Valterra Platinum Limited

Good morning, ladies and gentlemen. My name is Teto Maage. I am the head of investor relations at Anglo American Platinum. Thank you for taking the time to join us today for our annual results, both in person as well as online. I would like to draw your attention to the question of the statement that is actually on screen. And I would appreciate if you could actually read it in full at your own time. We have, at the end, allocated time for Q&As at the end of the presentation. So with that said, I will now hand over to our CEO, Craig Miller, followed by Sayuri Naidoo, our acting CFO, to take us through the presentation. Thanks, Craig. Over to you.

Thanks, Teto. Good morning, and welcome to the presentation of our 2023 annual results. I'd like to acknowledge our chairman, Norman Mbazima, and some of the members of our board who are here today, as well as our regional director for Africa-Australia, Tembo Mkhonazi, John Weiss, Steve Peary, who are with us in the room, as well as the Anglo-Platinum Management Committee. I'll take you through our operational and market performance for the year. So Yuri will then take you through the financial results, after which we'll spend some time looking ahead and then taking your questions. So before I get into the results for the year, I'd like to start by giving you a sense of the several external factors which influenced our results in the year, many of which remain out of our control. The global market volatility, the exchange rates and interest rate uncertainties, and above CPI cost increases, and notably a 35% decrease in the PGM dollar basket price, all had a significant impact on our results. Despite this tough operating environment, we delivered on a number of our commitments. However, in responding to the challenges, we are working to improve our competitiveness and ensure our long-term sustainability of our business. These initiatives include capital and cost optimizations, which we outlined in December, and the proposed restructuring of the business, which we announced earlier this morning. So let's start with an overview of our performance for 2023. We're pleased to report and we're very grateful that we've had no fatalities at our operations in the last two years, our longest fatality free period. We also achieved a record low injury frequency rate of 1.61 per million man hours worked, which represents a 31% improvement year on year. We produced 3.8 million PGM ounces with an EBITDA of 24 billion rand and a mining margin of 35%. We ended the year in a net cash position of 15 billion rand, including the customer prepayment. These results were against the backdrop of that dollar PGM basket price of $1,657 per PGM ounce, the lowest level since 2019. So to provide more detail on safety, we remain committed to a zero harm at our operations and are constantly working on ensuring that our operations are safe, stable, and sustainable. Mojalaquena, Mototolo, and Unki have recorded more than 11 years fatality-free mining, and the Manderbilt has recorded three years without a fatality. At this moment, I would like to pause and remember the 13 Impala Platinum employees who tragically lost their lives in the incident at Impala Platinum's Rustenburg No. 11 shaft in November last year. As a result of that, we concluded a review of our own procedures through an extensive audit, and we are compliant with the standards that we have and have been taking on learnings from the incident itself. There is never room for any complacency when it comes to our commitment to zero harm. A holistic approach is required to ensure sustainability is integrated in the way we operate. In line with this, in 2023, we focus on the prioritization of our decarbonization ambitions through our renewable energy projects. Given that the production of electricity is the largest contributor to greenhouse gas emissions and the energy crisis that we face in our country, the focus on decarbonisation will enable us to secure a stable and greener energy to supply our operations. We've made significant progress to conclude the offtake agreement with Invusa Energy to supply 460 megawatts of electricity, which is expected to be commercially operational from 2026. This is part of the three to five gigawatt regional renewable energy ecosystem in South Africa, which is expected to supply the majority of renewable energy to our operations by 2030, enabling us to meet our target to be carbon neutral by 2040. We're pleased with the measures put in place to prevent environmental incidents and have not reported any levels four or five environmental incidents over the past year. We've continued to focus on employee well-being and community development through our initiatives, including those in education, health and livelihoods. And as we announced last Friday, I am pleased that three of our four mining operations have achieved their Initiative for Responsible Mining Assurance Certification. Amototolo and the Manderbilt Mines have achieved IRMA 75 and IRMA 50, respectively, while Unki in Zimbabwe has retained its IRMA 75 certification. We anticipate Makalekwena being recognized in 2025. We're the first mine, we have the first mines in South Africa to achieve this, once again demonstrating our commitment to be a responsible miner. The management of tailings storage facilities is essential for the safety of our employees and communities which surround our operations. In August last year, we reported a 96% level of conformance against the global industry standards on tailings management for what is considered extreme or very high potential consequence facilities for our own mines. GAPS identified to be closed out by the end of this year to ensure conformance of our own operations. We continue to leverage the standard to pave the way for safer and more efficient tailings management practices. We are as a company fully committed to the safety of the facilities and our actions are informed by the tailing storage facility experts. So moving on to our contribution to society. We continue to play a very significant role within the countries in where we operate. In 2023, we contributed 85 billion rand to broader society and stakeholders. We paid five billion rand in taxes and royalties. Six billion rand was paid to employees in salaries and wages. We spent 30 billion rand with local suppliers on procurement, as well as spent 700 million rand on social investment. We also reinvested 21 billion rand into the business and paid dividends to shareholders of about 12 billion rand. If we move across to our operational performance, Our metal in concentrate production was 3.8 million ounces, a decrease of 5% compared to 2022. Refined production declined marginally to 3.8 million ounces. Sales were up 2%, and we saw a marginal reduction in the production of base metals of 2% while recording a 17% increase in chrome production. The decrease in methylene concentrate production was mainly because of the planned infrastructure closures at Amunderbilt, poor ground conditions at De Schaabe, and the expected lower grade at Michalakwena. Production was further impacted by the lower output from Kroendal, reflecting the planned ramp down of its operations, as well as our disposal of our 50% share interest in the operation. These declines were partially offset by an increase in production by Unki, while production at Mototolo was relatively flat. So looking at our own mines and processing operations specifically, as I said, production at Makalakwena decreased by 5% compared to the prior year. Tons mined were up by 1% despite higher than anticipated rainfall, a mining contractor unperformance, drilling and sequencing challenges within the pit. Tons milled decreased by 1%, impacted by the breakdown in the first quarter at the Baobab Concentrator and further breakdown of the HPGR at the North Concentrator in the last quarter of the year. The 4E built-up head grade decreased, as expected, by 2% to 2.73 grams per tonne. This was in line with the guided range that we provided of between 2.7 and 2.9 grams per tonne, and is expected to remain in that range for the next two years. In the first quarter of this year, we do expect the grade to come in lower than that guided range, similar to what took place last year. However, it's anticipated to be in line with the guidance for the full year. So looking into the future at Makalakwela, we're looking at an open pit optimization, which is important to us to maximize value and to drive further efficiencies. In addition to this, we're prioritizing the drilling and the studies of the underground exploration declines, which will be an important step for securing higher grades, creating waste dumping efficiencies, and minimizing haulage costs. We have continued to work on resetting our relationships with our community stakeholders, including the cultural heritage work, as well as the work on the collaborative resettlement process. The Sarita-Rita school relocation is planned for completion in December 2024. This is to ensure that the proximity of the school to the mine is managed in line with environmental regulation requirements. In addition, our cultural heritage work has aided in identifying graves in areas earmarked for near-term waste dumping. Our diligence in following global breast practice has enabled us to relocate a significant number of graves in the last two years. We've opened up the required waste rock dump space for the next few years, and further dumping space is anticipated to be released this year. To turn into a Munderbilt, production decreased by 11%. This was as a result of the Tumela upper infrastructure and Dushaba open cost operations coming to the end, sorry, coming to the end of their life, leading to lower mining volumes. Continued poor ground conditions at Dushaba also contributed to lower production. This in turn resulted in lower productivity and higher costs when compared to 2022. Crone production exceeded expectations with a 19% increase in tons produced on the back of a 35% yield improvement, which is attributable to the optimization of the plant. As you know, the Crone price also increased by 53%, and therefore the Crone operations contributed around two billion rand to Munderbilt's economic free cash flow. We remain focused on the safety and continue to drive conventional mining excellence at Dushaba. To ensure that AmandaBuild enhances its performance, we will continue to implement modernized mining methods and cycle mining where it's feasible to do so. We've seen early successes and have learnings which will enable us to roll this out more effectively. The Middle Lachter underground project has been postponed and the Tumela 1 slabshaft will be that project which we'll look to take forward as it has a higher value case and which is required in the current environment in order to maintain current production levels. As I mentioned, Unki's production increased by 5%, benefiting from the concentrated debottlenecking project, which we completed in 2022. Total PGM production at Mototolo was in line with the prior year. And if we move across to refined production, Lower refined production was as a result of the 5% reduction in metal and concentrate production. The impact of ESCOM low curtailment was approximately 82,000 PGM ounces. This was partially offset by the release of concentrate stocks, which were built up in 2022 as a result of the Poliquani smelter rebuild. We initially guided that it would take up to 24 months to release the built-up work in progress. We were able to process a significant proportion of that in 2023 and will continue to release the remainder in 2024. Concentrate stocks have now returned to normalized levels. However, we saw an increase in match stocks as we closed the year. The availability of higher mat stocks, which are fed to the ACP, will allow for a faster release of work in progress throughout 2024. These stock levels are expected to return to more normalized levels by the end of the first half of this year. We continue to show improvements in the utilization of our smelters, driving efficiencies and freeing up capacity Rebuild cycles have been completed on time and within the expected budget. There is also an intentional mass pool reduction strategy at our concentrators to produce higher grade concentrates. This produces the same PGM content at lower concentrate volumes, which reduces the required primary furnace capacity and allows us to place the Mortimer smelter on care and maintenance, thereby reducing operating costs, capital, and enhancing our overall processing competitiveness. I'll now hand you across to Sayuri, who'll take you through the financials.

