Pan African Resources 2011 Annual Report

Annual Report 2011

September 2011

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A Sound Business Model

The Group has developed a sound business model during the year based on our track record of delivery. Our business philosophy is based on four guiding pillars:

Profitability

Profit describes our commitment to grow the margin between our revenue and ‘allin’ cost base. This however, is on the condition that profits can never come at the exploitation of our stakeholders. In short, our stakeholders also need to profit from their association with us. This means no compromise on safety, credibility, honesty and integrity.

Sustainability

We need to take decisions that will benefit our stakeholders on a continued basis over the life of the business. We are not about short term gains at the expense of the long term viability of the business. We need to optimise our returns and minimise our risks, be flexible and adapt to a changing world. We are part of the environment in which we do business, and cannot stand divorced from this environment, our responsibilities or our commitments towards it.

Stakeholder Value

Stakeholders include our shareholders, employees and the communities directly surrounding our operations. We also need to abide by and respect the laws of the countries in which we operate. We need to be fair and reasonable when dealing with contractors and suppliers and will not solicit or entertain any form of bribery to enable preferential treatment. We will ensure that we have a communication platform in place to facilitate effective communications between all stakeholders and the Group in a constructive manner without prejudice.

Growth

This relates to our continued drive and passion to grow the other pillars of our Company. Our growth however, cannot simply be for the sake of trying to be the biggest. Growth must unlock value and must not compromise our...