by 30% Sunday Times Top 100 Companies Awards, a in the US and no longer has opby 2030 through a combination of great improvement from last year’s 23. erating assets in South Africa,” renewable energy projects and a The world’s fourth-biggest independent the company said. transition to lower-carbon energy gold mining company has a diverse portfolio CEO Alberto Calderon says his sources, says Calderon. At some across four continents. In Africa, it has opera- company pursues value-creattions in Tanzania, Ghana, Guinea and the ing opportunities involving oth- Anglogold Ashanti CEO operations, it will reduce diesel generation, replacing it with grid Democratic Republic of Congo. er minerals where it can leverAlberto Calderon power sourced with a more envirIn winding up its mining operations in age its existing assets, onmentally friendly combination of energies South Africa, the company sold its remaining shareholdings, skills and experience. assets in the Free State to Harmony for “As a responsible gold miner, we aim to including hydro power and natural gas.

“AngloGold Ashanti is transforming the $300m, which included $200m cash and a create sustainable, long-term value for all our deferred payment of up to $100m. stakeholders and shareholders in partner- overall business while adding mineral reFormed in 2004 with the merger of Anglo- ship with host communities and govern- serves and resources from its existing sites Gold and Ashanti Goldfields Corp, the com- ments. We are working to regain cost com- and prospects, making new discoveries from pany is now listed on the New York, Australia, petitiveness with our peer group through the greenfield sites and making value-creating, bolt-on acquisitions, all of which enGhana, Johannesburg and London able us to not only generate organic stock exchanges, with its headquarters growth opportunities but to self-fund in Denver in the US. TOP 100 COMPANIES them from a solid balance sheet In August this year, more than 98% prudently managed through the comof shareholders agreed to shift its Anglogold Ashanti modity and investment cycle.” primary listing from Johannesburg to Share price, daily (cents) August 2023: R29,380 The Obuasi Mine in Ghana continNew York, exceeding the required ap66000 September 2018: ues its ramp-up, adding ounces and reproval majority of at least 75%.

R10,000 investment ducing costs, he adds. The planned AngloGold Ashanti previously said it 52000 joint venture in Ghana next year sees better opportunities in the US and 38000 between AngloGold Ashanti’s UK, and that a primary listing in New 24000 Iduapriem mine and Gold Fields’ TarYork would give the company access to 10000 kwa mine will result in “an immediate the world’s biggest pool of gold capital. uptick in ounces and also reduction in “This change in domicile and listing 2019 2020 2021 2022 2023 costs”. structure is aligned with the transform- Graphic: Ruby-Gay Martin

7

20 Sunday Times TOP 100 COMPANIES

Winning formula, enterprising spirit

process improvement. Constantly seeking and developing is a fundamental aspect of our business. We heavily rely on innovation and advocate for new technologies.

“Finally, the core principle of practising what we preach to our customers is paramount. Staying ahead of the curve, especially in the constantly evolving tech industry, necessitates continuously developing our inBy LIESL VENTER ternal systems. We must focus sharply on our internal business growth to avoid stagnating ● In a leap up the ranks, technology and IT our processes.” services firm Datatec has secured eighth spot For Datatec, the most significant gameon the prestigious Sunday Times Top 100 changer in the past seven years has been emCompanies list, significantly improving from bracing cybersecurity and cloud-based netits 30th-place ranking last year. working.

