Adhering to the highest standards of corporate governance is fundamental to the sustainability of our business. Our business practices are conducted in good faith, in the interests of the company and all its stakeholders, with due regard for the principles of good corporate governance.
Understanding that our stakeholders are central to achieving our strategic priorities, the ARM team engages regularly and constructively with our stakeholder groups at all levels (detailed on page 10 of the full 2022 integrated annual report).
Our people have proved their mettle in finding creative solutions to drive our progress amid the prevailing global uncertainty. We also continually assess how the company is perceived and valued by shareholders, current and prospective, as well as specialist stakeholders focused on sustainability-related aspects of our business. Across the group, management teams are focused on trends and shifts in our markets that may affect how we implement our strategy.
All this feedback informs decisions taken at meetings of the board, which has transitioned seamlessly to the new hybrid way of working in the post-pandemic world. At the same time, board effectiveness has become increasingly important in rapidly changing markets. The effectiveness of the board and its committees was again externally assessed this year, with positive results.
These reviews are instrumental in developing the board's objectives and work plan for F2023 and beyond.
One of the primary functions of the board is to ensure ARM's strategy is carefully considered, clearly defined and actionable. Management is accountable to the board for implementing all facets of this strategy, while the board is responsible for ensuring implementation proceeds against plan while considering broader developments that should be taken into account in refining the strategy. Either directly or through its mandated committees, the board maintained and monitored its robust processes to ensure that good governance and ethical behaviour are central to the way ARM operates.
The board approved targets and governance enhancements that underpin our long-term environmental objectives
A board-level diversity and inclusion policy was approved, reinforcing the approach and targets at company level for employment equity, diversity and inclusion
Approving the investment to support hybrid working through robust technology and systems
The board approved the R3.5 billion acquisition of Bokoni Platinum Mine, which is a significant value-accretive opportunity for the company
In collaboration with peers and industry bodies, approving appropriate capital and expertise to address key infrastructural risks, ie logistics, water and energy
ARM's growth depends on good governance. The board and its committees regularly review information about our safety and health culture and performance, approach to assessing and monitoring risk, and real-time sustainability-related data. ARM is on track to implementing global best practice in tailings storage facilities, as per ICMM GISTM
ARM's quality diversified portfolio enabled us to improve our financial position despite lower prices for iron ore and platinum group metals (PGMs). Our net cash increased from R8.2 billion to R11.2 billion enabling ARM to continue investing in our existing business, pay dividends and pursue value-enhancing growth.
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In a year that presented multiple challenges, our operations delivered and improved safety performance reducing the group LTIFR by 24%. The total recordable injury frequency rate improved by 15% to 0.69 (F2021: 0.81).
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