Strategy Our strategy for growing the value of our Platinum business breaks down into four key areas: * Maximising the value of our core assets; * Achieving Operational Excellence. We are implementing three key projects, Six Sigma, Shared Business Services and Mechanisation and Automation which will be instrumental in controlling our cost base; * Identifying and capturing quality resources and extracting the maximum benefit from these whether through further acquisitions or exploration and * A programme of transformation initiatives which underpin this entire strategy. As we refocus the Lonmin culture on safety, productivity, costs, teamwork, profitability and employee and community engagement. "Transformation delivers operational excellence. (Extract from the Lonmin Annual Review 2005) Lonmin today is on a journey to become a world class natural resources company. This journey entails rethinking all of our systems, structures and symbols to enable us to be benchmarked against the best operations in the world and deliver the expectations of the South African Government for transformational change. The elements we need to achieve are: • Operational excellence in safety, production, cost control and asset integrity; • Outstanding employee enrolment; • Excellence in environmental performance and community engagement; and • Clarity of reporting and good corporate governance, all aligned with a clear strategic direction. Based on a thorough review of the minerals and metals markets, we have confirmed our view that Platinum is likely to be one of the best performing commodities over the next five years and beyond. We also believe that due to the concentration of Platinum assets and production in South Africa, there is a natural hedge relationship between the US dollar Platinum price and the Rand. With these insights, we believe that we can create substantial value if we can grow our core Platinum business. The key to achieving this growth is to identify and capture high quality resources that can be developed with Lonmin’s technical and operational capabilities. In Southern Platinum we saw an opportunity to capture just such an asset and we took control of the Messina Mine (now renamed Lonmin Platinum Limpopo) on 15 June 2005. Our clear strategy gives us a strong growth profile and will allow us to achieve around 1 million ounces of Platinum in 2006. We are targeting around 1.3 million ounces of Platinum production in 2010. 2005 has seen Lonmin make considerable progress on our journey of transforming into a world class natural resources company. The smelter accident in November 2004 could have set us back severely but we used this experience as a learning opportunity to recovery successfully. We have come out of the experience with a reformed smelter which is delivering a record performance. We are on track to achieve our goal of operational excellence in the areas of safety, production and cost control and have made substantial steps forward in our relationship with our employees and the local communities. We have a clear strategic direction and strong growth profile with which to deliver value to our stakeholders and I look forward to our continued progress in 2006."