Thank you, Craig, and good morning, everyone. Our 2023 financial performance is reflective of the challenging macroeconomic environment characterized by the weaker PGM prices and the operational headwinds that Craig spoke to earlier. In summary, revenue generated was R125 billion, reflecting the significantly lower dollar basket price, partially offset by the 2% increase in sales volumes. The cash operating unit cost was R17,859 per PGM ounce as a result of lower own-mine production and above inflationary cost increases. This translated into an EBITDA of R24 billion with a mining margin of 35%. Our balance sheet remained strong with a net cash position of 15 billion rand, including the customer prepayment. And in line with our disciplined capital allocation framework, the board declared a final dividend of 2.5 billion rand, or 9.30 per share. Looking at EBITDA, which was 67% down compared to 2022, the main driver of the decrease was lower realized prices, most notably palladium and rhodium, which were down 37% and 58% respectively. The negative price impact on revenue was around R40 billion. Lower prices also impacted the purchase of concentrate inventory measurement, which resulted in a R10 billion increase in cost of sales compared to 2022. In 2023, the rand weakened 13% against the dollar, which had a R13 billion positive impact on earnings. EBITDA was negatively impacted by higher cash operating costs as a result of above CPI electricity costs, as well as increased drilling at Makalakwena and higher volumes of concentrate processed at smelters. Turning to unit costs, cash operating unit costs were R17,859 per PGM ounce. This is 1% lower than what we reported for the first half of the year, despite the 18% increase in ESCOM tariffs in the second half. This reflects our increased focus on cost management and was supported by a 5% increase in production in the second half. Looking forward, in response to the current low PGM price environment and to ensure we remain competitive, we have launched various cost optimization initiatives to drive lower costs in 2024. We are targeting approximately R5 billion in annual cost savings off a 2023 baseline. Our unit cost guidance is between R16,500 and R17,500 per ounce, which at the midpoint is around 5% lower than 2023, and therefore offsetting the forecast impact of input cost inflation of around 6%. On an all-in sustaining cost basis, this translates to $1,050 per 3 e-ounce. Cost savings are expected to be realized through operational cost efficiencies, such as improved consumption of electricity, diesel, and other consumables. the implementation of our reviewed organizational structures, the review of contractor spend, and the optimization of studies, exploration, research, and development costs based on the reprioritization of work. Working capital increased by R1 billion in the year. The release in work-in-progress inventory, as well as the drawdown in refined inventory in the year, resulted in a decrease in working capital of R3 billion. Higher purchase of concentrate creditors at year-end resulted in a further R3 billion reduction. and the impact of lower prices on purchase of concentrate inventory and creditors was a net R5 billion reduction in working capital. This was all offset by the R12 billion decrease in the customer prepayment due to lower prices. In 2024, we expect to see a further drawdown in work in progress as the furnace mat moves through the processing pipeline. This is, of course, dependent on the impact of any further ESCOM load curtailment. Total expenditure for 2023 amounted to R20.5 billion. Around R11 billion was spent on stay-in-business capital focused on improving the integrity and reliability of our assets, the delivery of replacement haul trucks at Mughalakwena, and the buttressing of the Falcorp tailings dam to ensure safety and conformance with global industry standards on tailings management. Capitalized waste stripping was R4.2 billion, and life extension capital amounted to R2.4 billion, largely on the Dibrochan project. Other project capital of R1 billion was incurred on the development of the Mukhalaqena twin exploration declines, and breakthrough capital expenditure was R1.7 billion on the copper debottlenecking and metal recovery projects. Total capital expenditure guidance is set at approximately R19 billion for 2024. We have reprioritised our stay in business capital, which is expected to be R5 billion lower, in order to preserve cash but still retain safe, stable and sustainable operations. As always, we are guided by our balanced and disciplined capital allocation framework. In line with this framework, we maintained our 40% payout of earnings for the second half of the year and declared a dividend of R2.5 billion. This translates into a total dividend of R5.7 billion or R21.30 per share for the year. Dividends declared to our employees as part of the TOBO employee share scheme, as well as our shareholders via our community trusts, amounted to 150 million rand for the year, demonstrating our commitment to creating value for all our stakeholders. I will now hand you back to Craig to touch on markets and the outlook.