As the company celebrates this achieve“One of our key differentiators is our inment, Datatec’s CEO Jens Montanana underternally developed global business automascores its unwavering commitment to a wintion technology, which plays a pivotal role in ning formula that prioritises investing in our interactions with partners and custompeople, continuous process improvement, Datatec CEO Jens Montanana ers,” says Montanana. “Our organisational and dedication to extending the excellence it structure has always been fairly decentralprovides its customers to its own operations. ised, boasting robust in-country expertise While profitability remains a vital driver globally. This approach has proven invaluable in business, Montanana says other equally in addressing global challenges by enabling critical elements contribute to sustainability. investments in centralised technology while The company’s history highlights a steadretaining local process capabilities. Furtherfast focus on long-term value creation. With more, intelligent automation can enhance more than 10,000 employees spanning 50 customer and supplier relationships, fostercountries, Datatec is renowned for its entering intimacy in our interactions.” prising spirit, collaborative culture, techHis outlook for the technology sector resavvy approach and commitment to social “In general, the reason behind this strong responsibility. demand is the constant regeneration within mains optimistic: “It’s crucial to understand “We continue to see good demand for our the computer industry. There is an ongoing that communication and networking have altechnology solutions and services world- development, with each major technology ways been central to computer-connected wide,” says Montanana. “Our operations re- trend — from 3G to mobile broadband — driv- processes right from the start. The digital age has significantly increased the importance of main well-positioned to service customers in ing the need for more connectivity. their respective markets as we continue to “Additionally, the technology ecosystem’s networking as the number of connected actively manage supply chain obstacles.” competitive race is fuelling the demand for devices has surged. The response to the CovHe says while global supply chain con- increased capacity, connectivity and commu- id pandemic demonstrated that, while physical aspects of the world can be affected by straints created backlogs for the company in nication networks.” the past few years, the most disruptive chalMontanana says Datatec is thriving in this global disruptions, information and the digitlenges have come from internal changes and growth-orientated environment with con- al realm remain resilient.”

According to Montanana, each major issues, sometimes self-inflicted. stant technological advancements. “Our suc“Datatec has encountered periods of fluc- cess story is underpinned by our steadfast technological leap — such as the internet, tuating profitability, proving that success isn’t commitment to a tried-and-true formula. smartphones, mobile broadband, social mealways a linear path,” says Montanana. This formula places our investment in people dia, cloud computing, 5G and more — has “Some of the challenges we’ve faced have at its core. In tough times, we’ve always tried boosted the networking sector and given rise originated more from our internal strategies to keep our employees, taking a thoughtful to thriving areas such as cybersecurity. These and plans than external obstacles. These approach to restructuring because people are are enduring trends with seemingly permanent demands. challenges have stemmed from system and the heart of our business.

All divisions within the company have process upgrades required for our expanding “Second to this is a strategy of continuous witnessed improved financial pergroup of companies, rather than from a formance in the first six months of single, uniform business model. year compared with last year.

“One of our most significant setbacks TOP 100 COMPANIES this This promising trend has raised exwas a major internal structural change, pectations for continued growth, he particularly the ERP transition a decade Datatec says. ago when we switched from Oracle to Share price, daily (cents) August 2023: R29,045 “In our industry, staying successful SAP. Implementing extensive internal 4500 September 2018: means embracing innovation across controls and process changes can also R10,000 investment 3750 the board. Adaptation and change are be quite disruptive.” part of our everyday business. DisOn the upside, he says, the company 3000 ruptive technologies might bring continues to see strong demand for its 2250 challenges, but they also open up signetworking, cybersecurity and cloud in1500 nificant opportunities. Our key to frastructure software and services, and success lies in continually learning its operations are receiving significant 2019 2020 2021 2022 2023 Graphic: Ruby-Gay Martin faster than our customers.” international recognition.

Collaborative culture and continuous innovation key to Datatec’s success

8

Sunday Times TOP 100 COMPANIES

Pan African Resources shoots up the ladder The gold mining ● From position 32 last year to No 9 this year, company is firmly Pan African Resources is one of the best performers in the Sunday Times Top 100 Com- committed to SA panies Awards.

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Pan African Resources Evander Operations Elikhulu Tailings Retreatment Plant. Picture: Philip Mostert

through meaningful engagement with our employees and communities around our operations. Pan African Resources contributes significantly to our communities through our ‘beyond compliance’ approach to development where we contribute to health and The company is one of the richest and oldwellness programmes, educational developest mines in South Africa, and a high-margin Loots says his company’s strategy has al- ment and job creation outside mining. producer with an output of 200,000 ounces ways been to create sustainable long-term “We expand our operations through orof high-quality, high-margin gold per year. value for all its stakeholders by mining safely ganic growth projects to develop our extensWith its headquarters in London, Pan and responsibly. He says Pan African Re- ive resources while also making strategic African Resources’ operations are the Barber- sources strives to create compelling value for long-life acquisitions. This not only enhances ton mine, Evander’s underground mine and its shareholders through responsible capital shareholder returns but also contributes to Elikhulu tailings retreatment plant. allocation and maintaining industry-leading sustaining the local economy by creating Its Barberton mine employs about 2,000 dividends. jobs; developing small business; cleaning up people and has a lifespan of 20 years.

