Risk Management

RISK ANALYSIS IS A KEY COMPONENT OF STRATEGY

Integrating Risk Assessment into Business Strategy

Risk analysis has been and continues to be a key component in building and executing our strategy. Our aim is to prevent unnecessary risk at all levels of the organization – identifying, evaluating and managing significant threats and opportunities to deliver against business objectives.

Our risk management framework comprises:

Our policy statement, which sets the context for risk management, prescribes the scope, objectives and required outcomes for this process;
A risk management plan, will be prepare by management and will reviewed annually by the a formed Risk and Information Integrity Committee of the board; and
A risk management standard and guidelines will enable operations globally.
Risk management structure and accountabilities are defined in the framework.

Risk identification, assessment and management are considered at every step in the business planning process, from setting business strategy, expectations and performance targets; developing production and service strategies; planning and scheduling of work through to task execution.

Cazimir Mining will implement the following measures in an effort to ensure that the risk management system is applied consistently through:

Regional and site-based risk training workshops conducted at least annually;
Using the intranet to share information and understanding of risk management principles and practice, and to provide regular updates to employees globally;
Ongoing focus on training;
Maintaining the group material risk register, as well as the preparation of a risk knowledge base that can be used to inform risk identification and for review purposes;
Regular risk owner and risk champion interaction and support; and
Combine assurance review processes.

The revised risk management system was approved by the board of directors in February 2019.

A risk response identification is conducted regularly to inform business planning processes and to assist with delivery according to targets. Significant risks are assessed and response plans prepared for which adequate budgetary provision is made. Consideration of the portfolio of risks within the group informs strategy and assists with optimizing the allocation of capital.

Key Risk Areas

The top risks, uncertainties and challenges that we believe the group faces in executing strategy and delivering on key business objectives are described below. Mitigation strategies and a summary of progress against these risks are also given. Comprehensive disclosure of risk factors is provided.

Risk / Uncertainty / Challenge Area	Mitigation Strategies
Safety and Health Employee safety resulting mainly from deep-level mine seismicity, as well as employee health and fatigue, and working practices.	The implementation of the safety transformation programmer is continuing, with significant progress made to date. Enhanced incident investigation and reporting systems are being rolled out. Efforts continue on a range of fronts to deliver on the company’s vision for a ‘no harm’ workplace.
Productivity Skills availability and retention. Skills shortages are anticipated across the sector globally.	Ongoing engagement takes place with local and national administrations, communities and other interested groups.
Environment Environmental permitting and process water management in Gonaives.	Cazimir Mining will form a task team, led by the executive committee, to develop a holistic strategy addressing legacy and operating issues relating to water, community relations, land access, and human rights.
Production Potential for power supply disruptions and rationing, particularly in South Africa.	Initiatives have been introduced to reduce power usage, focusing on high-usage customers. Engagement continues with Eskom in South Africa, with projects to improve efficiency and ensure operational continuity during load shedding.
Total Cash Costs Inflationary pressures driven by energy prices, mining input cost inflation, and wage demands.	Productivity gains and cost management strategies will help mitigate the impact of rising input costs.
Community Social issues from heightened community expectations and artisanal mining (ASM).	Engagement with local and national administrations and communities continues. A sustainability framework addressing development issues is in progress.