Thanks very much, Yuri. So turning to the markets. As you know, conditions have been incredibly tough with prices at their lowest level since 2019. So let me provide you some insight as to what we've observed in the market. So to start, let's look at what happened in the automotive industry in the year, which accounts for roughly two thirds of PGM demand. 2023 saw a strong performance in automotive demand, which rose around 7%. The main reasons for this were overall light duty vehicle production grew by 10%, far more than we were expecting at the beginning of 2023. Interestingly, battery electric vehicles, while still gaining momentum, did so at a slower pace than in 2022 and compared to what we forecast for 2023. So contributing to this is the reduced subsidies and the fact that consumers are increasingly opting for plug-in hybrids and range extenders, which all require PGM catalysts. So as a result, internal combustion vehicle production increased 8%, its best performance in many years. So largely as a result of the strong automotive performance, all three major PGMs were in a deficit in 2023. However, this did not reflect in prices, and the basket price, as we said, fell by about 35% in dollar terms with palladium and rhodium, recording significant reductions. We believe that this disconnect reflects market participants' pricing and perceived weaker medium-term outlook for these two metals, as well as destocking and speculative shorting. We do not disagree with the consensus that rhodium, but particularly palladium, face major challenges from vehicle electrification. And while we expect to continue to see deficits again this year, we anticipate that palladium will move into surplus in the medium term. That said, increasingly the risks seem to be two-way. Last year's strong automotive performance highlights two themes, which we've discussed many times before. People's desire for personal mobility and the energy transition will be more complicated than many expect. So furthermore, as I look to the rest of the year and beyond, there are many other uncertainties that might see a tighter market, such as recycling flows and that speculative activity. Our market development efforts are fundamental to ensure our products have a sustainable and positive impact on the world. We are leveraging the capabilities through activities and capturing values from adjacent value chains. We envisage many future opportunities and are turning risks into potential demand segments for our metals, such as progressing our line batteries and leveraging from the useful characteristics of PGMs in new applications. Our diverse PGM basket mix is readily positioned to play a vital role in the energy transition, and further forming a foundation for a cleaner and greener future. But going forward, following our investor update in December, let me provide you with more details on the deliberate and decisive action plan we've taken in response to the prevailing market conditions, which is necessary and urgent to ensure the long-term sustainability and the competitive position of our business. This comprises of five elements. The first is operational excellence, the focus on value over volume production whilst improving our operational performance and maintaining our own mine production. Second, our focus is on cost efficiency targets, improving our cost position to ensure that all our assets are positioned in the first half of the cost curve. Initiatives are underway, as Yuri pointed out, targeting the five billion rand per annum cost saving. Three, rationalizing our capital. Capital discipline is always crucial. We will be reducing our 2024 sustaining capital spend by between 15 and 20%. However, we do envisage maintaining spend levels for 25 and 26, and we'll focus on what is critical to the business to ensure the integrity and the reliability of our assets for the long term. The fourth element is re-phasing our growth. In addition, we reviewed our capital portfolio, the outcome of which is to prioritize and progress Michalakwena's underground studies. We've decided to postpone the development of the third concentrator under the current environment. We'll also maintain production at Amanda Bilt at current levels and therefore won't continue the program to ramp up production nor de-bottleneck the concentrators to 7 million tons per annum. And lastly, reconfiguring our processing. As a result of streamlining our processing footprint, the ACP de-bottlenecking project is no longer required at this stage. Further, as we've mentioned, the Mortimer smelter will be placed on care and maintenance from the middle of this year and to be repurposed for slag cleaning duty. Since our December update, we've continued to assess the business given the persistent cost pressures and the continued decline in the PGM basket price. And as a consequence, and as a last resort of exploring all options, we're embarking on a proposed restructuring of our business. The proposed restructure is expected to impact approximately 3,700 employees, including fixed-term employees across our South African operations. This represents approximately 17% of our permanent employees. The majority of the employees impacted will be at a Munderbilt, followed by our processing operations as a result of Mortimer being placed on care and maintenance. A Section 189A process of the Labour Relations Act will be followed, which involves a consultation period with trade unions and affected employees and will be facilitated by the CCMA. In addition to the review of our organization structures, we've also embarked on a contractor review affecting 620 contractor companies. We believe that the actions that we are taking, though painful and not ideal, are however necessary and will position ourselves well into the future. So in conclusion, to create the long-term sustainability for all of our stakeholders, we are taking this deliberate and decisive action. We remain committed to our four strategic priorities. We've prioritized our work into five programs. Clearly safety, zero harm is a non-negotiable for us. We've demonstrated the resilience in 2023. However, our operational excellence and organizational effectiveness are our short to medium term action plan to ensure that we are sustainable. Positioning ourselves for a sustainable future, the market development initiatives that we are developing are critical in order to ensure that we develop diverse demand segments for our PGMs. Our pathway to value, we're preserving our long-term optionality with the aim to create shared value for all of our stakeholders. These programs enable us to remain focused on delivering in line with our action plan while remaining agile and responsive to enable the success and the sustainability of our business. We believe that the actions that we're taking distinguish us in the following areas. Firstly, we have a portfolio of tier one assets that are strategically positioned to operate them in the first half of the cost curve. Secondly, we strategically aligned our metal portfolio to capitalize on the ongoing energy transition. As the world shifts towards renewable energy resources, the demand for PGMs are crucial for these technologies, and we're well positioned to meet that demand. Thirdly, we'll prioritize long-term growth through disciplined capital allocation. This means that we invest appropriately in projects that offer sustainable returns, ensuring steady growth as and when demand requires. And lastly, we're committed to being a responsible miner, creating value for all stakeholders, including shareholders, employees, local communities, and the environment. And with that, that concludes our presentation. Thank you once again for listening, and I'll hand you back to Teto who will facilitate questions and answers.

Thank you, Craig and Sayuri, for that. We will now move over to the Q&As. What I will do, we will start in the room first, take a couple of questions, then followed by those who dialed in through the conference call. I think Denae will just help us with mentioning who's on the line and also their questions. Thereafter, we'll go and read the couple of questions that have come through from the webcast. I think once we are done, then we'll just come back to the room and see whether there's any residual questions So please remember to raise your hand from the room. There will be microphones just going around. So when they do give you one, remember to state your name, what company you're representing, and thereafter your question. Thanks. I see Ngatago is already on. Thanks.

