News Details

Partnership Culture

• Trust based: currency is transparency
• Belief that the whole greater than sum of the parts
• Individuals prefer to work in that culture
• Partnership culture is an ownership culture
  • Financial and emotional
• External partnership an organic extension of internal, applies to all
  • Maximize benefits, mitigate risks

Decentralized Business Model

• Most important: small, high-quality head office with specific functions
  • Allocates human/financial capital, sets strategy, and holds people running businesses to account
• All else delegated to CEOs (General Managers + Executive Directors)
• CEOs empowered and accountable
• Nothing between head office and the business

Tier 1 and Strategic Assets

• Tier 1 asset is large, long-life, and low-cost
  • Jurisdiction agnostic
• 500,000 ounces, >10 years, better half of cost curve
• Strategic asset: not tier 1 but has distinct long-term value

Capital Allocation: Human and Financial

Human

• Assess talent rigorously on values (partnership, ownership & business model) and effectiveness (ability & record of execution)
• Marry person and position

Financial

• Superior per share returns over long-term — 10-15% ROIC through the cycle
• Investment hurdle rate of 15% @ $1,200/oz
• Allocation priorities balance between:
  • Strong balance sheet
  • Disciplined reinvestment in operations, organic growth and exploration
  • Reliable dividend and buybacks
  • Acquisitions

Operational Excellence

• Benchmark vs industry best-in-class, data driven
• Realize full potential of every asset in every respect
• Master technology
  • This is the 21st century

Growth

• Growth equals free cash flow per share and margins, not ounces
• Preference for organic projects, geology led
• Consistent investment in exploration replenishes pipeline
• Acquisitions and divestments to upgrade quality, deliver strategic benefits

China

• Distinctive, strategic partnership for the 21st century