Q4 2026 Impala Platinum Holdings Ltd Earnings Call

September 3, 2026

Speaker #1: Good morning. I want to welcome everybody in the room. It's always a pleasure to see you here. Also, a very hearty welcome to everyone joining us on the webcast.

Johan Theron: Good morning. A hearty welcome to everybody in the room. It is always a pleasure to see you in the room. Also, a very hearty welcome to everybody joining us on the webcast. There will also be an opportunity on the webcast and on Chorus Call to engage with the team directly after our short presentation in a Q&A session. As usual, we will take questions in the room first, and then we will pivot to Chorus Call and the web. There are no emergency drills planned for today, so rest assured, if we hear an alarm, it will be a genuine alarm. The normal exit is as you come in, and there are people ready to steer and provide and look after us. So very welcome. I am going to hand straight over to the team. There will be a short presentation, after which we will pivot into Q&A. Nico.

Speaker #1: There will also be an opportunity on the webcast and on Coruscal to engage with the team directly after our short presentation, in a Q&A session.

Speaker #1: As usual, we'll take questions in the room first, and then we'll pivot to Coruscal and the web. There are no emergency draws planned for today.

Speaker #1: So rest assured, if we hear an alarm, it will be a genuine alarm. And the normal exit is as you came in, and there are people ready to steer, provide, and look after us.

Speaker #1: So, very, very welcome. I'm going to hand straight over to the team. There will be a short presentation, after which we'll pivot into Q&A.

Johan Theron: So very welcome. I am going to hand straight over to the team. There will be a short presentation, after which we will pivot into Q&A. Nico.

Speaker #1: Nico.

Speaker #5: Thank you, Jan. Good morning, everyone. From my side, I also welcome all the interested people—media, analysts, and the investment community. Thank you to everyone who made today possible, and to the team for supporting the delivery of what I think is an absolutely standard set of results.

Nico Muller: Thank you, Jan. Good morning, everyone. From my side, also welcome all the interest people, media, analysts, investment community. Thank you to all the people that have made today possible and the team for supporting the delivery of, I think, an absolutely stellar set of results. Before we do that, though, as is our practice, the cautionary statement. You will make investment decisions on your own. This is a wonderful time for us to come to the market. Obviously, we have got a very supportive price environment. We see very exciting activities in the industry, in the market. We have not been participating at this point, so it involves a number of other parties. Nevertheless, it is very exciting for us to be in an industry that is supported with a constructive price environment.

Speaker #5: Before we do that, though, as is our practice, the course restatement: you'll make investment decisions on your own. So, this is a wonderful time for us to come to the market.

Speaker #5: Obviously, we've got a very supportive price environment. We see very exciting activities in the industry and in the market. We have not been participating at this point, so it involves a number of other parties.

Speaker #5: Nevertheless, it's very exciting for us to be in an industry that is supportive, with a constructive price environment. Personally, this is a point that we as a company have worked many years to get to.

Nico Muller: Personally, this is a point that we as a company have worked many years to get to. When I look at the last financial year, I have to thank our operational teams for the absolutely stunning operational performance that they were able to achieve. The most noteworthy thing for me is not the ounces that was delivered. That in part is really important. That provides us with our license, but it is the fact that we were able to, on top of all of that, increase our mineral reserves by 9%. It is the fact that Tim and his team in Canada extended the life of Canada by another year. When I look at the work at what they are doing, it appears like some of the rest of the portfolio that we have the ability under the current price environment to provide this continuous extension of life.

Speaker #5: And when I look at the last financial year, I have to thank our operational teams for the absolutely stunning operational performance that they were able to achieve.

Speaker #5: The most noteworthy thing for me is not the answer that was delivered. I mean, that in part is really important. That provides us with our license.

Speaker #5: But it's the fact that we were able to, on top of all of that, increase our manual reserves by 9%. It's the fact that Tim and his team in Canada extended the life of Canada by another year.

Speaker #5: And when I look at the work at what they're doing, it appears, like some of the rest of the portfolio, that we have the ability under the current price environment to provide this continuous extension of life.

Nico Muller: When I look at the work at what they are doing, it appears like some of the rest of the portfolio that we have the ability under the current price environment to provide this continuous extension of life. I am very happy that there is a very strong team that is now very settled, that are able to deliver very strong results. A big part of the company is focused on the future and on developing future strength and competitive positioning in the company. Supporting the 4% increase in ounce of sales was a 63% increase in the dollar basket price and a 51% in rand price.

Speaker #5: I'm very happy that there's a strong team now, one that is settled and able to deliver strong results. A big part of the company is focused on the future and on developing future strengths and competitive positioning for the company.

Nico Muller: I am very happy that there is a very strong team that is now very settled, that are able to deliver very strong results. A big part of the company is focused on the future and on developing future strength and competitive positioning in the company. Supporting the 4% increase in ounce of sales was a 63% increase in the dollar basket price and a 51% in rand price. That resulted in a material increase in headline earnings, therefore cash flow, which resulted in a very robust allocation of capital from the team, from the board, which saw 82% of our free cash flow being allocated to shareholders. That was totally appropriate, in the absence of capital-intensive growth projects that are currently not on the table. We have got a pipeline of opportunities, which I will just touch on. The balance sheet is very strong.

Speaker #5: So I'm supporting the 4% increase in ounces, with a 63% increase in the dollar basket price and a 51% increase in the rand price. That resulted in a material increase in headline earnings; therefore, cash flow, which resulted in a very robust allocation of capital from the team, from the board, which saw 82% of our free cash flow being allocated to shareholders.

Nico Muller: That resulted in a material increase in headline earnings, therefore cash flow, which resulted in a very robust allocation of capital from the team, from the board, which saw 82% of our free cash flow being allocated to shareholders. That was totally appropriate, in the absence of capital-intensive growth projects that are currently not on the table. We have got a pipeline of opportunities, which I will just touch on. The balance sheet is very strong.

Speaker #5: And that was totally appropriate. In the absence of capital-intensive growth projects, which are currently not on the table, we have a pipeline of opportunities, which I'll just touch on.

Speaker #5: The balance sheet is very strong. We've got no debt, and we've got R37 billion worth of headroom liquidity. And so it's just absolutely appropriate, in line with our undertakings that we gave before.

Nico Muller: We have got no debt, and we have got ZAR 37 billion worth of headroom liquidity. It is just absolutely appropriate that in line with our undertakings that we gave before, that we had a very strong allocation to shareholders. Looking forward, it is our contention, and Emma is going to speak a little bit about the market, that the current supportive environment is going to continue for the medium term. We do not believe that the macros are about to change and all the signals from a demand side is positive. Equally on the supply side, we have not seen major steps from producers to bring new supply to the market other than new entrants in specifically two projects.

Speaker #5: That we had a very strong allocation to shareholders. And so, looking forward, it is our contention—and Emma is going to speak a little bit about the market—that the current supportive environment is going to continue for the medium term.

Speaker #5: We don't believe that the macros are about to change. And all the signals from the demand side are positive, and equally so on the supply side.

Speaker #5: We have not seen major steps from producers to bring new supply to the market, other than new engines in specifically two projects. But from the major producers, we are seeing a constrained supply base going forward, which, combined with the increase in industrial demands and the increased relevance of hybrid vehicles, leads us to see very strong market fundamentals for the next few years.

Nico Muller: But from the major producers, we are seeing a constrained supply base going forward, which combined with the increase in industrial demands, the increased relevance of hybrid vehicles, we see very strong market fundamentals for the next few years. If you take all of that into consideration, you look at what our company will be focusing on first, as I said earlier, our current performance is always critical. So the excellence that was displayed this year will be the first priority for the next year and beyond. After that, our focus is on creating competitive strength in the company. Specifically, we are looking at life extension projects. I must say, we are blessed to have a quality set of assets with significant resources and reserves with a multitude of opportunities to provide longevity to most of our assets.

Speaker #5: So, if you take all of that into consideration and you look at what our company will be focusing on first, as I said earlier, our current performance is always critical.

Speaker #5: So, the excellence that was displayed this year will be the first priority for next year and beyond. After that, our focus is on creating competitive strength within the company.

Speaker #5: And specifically, we are looking at life extension projects, and I must say we are blessed to have a quality set of assets with significant resources and reserves, with a multitude of opportunities to provide longevity to most of our assets.

Speaker #5: And so, that will be the first part of the business. And then, secondly, we do have a study program that will look at growth options. We have got Portal 10 at Zumplatz, which is another relatively shallow, mechanized possibility for the future, and which will add tremendous value in future decades to the company, as well as the sale of Two, which is probably the world's best quality untapped Merensky orebody that's left for us to explore.

Nico Muller: And so that will be the first part of the business. Secondly, we do have a study program that will look at growth options. We have got Portal 10 at Zimplats, which is another relatively shallow, mechanized possibility for the future, which will add tremendous value in future decades in the company as is Styldrift II, which is probably the world's best quality untapped Merensky ore body that's left for us to explore. On top of that, there is always the opportunity for us to explore partnerships with our joint venture partners and to, in addition to that, to look at potential M&A opportunities to the extent that that is value accretive. That's all from my side. I just want to provide the context where our focus is going to be. I will now hand over to Emma, who will just briefly touch on the market.

Speaker #5: And on top of that, there is always the opportunity for us to explore partnerships with our joint venture partners and, in addition to that, to look at potential M&A opportunities to the extent that that is value-creative.

Speaker #5: So, that's all from my side. I just wanted to provide the context for where our focus is going to be. I will now hand over to Emma, who will briefly touch on the market.

Nico Muller: That's all from my side. I just want to provide the context where our focus is going to be. I will now hand over to Emma, who will just briefly touch on the market.

Speaker #4: Would you just move it forward one for me, because I just need one. Okay. Morning, everyone. So, I'm very conscious that we are the third major South African producer to report this week.

Emma Townshend: Why don't you just move it forward one for me because it doesn't move. Okay. Morning, everyone. I'm very conscious that we are the third major South African producer to report this week. I'm not going to give you a rehash of geopolitics. I think from a market perspective at Implats, we think about things in the short, the medium, and the longer term, and the extent to which those trends and developments influence and shape our competitive landscape, and how also we can respond to them, and make sure that our business is the best positioned for those. I think one of the things that has changed positively over the last year and a half is absolutely this focus on critical minerals, the security and surety of supply. I think that's been combined with a broader debasement trade.

Speaker #4: So I'm not going to give you a rehash of geopolitics. I think, from a market perspective, at Implats we think about things in the short, the medium, and the longer term.

Speaker #4: And the extent to which those trends and developments kind of influence and shape our competitive landscape, and how we can respond to them to ensure that our business is best positioned for those.

Speaker #4: I think one of the things that has changed positively over the last year and a half is absolutely this focus on critical minerals, the security and surety of supply.

Speaker #4: I think that’s been combined with a broader debasement trade. And then, from a kind of big demand, energy, and impetus perspective, obviously you've got AI.

Emma Townshend: Then from a big demand energy and impetus perspective, obviously, you've got AI. If I look a little bit at demand in terms of some of the positive changes and some of the developments that have shaped that outlook and I think underpin a more positive stance from us in terms of business positioning and future focus. I think there is an increased focus on just how important, and sticky the industrial demand is. Particularly, I think many of you have had the benefit and the privilege of going to Shanghai Platinum Week and getting exposure to the huge diversity of industrial applications and the kind of energy and impetus behind the development of those markets there. I think that's proved a really useful counter to the demand story, which has been very much about waning as production over the last couple of years.

Speaker #4: So, if I look a little bit at demand in terms of some of the positive changes and some of the developments that have shaped that outlook—and I think underpin a more positive stance from us in terms of business positioning and future focus—I think there is an increased focus on just how important and sticky the industrial demand is.

Speaker #4: In particular, I think many of you have had the benefit and the privilege of going to Shanghai Platinum Week and getting exposure to the huge diversity of industrial applications and the kind of energy and impetus behind the development of those markets there.

