Valterra Platinum Limited

Thank you. Good morning and welcome to the presentation of our 2024 annual results. So thank you for taking the time to join us both in person and online. Let me start by acknowledging our chairman, Norman Bazima and Suresh Karma, members of the Anglo-American Platinum Board who are here in the room with us today, as well as members of the executive team of Anglo-Platts. So firstly, I'd like to draw your attention to the cautionary statement, which we'd appreciate if you could read in your own time. So now briefly turning to the agenda today. First, I'll touch on safety, after which I'll take you through an update on our action plan, our 2024 operational performance, after which we'll spend some time with the markets. So Yuri will then take you through the financial results and our targeted capital structure. I'll conclude our outlook and an update on our demerger from the Anglo-American group. We have allocated time for questions and answers at the end of the presentation, which Teto will facilitate. So let me start with safety. Our commitment to eliminating fatalities and achieving zero harm in the workplace is our most important priority. As previously announced, I am deeply saddened by the devastating loss of three of our colleagues at Amanda Bilt's Tshaba operation during the year. Our thoughts and prayers are with the friends, families, and colleagues of Sir Piso Mokale, Usman Nglebe, and Basanda Langeni. We have thoroughly reviewed and strengthened our safety efforts to prevent a reoccurrence. we do believe zero harm in mining is achievable. This is demonstrated by Michalakwena, Mototolo, and Unki, recording more than 12 years fatality-free mining, and with the Manderbilt, who prior to these incidents had recorded three years fatality-free. Despite the recordable injury frequency rate rising to 1.67, there was a 2% decrease in total injuries during the year. So let me provide a short summary of some of our key performance highlights for the year. We refined 3.9 million PGM ounces, which is a 3% increase compared to the prior period. EBITDA was 20 billion Rand, mainly impacted by the 13% decline in the PGM Rand basket price. Our all in sustaining cost of $986 per three ounce was 13% lower than 2023 on the back of significant cost and capital reductions which were implemented. We ended the year with a strong balance sheet in a net cash position of 18 billion Rand, including the customer prepayment. And the board has declared a cumulative final and an additional cash dividend of R16.5 billion, which the jury will unpack later in the presentation. This is translated in a total shareholder return of R19 billion for the year. So turning to the delivery of our commitments. The cost-out program has delivered 12 billion rand in cost and capital savings, significantly exceeding our reduction targets of 10 billion rand. The Section 189a restructuring has been completed, with approximately 3,400 roles being reduced at the end of 2024. We've also finalized the review process of our contracting companies, resulting in the off-boarding of about 400 of these companies. These measures resulted in the 2024 cash operating unit cost of R17,540 per PGM ounce, 2% lower than the prior period and more than offsetting the 7% decline in production and the impact of inflation. Our efforts placed three of our four assets in the first half of the cost curve, and we remain committed to bringing all of the assets in the first half. We placed Mortimer on care and maintenance in April while reducing the work in progress inventories through the stabilization and efficiencies of the remaining smelters and our processing operations. Our performance underscores our readiness for our transformation to a standalone PGM company. So turning briefly to our operational performance. Total PGM production was 3.6 million ounces, 7% lower than in 2023, primarily due to Kroendal transitioning to a 4E total arrangement from the 1st of September, as well as slightly lower volumes from our own mines. We maintained our own mine production at about 2.2 million ounces, with good momentum demonstrated in the second half, reflecting the stability from our turnaround initiatives implemented during the year. Our processing assets were stable, which enabled the release of work in progress inventory built up in prior periods, bringing the refined PGM production to 3.9 million ounces. And as a result of this, sales volumes increased by 4% to 4.1 million ounces. Our 2025 operational priorities continue to focus on safe production from our own mines, whilst pursuing operational excellence and progressing our initiatives, such as the Michalikwena underground and the ramp up of the Brochen, as well as the ongoing reconfiguration of our processing assets. So looking at some of our own mines and processing operations in a bit more detail, starting with Michalikwena's performance. Total tons mined increased by 4% to 89 million tons, driven by the commissioning of the PNH 4800 shovel, as well as improvements from our loading and hauling activities. Waste tons mined increased by 4% to 76 million tons, with ore increasing to 13 million tons, and our stripping ratio increased marginally to 5.8. The