.... optimize your investments and collateral ratio

.... know if your investments are liquid

.... draw down on cash or do you free up cash for your liability requirements

.... increase or do you keep your rehabilitation liability constant

.... have people with mining & investment background managing the process

.... have quarterly meetings with your Fund Managers

.... spend hours, if not days, consulting with the DMR & ESKOM to finalise

guarantees and alignment of closure reports

Do you .........

Team of specialised individuals with more than 100 years experience in the

mining industry

Complete analysis and management function of investments, insurance

guarantees and associated rehabilitation plan

Optimisation of collateral

Monthly broker interaction and Quarterly meetings with Fund Managers

Fund Managers and Brokers registered at Financial Services Board (FSB)

All services will be concluded in compliance with the Mineral and

Petroleum Resources Development Act, 2004 (MPRDA)

Introduction to IRM

Management Management of investments, guarantees and strategy around rehabilitation plan

Investments - Stable capital growth

Insurance - Manage insurance guarantee requirements, optimal

collateral ratio’s through strategic insurance partners

Rehabilitation - Manage DMR guarantee requirements & ensure compliance

Alignment of guarantees (Eskom, DMR - mining and prospecting rights)

Renewal and closure requirements - DMR

Long & Short term Closure liability (Rehabilitation plan) strategy

A Case Study’s Findings DMR & Eskom liability requirement - R140 million

Investments - R124 million cash, R16 million cessions on properties

Only R94 million of the R124 million immediately available

Inappropriate investment plans – R30 million of investment not available,

(R4 million penalties to release investments)

Net Growth less than 5% per annum over last 4 years (R30m lost opportunities)

Collateral ratio – 100% cash : 100% guarantees

Old guarantees and current liability requirements not aligned

Implementation Informed client of incorrect investment plans, implemented solution strategy

Requested waiver of penalties - partly or as a whole

Tailor made fund created – Growth improved from 5% - 11% per annum

Renegotiated collateral ratio; 80% cash : 100% guarantees, freed up R25m cash

Cash utilised to comply with proposed DMR short term (1 year) incremental

rehabilitation plan

Initiated one on one quarterly reviews with Fund Managers

Alignment of guarantees towards liability requirements

AnalysisAnalysis – Investment utilisation

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 10

100

150

200

250

Existing IRM Strategy Existing Closure

ZAR-M

illion

AnalysisAnalysis – Investment utilisation

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 10

100

150

200

250

Existing IRM Strategy Existing Closure

ZAR-M

illion

AnalysisAnalysis – Investment utilisation

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 10

100

150

200

250

Existing IRM Strategy Existing Closure

ZAR-M

illion

AnalysisAnalysis – Cash utilisationYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

0

10

20

30

40

-80

-60

-40

-20

0

Existing IRM Strategy Existing Requirement

ZAR-M

illion

ZAR-M

illion

AnalysisAnalysis – Cash utilisationYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

0

10

20

30

40

-80

-60

-40

-20

0

Existing IRM Strategy Existing Requirement

ZAR-M

illion

ZAR-M

illion

AnalysisAnalysis – Cash utilisationYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

0

10

20

30

40

-80

-60

-40

-20

0

Existing IRM Strategy Existing Requirement

ZAR-M

illion

ZAR-M

illion

AnalysisSummary

Year 1 Year 10 Year 1 Year 10 Year 1 Year 10124 192 Investment o/b 124 180 124 128 - - Cash utilised 25 9 25 9 124 192 Investment After Rehab 99 171 99 119

6 10 Interest 12 20 8 9 130 202 Net investment c/b 111 191 107 129

132 232 Closure Liability c/b 107 106 107 120 2 30 Cash Req over 10yrs -4 -85 0 -11

Stable - 11.84%Unstructured Flexible -7.70%

Spin off’s

Reduction of annual guarantee fees

Reduction of annual closure liability audit fee – static at least

Strategic investment and closure liability partner through IRM expertise

Saving of highly expensive man hours (IRM function)

Task LED projects to do minor rehabilitation

IRM fee for this? Zero!!!!

Fund ProfilesFund FLEXIBLE INCOME STABLE BALANCED OPPORTUNITY

Structure Wrap Fund Wrap Fund Wrap Fund Wrap FundRisk Conservative Cautious Moderate Aggressive

Benchmark STEFI + 2% CPI + 3% over roll 3 yrs CPI + 5% over roll 5 yrs CPI + 7% over roll 7 yrsCategory SA Multi Asset Income SA Multi Asset Low Eq SA Multi Asset High Eq WW Multi Asset Flex

Regulation 28 Yes Yes Yes NoInvestment Horizon 18 Months 3 Years 5 Years 7 Years

Maximum Exposure - Equity 10% 40% 75% 90% - Property 25% 25% 25% 25% - Offshore 25% 25% 25% 90%

3 Year Perf 7.70% 11.84% 16.08% 20.39%

BCI Best Blend Flexible Inc Coronation Bal Defens Coronation Bal Plus Coronation Opt GrowthCoronation Strategic Inc Nedgroup Investments Foord Balanced Foord Flexible Fund

Prescient Income Provider Prudential Inflation Plus Prudential Balanced Nedgrp Bravata WWPrudential Enhanced Inc PSG Stable Rebalance BCI Infl Plus 5 Rebalance BCI Infl Plus 7

SIM Active Income Rebalance BCI Infl Plus 3 Rezco Value Trend

Underlying Unit Trust Used

Questions ?