Speaker #4: I think that's proved a really useful counter to the demand story, which has been very much about waning asset production over the last couple of years.

Emma Townshend: I think that's proved a really useful counter to the demand story, which has been very much about waning as production over the last couple of years. I think Johan and Patrick were there six weeks ago and visited one of the major fabricators where there were 300 engineers working in R&D and not in catalysis. We have also had some support in terms of policy developments on EV penetration expectations. You will all be aware of the kind of easing of CO2 in Europe. We have got to bless Trump for his repealing of EV incentives. We do still have changing emissions legislation, which is supporting demand.

Speaker #4: And I think Johan and Patrick were there six weeks ago and visited one of the major fabricators, where there were 300 engineers working in R&D and not in catalysis.

Emma Townshend: I think Johan and Patrick were there six weeks ago and visited one of the major fabricators where there were 300 engineers working in R&D and not in catalysis. We have also had some support in terms of policy developments on EV penetration expectations. You will all be aware of the kind of easing of CO2 in Europe. We have got to bless Trump for his repealing of EV incentives. We do still have changing emissions legislation, which is supporting demand. I think linked to that China story, but I think more broadly, just in terms of South African supply and the structure of the market, we are absolutely seeing a growing relevance in terms of minor PGMs. I think that is a trend that you have seen in PGM markets over time.

Speaker #4: We've also had some support in terms of policy developments on BV penetration expectations. So, you'll all be aware of the kind of easing of CO2 in Europe.

Speaker #4: We've got to bless Trump for his repealing of EV incentives. And we do still have changing emissions legislation, which is supporting demand. I think, linked to that China story, but I think more broadly, just in terms of South African supply and the structure of the market, we are absolutely seeing a growing relevance in terms of minor PGMs.

Emma Townshend: I think linked to that China story, but I think more broadly, just in terms of South African supply and the structure of the market, we are absolutely seeing a growing relevance in terms of minor PGMs. I think that is a trend that you have seen in PGM markets over time.

Speaker #4: And I think that is a trend that you've seen in PGM markets over time. But there's no doubt that the next 10 to 15 years are going to be far more focused on the full basket, and particularly iridium and ruthenium, and we are a very significant producer of both.

Emma Townshend: There is no doubt that the next 10 to 15 years are going to be far more focused on the full basket, and particularly iridium and ruthenium. We are a very significant producer of both. So we are close to 30% of primary refined iridium production and around 28% of refined ruthenium production. Sifiso and Ash are the people to get hold of in terms of long-term security. Then I think also what we have seen, which has been great, over the last year and a half, is renewed emphasis in terms of collaboration across market development initiatives. I think the extent to which that has been done with fabricators is also important. We are part of a global ecosystem, and the people who we sell metal to are also facing shifts in terms of market outlooks.

Speaker #4: So we close to 30% of primary refined iridium production, and around 28% of refined ruthenium production. So Safisa and Ash are the people to get hold of in terms of long-term security.

Speaker #4: And then I think also what we've seen, which has been great over the last year and a half, is a renewed emphasis on collaboration across market development initiatives.

Speaker #4: And I think the extent to which that's been done with fabricators is also important. We are part of a global ecosystem, and the people we sell metal to are also facing shifts in terms of market outlooks.

Speaker #4: If you were traditionally an auto catalyst maker, how do you look to secure long-term longevity for your business? And I think that alignment of interests, and the collaboration between producers, has definitely shifted the tone and the focus on market development.

Emma Townshend: If you were traditionally an autocatalyst maker, how do you look to secure long-term longevity for your business? I think that aligning of interest, and I think the collaboration between producers has definitely shifted the tone and the focus on market development, and I think that is also incredibly positive in terms of long-term planning. Just a few more words on supply because I know I was meant to be short. We have seen minimal changes in our supplier outlook. We tend to look for offtake agreements and funding certainty before we count it in. We do still see a limited greenfield project pipeline. I think most importantly, we are always assured by the people who we speak to and who we sell our metal to about how important a strong and sustainable primary supply base remains.

Speaker #4: And I think that's also incredibly positive in terms of long-term planning. Just a few more words on supply, because I know I was meant to be short.

Speaker #4: We've seen minimal changes in our supply outlook. We tend to look for offtake agreements and funding certainty before we count it in. We do still see a limited greenfield project pipeline.

Speaker #4: And I think, most importantly, we are always assured by the people who we speak to and who we sell our metal to about how important a strong and sustainable primary supply base remains.

Speaker #4: So I think we know that we produce special and critical minerals, and I think the world recognizes that South Africa is the absolute anchor of sustainable production.

Emma Townshend: I think we know that we produce special and critical minerals, and I think the world recognizes that South Africa is the absolute anchor of sustainable production and future market evolution over time.

Speaker #4: And future market evolution over time.

Speaker #5: Thank you, Emma. Good morning, everyone. We are getting to the engine room, starting with safety. It is very key to state up front that safe production for us, as Implats, remains our apex priority.

Patrick Morutlwa: Thank you, Emma. Good morning, everyone. We get into the engine room, starting with safety. Very key to upfront say that safe production for us at Sibanye-Stillwater remains our apex priority and remains non-negotiable. If you look at FY 2026, it marked six years of consecutive improvement in our LTIFR, but also other rates for the year have significantly improved. What is also more appealing is that we have seen an increase in our, what we call white flag days. Those are the days that for a 24-hour period, more than 55,000 of our employees come to work and go home unharmed. It is actually proof that zero harm is possible. It is not just a pipe dream. The more we increase these days, I think we are getting much more closer to, first of all, eliminating fatalities and secondly, to reach our zero harm goal.

Speaker #5: And it remains non-negotiable. So, if you look at FY2026, it marked six years of consecutive improvement in our LTIFR and African rate, but also other rates for the year have significantly improved. What is also more appealing is that we have seen an increase in our, what we call, white flag days.

Speaker #5: Those are the days that, for a 24-hour period, more than 55,000 of our employees come to work and go home unharmed. It is actually proof that zero harm is possible.

Speaker #5: It's not just a pipe dream. So the more we increase these days, I think we're getting much closer to, first of all, eliminating fatalities and, secondly, to reaching our zero harm goal.

Patrick Morutlwa: The more we increase these days, I think we are getting much more closer to, first of all, eliminating fatalities and secondly, to reach our zero harm goal. For FY 2026, we spent a lot of time maturing our safety system, defining clear controls and really embedding them. That is what actually have led to some of this improvement that you see. Despite all these things, unfortunately, we had four losses of life. Really, we need to appreciate that the journey to elimination of fatalities is not a linear one. There are setbacks along the way. What is more important is that we are resolute and determined to carry on implementing our safety strategy because the results will come through resilience. I think that is what the team has prepared themselves for.

Speaker #5: So, for FY 2026, we spent a lot of time maturing our safety system, defining clear controls, and really embedding them. And that's what actually has led to some of these improvements that you see.

Patrick Morutlwa: For FY 2026, we spent a lot of time maturing our safety system, defining clear controls and really embedding them. That is what actually have led to some of this improvement that you see. Despite all these things, unfortunately, we had four losses of life. Really, we need to appreciate that the journey to elimination of fatalities is not a linear one. There are setbacks along the way. What is more important is that we are resolute and determined to carry on implementing our safety strategy because the results will come through resilience. I think that is what the team has prepared themselves for. For the new year, FY 2027, our focus really can be summarized in two. There will be an enhanced leadership visibility underground in our process plans to verify and track clear controls. We have defined them, we have embedded them.

Speaker #5: Despite all this, unfortunately, we had four losses of life. But really, we need to appreciate that the journey to elimination of fatalities is not a linear one.

Speaker #5: There are setbacks along the way. What is more important is that we are resolute and determined to carry on implementing our safety strategy, because the results will come through resilience.

Speaker #5: And I think that's what the team has prepared themselves for. So, for the new year, FY2027, our focus really can be somewhere else. In Q2, there will be an enhanced leadership visibility underground in our process plans to verify and track clear controls.

Patrick Morutlwa: For the new year, FY 2027, our focus really can be summarized in two. There will be an enhanced leadership visibility underground in our process plans to verify and track clear controls. We have defined them, we have embedded them. Now it is a question of verifying that they work. Secondly, while doing that, is to create an environment where every employee will feel safe to stop unsafe work without fear of any consequences. That is what our safety journey is all about. Two takeaways from safety. Safe production remains non-negotiable. Secondly, the recent lapse or deterioration in our safety performance does not discourage us. We are more determined than ever to make sure that we send each and every man and woman home unharmed on a daily basis.

Speaker #5: We've defined them. We've embedded them. Now it's a question of verifying that they work. And secondly, while doing that, it's to create an environment where every employee will feel safe to stop unsafe work without fear of any consequences.

Patrick Morutlwa: Now it is a question of verifying that they work. Secondly, while doing that, is to create an environment where every employee will feel safe to stop unsafe work without fear of any consequences. That is what our safety journey is all about. Two takeaways from safety. Safe production remains non-negotiable. Secondly, the recent lapse or deterioration in our safety performance does not discourage us. We are more determined than ever to make sure that we send each and every man and woman home unharmed on a daily basis. All right. Moving over to production itself. As Nico said, we have had a very strong operational performance coming both from our mining assets and processing assets. I do know that you have the numbers, but allow me to show some standard performance, starting with Impala Rustenburg. Rustenburg remains our key asset.

Speaker #5: And that's what our safety journey is all about. So, two takeaways from safety: safe production remains non-negotiable; and secondly, the recent lapse or downturn in our safety performance does not discourage us.

Speaker #5: We are more determined than ever to make sure that we send each and every man and woman home unharmed on a daily basis. All right, then moving over to production itself.

Patrick Morutlwa: All right. Moving over to production itself. As Nico said, we have had a very strong operational performance coming both from our mining assets and processing assets. I do know that you have the numbers, but allow me to show some standard performance, starting with Impala Rustenburg. Rustenburg remains our key asset.

Speaker #5: As Nicholas said, we've had a very strong operational performance, coming from both our mining and processing assets. I know you have the numbers, but allow me to show some standard performance.

Speaker #5: Starting with Impala Rustenburg, Rustenburg remains our key asset. For the year, we have seen a five-year high coming from the old lease area. But also, if you look at the whole Impala Rustenburg now, with the consolidation of RBPlat, you will see that our growth shafts are the ones which are driving this improvement in production: 16 Shaft, 20 Shaft, and Stillwater. We’ve combined all those three shafts, giving us 80,000 ounces more, and we still expect Stillwater Driefontein in the new year to continue to march towards full nameplate capacity of 230,000 tons a month.

Patrick Morutlwa: For the year, we have seen a five-year high coming from the old lease area. Also, if you look at the whole Impala Rustenburg now with the consolidation of RBPlat, you will see that our growth shaft are the one which are driving this improvement in production, 16 shaft, 20 shaft, and still we have combined all those three shaft gave us 80,000 ounces more. We still expect Styldrift in the new year to continue to march towards full name capacity of 230,000 tons a month. Zimplats also, on the back of improving fiscal policy in the country and the work we have done in restoring Triplex field reliability, we have seen Zimplats bouncing back from last year to, they produce about 660,000 ounces in concentrate.

Speaker #5: Zimplats also, on the back of improving fiscal policy in the country and the work we've done in restoring trackless fleet reliability, we have seen Zimplats bouncing back from last year to produce about 660,000 ounces in concentrate. What you see—606 only matched—because we ended up with a stock of about 24,000 ounces because of furnace maintenance that we had to do.

Patrick Morutlwa: What you see, 606 only match because we ended up with a stock of about 24,000 ounces because of furnace maintenance that we have to do. I think the star player, really, it is a processing division. The work we've been doing on our furnaces is starting to pay dividends for the first time in 20 years. Rustenburg furnaces ran without any incident. If you look at the work we've done to increase our capacity at BMR, we have seen record milling also at our base metal refineries. As a result, that's the reason why we were able to release 120,000 ounces from excess inventory as promised earlier in the year. Briefly touching on unit cost. The strong ZAR, combined with strong volume delivery, has helped us to maintain our unit cost increase in line with guidance of 8%.