All right, good morning. Katako Matonsi, Investec Bank. Look, I have a few questions, and the first one is on the $5 billion cost-saving guidance. If you can give us a little bit more details, because looking at, after considering the 3,700 employees restructuring of Section 18 now, it would appear that efficiencies and productivity will still be a major contributor to the 5 billion. So outside of the diesel savings, what will be the specific factors that you'll be looking at to actually achieve this 5 billion rand cost saving in FY24? So Craig, if you can also comment on market development. I mean, it has increased by about 34% year on year. Should we be looking at that $1.8 billion as the base going forward? Or in terms of your cost saving, you also are looking at market development? And then I also, I mean, my third question is on capex. Is there any further room for capex reductions if the PGM pricing environment remains very challenging for the remainder of the year? And also considering that the operating free cash flow in FY23 was actually negative. And then the last one is on Mutotolo, where the unit cost was the highest compared to the other operations. The unit cost increase was the highest. Why was Mutotolo the one that was most exposed to the inflationary pressures? Thank you.

Okay. Thanks, Nkoteko. So we'll take the questions. So, Suri, do you want to go with the $5 billion and just outlay sort of some of the key programs?

Sure. Thanks for that question, Nkoteko. So starting with the $5 billion, so the organizational review both at our corporate office as well as our operations would contribute about 40% of that cost reduction. And that will include other efficiencies that we're also looking at in terms of your overtime savings, incentives, et cetera. Further to that, the contractor review that we mentioned, that will add another 500 million, 500 to 700 million rand. In terms of operational cost efficiencies, as we mentioned, we are putting the Mortimer smelter on care and maintenance so that after taking care and maintenance costs into account, that will also add another 500 million rand in terms of annualized savings. We're looking at obviously consumption of diesel, utilities, efficiencies, so that will also add another further billion rand to our cost target. In addition, we are looking at our supply chain, all supply chain contracts, and looking to negotiate below CPI escalation increases. And further to that, our overhead reductions, so looking at our exploration, our studies cost, market development cost as well, So that will add another 500 million or so.

I think it's fair to say that we certainly are driving greater efficiencies and performance from the assets. We've had a series of challenges in 2023. Our expectation is that we'll be able to overcome those, particularly around some of the equipment at Makalakwena, where we really do need to improve their effectiveness and really drive better and benchmark performance. We've also got a lot of equipment that has recently been delivered at Makalakwena, so our expectation is that that should be operating at where the OEM says it should be. And when we do the comparison against other equipment within the Anglo-American group, we've got some way to go. So efficiencies is across the board and certainly a key driver for us In terms of your question around market development, as we've said, market development is really important for us in order to create that diverse market segment. But as you can imagine, and as Yuri's alluded to that, the market development budget for 2024 is under review and has been scaled back. Which is where we're going to concentrate primarily in the mobility segment, continuing to contribute to the jewelry demand element, and other key initiatives in order to create that diversification, which you should see a reduction in our market development spend this year, just given sort of where we are. I may just add that we are encouraged that other PGM players are starting to now contribute their share to other market development activities, so that we're not just carrying the lion's share of this, so kudos to them. um and then in terms of your capex um look i think we've certainly looked at the the optimization um of of capital and as you've seen we've seen the reduction in our sib and where do we see capital being spent in 2024 a lot of that does go into the lifex um at motor total debrahan and that's important in order to to really complete the um the De Brachen project. But I think as a result of placing Mortimer on care and maintenance, what you are seeing is that we're saving about three and a half billion rands worth of capital over the next few years as we look to shut that down. But we always continue to evaluate how do we optimize our capital. So Mortimer, for example, we don't have to install the SO2 abatement. We don't have to complete the furnace rebuild this year. So a lot of that has been driven around the reduction in capital, and we'll continue to review it. The other element of capital that we do have this year, and I'll get Wade just to speak to that as well, is really looking at how we optimize Makalakwena's pit, and is there an opportunity for us to be able to reduce waste, really reduce the amount of equipment, and that's a bit of a program that we have underway. And then And Mototolo, do you want to just cover some of the costs and then why that's, why I mean the mechanization of the mechanized operation of Mototolo is a critical component of the portfolio and particularly as you manage through some of the uncertainties where we are at the moment.

Yeah, so I can take on the Motutolo cost. So costs were up in most areas. So in our contractors spend in our stores, but largely in terms of Laboa shaft coming to the end of its life and difficult ground conditions, that's also contributing to the higher costs that we are seeing at Motutolo.

So there's no doubt that The cost efficiency program that we have underway and that we've announced is across every single asset. And every single asset has particular targets which they need to deliver on and making sure that they're in the lower half of the cost curve.

Morning. Morning, everyone. It's Chris Nicholson from R&B Morgan Stanley. I've got a couple of questions that center around the Mandelbolt, if I could. So over the last few years, we've obviously had the Tamela upper section reserves kind of being depleted. The surface sources have depleted. This year, we've done 630,000 PGM ounces. Is that the run rate going forward now? Does it fall from here further? And if so, how long can you maintain it? I do note your comments that a good portion of the over here or the job restructuring relates to Mandelbolt. Is this just viewed as a right sizing for kind of that run rate? And if you could comment on that. Then, related to that Mortimer, obviously, I think the Mandelbold volume and maybe the Cianda volume forms the base of Mortimer, so what happens logistically there? Do you put it on tracks? Do you take it down to Vartafal or to Polikwani? And then, I think, lastly, most importantly, clearly times are tough, and within the portfolio, you've obviously got, I guess, higher priority items, such as Michalikwena, Matutolo, to allocate capital to, Is a Mandelbolt still a right fit for your portfolio, and can it attract the capital it deserves and the investment and labor and the ore body that it deserves in this environment in Amplet's portfolio? Thanks.

Okay, so in terms of Amunderbilt, clearly we've seen a particularly challenging year at Amunderbilt. Last year, the decline in production, and that's been accentuated, particularly at Dushaba. It has difficult ground conditions, but to be honest, we haven't seen the productivity levels that we would have expected. Tumela, on the other hand, has certainly had a really credible performance, and it continues to deliver in line with budgets, and its productivity levels are really sort of commiserate with what we would have expected. So the focus is really around the shaba and the turnaround there. And so as a result of the proposed restructuring, there is definitely a drive around improving efficiencies. In terms of the expectation for this year, just given the changes that we're announcing, we've maintained Amanda Bull's production level at about the 650,000 ounces. We'll continue to progress the mechanization of the 15 East drop-down, and we're looking at the Tamela One sub-shaft. But that's more or less where we see a Munderbolt in the current environment. So just to answer maybe your last question around, does it remain within the portfolio? We've certainly got to turn a Munderbolt around. We've got to improve its efficiencies. It has to improve in terms of delivery of its production profile. We believe that we can do that. We've certainly demonstrated from a safety perspective that we're able to do that. We believe that the plans that we've got to turn that around and the focus around productivity, the focus around discipline and what needs to take place at the Munderbilt really support what we're able to do with that particular operation and therefore to deploy the capital on a much more phased basis and not grow the production to 7 million tons. But yeah, we've got our work cut out for us to improve that, and that's a particular focus of the team for the year. I think just, you know, your last point around Mortimer, so as we look to place that on care and maintenance, yeah, we will then transport the concentrate to both Vartafal and then also to Tupalaquani. But obviously as a result of the mass pool reduction, that will obviously sort of reduce the amount of concentrate that gets moved around. Is there anything else to add, Ajita?

