Business context

TIMELINE OF CORPORATE ACTIVITY
2013 – 2014

2013

Average monthly gold price ($/oz)
Feb
Mar
Apr
May

NEW CEO

Srinivasan Venkatakrishnan appointed CEO

CORPORATE ROLES STREAMLINED

Changes to executive part of initiative to streamline corporate and regional structures. A simpler strategy based on five key focus areas developed to improve sustainable free cash flow generation

JUN

CFO APPOINTED

Richard Duffy appointed CFO

IMPAIRMENT

Significant impairment of $2.9bn (pre-tax), owing to adverse changes in macroeconomic conditions and sharp fall in gold price

FORMAL COST CUTTING PROGRAMME

Project 500, a formal cost-cutting programme, implemented to reduce costs by $500m in an 18-month period. The resulting review of expenditure led to significant cuts in corporate costs, expensed exploration and capital expenditure

Jul

COST OPTIMISATION

Organisational and cost optimisation review leads to the first round of voluntary retrenchments

Aug

FOCUS ON FINANCIAL FLEXIBILITY

To ensure flexibility of the balance sheet, a seven-year bond with an aggregate value of $1.25bn and bearing interest of 8.5% was issued, enabling us to repay in advance the $732.5m convertible bond due for redemption in May 2014

BANKING COVENANT RELAXED

Bankers successfully petitioned to temporarily relax banking covenant from 3 times net debt to adjusted EBITDA to 4.5 times for two testing periods

Sep

WAGE NEGOTIATIONS CONCLUDED

Biennual wage negotiations concluded after a three-day strike at Vaal River operations

YATELA CLOSURE

Closure of the Yatela mine in Mali announced

FIRST GOLD POURED

Kibali and Tropicana pour first gold

Nov

MOLOTO AUDIT

The Moloto Audit of compliance with South African Mining Charter targets completed. All targets met by end 2014

Dec

AMERICAS RECORD

Region produces 1Moz for first time in a calender year

2014

Feb

NEW CHAIRMAN

Sipho Pityana appointed chairman on resignation of Tito Mboweni

Mar
Apr
May

OBUASI SPECIAL PROJECT LAUNCHED

Announced that Obuasi would be managed as a special project to address operational challenges

JUN

NAVACHAB
SOLD

Sale of the Navachab mine in Namibia concluded – all conditions precedent met and monies paid

Jul
Aug

RAND REFINERY
LOAN FUNDING

A $44m shareholder funding loan facility extended to Rand Refinery as a precautionary measure following accounting records and inventory discrepancies encountered after the implementation of a new software system. Funding drawn down in December 2014

EARTHQUAKE

In South Africa, earthquake halts production at Moab Khotsong and Great Noligwa for several days; 3,300 people brought safely to surface

THIS IS GOLD

Launch of This is Gold, a collaborative initiative aimed at providing insight into the South African gold sector

Sep

PROPOSED CORPORATE RESTRUCTURING

A corporate restructuring and capital raising announced. This was withdrawn following extensive engagement with shareholders

224 FATALITY
FREE DAYS

The longest fatality-free period – 224 days – in company’s history and more than a year without a fall-of-ground fatality, despite the earthquake

SELF-HELP STEPS
TO DELEVERAGE

Prioritisation of measures to reduce debt over the medium term including improved efficiencies and potential joint ventures or asset sales for full value

BANKING COVENANTS AND NEW FACILITIES ARRANGED

Revolving credit facility maturity profiles successfully extended. Banking covenants eased from 3 times net debt: adjusted EBITDA to 3.5 times, with one-time waiver to 4.5 times

Oct

CFO APPOINTED

Christine Ramon appointed CFO, replacing Richard Duffy

NOV

NUEVO CHAQUIRO

Maiden Mineral Resource released for Nuevo Chaquiro, a copper-gold porphyry-style deposit located in the Quebradona project area in Colombia

OCCUPATIONAL LUNG DISEASE

A collaborative initiative launched to seek a comprehensive solution to issues relating to compensation and medical care for occupational lung disease in South African gold mining industry

DEC

SAFETY
ACHIEVEMENT

For the first time in company history, the Continental Africa region completes a full year with no fatal accidents

LIMITED OPERATIONS AT OBUASI

Mine development suspended and underground production halted. Retrenchments completed with agreement from unions

Source: Bloomberg



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