Speaker #5: But I think the star player is the Processing Division. The work we've been doing on our fairness is starting to pay dividends for the first time in 20 years.

Speaker #5: Rustenburg furnaces ran without any incident. And if you look at the work we've done to increase our capacity at BMR, we have seen record milling also at our base metal refineries.

Speaker #5: And as a result, that's the reason why we were able to release 120,000 ounces from excess inventory, as promised earlier in the year. So, briefly touching on unit cost, the strong rand combined with strong volume delivery has helped us to maintain our unit cost increase in line with guidance of 8%.

Speaker #5: And this is even after spending about 3% more on maintenance, because as a company we've always decided that when there are tailwinds, let's take advantage of them and really create a strong operating platform.

Patrick Morutlwa: This is even after spending about 3% more on maintenance. Because as a company, we've always decided that when there is tailwinds, let's take advantage of them and really create a strong operating platform. That's what we have done by putting some maintenance in front, ahead in Zimplats, also in Rustenburg. When you look at the engine room, I believe that we've got strong assets. As Nico said, they are well-geared, well-capitalized to be able to deliver into this high price environment. Now moving over to capital guidance. You will all recall that around 2020, we announced a capital project program of about ZAR 50 billion. So it peaked somewhere around 2024. For the last two years, it's been winding down. We're now entering a new phase, where we plan that for the next five years, we'll spend about ZAR 60 billion to do two things.

Speaker #5: And that's what we have done by putting some maintenance in front—I mean, ahead—at Zimplats, also in Rustenburg. So when you look at the engine room, I believe that we've got strong assets.

Speaker #5: As Nicholas said, they are well-geared and well-capitalized to be able to deliver engines in a high price environment. Now, moving over to capital guidance. You'll all recall that around 2020, we announced a capital project program of about R50 billion.

Speaker #5: So it picked somewhere around 2024. For the last two years, it's been winding down. So we're now entering a new phase, where we've planned that for the next five years, we'll spend about R60 billion.

Patrick Morutlwa: We're now entering a new phase, where we plan that for the next five years, we'll spend about ZAR 60 billion to do two things. To, again, make sure that our production is sustainable going into the future. Secondly, to create a strategic optionality by further increasing our processing capacity at the base metal refineries with about 20%. What are we going to be doing in the next five years? We will be advancing life of mine extensions. Some are already approved, 20 shaft and 14 shaft, but we'll be advancing the likes of Marula deepening. We'll be advancing the likes of BRPM North and studies at Portal 10, as Nico said earlier. Also the work we are doing with our partners at Mimosa and also at Two Rivers.

Speaker #5: To do two things: to again make sure that our production is sustainable going into the future, but secondly, to create strategic optionality by further increasing our process capacity at the base metal refineries by about 20%.

Patrick Morutlwa: To, again, make sure that our production is sustainable going into the future. Secondly, to create a strategic optionality by further increasing our processing capacity at the base metal refineries with about 20%. What are we going to be doing in the next five years? We will be advancing life of mine extensions. Some are already approved, 20 shaft and 14 shaft, but we'll be advancing the likes of Marula deepening. We'll be advancing the likes of BRPM North and studies at Portal 10, as Nico said earlier. Also the work we are doing with our partners at Mimosa and also at Two Rivers. We'll also be increasing our ore reserve development. As I said, we've got tailwinds, so it's important that we create that pit room.

Speaker #5: So, what are we going to be doing in the next five years? We will be advancing life-of-mine extensions. Some are already approved.

Speaker #5: 20 Shaft and 14 Shaft. But we'll be advancing the likes of Marula Deepening, and we'll be advancing the likes of BRPM North. Studies at Portal 10, as Nicholas said earlier, and also the work we are doing with our partners at Mimosa and also at Two Rivers.

Speaker #5: We'll also be increasing our audit development. As I said, we've got tailwinds. So it's important that we create that bit of room, and that's what you've seen in Rustenburg—that the work we've just done during the good times was able to carry us through the tough times.

Patrick Morutlwa: We'll also be increasing our ore reserve development. As I said, we've got tailwinds, so it's important that we create that pit room. That's what you've seen in Rustenburg, that the work we've just done during the good times, we were able to carry us through the tough times, and that's why Rustenburg continue to improve also on production. We'll also be strengthening our operating platform by making sure that we continue with our wind upgrades and also implementing our furnace new designs, the furnace of the future, as we've been communicating all along. Lastly, is to advance or accelerate our ESG commitment for 2030. If you look at the graph, you will see that SRB for the first two years is peaking at about ZAR 9 billion.

Patrick Morutlwa: That's what you've seen in Rustenburg, that the work we've just done during the good times, we were able to carry us through the tough times, and that's why Rustenburg continue to improve also on production. We'll also be strengthening our operating platform by making sure that we continue with our wind upgrades and also implementing our furnace new designs, the furnace of the future, as we've been communicating all along. Lastly, is to advance or accelerate our ESG commitment for 2030. If you look at the graph, you will see that SRB for the first two years is peaking at about ZAR 9 billion. It's really about taking advantage of the tailwind to fix our wind upgrades and also implementing furnace of the future. From there, it will come back to normal levels of between ZAR 7.5 billion and about ZAR 8 billion.

Speaker #5: And that's why Rustenburg continues to improve also in production. We will also be strengthening our operating platform by making sure that we continue with our own upgrades and also implementing our furnace new designs.

Speaker #5: The fairness of the future, as we've been communicating all along. And lastly, to advance or accelerate our ESG commitment for 2030. So, if you look at the graph, you will see that SRB for the first two years is peaking at about $9 billion.

Speaker #5: It's really about taking advantage of the tailwind to fix our windows when we upgrade and also implementing fairness for the future. From there, it will come back to normal levels of between 7.5 and about 8.

Patrick Morutlwa: It's really about taking advantage of the tailwind to fix our wind upgrades and also implementing furnace of the future. From there, it will come back to normal levels of between ZAR 7.5 billion and about ZAR 8 billion. So if you look only at FY 2027, we are guiding between ZAR 9 billion and ZAR 11 billion. From there, as the replacement project and growth projects come into the party, it will then be between ZAR 10 billion and ZAR 13 billion. Looking at the life of mine profile, we answer the question, what are we getting for this capital? You will see that Tāiko has been the brownfield project we just spoke about. When we execute all of them, we should be able to maintain the current production for another 10 years.

Speaker #5: So if you look only at FY2027, we're guiding between R9 and R11 billion. And from there, as replacement projects and growth projects come into the picture, it will then be about between R10 and R13 billion.

Patrick Morutlwa: So if you look only at FY 2027, we are guiding between ZAR 9 billion and ZAR 11 billion. From there, as the replacement project and growth projects come into the party, it will then be between ZAR 10 billion and ZAR 13 billion. Looking at the life of mine profile, we answer the question, what are we getting for this capital? You will see that Tāiko has been the brownfield project we just spoke about. When we execute all of them, we should be able to maintain the current production for another 10 years. There are three greenfields that are under study of Two Rivers, Waterberg, and also Zimplats' Portal 10. When we bring them along, that is another five years additional. So we have the life of mine profile that can be maintained through good assets for the next 15 years.

Speaker #5: So, looking at the life-of-mine profile, we answered the question of: what are we getting for this capital? You will see the takeaway has been the brownfield project, which I spoke about.

Speaker #5: When we execute all of them, we should be able to maintain the current production for another 10 years. And then the R3 greenfields that are under study—specifically, Waterberg and also Zimplats Portal 10.

Patrick Morutlwa: There are three greenfields that are under study of Two Rivers, Waterberg, and also Zimplats' Portal 10. When we bring them along, that is another five years additional. So we have the life of mine profile that can be maintained through good assets for the next 15 years. The capital I spoke about is just really to get us there. A robust operating platform, extending life of mine, and making sure that through the BMR 20% capacity increase, we have optionality to look at third parties and all those type of things. Then moving over to guidance. Let me take one step back. We are entering FY 2027 with a strong operating platform because of the work we have done.

Speaker #5: When we bring them along, that's another five years additional. So we have the life-of-mine profile that can be maintained through good assets for the next 15 years.

Speaker #5: And the capital I spoke about is really just to get us there: a robust operating platform, extending the life of mine, and making sure that through the BMR 20% improved capacity increase, we have optionality to look at third parties and also all those types of things.

Patrick Morutlwa: The capital I spoke about is just really to get us there. A robust operating platform, extending life of mine, and making sure that through the BMR 20% capacity increase, we have optionality to look at third parties and all those type of things. Then moving over to guidance. Let me take one step back. We are entering FY 2027 with a strong operating platform because of the work we have done. Because of that, we even had the confidence to do a safety reset in Impala Rustenburg for four days. We said we will come back to you in terms of what is the effect of that for the stoppage. The numbers I am going to talk about are already factored in, ±60,000 ounces were lost because of that safety reset. I am not going to try to go through all the numbers.

Speaker #5: So then, moving over to guidance—let me take one step back. We are entering FY27 with a strong operating platform because of the work we've done.

Speaker #5: So, because of that, we even had the confidence to do a safety research in Rustenberg for four days. So we said we'll come back to you in terms of what is the effect of that four-day stoppage.

Patrick Morutlwa: Because of that, we even had the confidence to do a safety reset in Impala Rustenburg for four days. We said we will come back to you in terms of what is the effect of that for the stoppage. The numbers I am going to talk about are already factored in, ±60,000 ounces were lost because of that safety reset. I am not going to try to go through all the numbers. I am only going to go through what I have highlighted. Group production remains pretty much in line with what we have achieved this year. So we are guiding between 3.3 million and 2.5 million. Moving over to unit costs, we are guiding between the lower end, 4% increase, and the top end being 8%.

Speaker #5: So the numbers I'm going to talk about are really factored in. Plus or minus 60,000 ounces were lost because of that safety reset. So I'm not going to try to go through all the numbers.

Speaker #5: I'm going to go through what I've highlighted. So, group production remains pretty much in line with what we have achieved this year. We're guiding between 3.3 and 3.5.

Patrick Morutlwa: I am only going to go through what I have highlighted. Group production remains pretty much in line with what we have achieved this year. So we are guiding between 3.3 million and 2.5 million. Moving over to unit costs, we are guiding between the lower end, 4% increase, and the top end being 8%. The midpoint is about 6%. I have already touched on capital expenditure that for the year, FY 2027, we are looking at between ZAR 9 billion and ZAR 11 billion. My parting shot is that we have done a lot of work to strengthen our business, and that is what we enter in the new year with. We will work hard on safety. We have got plans in place to make sure that we send every employee home unharmed, but the machine is actually healthy to keep on delivering into this high-price environment. Thank you very much.

Speaker #5: So, moving over to unit cost, we're guiding between the lower end—a 4% increase—and the top end being 8%. So the midpoint is about 6%.

Patrick Morutlwa: The midpoint is about 6%. I have already touched on capital expenditure that for the year, FY 2027, we are looking at between ZAR 9 billion and ZAR 11 billion. My parting shot is that we have done a lot of work to strengthen our business, and that is what we enter in the new year with. We will work hard on safety. We have got plans in place to make sure that we send every employee home unharmed, but the machine is actually healthy to keep on delivering into this high-price environment. Thank you very much.

Speaker #5: I've already touched on capital expenditure, that for the year FY27, we're looking at about between 9 and 11 billion rand. So my part in short is that we've done a lot of work to strengthen our business.

Speaker #5: And that's what we enter the new year with. So, we will work hard on safety. We've got plans in place to make sure that we send every employee home unharmed.

Speaker #5: But the machine is actually healthy to keep on delivering into this high-price environment. Thank you very much.

