How we spend the cash we earn
We recognise that our business requires inputs from, and affects, a number of stakeholders. We see it as crucial that each stakeholder group feels that its relationship with Lonmin is positive, and that it achieves net gain, whether financial or otherwise. The analysis below shows how the US$1,165 million of net cash earned in the financial year was distributed.
Shareholders received no dividend during the year, and none was recommended for 2017. In 2017 we met costs of 96 cents for every US Dollar we earned, predominantly in South Africa and we kept 1 cent for future investment. Payments for community projects and donations amounted to 1 US cent per US Dollar earned and we spent 2 cents per US Dollar earned on interest and fees to the banks who lent to us. Further information on payments to communities is available.
Distribution of cash inclusive of other taxes
Financial value added statement
Through business operations, shareholdings, investments, procurement contracts and development projects, Lonmin distributes financial value to a variety of stakeholders1.
|1||Prepared in US Dollars, which is the Group’s reporting currency and aligns to its financial statements.|
|2||Lonmin has a 30-day payment policy on services and procurement.|
|3||Includes expenses related to the Social and Labour Plan community projects, donations and other community investments, inclusive of salary and administration costs.|