GRAHAM KERR

CEO South32

www.south32.net

SOUTH32’S Graham Kerr last year countered questions over retirement by saying his work was not yet done. Far from it, broad-brush portfolio positioning continues to be the name of the game for the group’s founding CEO. A major issue at South32 is its exposure to fossil fuels. It sold its South Africa thermal coal mines in 2021 but still produces metallurgical coal from Australia. Meanwhile, South32’s Hillside aluminium facilities in South Africa are supplied by Eskom’s coal-fired power stations. These are sensitive issues for shareholders as well as metal buyers, who will pay a premium for emission-free aluminium. That’s why South32 lifted its stake in Mozal Aluminium to 63.7% and reopened its aluminium operations in Brazil. Mozal is hydropowered while the Brazilian facilities are 100% supplied with renewable power. South32’s ‘greener’ look was also boosted by a decision not to extend production at the Dendrobium Next expansion at Illawarra Metallurgical Coal in New South Wales, Australia, although South32 said the main reason was its below-threshold investment returns. On this front, South32 has continued with its share buy-back strategy, which contributed to $1.3bn in capital returns for the year ended June 2022. Elsewhere in the group, Kerr opted not to press on with the Eagle Downs metallurgical coal project in Queensland but sealed the $1.55bn in cash acquisition of Sierra Gorda, which adds revenue to the group’s putative base metals division, where project studies are underway in Arizona and Alaska in the US. Closer to home, state-owned rail and ports company Transnet continues to give Kerr heartburn. A possible expansion of manganese production is being examined although Kerr is quite likely perplexed by Transnet’s interest in opening up rail capacity to new companies rather than existing players with the advantage of scaleability.

Life Of Graham

Kerr, who holds a business degree from Edith Cowan University, Australia, and is a Certified Practising Accountant, joined BHP straight from university. He worked for the group in South Africa, South America and North America, as well as Australia before being appointed to head BHP’s spin-off, South32. He modestly puts his success down to being in the right place at the right time, working hard, and having a supportive family. He has been recognised for his work on gender equality in the workplace and is a director of CEOs for Gender Equity, an association of business leaders that addresses gender inequity in Western Australia.

We’ve long understood the need for balance – to produce lasting benefit for our host communities, while reducing our environmental footprint. That’s why we set our first climate targets more than 15 years ago and achieved them with time to spare. In fact, we exceeded them; since 2008 our greenhouse gas emissions are down by more than two thirds.

We’ve now embarked on a new leg in our climate journey to Net Zero as we commit to another 30% reduction in GHG emissions by the end of this decade. We aim to do that while responsibly developing our ore bodies, and bringing tangible benefit to our stakeholders.

Read about our Roadmap to Net Zero: www.anglogoldashanti.com/investors/esg-transparency-hub/

CEO

Caledonia Mining Corporation

www.caledoniamining.com

CALEDONIA Mining proves mining can flourish in Zimbabwe provided asset owners run a tight ship. In the case of Mark Learmonth’s Caledonia Mining, it was a question of biding its time as the company completed a $60m shaft extension at its 64%-owned Blanket mine. Now if ever there’s a comforting name for a great, dirty hole in the ground, Blanket is it. Followed closely, one hastens to add, by the Tolkienesque ‘Bilboes’, a mine Caledonia acquired in July last year for $53.3m in shares. With Blanket producing at an increased 80,000oz/year run-rate, Learmonth believes now is the time for Caledonia to stretch its wings. If a 12- to 14-month feasibility study checks out, Bilboes mine will increase Caledonia’s production by about 168,000oz. It’s an enormously transformational moment for Caledonia and follows the acquisition for $4m in 2021 of Maligreen, a near-development project, and in November the purchase of Motapa, an exploration asset. Motapa was previously owned by Anglo American Zimbabwe before it left Zimbabwe in 2002. Bilboes is also a former Anglo mine, having produced 288,000oz since it was opened in 1989. This accelerated growth was all made possible by Caledonia’s patience at Blanket. As Blanket’s project expenses began to flatten, Caledonia slowly undid the purse strings. In addition to its expansion strategy it has also doubled the dividend in the past two years. So shareholders are getting the best of both worlds: capital growth and payouts. Operating in Zimbabwe remains tough, however: Caledonia recently completed a solar project at Blanket, reducing its reliance on stateowned ZESA and, in the absence of its electricity, expensive diesel supplies.

Life Of Mark

Learmonth joined Caledonia in 2008 and became the company’s CFO in 2014. Prior to this he was a division director at Macquarie First South, which formed part of 17 years’ experience in corporate and investment finance in South Africa, most of it in resources. He graduated from Oxford University and is a chartered accountant. He is a member of the executive committee of Zimbabwe’s Chamber of Mines.