Speaker #2: Sorry. It's a bit

Meroonisha Kerber: Sorry. It is a bit tight. Good morning, everyone, and thank you, Patrick. I will very briefly take you through the financial performance, a quick look at our balance sheet and liquidity position, and then end with what we have done with capital allocation this year. Let me first start off with, from a financial perspective, FY 2026 was an exceptional year. With the improved pricing in both on precious and base metal and the good operational delivery that you saw, we were basically able to capitalize on the full benefit of the improved pricing, with the result that revenue increased by 58% to ZAR 135.1 billion. This was driven by the 51% increase in the revenue per ounce sold to ZAR 38,116, but also because of the increase in volumes by 4% to 3.51 million ounces.

Speaker #4: Good morning, everyone, and thank you, Patrick. I'll very briefly take you through the financial performance, and give a quick look at our balance sheet and liquidity position.

Speaker #4: And then end with what we've done with capital allocation this year. So let me first start off with, from a financial perspective, FY26 was an exceptional year.

Speaker #4: With the improved pricing in both precious and base metals, and the good operational delivery that you saw, the Bureau was basically able to capitalize on the full benefit of the improved pricing.

Speaker #4: With the result that revenue increased by 58% to 135.1 billion rand, this was driven by the 51% increase in the revenue per ounce sold to 38,116, but also because of the increase in volumes by 4% to 3.51 million ounces.

Speaker #4: And this additional volume really came from the planned destocking of the excess inventory that we had actually guided. So the step up in revenue increased our EBITDA from R9.9 billion to R43.6 billion.

Meroonisha Kerber: And this additional volumes really came from the planned destocking of the excess inventory that we had actually guided. The step-up in revenue increased our EBITDA from ZAR 9.9 billion to ZAR 43.6 billion, expanding the EBITDA margin from 12% to 32%. Headline earnings at ZAR 22.9 billion, and headline earnings per share, ZAR 25.48 per share. The improved PGM pricing, the consolidation of Impala Bafokeng into Impala Rustenburg, as well as the approval of the two key life of mine extension projects at Rustenburg, basically supported the ZAR 8.1 billion after tax reversal of previously recognized impairment losses at our Impala Rustenburg operations. As a result, our basic earnings for the year were ZAR 31 billion. I think what is probably most important for me is that we were able to convert these earnings into cash. Our free cash flow increased to ZAR 22 billion.

Speaker #4: Expanding the EBITDA margin from 12% to 32%. Headline earnings at 22.9 billion rand and we and headline earnings per share 25 rand, 48 cents per share.

Speaker #4: The improved PGM pricing, the consolidation of Impala Buffelsfontein into Impala Rustenburg, as well as the approval of the two key life-of-mine extension projects at Rustenburg, basically supported the R8.1 billion after-tax reversal of previously recognized impairment losses at our Impala Rustenburg operations.

Speaker #4: As a result, our basic earnings for the year were 31 billion rand. I think what is probably most important for me is that we were able to convert these earnings into cash.

Speaker #4: So our free cash flow increased to R22 billion. But to put that in context, we funded capital of just under R7 billion.

Meroonisha Kerber: Our free cash flow increased to ZAR 22 billion. But to put that in context, we funded capital of just under ZAR 7 billion. We allocated an additional ZAR 3 billion to our operations to fund engineering and maintenance that Patrick had talked about. We funded taxes and royalties of just over ZAR 10 billion. In addition to all of that, we also funded the buildup in working capital of ZAR 7 billion. All in all, I think we were strongly free cash flow generative this year. I think what's also important to remember is our H1 was only ZAR 7 billion.

Meroonisha Kerber: But to put that in context, we funded capital of just under ZAR 7 billion. We allocated an additional ZAR 3 billion to our operations to fund engineering and maintenance that Patrick had talked about. We funded taxes and royalties of just over ZAR 10 billion. In addition to all of that, we also funded the buildup in working capital of ZAR 7 billion. All in all, I think we were strongly free cash flow generative this year. I think what's also important to remember is our H1 was only ZAR 7 billion.

Speaker #4: We allocated an additional R3 billion to our operations to fund engineering and maintenance that Patrick had talked about. We funded taxes and royalties of just over R10 billion.

Speaker #4: And in addition to all of that, we also funded the build-up in working capital of R7 billion. So, all in all, I think we were strongly free cash flow generative this year.

Speaker #4: And I think what's also important to remember is our first half was only R7 billion. So, in the second half of the year, we generated double what we generated in the first half.

Meroonisha Kerber: In the H2 of the year, we generated double what we generated in the H1, and that was primarily because of a 30% increase in the revenue that we received, but also the bulk of the inventory that we released as we had guided happened in the H2 of the year. I now talked about the financial performance. It's useful to say, well, what does the balance sheet and the cash position look like after that? Clearly the strong cash generation significantly bolstered the balance sheet. We ended up with cash of ZAR 23 billion, and we exclude restricted cash from that number. But also we repaid debt. Our gross debt, and from debt we exclude finance leases and the PIC loan, actually declined from ZAR 1.8 billion to just under ZAR 0.5 billion.

Speaker #4: And that was primarily because of a 30% increase in the basket in the revenue that we received. But also, the bulk of the inventory that we released, as we had guided, happened in the second half of the year.

Speaker #4: So, I now talked about the sort of financial performance. It's useful to say, well, what did that do to—what do the balance sheet and the cash position look like after that?

Speaker #4: So, clearly the strong cash generation significantly bolstered the balance sheet. We ended up with cash of R23 billion, and we exclude restricted cash from that number.

Speaker #4: But also we repaid debt. Our gross debt and from debt we exclude finance leases and the PIC loan. Actually declined from 1.8 billion rand to just under half a billion rand.

Speaker #4: And that largely is the impact of Zimplats using the improved cash flow to repay the debt that it had previously raised to fund its expanded—well, the new, sorry, its new furnace.

Meroonisha Kerber: That largely is the impact of Zimplats using the improved cash flow to repay the debt that it had previously raised to fund its expanded fund. Well, the new, sorry. Its new furnace. The definition that we use for adjusted net debt really aligns with the covenants that we've got in the calculation. We've put a little, we've explained how we do it. But on that basis, we had net, sorry, net cash increase to ZAR 22 billion for the period. I think what is also very helpful is to look at that cash flow bridge. On that cash flow bridge, the operating cash flows from the business after paying taxes and interest was ZAR 26.7 billion. Here you can see the huge leverage that we have to price and really the strong cash generation from all of our operations.

Speaker #4: The definition that we use for adjusted net debt really aligns with the covenants that we've got in the calculation. So, we've explained a little about how we do it.

Speaker #4: But on that basis, we had net cash increase to $22 billion for the period. I think what is also very helpful is to look at that cash flow bridge.

Speaker #4: On that cash flow bridge, the operating cash flows from the business, after paying taxes and interest, was 26.7 billion rand. So here you can see the huge leverage that we have to price, and really the strong cash generation from all of our operations.

Meroonisha Kerber: Here you can see the huge leverage that we have to price and really the strong cash generation from all of our operations. So the biggest allocations of that cash so far for the dividends have gone to capital. The ZAR 6.9 billion worth of capital. We repurchased some shares for the share scheme. Also we made provisions for environmental rehabilitation obligations, which I will talk about just now. I think what is probably very important, and talks to balance sheet flexibility, we ended the period with liquidity headroom of ZAR 37 billion, which is really our cash plus our undrawn facilities. I guess from all of this, the next question is, well, how did we allocate cash and what considerations we took.

Speaker #4: So the biggest allocations of that cash so far, for the dividends, have gone to capital—so the R6.9 billion worth of capital. We repurchased some shares for the share scheme.

Meroonisha Kerber: So the biggest allocations of that cash so far for the dividends have gone to capital. The ZAR 6.9 billion worth of capital. We repurchased some shares for the share scheme. Also we made provisions for environmental rehabilitation obligations, which I will talk about just now. I think what is probably very important, and talks to balance sheet flexibility, we ended the period with liquidity headroom of ZAR 37 billion, which is really our cash plus our undrawn facilities. I guess from all of this, the next question is, well, how did we allocate cash and what considerations we took. Firstly, to reiterate, our capital allocation policy is anchored on three things: making sure the balance sheet is strong and resilient through the cycle, making sure we reward our shareholders attractively, and thirdly, making sure that we invest in value-accretive growth.

Speaker #4: And also, we made provisions for environmental rehabilitation obligations, which I'll talk about just now. I think what is probably very important, and talks to balance sheet flexibility, is that we ended the period with liquidity headroom of R37 billion, which is really our cash plus our undrawn—sorry, undrawn facilities.

Speaker #4: I guess from all of this, the next question is: well, how did we allocate cash, and what considerations did we take? So firstly, to reiterate, our capital allocation policy is anchored on three things.

Meroonisha Kerber: Firstly, to reiterate, our capital allocation policy is anchored on three things: making sure the balance sheet is strong and resilient through the cycle, making sure we reward our shareholders attractively, and thirdly, making sure that we invest in value-accretive growth. And if we take first on the balance sheet, so we repaid the debt, which I talked about. We funded our rehabilitation obligations of ZAR 1.6 billion, and we retained cash so that we have enough cash to manage our ongoing liquidity. I think it is worth mentioning here, we have consistently said that to the extent that our Impala Canada operations generate free cash flow, we will be responsible about allocating that cash.

Speaker #4: Making sure the balance sheet is strong and resilient through the cycle. Making sure we reward our shareholders attractively. And, thirdly, making sure that we invest in value-creative growth.

Speaker #4: And if we take, first, on the balance sheet: So, we repay the debt, which I talked about; we funded our rehabilitation obligations of $1.6 billion; and we retain cash so that we have enough cash to manage the liquidity—to manage our ongoing liquidity.

Meroonisha Kerber: And if we take first on the balance sheet, so we repaid the debt, which I talked about. We funded our rehabilitation obligations of ZAR 1.6 billion, and we retained cash so that we have enough cash to manage our ongoing liquidity. I think it is worth mentioning here, we have consistently said that to the extent that our Impala Canada operations generate free cash flow, we will be responsible about allocating that cash. As you can see this year, Impala Canada generated ZAR 2.1 billion worth of free cash flow. And we allocated a large portion of that to basically fund their closure liabilities as well as their severance obligations upon closure. The next bucket really is the shareholder returns. Some of you might have noted we have revised our dividend framework. We believe that it gives a little bit more transparency and predictability.

Speaker #4: I think it's worth mentioning here, we've consistently said that, to the extent that our Impala Canada operations generate free cash flow, we will be responsible about allocating that cash.

Speaker #4: And as you can see, this year Impala Canada generated R2.1 billion worth of free cash flow, and we allocated a large portion of that to basically fund closure liabilities as well as their severance obligations upon closure.

Meroonisha Kerber: As you can see this year, Impala Canada generated ZAR 2.1 billion worth of free cash flow. And we allocated a large portion of that to basically fund their closure liabilities as well as their severance obligations upon closure. The next bucket really is the shareholder returns. Some of you might have noted we have revised our dividend framework. We believe that it gives a little bit more transparency and predictability.

Speaker #4: The next bucket really is shareholder returns. Some of you might have noted that we have revised our dividend framework. We believe this provides a bit more transparency and predictability.

Speaker #4: The base dividend has been set at 30% of adjusted free cash flow pre-growth. But as with the previous policy, there's always the ability to declare additional dividends, provided that the balance sheet remains strong.

Meroonisha Kerber: The base dividend has been set at 30% of adjusted free cash flow pre-growth. But as with the previous policy, there is always the ability to declare additional dividends, provided that the balance sheet remains strong and we have taken due consideration of any future growth opportunities. So the final dividend for this year of R14.45 a share or ZAR 13.1 billion, really, I believe, reflects our disciplined capital allocation. We have returned surplus cash of approximately 90% of our H2's free cash flow to our shareholders, in line with our commitment to providing attractive returns. I think the additional point that I want to make is that we have always been clear about what we would like to retain on the balance sheet. And the number that we have used is the ZAR 10 billion.

Speaker #4: And we've taken due consideration of any future growth opportunities. So the final dividend for this year of 14.45 a share, or 13.1 billion rand, really, I believe, reflects our disciplined capital allocation.