“We maintain our social licence to operate legacy environmental liabilities that will imEvander employs more than 100 people and prove the areas where we operate; and makhas a lifespan of nine years, while Elikhulu ing that land available for future develophas more than 100 employees with a lifespan ment projects.” of 13 years.

The company’s main challenge is illegal CEO Cobus Loots says his group is fortumining and the resultant increase in security nate to have a diverse portfolio of assets costs as local authorities have inadwhich comprise long-life, high-grade underequate capacity to deal with the ground mining operations, as well as lowproblem. cost surface re-mining, which provide a high There is also the high unmargin. employment rate in the areas “The all-in sustaining cost [AISC] of prowhere the company operduction for the surface re-mining from which ates. For example, recently we produce close to 40% of production is just the company advertised for under $1,000 per ounce, which provides a 100 general worker jobs and great profit margin. Our Evander gold mine is received more than 11,000 applications. one of the lowest-cost underground gold producers, with an AISC of $1,158 in the last finTo alleviate this problem, Pan African Resources is now creating jobs ancial year. Overall, the AISC of the group averaged $1,327 per ounce, which still provides outside mining by providing free small busia decent profit margin for the year,” he says. ness development incubation programmes “Additionally, the weakening of the rand for local businesses and, in Barberton, has Cobus Loots to the dollar has meant that in rand per kilofunded a blueberry farming project where Pan African Resources CEO gram terms, gold prices received were conabout 300 locals have been employed as seasistently over R1m per kilogram, which sonal workers. are at record high levels, thus assisting Looking into the future, Loots says with our profitability and reducing his company continues to see value TOP 100 COMPANIES and benefit from operating in the debt, while also maintaining annual dividends to our shareholders.” country despite the challenges.

Pan African Resources With regards to load-shedding, Loots Share price, daily (cents) “South Africa has an excellent August 2023: R27,556 says his company was one of the first to 600 banking and legal system, together September 2018: commission a 10MW grid-tied solar rewith its strong fiscal regime. Our minR10,000 investment 475 newable energy plant at its Evander uning rights are long-dated — up to 2051 derground operations. He says this 350 at Barberton and 2038 at Evander. We plant has stabilised the energy supply, are familiar with the operating envir225 resulting in significant cost savings of onment and continue to have much 100 up to R3m a month. The group has also success where we operate and are started constructing a 9MW solar plant proud of our community development 2019 2020 2021 2022 2023 at Barberton, to be completed next year. Graphic: Ruby-Gay Martin initiatives.”

By MAX MATAVIRE

We expand our operations through organic growth projects to develop our extensive resources while also making strategic long-life acquisitions

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22 Sunday Times TOP 100 COMPANIES

Kumba set for sustainable future Discipline mitigates volatile market and Transnet constraints

develop an optimal, integrated and implementable concession model.”

Market volatility and weak global steel demand are among the other big challenges and risks facing the business. Iron ore prices improved at the start of the year as China reopened, but the recovery was weaker than expected. Cost and mining inflation have also

By LYNETTE DICEY combined to add to the company’s cost base.

“Our mines are deep and Sishen is one of ● The leading iron ore producer in South the largest open-pit mines in the world, Africa, Kumba Iron Ore, recorded a solid opspanning 14km,” says Zikalala. “This results erational and financial performance in the in longer haulage distances and higher lifts.” first half of 2023, delivering earnings before Kumba’s cost containment focus to mitiginterest, tax, depreciation and amortisation ate higher input costs and geological inflation (ebitda) of R19.8bn despite the macro headhas worked well, resulting in savings of about winds.

R900m in the first half of 2023.

Kumba, ranked No 10 in the Sunday Times Sustainability and environment, social & Top 100 Companies, supplies high-quality governance (ESG) concerns have become eniron ore to the global steel industry, exporting trenched in Kumba’s business, both to ensure to China, Japan, India, South Korea and countries in Europe and the Middle East & North Views of the western expansion project of the company remains competitive and to support the green steel transition that’s drivAfrica region. the Sishen pit. Picture: Philip Mostert ing demand for its premium ore. ESG metrics The company’s iron ore commands a are embedded in the performance indicators premium price because its production pro- across the various export channels. cesses allow for less carbon-intensive steel“In addition to the national picture, to- of its executives, contributing 20% of their making, a growing priority for global clients. gether with other Northern Cape miners we long-term incentives.