Good. Cool. Gerard from APSA. I wonder if you have any idea, or I'm sure you have, but if you're prepared to share with us any idea just roughly of the cash cost that you envisage this whole restructuring, you know, the cash outflow that you'd expect from this restructuring, and presumably all of that will flow this year.

As you know, you're going into a Section 189 process. That's a consultation. I don't want to speculate around what that cost is. We've clearly got to go through the consultation and make sure that we followed your process. But the important part, despite what the cost is, is really how we're setting the business up for the future. And that's really critical. And so as difficult as it is to go through the restructuring and say goodbye to colleagues, et cetera, we need to do this in order to restore that competitiveness and make sure that the business is set up to be sustainable.

Thank you. Yeah, well done on your fatality rates. Excellent for two years now. My concern about anglerplats is a mandelbolt, same as Chris. Your costs were like about 20,650 Rand per ounce. Spot is now at about just under 23,000. It's a very, very thin margin. following on what you said about what you can do internally, would you look at selling a Mandelbolt, or at what point would you take that decision?

So the focus, Rene, has to be on turning around a Mandelbolt and getting its cost structure right, but importantly also just driving the productivity and the efficiencies, and that's our key driver, and that's the key piece of work that we have underway. With any asset that we have in the portfolio, we would always have to have a look at it in terms of if we received an offer or somebody else could generate additional value. The importance about a Munderbilt is really then just looking forward and the pill split that it has and the exposure to not only platinum, but also iridium and ruthenium, which are key components in terms of if you think about a hydrogen economy. yeah at the moment our focus is you know we've been able to demonstrate that we're able to operate a mandible safely we've invested a lot of time and effort in that and we've now got to work on the productivity and ensuring that we actually move the cost down the cost curve thanks very much

More questions from the room and then we'll move to the conference call. Two more questions from the room.

Thank you. It's Leroy Nguni from HSBC. Your trading sales volumes increased about 134% year on year. Could you please give us a bit of color on what's driving that? And I don't know if you'd be able to share where the increase or the additional metal is coming from. And then I'm just curious as to once you put Mortimer, Smelter and Cairn maintenance, does that sort of affect your vulnerability to load curtailment from ESCOM in any way? And what are some of the considerations there?

Okay, so we check if Hilton's on the line if he wants to give us some details. Hilton, do you want to give us just the feedback on the trading? Okay.

Hi, Leroy, thanks for the question. Sorry, I couldn't be with you in person. Look, I think the drivers for the trading volumes are we work within certain constraints in terms of both work and capital and within the amount of value that we can put at risk as prices and volatilities in PGMs have come down. so that have created opportunities for us to do more from a volume perspective. And the reasons why we trade are A, first and foremost, to make sure that we understand the value of the products we're trying to sell, to give us the ability to provide solutions to our customers without having to use intermediaries to enable us to take advantage of imperfections in the market and also to to manage our own our own supply risks um our our capacity in terms of working capital and value at risk have stayed stayed the same so it's largely as a result of the reduction in prices and the reduction in in volatility hopefully that answers your question

Do they care, Leroy? Not really. It's an extraordinary amount of metal. Sorry, Leroy, I forgot your hand. If you were to say, would market some of the tall, refined metal, would that come through in that line? If we were to market some of the tall refined metal. Yes, so instead of some of your customers taking their tall refined metal for themselves and you marketing it for them, would that come through in trading sales volume?

No, no, no, Leroy. So I think what's covered in those trading volumes is third party purchases, borrows, leases and lends. So we basically buying and selling material. And it really is, as Hilton said, in order to give our customers what they want, in terms of material, we do forward sales as well. And then we would obviously in order to hit some of the price risk, that's where the buying and selling is coming from.

If I may add, Siri? May I?

Yeah.

Yeah. So, Leroy, the sort of LBMA publishes traded volumes, and while those traded volumes appear high relative to our Our sales volumes, traded volumes, you know, as a percent, our traded volumes as a percentage of what the LBMA publishes is less than about a half a percent of volumes traded on the lemon platinum plate market. If that helps.

And then Leroy, just to your question around load curtailment. And so certainly, you know, we have been able to manage the load curtailment across the business. We've done that successfully through the management of, through the smelters. As we put, you know, Mortimer and Care Remains, yes, that is a consideration. But we have implemented some alternative backup at some of the operations, which will enable us to try to mitigate some of that. So we've looked through the generating capacity, et cetera, at the operations, and that will enable us to be able to reduce the impact, particularly from a local time at one stage.

Thank you.

Good morning, it's Arnold van Graan from NetBank. Greg, so you've obviously launched a number of initiatives to adjust this business to a low PGM price environment. The question is, what other big levers do you have to pull if needed? If PGM prices go down further, don't go up, or some of these initiatives that you plan don't deliver the required results. I guess taking the question further, other than Armandel Build, which seems to be the obvious potential solution here. Thank you.

Yes, so look, I think, Arnold, thanks for the question. I mean, I think we as a business have responded to the lower price environment and will continue to make the appropriate responses as and when required in order to ensure the long-term sustainability. I think the actions that we've taken really do help set us up to be sustainable into the future and really to navigate some of the changes that you will see in prices. As we know, prices will come down and they'll come back up. And we just need to make sure that the work that we're doing delivers, that we deliver it safely, and that we deliver on the commitment. And I think that does set ourselves up in terms of what we need to do. But we continue to evaluate how we drive further efficiencies across the business. We've launched the program, and we're particularly focused on delivering that. And we'll respond as and when we need to. But I do think that we have. and we'll continue to do that. The key thing for us now is the delivery of it.

Thanks. Thanks for that. Can I propose that we move to the conference call? Dina, I see four questions coming through from the conference call.

Of course. The first question we have comes from Catherine Cunningham of J.P. Morgan. Please go ahead.

Hi, guys. Thanks for the presentation. I'm sorry if some of these have been answered already. There was a bit of a cut in the audio just now. I have three quick ones. The first one is were the labor cuts that were announced today already internally factored into the guidance for the medium term that you announced in December, i.e. is there downside risk to the production outlook versus previous production just in light of today's announced cuts? And then The second one is, just in light of it being an election year, do you see any risk of pushback from the CCMA in enacting the announced workforce reduction? And then just thirdly, on the theme of elections as well, do you see any risk that electricity curtailment level that the sector has intensified this year, say under a scenario of stage six, in order to reduce the impact on the individual voter base?