Speaker #4: We have returned surplus cash of approximately 90% of our free cash flow of our second half's free cash flow to our shareholders in line with our commitment to providing attractive returns.

Speaker #4: I think the additional point that I want to make is that we've always been clear about what we would like to retain on the balance sheet.

Speaker #4: And the number that we've used is the 10 billion rand. After the payment of this dividend, we will have retained 10 billion rand in cash, in line with the guidance that we had provided.

Meroonisha Kerber: After the payment of this dividend, our cash, we would have retained ZAR 10 billion in line with the guidance that we had provided. The last bucket is growth. As you can see, the growth and expansion capital looks very muted. Our focus this year was actually on ore reserve development, but also on progressing our life of mine extension projects. That capital is reported under replacement capital, and we see that as non-discretionary because that talks to the sustainability of the business. I think here I want to highlight the benefit of having a strong balance sheet is that we have the funding flexibility to really take advantage of the portfolio of assets that we have and to fund projects that we believe are going to enhance the sustainability, the cost competitiveness, and drive long-term value.

Speaker #4: The last bucket is growth. And as you can see, the growth and investment expansion capital looks very muted. Our focus this year was actually on ore reserve development, but also on progressing our life-of-mine extension projects.

Speaker #4: That capital is reported under replacement capital, and we see that as nondiscretionary because that speaks to the sustainability of the business. I think here I want to highlight that the benefit of having a strong balance sheet is that we have the funding flexibility to really take advantage of the portfolio of assets that we have, and to fund projects that we believe are going to enhance sustainability, cost competitiveness, and drive long-term value.

Speaker #4: So, if I had to summarize FY26's capital allocation, we have done all three things that we mentioned. We have kept the balance sheet strong and resilient.

Meroonisha Kerber: If I had to summarize FY2026's capital allocation, we have done all of the three things that we have mentioned. We have kept the balance sheet strong and resilient. We have provided shareholders with very attractive returns. Lastly, we are continuing to invest in our portfolio of assets to drive long-term value for all of our stakeholders. Thank you. I would like to hand over to you, Johan.

Speaker #4: We have provided shareholders with very attractive returns. And lastly, we are continuing to invest in our portfolio of assets to drive long-term value for all of our stakeholders.

Speaker #4: Thank you. I'd like to hand over to Johan.

Speaker #2: It's easier for me to squeeze out the thanks, Miranisha. Well, that brings me to you, the audience. As usual, I think it just makes sense to start in the room.

Johan Theron: Well, this brings me to you, the audience. As usual, I think it just makes sense to start in the room. If I can just again ask, as the microphones move around, people cannot really see you on the webcast. If you could just introduce yourself before asking the question. Got a big team here in front of you, but we also have people online and in the room. Please feel free to ask anything that is of importance to you. The whole team is here to assist you in that regard. After the room, there will also be an opportunity for people who are watching online through Chorus Call, and the operator will take you through that procedure.

Speaker #2: So, if I can just again ask: the microphones move around, and people can't really see you on the webcast. So, if you could just introduce yourself before asking the question.

Speaker #2: We've got a big team here in front of you, but we also have people online and in the room. So please feel free to ask anything that's important to you.

Speaker #2: The whole team is here to assist you in that regard. After the room, there will also be an opportunity for people who are watching online through Cora's call.

Speaker #2: And the operator will take you through that procedure, so we'll pivot there. To the extent that you want to type, there's also an option to submit your questions in writing.

Johan Theron: We will pivot there, and to the extent that you want to type, there is also an option of typing some questions, and if we have time, I will pose that to the team as well. That gives us about half an hour or so to do Q&A. Let us start in the room. Can we start here by moving the microphones around, please?

Speaker #2: And if we have time, I'll post that to the team as well. So that gives us about half an hour or so to do Q&A.

Speaker #2: So, let's start in the room. Can we start here by moving the microphones around, please?

Speaker #3: Thank you, Gerard Engelbrecht, ABSA CIB. I see there's been quite large changes in your reserves in your reserves in the south by, it looks like, about more than 70%.

Gerhard Engelbrecht: Thank you. Gerhard Engelbrecht, Absa CIB. I see there has been quite large changes in your reserves in Rustenburg. You have upgraded your reserves in the south by, it looks like about more than 70%, but you downgraded reserves in the north. Can you maybe give us some color on what the thinking was there? How does this change your life of mine profiles? Maybe some color on that. My second question is around Zimplats. You talk about some structural labor cost changes that you made. If you can maybe just talk around that and what that means for the future. Lastly, maybe just remind us when you are going to labor negotiations.

Speaker #3: But you downgraded reserves in the North. Can you maybe give us some color on what the thinking was there? How does this change your life-of-mine profiles?

Speaker #3: So maybe some color on that. My second question is around Zimplats. You talk about some structural labor cost changes that you made. If you can maybe just talk around that and what that means for the future.

Speaker #3: And then lastly, maybe just remind us when you're going into labor negotiations.

Nico Muller: Thanks, Gerhard. I am going to do something unusual. Johan, I did see Johan in the audience.

Speaker #2: Thanks, Gerard.

Speaker #3: I'm going to do something unusual. Johannes, I did see Johannes in the audience then.

Speaker #2: Yeah.

Gerhard Engelbrecht: Yeah.

Speaker #3: Johannes, you can deal with the Rustenburg resources and reserves. And Leanne, if you don't mind responding to the two labor-related questions: the wage negotiations, as well as the cost issues.

Nico Muller: Johannes.

[Company Representative] (Impala): Yeah.

[Company Representative] (Impala Platinum Holdings Limited): Yeah.

Nico Muller: You can deal with the Impala Rustenburg resources reserves. Leanne, if you do not mind responding to the two labor-related questions, the wage negotiations as well as the Zimplats cost issues. Thank you.

Speaker #3: Thank you.

Speaker #2: So, for those who don't know, Johannes heads up our MRM team. They are also releasing the MRM report today. So, for the guys in the room, hopefully, there are some copies available here.

Johan Theron: For those who do not know, Johan heads up our MRM team, and they are also releasing the MRM report today. For the guys in the room, hopefully there are some copies available here. If there is not, it is available on the website.

Speaker #2: If there's not, it's available on the website.

Speaker #3: Thank you, Johan. Thank you, Gerard, for the question. So, acting Paula, Rustenburg, first of all, we've got the benefit of the combined Impala offering into the Impala Rustenburg.

[Company Representative] (Impala): Thank you, Johan. Thank you, Gerhard, for the question. At Impala Rustenburg, first of all, we have got the benefit of the combined Impala Bafokeng into the Impala Rustenburg. That obviously had a fixed cost benefit that we obviously saw through the reserve increase. The metal price outlook also in terms of the tails of our mining profiles, also had the benefit of bringing some of that back into the reserves. The North section that you referred to, obviously we look at how we can optimize our ore body through the different mining infrastructure we have at Portal 10 and the Styldrift, and then also the BRPM section. As was mentioned earlier, we have got the brownfield project also at the BRPM UG2 decline.

[Company Representative] (Impala Platinum Holdings Limited): Thank you, Johan. Thank you, Gerhard, for the question. At Impala Rustenburg, first of all, we have got the benefit of the combined Impala Bafokeng into the Impala Rustenburg. That obviously had a fixed cost benefit that we obviously saw through the reserve increase. The metal price outlook also in terms of the tails of our mining profiles, also had the benefit of bringing some of that back into the reserves. The North section that you referred to, obviously we look at how we can optimize our ore body through the different mining infrastructure we have at Portal 10 and the Styldrift, and then also the BRPM section. As was mentioned earlier, we have got the brownfield project also at the BRPM UG2 decline.

Speaker #3: And that obviously had a fixed cost benefit that we saw through the reserve increase. The metal price outlook, also in terms of the tails of our mining profiles, had the benefit of bringing some of that back into the reserves.

Speaker #3: And the north section that you referred to—obviously, we look at how we can optimize our ore body through the different mining infrastructure we have at 20 Shaft and the Styldrift, and then also the BRPM section.

Speaker #3: So, as was mentioned earlier, we've got the brownfield project also at the BRPM UT2 decline. That is under study at the moment, and obviously, that will come through as well later.

[Company Representative] (Impala): That is under study at the moment, and obviously that will come through later, but it is not in the reserve at the moment. I think there is optionality for us at Impala Rustenburg to optimize our extraction of our resources and converting to the reserves. Then obviously, the 20 Shaft and the 14 Shaft extension projects significantly improve our reserve that you have seen at Impala Rustenburg.

[Company Representative] (Impala Platinum Holdings Limited): That is under study at the moment, and obviously that will come through later, but it is not in the reserve at the moment. I think there is optionality for us at Impala Rustenburg to optimize our extraction of our resources and converting to the reserves. Then obviously, the 20 Shaft and the 14 Shaft extension projects significantly improve our reserve that you have seen at Impala Rustenburg.

Speaker #3: But it's not in the reserve at the moment. So I think there is optionality for us at Impala Rustenburg to optimize our extraction of our resources and convert them to reserves.

Speaker #3: So then, obviously, the 20 Shaft and the 14 Shaft extension projects—that's significantly improved our reserve that you've seen at Impala Rustenburg.

Gerhard Engelbrecht: Can I just follow up on that? Does the downgrade in the north in any way affect your view on Styldrift, or is there a change on the view of Styldrift II?

Speaker #2: If I can just follow up on that, does the downgrading of the North in any way affect your view on stale drift ore? Is there a change in the view on stale drift, too?

Speaker #3: The change that we see there is obviously optimization between 20 Shaft and Stale Drift. One could see that with the 20 Shaft extension project, the life extension and the increase in the number of years of life is sort of balanced between 20 Shaft and Stale Drift.

[Company Representative] (Impala): The change that we see there is obviously optimization between 20 Shaft and Styldrift. One could see that with the 20 Shaft extension project, the life extension and the increase in number of years of life is sort of balanced between 20 Shaft and Styldrift. I think what you have noted with the decrease in the north is mainly because of a balanced view that we took between the various infrastructure opportunities that we have got between BRPM, Styldrift, and 20 Shaft.

[Company Representative] (Impala Platinum Holdings Limited): The change that we see there is obviously optimization between 20 Shaft and Styldrift. One could see that with the 20 Shaft extension project, the life extension and the increase in number of years of life is sort of balanced between 20 Shaft and Styldrift. I think what you have noted with the decrease in the north is mainly because of a balanced view that we took between the various infrastructure opportunities that we have got between BRPM, Styldrift, and 20 Shaft.

Speaker #3: Yeah, so I think what you've noted with the decrease in the North is mainly because of a balanced view that we took between the various infrastructure opportunities that we've got between BRPM, Styldrift, and 20 Shaft.

Nico Muller: Leanne, you want to respond to the labor question? Thanks, Johan.

Johan Theron: Leanne, you want to respond to the labor question? Thanks, Johan.

Speaker #2: Leanne, you want to respond to the labor question? Thanks, Johannes.

Speaker #3: Thank you, Gerard.

Lee-Ann Samuel: Thanks, Johan. Thanks for the question. In 2023, when we went through the low price environment at Zimplats, what they decided to do, which has been done previously as well, as part of the austerity measures that they had put in place, all employees, including the executive and the board, took a 10% cut in their salaries. That was a 10% drop in the fixed salary bill. What we had communicated to the market in the remuneration report is that when prices improve, we will reinstate the 10% cuts that were implemented in 2023. That was restated last year, which now has created the structural adjustment. Then with regard to the wage negotiations, it's 30 June 2027 when the current five-year agreement comes to an end.

Speaker #4: Thanks. Thanks for the question. So, in 2023, when we went through the low price environment at Zimplats, what they decided to do—which has been done previously as well—as part of the austerity measures that they had put in place, was that all employees, including the executive and the board, took a 10% cut in their salaries.

Speaker #4: So, that was a 10% drop in the fixed salary bill. What we had communicated to the market in the remuneration report is that, when prices improve, we will reinstate the 10% cuts that were implemented in 2023.

