48 INTEGRATED ANNUAL REPORT 2025 • The committee considered the going concern status of NCT in light of the Richards Bay Mill fire and the rebuilding of the Mill • The internal audit charter was reviewed and approved • The loan covenants were reviewed to ensure NCT remains within the parameters required by the bank • The developments with the Prevention and Combating of Corrupt Activities Act were considered. In response NCT launched anti-fraud and anti-corruption training. • The Committee considered the development of an integrated Governance Risk and Compliance framework. • The new Richards Bay fire risk mitigation measures were considered. • Monitoring the mill fire insurance claim • The appointment of a new designated lead auditor was approved Audit and Risk Committee Attendance 12/06/2024 17/09/2024 26/11/2024 25/02/2025 Gibbs APG Y Y Y Y Hohls C X Y Y Y Mason JF Y Niebuhr HG Y Y Y Y Payn G Y Y Y Y Stegen JW Y Y Y Y NCT Strategy and Risk Management NCT is a risk mitigating organisation with a high focus on identifying, and rating, potential risks and impacts, for appropriate action. The table below provides a precise of the risk register as revised during the reported year. The green shaded areas on the table denote those risks that NCT deem most important and which are arguably receiving the most senior management and Board attention. NCT’s highest vulnerability is deemed to be reduced access for our members timber to mills, via rail and road. The severe and alarming decline of these two State provided and managed key infrastructures is extremely concerning. Once timber is received and processed at our mills, the resultant chips have to make their way onto a vessel. Port owned infrastructure and service, now in decline therefore adds a further key risk to NCT operations. Of course, the renewal of the NCT Durban Wood Chips site is hugely critical and every effort is being made to prevent the risk of lease termination. With literal global focus on certification, timber source verification and supply chain ethics, all aspects of chain of custody are receiving unprecedented attention. The risk of losing certification and critical market share due to a breach along the supply chain would be catastrophic to NCT and its collective member base.
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