Kumba operates net-water positive mines Kumba has mining operations in the created an Ore User’s Forum to work with Northern Cape at Sishen and Kolomela mines Transnet to support maintenance, find a me- with a strategy to reduce freshwater conand a port in Saldanha Bay. Its Northern Cape dium-term security solution, increase wagon sumption by 40% by 2030 against the 2015 mines are serviced by a dedicated iron ore capacity and improve port turnaround times baseline and is working with other businesses, local government, community rail link, the Sishen to Saldanha iron ore ex- on the Sishen to Saldanha line,” says leaders and NGOs to contribute to port channel, which is serviced by Transnet.

Zikalala. community needs such as housing, Transnet logistics constraints, however, “The Ore User’s Forum, in colinfrastructure, health care, educahave created a bottleneck for the company. laboration with Transnet, is tion and job creation.

Rail disruptions on the 861km line connect- conducting technical analysis It aims to create five jobs offing Kumba’s mining operations with the of the logistics system and has site for every job on-site by 2030 Saldanha port have cost the company R6bn studied international best through Zimele, its enterprise dein sales, despite the 6% rise in production. practice to find potential soluvelopment programme.

“As a result of increased production, im- tions. Ultimately, we need to find Zikalala says with market proved productivity which contributed to a collective long-term solution volatility expected to continue, cost savings, and the benefits of a weaker ex- that unlocks the Northern Mpumi Zikalala, change rate, our unit cost improved to $39 Cape’s mineral wealth.

Kumba Iron Ore CEO Kumba is committed to maintaining capital discipline and enper tonne,” says Kumba CEO Mpumi Zikalala, “We think the government’s adding that the company achieved an ebitda proposed reforms may create opportunities suring its balance sheet is efficient and flexmargin of 52% and attributable cash flow of for such collaborative public-private solu- ible, with adequate room for liquidity.

Operationally, it will continue to focus on R7.9bn. tions. As a result, we are engaging junior The company reset its production outlook miners and other stakeholders so that we can reliability, improving safety, plant stability, product quality and efficiency improveat the beginning of the year to reflect ment. the expected decline in Transnet’s “Positioning ourselves to become rail performance.

TOP 100 COMPANIES sustainable and competitive for the fuZikalala says the industry’s ability ture means contributing towards both to continue contributing to the fiscus, Kumba Iron Ore the decarbonisation of our own operasustain employment and deliver far- Share price, daily (cents) August 2023: R27,409 tions and the steelmaking industry as a reaching socioeconomic benefits are 80000 September 2018: whole, given that the quality of our iron inextricably linked to Transnet’s serR10,000 investment ore plays a critical role in that journey,” vices. “Any bottlenecks, no matter 65000 says Zikalala. the cause, are depriving South Africa 50000 “Maximising our product premium of desperately needed revenue.”

35000 and driving an increasingly decarbonKumba is involved in the National ised ‘green steel’ value chain is fundaLogistics Crisis Committee, helping 20000 mental to positioning Kumba for a susto drive structural rail reform and 2019 2020 2021 2022 2023 tainable future.” making immediate interventions Graphic: Ruby-Gay Martin

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MINING FOR A FUTURE DELIVERS RESULTS TODAY Ď ijœħ΄ ĮĎ Ď΄ Ď΄ Ď΄ijœ΄ ĮĎ΄ Ŝſ ΄ij ΄ħ Ď ΄ ő ijŜœ΄ Į ΄Ŝ ΄ő œ ΄ŜĦ΄ ijœijœħ΄ĦŜ ΄ ΄ Ď΄ij ΄Į Ĉ΄ ΄ Ŝ ņ ΄ ΄ Ď Ď΄ ʼn ΄ĀĎĎœ΄ ΄ Ď ʼn ĦŜā ĎĈ΄ Ā ijœĎ ΄ œĈ΄ij ΄ĀĎĎœ΄ ΄ħ Ď ΄ Ď ΄ĦŜ ΄ ĮŜ Ď "Ď΄ ĎĈ΄āŜœ ā ijŜœ΄ ΄ ijœ ijʼn #΄ ΄ſ ŜŃĎā ΄Ď%ſĎā ĎĈ΄ Ŝ΄ijœā Ď Ď΄ʼnŜ

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