Speaker #4: So that was restated last year, and that's when NIOS created the structural adjustment. Then, with regard to the wage negotiations, it's June 30, 2027, when the current five-year agreement comes to an end.

Speaker #4: We normally get the demands around February or March of the year in question, and it always flows through after the implementation date, which is July 1st.

[Company Representative] (Impala): We normally get the demands around February, March of the year in question, and it always flows through after implementation date, which is 1 July. That's just some of the union's tactics, because then we get to backdate it to the 1st of July and employees receive backdated salaries. We are confident that we will get another five-year deal, and it will be more or less in line with what our last deal in terms of structure entails. We will start negotiations around April, May of next year, and it normally takes us between three to four months. Thank you.

Lee-Ann Samuel: We normally get the demands around February, March of the year in question, and it always flows through after implementation date, which is 1 July. That's just some of the union's tactics, because then we get to backdate it to the 1st of July and employees receive backdated salaries. We are confident that we will get another five-year deal, and it will be more or less in line with what our last deal in terms of structure entails. We will start negotiations around April, May of next year, and it normally takes us between three to four months. Thank you.

Speaker #4: And that's just some of the union's tactics, because then we get to backdated to the 1st of July, and employees receive backdated salaries. We are confident that we will get another five-year deal.

Speaker #4: And it will be more or less in line with what our last deal, in terms of structure, entails. So, we will start negotiations around April or May of next year.

Speaker #4: And it normally takes us between three to four months. Thank you.

Speaker #2: Thanks, Leanne. Let's go to Brian.

Johan Theron: Thanks, Lee-Ann. Let's go to Brian.

Speaker #5: Thanks very much. It's Brian Morgan here, RMB Morgan Stanley. About that chart you put up there showing the life of mines and the green wedge—those are the growth projects.

Brian Morgan: Thanks very much. It's Brian Morgan here, RMB Morgan Stanley. Just that chart that you put up there about the life of mine in that green wedge, those growth projects, and I think you called out Styldrift II and Portal 10 and the Waterberg. That wedge starts quite soon, in 2032, but these are quite big projects. Does that mean that you're going to be pulling the trigger on them quite soon? Or are there other projects in that green wedge which we don't know about, which you can bring to market a bit sooner? That's number one. Number two is just Meroonisha. There's ZAR 13 billion of tax expense that went through P&L, I think ZAR 7 billion went through the cash flow statement, so ZAR 6 billion roughly deferred tax. Why? And, what's the outlook in the next year or two?

Speaker #5: And I think you called out Styldrift too, and Portal 10 and the Waterberg. That wedge starts quite soon—2032. But these are quite big projects.

Speaker #5: So, does that mean that you're going to be pulling the trigger on them quite soon? Or are there other projects in that green wedge, which we don't know about, that you can bring to market a bit sooner?

Speaker #5: That's number one. Number two is just, Mary Anusha, there's a $13 billion round of tax expense that went through P&L. I think $7 billion round went through the cash flow statement.

Speaker #5: So, $6 billion round, roughly, deferred tax. Why? And what's the outlook in the next year or two? Will there be a catch-up, or will the cash tax percentage be quite depressed going forward?

Brian Morgan: And, what's the outlook in the next year or two? Will there be a catch-up or will cash tax percentage be quite depressed going forward?

Brian Morgan: Will there be a catch-up or will cash tax percentage be quite depressed going forward?

Speaker #3: Do you want to start with the tax?

Johan Theron: You want to start with the tax?

Speaker #4: I'm going to try. So I think on the tax, it's a so I mean, we did pay a lot of tax this year. So there were our deferred tax was a bit elevated for two reasons.

Meroonisha Kerber: Well, I am going to try. I think on the tax, we did pay a lot of tax this year. Our deferred tax was a bit elevated for two reasons. For one reason, we raised deferred tax on undistributed profits at Zimplats. We raised the withholding tax. That depends on our outlook on dividends directly linked to profitability, directly linked to prices. To the extent that varies, and it has changed a lot over the year, you are going to get that additional charge. There is about ZAR 1 billion of that. Remember, the rest of the deferred tax is predominantly on the fact that we get to claim our capital allowances. At some point, it basically normalizes for depreciation and capital allowances. There is always going to be a level of deferred tax in.

Speaker #4: Well, for one reason, we raised deferred tax on undistributed profits at Zimplats. So we raised the withholding tax. Now, that depends on our outlook on dividends.

Speaker #4: Directly linked to profitability, directly linked to prices. So, to the extent that varies—and it has changed a lot over the year—you are going to get that additional chart.

Speaker #4: So there's about a billion of that. Remember, the rest of the deferred tax is predominantly on the fact that we get to claim our capital allowances.

Speaker #4: And so, at some point, it basically normalizes for depreciation and capital allowances, so there's always going to be a level of deferred tax in.

Speaker #4: I guess the other part is, we have utilized all our under-deemed capex and assessed losses. I think Marula has got a little bit, but other than that, I would probably think that it would be largely the same.

Meroonisha Kerber: I guess the other part is we have utilized all our underearned CapEx and assessed losses. I think Marula has got a little bit. Other than that, I probably would think that it will be largely the same if we continue to spend on CapEx, clearly. Yes.

Speaker #4: If we continue to spend on capex, clearly—yeah.

Speaker #5: The projects?

Johan Theron: The projects?

Speaker #2: Yeah. So, Brian, are you done?

Patrick Morutlwa: Yeah.

Brian Morgan: Yeah.

Johan Theron: Brian, are you done?

Speaker #4: Oh, sorry. Sorry, Ever just reminded me—which I forgot—is the impairment release. That's obviously a one-stop with the deferred tax. Yeah.

Meroonisha Kerber: Oh, sorry. Emma just reminded me, which I forget, is the payment release. That is obviously a once-off with the deferred tax. Yeah.

Speaker #2: Yeah, Brian, you remember we've always said that the green-first projects will always be dependent on long-term price forecasting. We're just starting to improve.

Patrick Morutlwa: Yeah. Brian, you remember we have always said that the green fields projects will always be dependent on long-term price forecasting, which is starting to improve. If you look at the three projects that are there, Styldrift II in particular, we are looking at early access, and that is the way the study is actually forecasting early access from trainee shaft and Styldrift I itself. Sure, there is long-term price forecast support the project. I think you will be able to see early production coming through because we are not waiting entirely for the vertical shaft to be sunk and all of that. I think similar to Portal 10. Portal 10, as things stand, once you complete the study, we are forecasting to start the sinking around the fourth year from now. Waterberg BFS done. We are looking at optimizing it. You must probably have seen some news for PTM.

Speaker #2: So if you look at the three projects that are there, Stale Drift 2 in particular, we are looking at early access, and that's the way the study is actually focusing.

Speaker #2: Early access from 20 Shaft and Stale Drift One itself. To show, the long-term price forecasts support the project. I think you will be able to see early production coming through, because we're not waiting entirely for the vertical shaft to be signed when we start.

Speaker #2: And I think, similar to Portal 10—Portal 10 as things stand—when you complete the study, we're forecasting to start the sinking around the fourth year.

Speaker #2: From now, Waterberg BFS done, we are looking at optimizing it. You might probably have seen some news for PTM. So by November, it will come back to us.

Patrick Morutlwa: Waterberg BFS done. We are looking at optimizing it. You must probably have seen some news for PTM. So by November, it will come back to us. There is a trade-off. Do you go for a big chunk or a small chunk? But because of the mining methodology, again, you will be able to get early production start to trickle in. So ramp-up will take a bit long, but this project has geared to start delivering some sort of production at an early stage.

Patrick Morutlwa: So by November, it will come back to us. There is a trade-off. Do you go for a big chunk or a small chunk? But because of the mining methodology, again, you will be able to get early production start to trickle in. So ramp-up will take a bit long, but this project has geared to start delivering some sort of production at an early stage.

Speaker #2: There is a trade-off. Do you go for a big chunk or a small chunk? But because of the money methodology, again, you'll be able to get early production starting to trickle in.

Speaker #2: So, ramp-up will take a bit longer, but this project is geared to start delivering some sort of production at an early stage.

Speaker #1: Thanks, Pat. Arnold, let's go there.

Johan Theron: Thanks, Pat. Arnold, let's go there.

Speaker #6: Yeah. Hi, Arnold from Kron from Nedbank. We have good results, and thanks for the opportunity. Three quick ones from our side, two from Mary Anusha.

Arnold van Graan: Yes. Hi, Arnold van Graan from Nedbank. Good results, and thanks for the opportunity. Three quick ones from our side, two for Meroonisha. One is Zim cash lockup. Any progress there in getting that resolved? Then the second one, just on your excess inventory, how much is left and over what period is that coming out, and any changes there, any acceleration? Because it seems your plants are running well. And then one for Patrick. On Styldrift II, is that conventional or mechanized? Because I know there is undulation issues in later life of mine. So what is your approach to extracting that? Thank you.

Speaker #6: The first one is cash lock-up. Any progress there in getting that resolved? Then the second one, just on your excess inventory—how much is left, and over what period is that coming out?

Speaker #6: And any changes there, any acceleration? Because it seems your plants are running well. And then one for Patrick on Stale Drift, too. Is that conventional or mechanized?

Speaker #6: Because I know there's undulation issues in later life of mines. So, what's your approach to extracting that? Thank you.

Speaker #2: Thanks, Arnold.

Johan Theron: Thanks, Arnold.

Speaker #4: So, Arnold, I'm going to leave the stock lock-up for Patrick to take—the difficult one. On the Zim situation, it's actually improved significantly since we came to the market at interims.

Meroonisha Kerber: Arnold, I am going to leave the stock lockup for Patrick to take the difficult one. On the Zim situation, it has actually improved significantly since we came to the market mid-interim. In about March, I think, we reached a tripartite agreement with the various government institutions. Zim reached an agreement to allow us basically to get 50% of our surrender proceeds in cash and the other 50% that will be utilized for setoffs. Since that agreement has been put in place, they have honored the terms of that, and we have been able to offset, between taxes, royalties, and customs duties, about $99 million of offsets. We have had access to $150 million of local currency. That really has made a significant difference because our local creditors are now all up to date, et cetera.

Speaker #4: In about March, I think, we reached agreement—a tripartite agreement—with the, well, the various government institutions, the Zim, reached an agreement to allow us basically to get 50% of our surrender proceeds in cash and the other 50% that will be utilized for setups.

Speaker #4: Since that agreement's been put in place, they have honored the terms of that, and we have been able to offset, between taxes, royalties, and customs duties, about $99 million of offsets.

Speaker #4: And we've had access to $150 million of local currency, and that really has made a significant difference, because our local creditors are now all up to date, etc.

Speaker #4: And going forward, we do expect Zimplats to be quite profitable. So we'll continue to use the cash that's been offset. The only thing that we did do, which you'll see in the results—and our cash flow would have been higher if we hadn't—is we moved out $1.3 billion out of cash into receivables.

Meroonisha Kerber: Going forward, we do expect Zimplats to be quite profitable, so we will continue to use the cash that has been offset. The only thing that we did do, which you will see in the results, and our cash flow would have been higher if we had not, is we moved out ZAR 1.3 billion out of cash into receivables.

Speaker #4: And we believe that is an appropriate place to reflect it, given that it will be utilized through the use of offsets.

Emma Townshend: We believe that is an appropriate place to reflect it, given that it will be utilized through the use of offsets.

Speaker #2: Yeah, I mean, the study has just started, so I think it's early days to commit to a particular mining method. It is different phases.

Patrick Morutlwa: Yeah. The study has just started, so I think it is early days to commit to particular mining methods. Yes, it is different reef facets. I need to remind you that we have made it very clear that we want to go to mechanized mines. So, part of the study, we are going to be testing all mining methods, including low-profile hybrids. Because, for us, conventional will need to be the last resort. So I think it is too early to commit to a mining method. But I very need to leave with this, in that we want to move away from conventional as much as we can.