Okay. Thanks, Catherine. I'll start and Siri jump in. So, look, I mean, obviously the restructuring that we've announced today, we've embarked upon a series of initiatives. They started last year. in order to drive the costs out, and that really helped inform the production plans that we put together for the medium term. We've clearly then needed to act further and work and embark upon this restructuring that we've been working on In terms of the medium term, I'd hope that the implementation of this restructuring sort of supports that production guidance that we've provided. It really is focused around efficiency and productivity and therefore should be able to deliver on the answers and the commitments. Is there a possibility of... Some disruption, I think that exists all the time and therefore we need to continue to mitigate that and manage through it. With respect to your question around electricity and stage six. That's been very much, we've been able to manage load curtailment quite successfully as a business. Stage six doesn't always necessarily translate into load curtailment for us as a business. and so we'll continue to manage that and continue to adapt to it and but just linking back to you know we need to look further out um in terms of getting over sort of some of the the curtailment and that we've experienced clearly it's sort of stabilized in the last half of last year and picked up a little bit this year but importantly for us is really the opportunity which invusa creates in terms of the stability of bringing additional energy to the grid and being able to to take that off take and as a company so we'll manage we'll manage the electricity and as we have done um it does you know we have had the impact of about 80 odd thousand ounces last year and a little bit much lower than what we had anticipated at the beginning of of last year and so i think it's relatively well managed we've seen the stability and we'll continue to manage it again um but really looking through from an invasive perspective And then, you know, as you pointed out, in terms of elections and the opportunity that elections brings for many citizens in South Africa, yeah, we look forward to those elections and the outcome of that, and we'll continue to work with whatever the elected government is to be able to support our operations and continue the investments in the country.

And then, sorry, there was just a question on whether there is any risk that the CCMA pushes back on the workforce reduction.

Sorry, beg your pardon. I had consultation here. Look, I think the CCMA and the Section 189 process is well established. and documented and formulated in South Africa. As a result of the announcements that we've made today, we will be issuing notices to those effective employees and to their representatives of organized labor. And in that process, we'll start in line with the consultation process. I don't believe that the process itself could be impacted necessarily by elections. We also don't know when elections will be, and hence the reason why we're starting the process now.

Cool, got it. Thank you so much.

Thank you. The next question we have comes from Richard Hatch of Barenburg. Please go ahead.

Yeah, thanks very much, and good morning, and thanks for the call. I've just got a few questions. The first one is just on the mass production strategy. you just explain a bit about why you haven't sort of considered doing this before um and you know given the the sort of you know you're talking the benefits of it obviously perhaps it would have been better to have done this previously so can we just talk a bit about why you haven't sort of considered doing it before um the second one is um you know whenever you whenever you cut SID so aggressively there generally is a point in which it comes back to bite So not just Anglo-Platte, but just generally in the mining sector. So are you really confident that by cutting SIB, you're not sort of curtailing longer term flexibility? And then just on the MAP release, is there any way you might be able to quantify just how much you might see coming back as a working capital release from that MAP release in H1? Thanks.

Okay, I'll have Ajit just give you an overview of the MassPool strategy and why we're doing it now, and then I'll maybe cover the SIB, and then we'll just talk about the release of the working capital. Ajit? Hello? Yeah.

Hi. Hi, Richard. Sorry, I haven't introduced you, so do you want to say what you do? I'm Ajit Singh. I'm the Executive Head for Process Technical at Anglo-American Platinum. Richard, the question is actually a good one. Our mass pool strategy work has actually started over the last couple of years, and what we have been doing is looking at a 30% to 35% reduction in mass pool at Mokola Quina, and that's a flat reef ore body, so conventional technology doesn't necessarily give us the results that we actually wanted, so we have been doing quite a lot of work around understanding the technology of choice. We've done that, we've piloted the work, and it was extremely successful. So the results indicates that we can achieve the mass pool reduction that we want at the required recovery levels and give us the higher grades and lower volumes. At a manual, we're targeting a 35 to 40% reduction in mass pool. Again, we've done the work, fully understand what it is, and it's going into implementation as we actually speak at both those operations. And very similar to Mototolo Unki, we're doing very similar approaches around MassPol, but that's focusing more on optimization of the existing circuits. We've already achieved quite a significant drop in MassPol across our operations, and the technology changes we're doing at Mokoloquina and at Manelbolt will get us to where we want to. So it's just a matter of time, and we've been making sure, to exactly the point that you've made, that we want to do the right changes at the right time, and we've done that in a very meticulous way by piloting it and making sure that we are actually gonna get the results that we actually want. Thank you. Thanks, Ajit.

And did you, the releases by the half year?

Yeah, so in terms of our work stocks, so we had about 100,000 PGM ounces that were built up at the end of 2022. We did see some of that being processed in 2023. and then we expect that to be back to normalized levels, again, based on ESCOM load curtailment. Just to bear in mind that the first half of the year, well, the first quarter, would be impacted because of our processing assets, maintenance, and stock counts, and therefore, we'd expect it to be towards maybe the Q2 and Q3 that that stock would be released.

And then, Richard, just your question around SIB and and being aggressive. I think what we're very, very focused around, and we have been for the last few years, is really improving the asset integrity and the reliability of our infrastructure. And we've certainly invested very significantly over the last number of years in that, and therefore that gives us confidence in terms of the reductions that we've been able to implement in that SIB space is not necessarily compromising the integrity of our assets. And we're continuing to invest. where it makes a lot of sense. But I think the optimization that we've spoken about, for example, at Mortimer, just demonstrates where that optimization is without necessarily compromising the investment that we need to make in order to maintain the assets in a stable and capable environment.

Understood. Thanks for your time.

Thank you. The next question we have comes from Adrian Hammond of SBG. Please go ahead.

Yeah, good day, Craig. Thanks for the questions. So, yeah, I have three, and I'm going to simplify it plain and simple here for you. I appreciate your CapEx profile. It's certainly impressive that you can, you know, one of you who can actually sustain it. But I also appreciate you've optimized the CapEx profile. So, Will you be, if spot prices persist, are you going to continue paying dividends out of debt if you have to? Because certainly part of your premium rating is your superior dividend policy linked to earnings. And then secondly, the O&D stocking cycle you mentioned, when do you think that could come to an end? And then thirdly, what opportunities does Amplats have to increase chrome production? Thanks.