Speaker #2: But I need to remind you that we have made it very clear that we want to go to mechanized mines. So, as part of the study, we're going to be testing all mining methods, including low profile and hybrid.

Speaker #2: So, for us, conventional used to be the last resort. So I think it's too early to commit to a mining method. But I really need to live with this thing: that we want to move away from convention as much as we can.

Speaker #5: Can you just remind me?

Johan Theron: Can you see my notes?

Speaker #4: Stock release is next year.

Emma Townshend: Stock release is the next, guys.

Meroonisha Kerber: Stock release is the next, guys.

Speaker #5: Guys, yeah.

Patrick Morutlwa: Stock release is coming.

Emma Townshend: Yeah.

Meroonisha Kerber: Yeah.

Speaker #2: All right. So I think, first of all, we've been able to prove that the stock exists. There were a lot of stories about that.

Patrick Morutlwa: All right. I think, first of all, we've been able to prove that the stock exists. There was a lot of stories about that. We've now released 120. I think for this year, we had a 2 weeks stoppage at our furnaces in Rustenburg following the SO2 leak incident. Conservatively, I'll put 50,000 on the table. We're working very hard to see how do we catch up, and still be able to deliver north of 100,000. I think we should be able to update, with much more firm numbers, when we come back in February. That's where we are in terms of that. The stock exists, and we will try to release it.

Speaker #2: So we've now released 120. So I think for this year, we had a two-week stoppage at our furnaces in Rustenburg following the SO2 leak incident.

Speaker #2: So, conservatively, I'll put 50,000 on the table. We're working very hard to see how we catch up and still be able to deliver north of 100,000.

Speaker #2: But I think we should be able to update with much more firm numbers when we come back in February. But that's where we are, in terms of that.

Speaker #2: Yes, the stock exists and we will try to release it.

Speaker #1: Yeah. Maybe just to add, there are two components: the stock moves forward, but you will only see it if it's in the vault and sold.

Johan Theron: Yeah, maybe just to add, there are two components. The stock moves forward, but you will only see it if it is in the vault and sold. That 120 is actually what was sold, but stock has moved forward, and even if it does not get sold in the next 6 months, we are still hoping to push that stock forward in the value chain.

Speaker #1: So that's 120, is actually what was sold. But stock has moved forward, and even if it doesn't get sold in the next six months, we're still hoping to push that stock forward in the value chain.

Speaker #1: All right. Yes, please go for it, Pateka.

Johan Theron: All right. Yes, please go for it, Khanyisa.

Speaker #4: Yeah. Gathered about my 20 invested bank.

Khanyisa Mthunzi: Yeah. Khanyisa Mthunzi, Investec Bank. Congratulations on very good results and initial on the final dividend. My first question is for Patrick and around the group unit cost, which you are guiding to increase by 6%. At the midpoint of production guidance is a 4.5% or 5% decline. Maybe if you can talk about some of the aspects that will anchor this very good cost guidance that you are guiding despite production, that is likely going to be a bit lower. Then if you can also talk on Zimplats and the prospect of you being able to sustain the current production of 630 to 660 beyond 2028. My assumption is Mopani does not fully replace Mapoti portfolio. If you can talk to that. Also, Two Rivers, the guidance is the same as the previous year. What is happening as far as the Merensky project is concerned?

[Analyst] (Investec Bank): Yeah. Khanyisa Mthunzi, Investec Bank. Congratulations on very good results and initial on the final dividend. My first question is for Patrick and around the group unit cost, which you are guiding to increase by 6%. At the midpoint of production guidance is a 4.5% or 5% decline. Maybe if you can talk about some of the aspects that will anchor this very good cost guidance that you are guiding despite production, that is likely going to be a bit lower. Then if you can also talk on Zimplats and the prospect of you being able to sustain the current production of 630 to 660 beyond 2028. My assumption is Mopani does not fully replace Mapoti portfolio. If you can talk to that. Also, Two Rivers, the guidance is the same as the previous year.

Speaker #6: Congratulations on the very good results, and to Mary Anusha on the final dividend. My first question is for Patrick and is around the group unit cost, which you are guiding to increase by 6%.

Speaker #6: At the midpoint of production guidance, it's a 4.5% or 5% decline. So maybe if you can talk about some of the aspects that will anchor this very good cost guidance that you are giving despite production that is likely going to be a bit lower.

Speaker #6: And then, if you can also talk on Zimplats and the prospect of you being able to sustain the current production of 660 to 680 beyond 2028. My assumption is more money does not fully replace the Maputi portfolio.

Speaker #6: So if you can talk to that. Also, Two Rivers, the guidance is the same as the previous year. What is happening as far as the Merensky project is concerned, and how should we actually factor that in?

[Analyst] (Investec Bank): What is happening as far as the Merensky project is concerned? How should we actually factor that in? Then last question is for Emma. On the minor metals, are you seeing any forward buying on the minor metals, which would actually support the consensus bullish forecast for the minor metals? Thank you.

Khanyisa Mthunzi: How should we actually factor that in? Then last question is for Emma. On the minor metals, are you seeing any forward buying on the minor metals, which would actually support the consensus bullish forecast for the minor metals? Thank you.

Speaker #6: And then, last question is for Emma on the minor metals. Are you seeing any forward buying on the minor metals, which would actually support the consensus bullish forecast for the minor metals?

Speaker #6: Thank you.

Speaker #2: Thank you. I think on the unit cost—like we said earlier, there were some elective spends where we've taken advantage of the tailwind.

Patrick Morutlwa: Thank you. I think on the unit cost, like we said earlier, there were some elective spend that we have taken advantage of the tailwind. Going forward, we do not see us spending all that money because we have managed to now set our operating platform. It is strong enough to be able to deliver. I believe that we have proven in the past that we have got good cost control management, and that is what the team will be doing. Really making sure that unnecessary costs are taken out of the system without compromising delivery of safe production. In terms of Zimplats, for the next 5 years, should and will be able to deliver 660,000 ounces of mat South Africa. It is only beyond the 5 years that portfolio comes in and should be able to plug that gap.

Speaker #2: So, going forward, we don't see ourselves spending all that money because we've managed to now set our operating platform, and it's strong enough to be able to deliver.

Speaker #2: And I believe that we've proven in the past that we've got good cost control management. And that's what the team will be doing really—making sure that unnecessary costs are taken out of the system without compromising the delivery of safe production.

Speaker #2: In terms of Zimplats, Zimplats for the next five years, we should and will be able to deliver 660,000 ounces of matte just to South Africa.

Speaker #2: It's only beyond the five years that Portal 10 comes in and should be able to plug that gap. So, Mopani, Bima, and the remaining pieces should be able to give us 60,000 ounces for the next five years.

Patrick Morutlwa: Mopani, Bimha, and the remaining pieces should be able to give us 660,000 ounces for the next 5 years. Two Rivers, Merensky, good project. We are aligned with our partners. We have, 6 months ago, approved early capital, just over ZAR 100 million, to start the development. The focus really now is to fill the plant with the UG2, and that is where we spend more time, in FY26. That is why you saw little Merensky be milled. The project where we are now, we are optimizing it with our partners. It should be able to come for final board approval somewhere, in Q2, Q3 next year. That is where we are. Focus, fill the plant with UG2, optimize Merensky studies, and only next year get approval and then we will get going. It is still a good project.

Speaker #2: Two Rivers Merensky, good project. We are aligned with our partners. Six months ago, we approved early capital, which is over $100 million, to start the development.

Speaker #2: The focus really now is to fill the plan of the UG2, and that's where we spent more time in FY26. That's why you saw liquid Merensky being milled.

Speaker #2: So the project where we are now, we are optimizing it with our partners. So it should be able to come up for final board approval somewhere in Q2 or Q3 next year.

Speaker #2: But that's where we are. Focus: fill the plan with a UG2. Optimize Merensky studies and only next year get approval. And then we'll get going.

Speaker #2: But it's still a good project.

Speaker #4: So just to clarify, are you talking about purchases in excess of requirements at the moment? So, some stockpiling? Okay. So we wouldn't have seen that based on what we trade.

Emma Townshend: Just to clarify, are you talking about purchases in excess of requirements at the moment? Some stockpiling. Okay. We would not have seen that based on what we trade. I think the one thing to bear in mind on some of these demand drivers is you have got to think, always think with industrial, is it linked to plants, the capacity and new installation in terms of creating capacity, or is it consumed in the final production? I think if you look at where the growth has been coming from in terms of the iridium and ruthenium, it is a mixture of both. There is a capacity expansion element to it, which means some of that demand can be quite lumpy. It is not something that, it is not screenshared. We cannot look at forward positionings and all that, something I can comment on.

Speaker #4: I think the one thing to bear in mind on some of these demand drivers is—you've got to think, I always think with industrial, is it linked to plants?

Speaker #4: Is the capacity and new installation in terms of creating capacity, or is it used— is it consumed in the final production? And I think if you look at where the growth has been coming from in terms of iridium and ruthenium, it's a mixture of both, but there is a capacity expansion element to it, which means some of that demand can be quite lumpy.

Speaker #4: But it's not something that's not screened—that we can't look at forward positioning and all the something I can kind of comment on.

Emma Townshend: We cannot look at forward positionings and all that, something I can comment on. Anecdotally, there is a view in the market that suggests that there has been some buying in excess of requirements, whether that is speculative or whether that is just making sure they have got the metal in terms of plant. Even if you look at, we get a couple of really demand and pieces from customers and market research. Even just in which different commentators account for when metal goes into plant, you almost need to smooth some of those industrial numbers to get a better idea. Do you account for it when it was purchased? Do you account for it when the plant is built? Short answer is no.

Speaker #4: Anecdotally, there is a view in the market that suggests there has been some buying in excess of requirements—whether that's speculative or whether that's just making sure they've got the metal in terms of plant.

Emma Townshend: Anecdotally, there is a view in the market that suggests that there has been some buying in excess of requirements, whether that is speculative or whether that is just making sure they have got the metal in terms of plant. Even if you look at, we get a couple of really demand and pieces from customers and market research. Even just in which different commentators account for when metal goes into plant, you almost need to smooth some of those industrial numbers to get a better idea. Do you account for it when it was purchased? Do you account for it when the plant is built? Short answer is no.

Speaker #4: Even if you look at it, we get a couple of really demanding pieces from customers and market research. And even just in which different market commentators account for when metal goes into plant, you're going to get some—you almost need to smooth some of those industrial numbers to get a better kind of idea, because do you account for it when it was purchased?

Speaker #4: Do you account for it where the plant is built? Yeah. So, short answer is no.

Speaker #1: So FISA is in the room. Can we get a mic? So FISA, ruthenium, iridium are very topical. There wasn't a Chinese person that didn't stop me that didn't want to buy those two metals recently in China.

Johan Theron: Sifiso's in the room.

Emma Townshend: Yeah.

Johan Theron: Can we get a mic to him?

Emma Townshend: Yeah.

Johan Theron: Sifiso, ruthenium, iridium is very topical. There wasn't a Chinese that didn't stop me, that didn't want to buy those two metals recently in China. Maybe just share some of the interactions with the buyers on those two particular metals.

Speaker #1: Maybe just share some of the interactions with the buyers on those two particular metals.

Speaker #5: Okay. Thanks, Johan. When it comes to ruthenium and iridium, we haven't seen any forward buying, as Emma has mentioned. But on the ruthenium side, we're actually seeing the opposite of demand, whereby a lot of customers are actually decreasing the use of ruthenium on the back of the higher prices that we are seeing.

Sifiso Sibiya: Thanks, Johan. When it comes to ruthenium and iridium, we haven't seen any forward buying as Emma has mentioned. But, on the ruthenium side, we're actually seeing the opposite of demand, whereby a lot of customers are actually decreasing the use of ruthenium on the back of the higher prices that we are seeing. But the demand still remains very good and supportive, but there are developments within the environment. Thanks.

Speaker #5: But the demand still remains very good and supportive. However, there are developments within the environment. Thanks.

Speaker #1: Thanks to FISA. Bruce?

Johan Theron: Thanks, Sifiso. Bruce.

Speaker #3: Hi, good day. Bruce Williamson, Integral Asset Management. Hi, team. Nico, to you and the team, really well done on stabilizing the underground operations—I think it's a fantastic improvement there.

Bruce Williamson: Hi, good day. Bruce Williamson, Integral Asset Management. Hi, team. Nico, to you and the team, really well done on stabilizing the underground operations. I think it's a fantastic improvement there. Just a question, on your labor, underground labor, can you give us an estimate of what the average age is? Just remind us of your hard retirement age, and then how many do you think are due to retire in the next 3, 4 years? Then particularly in the Rustenburg area, could you talk about how secure the water supplies are?

Speaker #3: Just a question—on your underground labor, can you give us an estimate of what the average age is? And just remind us of your hard retirement age.

Speaker #3: And then, how many do you think you could retire in the next three to four years? And then, particularly in the Rustenburg area, could you talk about how secure the water supplies are?

Speaker #1: Leanne, it looks like you're going to be popular today.

Johan Theron: Leanne, it looks like you are going to be popular today.

Speaker #6: So, it's fine. Our average age at the underground operations is 45, and our retirement age for underground workers is 62 and a half years.

Lee-Ann Samuel: So-

Johan Theron: Yeah, it is on.

Lee-Ann Samuel: Yeah, it's on. Our average age at the underground operations is 45, and our retirement age for underground workers is 62 and a half years. That was industry practice over the years. People gearing up for retirement, I think it is about 5% to 8% of our underground workforce over the next three to five years. Given that the employment targets have now changed, employment equity because of sectoral targets, we are looking at the talent pipeline to make sure that people nearing retirement, we do replace those skills. Lots of skills development taking place and it's in line with some of our other HR plans that needs to be considered for retirement.

Speaker #6: And that was industry practice over the years. So, people gearing up for retirement, I think it is about 5% to 8% of our underground workforce over the next three to five years.

Speaker #6: And given that the implementation targets have now changed for employment equity because of sectoral targets, we are looking at the talent pipeline to make sure that as people near retirement, we do replace those skills.

Speaker #6: So, lots of skills development is taking place. And it's in line with some of our other HR plans that need to be considered for retirement.

Speaker #2: And then we do have Moses in the room to answer questions on water security in Rustenburg.

Johan Theron: We do have Moses in the room to answer to water security in Rustenburg.

Nico Muller: We do have Moses in the room to answer to water security in Rustenburg.

Speaker #7: Thanks, Bruce.

Moses Motlhageng: Thanks, Bruce. Moses. In Rustenburg, luckily we've got two water boards, so one from the north, one from the south. That gives us at least some flexibility. About a year ago, we started seeing issues on one of the water board, with regards to the supply. Then as a mine, we started developing some contingency plan. At the moment, I can tell you that should we again have similar issues, we will be able to run the mine at least between two and five days on the south side, which is the water board that previously has shown us they are having some unreliable supply. The plans are in place to continuously year on year, increase the storage so that we can at least at some point say we end up with a month. At the moment is two to five days, the contingency plan. Thank you.

Johan Theron: Thanks, Bruce.

Speaker #1: Moses, in Rustenburg, luckily we've got two water boats—one from the north and one from the south. So that gives us at least some flexibility.

Moses Motlhageng: Moses. In Rustenburg, luckily we've got two water boards, so one from the north, one from the south. That gives us at least some flexibility. About a year ago, we started seeing issues on one of the water board, with regards to the supply. Then as a mine, we started developing some contingency plan. At the moment, I can tell you that should we again have similar issues, we will be able to run the mine at least between two and five days on the south side, which is the water board that previously has shown us they are having some unreliable supply.

Speaker #1: About a year ago, we started seeing issues on one of the water boats with regards to the supply. Then SMI, we started developing some contingency plans.

Speaker #1: So, at the moment, I can tell you that should we again have similar issues, we will be able to run the mine for at least between two and five days on the south side.

Speaker #1: Which is the water boat that previously has shown us their having some unreliable supply. The plans are in place to continue year on year.

Moses Motlhageng: The plans are in place to continuously year on year, increase the storage so that we can at least at some point say we end up with a month. At the moment is two to five days, the contingency plan. Thank you.

Speaker #1: Increase the storage so that we can, at least at some point, say we end up with a month. At the moment, it's two to five days.

Speaker #1: The contingency plan. Thank you.

Speaker #2: Bruce, just in terms of water security, there are two elements to it. One is the oral supply. To date, not proven to be a major risk.

Emma Townshend: Bruce, just in terms of water security, there are two elements to it. One is the overall supply, which is to date, not proven to be a major risk, but the other one is the distribution infrastructure, and that's where we've picked up some issues. There is a gradual deterioration in the integrity of the distribution piping to get the available source to the operation. That's the issues that he's referring to. What we've done is we've also collaborated with municipalities in terms of skill sharing to ensure a remediation of the infrastructure.

Nico Muller: Bruce, just in terms of water security, there are two elements to it. One is the overall supply, which is to date, not proven to be a major risk, but the other one is the distribution infrastructure, and that's where we've picked up some issues. There is a gradual deterioration in the integrity of the distribution piping to get the available source to the operation. That's the issues that he's referring to. What we've done is we've also collaborated with municipalities in terms of skill sharing to ensure a remediation of the infrastructure.

Speaker #2: But the other one is the infrastructure—the distribution infrastructure. And that's where we picked up some issues. There's a gradual deterioration in the integrity of the distribution piping to get the available source to the operation.

Speaker #2: And so that's the issue that he's referring to. And so what we've done is we've also collaborated with the municipalities, in terms of skill sharing, to ensure a remediation of the infrastructure.

Speaker #1: I'm just conscious of time. There's five minutes left, but there's going to be an opportunity for people in the room to still ask questions afterwards, when we're having something to eat and drink.

Johan Theron: I'm just conscious of time. There's 5 minutes left, but there will be an opportunity for people in the room to still ask questions after when we're having something to eat and drink. Let me go to Chorus Call and let's take two calls from Chorus Call, and then we'll close at that point, and we'll take further engagements in the back of the room at the end. If I can hand over to the Chorus Call operator.

Speaker #1: So let me go to Cora's call, and let's take two calls from Cora's stall. Then we'll close at that point, and we'll take further engagements at the back of the room at the end.

Speaker #1: If I can hand over to the Cora's call operator.

Speaker #8: Thank you. We have a question from Adrian Hammond of SBG. Please go ahead.

Operator: Thank you. We have a question from Adrian Hammond of SBG. Please go ahead.

Speaker #9: Thanks, operator. Good morning, Nico and team. I just want to ask if it's more about stale drift too. It certainly represents a long-term view for your future.

Adrian Hammond: Thanks, operator. Good morning, Nico and team. I just want to ask a bit more about Styldrift II. It certainly represents a long-term view for your future. When do you expect to make a decision on Styldrift II, and how serious are you about developing that asset? I just think that it is a long lead time to make now. You obviously need to make it soon if you plan to bring that into production in the next decade. Secondly, you did allude to M&A. Do we think about M&A in stolen PGMs, or do you have other metals in mind? Thanks.

Speaker #9: When do you expect to make a decision on Stale Drift 2, and does this represent—how serious are you about developing that asset?

Speaker #9: Because I just think that it is a long lead time to make now. And, obviously, you need to make it soon if you plan to bring that into production in the next decade.

Speaker #9: And then secondly, you did allude to M&A. Should we think about M&A in-store in PGMs, or do you have other metals in mind?

Speaker #9: Thanks.

Speaker #2: Thanks. Would you mind if I answer the questions? So, the first one, as far as Stale Drift 2 is concerned, it is currently the subject of a concept study.

Nico Muller: Thanks. Do you mind if I answer the questions? The first one, as far as Styldrift II is concerned, is currently the subject of a concept study. Typically, if you think about the study program, a year for a concept study, 2 years for a pre-feasibility study, and 2 years for a BFS. Styldrift II is nowhere near, but it is really important. It was part of the entire acquisition consideration, the high-quality Merensky Reef, the last of its kind, untapped. I don't think it's short term. I think the Waterbergs and the Portal 10 possibly is running a little bit early in terms of the study program. Having said that, it is really a good option long term for us. In terms of our focus and the extent to which diversification is a current topic, it's not.

Speaker #2: So typically, if you think about the study program, it's a year for a concept study, two years for a pre-feasibility study, and two years for a bankable feasibility study.

Speaker #2: So, Stale Drift 2 is nowhere near, but it is really important that, when it was part of the entire acquisition consideration, the high-quality Marinsky Reef—the last of its kind, untapped—was included.

Speaker #2: So I don't think it's short term. I think the water bugs and the portal tenders possibly are running a little bit early in terms of the study program.

Speaker #2: Having said that, it is really a good option long-term for us. And then, in terms of our focus and the extent to which diversification is a current topic, it's not.

Nico Muller: In my introduction, I spoke about the myriad of internal options that we have in terms of life extension. Our current focus is proudly as a PGM producer. But as with all the other companies, we are exploring options in the current parts of the value chain in which we are operating and beyond. To the extent that there are value accretive opportunities, we will do so.

Speaker #2: In my introduction, I spoke about the myriad of internal options that we have in terms of life extension. And our current focus is, proudly, as a PGM producer.

Speaker #2: But, as with all the other companies, we are exploring options within the current part of the value chain in which we are operating and beyond.

Speaker #2: And so, to the extent that they are value-creative opportunities, we will do so.

Speaker #1: Thanks, Adrian. One more.

Johan Theron: Thanks, Adrian. One more?

Adrian Hammond: Thanks.

Speaker #2: Thanks.

Speaker #8: The next question we have comes from Renee Hochreiter of Noah Capital. Please go ahead.

Operator: The next question we have comes from Rene Hochreiter of Noah Capital. Please go ahead.

Speaker #1: Morning, chaps. Thanks very much for the dividend—very, very welcome. Just a question on the water bug: I see it's been included in your greenfield study.

René Hochreiter: Morning, chaps. Thanks very much for the dividend. Very welcome. Just a question on the Waterberg. I see it has been included in your greenfield study to keep your production going into the future at the current level. But as far as I remember, you only own 15% of Waterberg. What is the outlook there?

Speaker #1: To keep your production going into the future at the current level. But as far as I remember, you only own 15% of Waterberg.

Speaker #1: So, what is the outlook there?

Speaker #2: So, I think Waterbug has got a very likely future. I think the options that are being considered at the moment are looking far more attractive to us than the previous versions, which relied more on a large implementation.

Nico Muller: I think Waterberg has got a very likely future. I think the options that are being considered at the moment are looking far more attractive to us than the previous versions, which relied more on a large implementation. I think we are far more in favor of the current thinking and the way the study is progressing at the moment, where, as Patrick alluded to earlier, it is a phased approach to implementation over a period. Correctly, we currently own just less than 15%.

Speaker #2: So I think we are far more in favor of the current thinking and the way the study is progressing at the moment. As Patrick alluded to earlier, it's a phased approach to implementation over a period.

Speaker #2: And correct, we currently own just less than 15%.

Speaker #1: Yeah, but we've got the off-take as well. So, yeah, we're confident that, to the extent that it comes to the market, it will come through our refineries.

Johan Theron: Yeah, but we have got the offtake as well. We are confident that to the extent that it comes to the market, it will come through our refineries. I think that takes us to the hour mark. I just really have to thank everybody. There will be lots of opportunity now for people in the room and for others on the road and through various communication. We look really forward to further engage with you, not just on these results, but particularly on the outlook for the industry and for our business. Thank you for your attendance, and for the people in the room, please join us for some light refreshments. Thank you very much.

Speaker #1: I think that takes us to the hour mark. So I just really have to thank everybody. There will be lots of opportunities now for people in the room, and for others on the road and through various communication.

Speaker #1: So we look really, really forward to further engaging with you—not just on these results, but particularly on the outlook for the industry and for our business.