Thanks, Adrian. Okay, I'll go with the dividend. I'll try it. So, Adrian, look, certainly, you know, I think just back to what we have, and you've pointed it out, is an incredibly disciplined capital allocation. And we really try to balance between investing in the business and maintaining the dividend. I think the actions that we're taking today in terms of the cost, our reduction in capital, driving the efficiencies, and maintaining production really help support cash generation, which would then enable us to maintain that disciplined approach. And the 40% payout of earnings is linked to earnings. So if prices rise, dividends will rise. And with the prices at the low levels, you've seen the impact of the dividend in the second half of the year. But it's certainly our intention to maintain that capital discipline going forward. but ultimately the declaration of a dividend at the half year is always the decision of the board, and they take into account various considerations as we look to declare that. But certainly for us as a management team, making sure that we generate the cash, they'll make the investment and declare the dividend is fundamentally key for us. I'll ask Hilton, if you can comment on the OEM, has the de-stocking now been finished? I'm not entirely sure about that, but grateful for your comments.

So Adrian, Look, with interest rates being where they are, we continue to expect inventories to be finished.

I'm not entirely sure about that.

I'm just waiting for your comments.

Okay, can you hear? Okay, so Adrian, I think with interest rates where they are, inventories will continue to be front of mind for everybody. And as the supply risks around PGMs drop off, so too people will look for further opportunities. But we think that the buildup of inventory, first up in response to the supply risks as a result of the Ukraine war, that stuff has worked its way through the system. But it will continue given the price of PGMs, even at these price levels. to be an area where people will look to gather efficiency.

Adrian, can I check, did you get that?

Yeah, yeah, it was a bit broken, but thanks, I've got the gist.

Okay, perfect. Sorry, could you do me a favour, could you just remind me of your third question? Chrome.

Oh, Chrome, I think you're quite a Chrome. Yeah, the Chrome business.

Yeah. And so look, I mean, currently, Chrome is supplied out of Amanda built. And we have Chrome from Modica. And as we as the deferred consideration and the transfer takes place, and from at most total from Glencore to ourselves, we would certainly then have additional access to Chrome going forward. From that material for you. Yes, it is. It's a significant component of Mototolo's profile.

Thanks. I'll get details on that. Thank you.

Thank you. The next question we have comes from Dominic O'Kane from J.P. Morgan. Please go ahead.

Hello, good morning. I have two questions. So on the concentrate strategy and the high grading, is there any implications or impacts upstream on your mining strategy? And specifically, is there any impact we should think about in terms of future reserve reporting? And is there... any implications of and expectations for your thoughts for sort of a lower for longer PGM pricing environment. My second question is, could you maybe just give us an update on Mahaloquena bulk ore sorting studies? So obviously across the Anglo-American group, there have been cost-saving announcements. Is the bulk or sorting studies at Mahalo Kwenna progressing at the same funding and the same rate as you were expecting previously? Thank you.

Okay, perfect. So thanks, Dominic. So look, as a consequence of the implementation of the mass pool reduction strategy, there is no impact on the upstream mining. It's really focused around the concentrators and how we upgrade the concentrate that ultimately goes into the smelters. So no, there is no impact on the reserves or the resources of the mines as a result of the implementation of the mass pool reduction strategy that we've outlined. In terms of the bulk-horse sorting, bulk-horse sorting was installed at Machalaquena. We've paused that program at the moment, and that's largely driven as a result of the lower ore grade, which has been fed into the concentrator. The bulk-oil sorter, as I understand it, benefits from a higher base metal grade material, so it's able to identify that, and therefore why I believe it's applicable and successful at some of the Anglo-American base metal operations. But while you have a lower grade material being fed into the concentrator at Michalakwena, the bulk horse water doesn't necessarily deliver any immediate benefit for us. As we see that grade increasing, and particularly as we think through the underground opportunity from Makalakwena, which does demonstrate a higher grade, then there's certainly a potential application from the bulk oil sorter to be beneficial at Makalakwena and deliver the anticipated benefits that you would see, for example, at Anglo-American's copper operations. Anything else?

That's helpful. Thank you.

Thank you, sir. The last question we have comes from Miles Alsop from UBS. Please go ahead.

Great, thank you. Just on the Mortimer closure, could you just help us understand the market impact here in terms of the total amount of refined output? So you've got your 3.8 million tonnes plus the 620 of tolling, so 4.4 million ounces. How will that look in... in two years' time with the Mortimer operation closed, so the third party in Tolling will have to find a new home. That was the first question.

Yeah, Miles, thanks very much. So look, the shutdown of, sorry, the care and maintenance of Mortimer, I've been reprimanded about this already today, so beg your pardon, the care and maintenance of Mortimer, or placement of care and maintenance of Mortimer doesn't have an impact on our and refined production, and that being a couple of things. We do have additional capacity at both Vartafal and Polokwani for us to be able to treat the material. We've obviously got the mass pool reduction, which allows us to increase the throughput through these two particular smelters. Polokwani, one of the largest smelters that we have in the portfolio. Thirdly, we do have a number of third party contracts which come to their natural end in terms of contractual provision. And we've always said this, and I'll reiterate it again today, is we will drive value over volume. And if we process third party material, it would have to be at the required returns which reflect the investments and the cost that we incur in terms of processing material. And that's key. But in terms of our guidance that we outlined back in December for the next three years, that certainly had the expectation and anticipation of more to have been placed on care and maintenance. So no change to the guidance.

Okay, but do you expect a significant reduction in third party volumes because they're not going to stump up for a higher processing cost? Is that the way we should think about it?

Look, I can't comment for the other parties in terms of what they'll do. I think there needs to be a reflection that actually we need to be compensated appropriately for the investments that we make in downstream processing. A lot of the contracts that we have are legacy contracts that were set up a long time ago when energy prices, for example, were significantly lower. or they were part of an ownership structure that we had at the time. As they come to an end, we'll need to just negotiate those. And then it will be for the third party to decide whether they wish to have their product processed by ourselves or not.

Yeah. Okay. And maybe just secondly on Mahalo Kwenna and grades averaging around 2.8 grams for the next couple of years. What should give us confidence that grades will improve sort of medium term? Obviously there's been promises and disappointments over the years, but how confident should we be that the grades will improve and production will step up on a two to three year view?

Yes, I'll answer some of that and then I'll ask for Wade, who's our head of mining and technical, to give his view as well. But Miles is certainly anticipating for the next few years that grades, because of where we are in the pits, will continue to see the grade that we've seen. But the team are always sort of looking at opportunities and how do we upgrade the output so that we can get Machalaquena back to where it needs to be. But Wade, I'll ask you for your points on how we do that.

Sure, thanks. Yep, Wade Bickley, Executive Head for Mining Technical. I think just to remind you, Machalaquena has a resource of greater than $1.6 billion, an average grade of 2.32. We're investing significantly into exploration drilling across the complex. So our knowledge has increased dramatically in recent periods. We also have been selectively drilling the down-dip extensions that support the, as discussed, underground opportunities. So, I mean, we're certainly on a pathway to a value-over-volume approach to Mohelekuena, and we're seeing an upliftment in grades in the ore body. So it's a very exciting opportunity for us. The open pit mines, I mean, we've very much been a taker of grade in the year. But as the mine is opening up, we're increasing optionality of our design and our dig sequences. So I guess, you know, we are increasingly into a position where we have a greater level of confidence in our grade and increasing opportunity.

OK, thank you.

I think thanks for that, Craig, Sayuri. There's a couple of questions that have come through the webcast. Just looking, Wilson Masilo came through a whole lot of questions, but I will summarize them into three. It's around . One, it says, can you provide more color on the evolution of the stripping ratio as well as the next three year guidance as it seems erratic for a mine of that size? I think that's question one. Two, what is our turnaround strategy to get Mahalo going back to Q1 of the cost curve? And three, on the drilling, he quotes 10 billion. to say is that aimed at geological or body knowledge, or is it improving mining flexibility, or is it a combination? So three questions in one around Mahalagwena.

Okay. I might just ask for further clarity around the last point, but I'll try and answer the first two. Look, we've certainly seen the Michalakwena strip ratio increase in 2022 and again in 2023, and that's really on the basis in terms of where we're currently operating and the work that's needed to be done in order to create the next face length and pit. We do have work underway and I made reference to it in the speech around the open pit optimization. So in December I explained that we were increasing waste movement from roughly 80 million tons today, potentially would be increasing to about 150 million tons and therefore continuing to increase the strip ratio and frankly increasing capsized waste. In the current environment, that's not necessarily sustainable, and Wade and his team together with the group team are looking at how do we optimize the Makalakwena pit such that we're able to sort of reduce the amount of waste, reduce the cost, and reduce the capital. And that works underway at the moment, and once we've concluded that work and it makes sense, then we'll be able to share that more broadly. But at the moment, the anticipation is that that strip ratio will increase as we continue to move the additional waste. Linked to that, I mean, what we have certainly seen is Michal Aquena's cost position moving on the cost curve as a result of that increase in stripping. as a result of the reduction in grade that we've seen and the reduction ultimately in PGM answers. So it's two-fold. We're gonna see probably, we'll see production being retained at around about a million answers per annum for the next few years in line with the grade that we've just provided. But importantly, in terms of how we bring it down, it's really back to the cost programs that we've spoken about today, the pit optimization that I've referred to, and our ability to be able to drive better efficiencies from the equipment that we've invested at Makalakwena. So a huge amount of focus in making sure that all assets operate in the first half of the cost curve. Understood.

I think his last question, I'll quickly read it word for word. So the drilling at Mokhala and seemingly elevated capex over 10 billion per year, is it aimed at geological or body knowledge, or is it aimed at improving mining flexibility?

It's both, actually. Okay, so let me just unpack some of it. So, as we said, we are progressing the exploration decline work that we have underway at Makalakwena. and that helps improve our knowledge of the potential for the underground, so not both from a drilling and geological model perspective, but also then in terms of how that potentially would be set up as a mining operation in the future. But if we come back to the pit, absolutely in terms of the investments that we've made and some of that capital is driven by the waste that I've referred to, and as a result of increasing the amount of material move that we've had to make investments in both HME equipment, which has sort of been a real key driver around the increase in capital. So it's both capitalized waste and then the equipment that's needed to move that. Okay. Do you want to add to that?

I think the next question then comes from Cameron, Bank of America. He has two questions, one on contracts and then the next one is on restructuring. So the first question says, please could you give some color on the nature of conversations you're having with your customers at the present? Is there any push for customers to change the nature of contracts? Any conversations with customers too? Is there any push for contracts to be changed? Then the second question is on the restructuring and proposed cuts. How are you thinking about the impact on your operations and more specifically, all development?

Okay, Hilton, did you hear the first question?

I did hear it. Can you hear me? Yeah, good. Hi, Cameron. Thanks for your question. So the conversations with our customers are pretty normal. So we're seeing them taking the same sort of volumes that we we expected them to take, even despite the pressures we talked about, about inventories. Right. What we're what we're seeing is more of a willingness to. for them to lend out their inventories rather than to cut back significantly on purchases. And that's probably on the back of some surprises to the upside last year in terms of takeoff. So a pretty unremarkable contracting season towards the end of last year.

Thanks. Thanks, Hilton. And then in terms of the impact of the proposed restructuring or development, as I said, certainly the restructuring that we've announced today really drives a lot of the efficiencies that we need to get back to as an organization. And we've certainly done a huge amount of benchmarking to be able to to help inform where we need to go. But my expectation is that the restructuring is not necessarily going to have any impact on our development. If anything, at Amanda Bilt, there is an opportunity for us to be able to improve IMS, IMA, and get that development right as a consequence of the really back-to-basics work that we need to do. I don't believe that there is any impact on or development as a result of the restructuring. And so very much sort of, you know, we'll continue to make sure that we've got that development in place to support future production.

Thanks for that. I think another question comes from Wilson Masilo again. So on Twickenham, what is the status of the Twickenham project? Does this mining project still fit AngloPlat's portfolio?

So, thanks, Wilson. So, Trichinum is on care and maintenance, and at the moment it stays on care and maintenance while we undertake additional studies in terms of what that potential opportunity will be. It's still part of the portfolio, and we're doing the studies with another partner. in terms of trying to identify synergies, et cetera. But certainly where we are at the moment, you know, we'll continue to progress those studies in 2024. Okay.

Last question from the webcast from Zolani Brendan Mpunga, Ivy League, Inc. In surrounding of youth development across the country, what initiative you have in place for the rest of the skills programs and social impact while sustaining business growth and expansion?

Thanks very much for the question. Look, I think as I outlined in our commitment to society, we've certainly continued to make investments in our social labour plans as well as our community social initiatives, which are focused around education, well-being and health. Specifically, as we're looking at implementing the restructuring, we have a number of social impact programs which we will look to roll out to try to mitigate the impact of that. And that is focused around reskilling and retraining of impacted employees. but also supporting the community as they adjust to some of the economic outcomes as a result of this. So it's very much focused around the impact on communities and our employees and helping them work through the changes. I think we've committed about 1.1 billion rand to both social labour plans and social impact social impact mitigation plans as a consequence of the restructuring that we announced today and we'll look to deploy that to offset the impact.

Thanks. I think that was it for questions from the webcast. We have four minutes left. Just checking whether there is any one last question from the room or else we can conclude the session. Just checking whether any other questions from the room in the last four minutes. I think it doesn't seem like it. Craig, do you know other questions on our side?

OK, perfect. Thanks very much for everybody for joining us today. If there are any further questions, please reach out to Teto or Marcella as part of the IR team, and they'll be happy to answer the questions that you have. Thanks very much for joining us.