built-up head grade of 2.7 grams per tonne was in line with the guidance, primarily due to the blending of low-grade stockpiles. PGM production decreased by about 2% compared to the prior year, partially due to the electrical failure at the primary mill at the north concentrator. Pleasingly, Michalikwena's oil and sustaining cost improved by 17%, reflecting the benefits of the operational excellence and cost reduction initiatives, offsetting the impact of inflation. For 2025, the four-year grade is expected to remain between 2.7 and 2.9 grams per tonne. However, it's anticipated, similar to 2024, to be at the lower end during the first half of the year. The mass pool reduction project is expected to be commissioned in the year as well, and the progress we continue to make on the underground studies and exploration declines will help secure higher grades, create waste rock dump efficiencies, as well as minimize our haulage costs. Our strengthened relationships with the communities remain a priority, and this is demonstrated through the unlocking of land access for mining activities for the benefits of all stakeholders. So to further unpack the outcome of our pit optimization strategy, which focused on value over volume, the adjusted mine sequence will enable us to mine less waste and target a lower mining unit cost than previously planned. We intend to mine between 90 and 120 million tons per annum, achieving a lowest associated stripping ratio of between 4.5 and 6.7, and a four-year blended grade of between 2.7 and 3 grams per ton over the next two to three years, and then increasing back to more historic levels. will maintain previously guided MNC production of between 900,000 and a million ounces for the next two to three years, further driving a lower oil and sustaining cost, which improves Michele Koenig's position on the cost curve. So turning to Amanda Bult. In the first half of the year, we did see improvements, particularly at Dushaba, driven by the crew efficiencies and the mining optimization work which we undertook through the cast-out initiatives. Our operational activities, however, were halted at Dushaba following the fatalities that I mentioned earlier in order to reset our safety performance. MNC production decreased by 9%, primarily resulting in those self-imposed safety stoppages. Chrome production was also affected and decreased by 8%. Approximately 36,000 ounces is attributed to the self-imposed safety stoppages. On a like-for-like basis, MNC production was 3% lower due to the continued poor ground conditions at Doshaba. Amundables Pearl Split positions it as a cash-generating asset within our portfolio, and Amundables generated 3.9 billion rand of economic free cash flow for the year. The complex saw a reduction of approximately 2,200 employees, or 18% of the workforce, following the Section 189a restructuring. And its oil and sustaining cost improved by 11%, reflecting the benefits of the cost-saving initiatives. So going into 2025, we absolutely remain focused on improving the safety and embedding the lessons that we learned in 2024, whilst continuing to improve cash generation and delivering on our mass pool reduction and concentrator recovery optimization initiatives. we do remain confident that we have the necessary expertise and experience to mine Amundapult, doing so safely and efficiently whilst maintaining its cash contribution to the portfolio. At Mototolo, PGM production decreased by 4% due to the challenging ground conditions at Loboa as it reaches the end of its life. This is exacerbated by the shortage of specialized skills in the first half of the year. Despite these challenges, the introduction of a new seven-day shift cycle at the end of the first quarter partially offset this impact. Productivity improved by 3% due to the operational excellence initiatives. The De Broghen project focused on replacing the infrastructure closures at Laboa is in the execution phase, with production anticipated to ramp up this year. In August, we also successfully began operating the Chrome plant and selling 100% of its production at market-related prices. Chrome production from Watertolo was about 52,000 tonnes, and our focus into 2025 is to maximise the yields from this plant. Turning to our processing assets, who delivered a really strong performance during the year. The built-up work-in-progress inventory from the previous years has now reduced to normal levels. The utilization of our smelters has increased to almost 80%, delivering similar volumes year-on-year, despite more timber being placed on care and maintenance. We continue to drive further efficiencies, particularly as we commissioned some of the mass pool reduction initiatives, as well as improved recoveries. we achieved record full-year nickel production of just under 26,000 tons, 18% higher than the previous year, and copper production increased by 24% compared to 2023. This was once again largely due to the improvements in our operating performance and the stability that we've implemented. Our focus on acid integrity and the processing of built-up furnace mats from the prior years was a key driver in the performance. So going forward, we expect refined production to be broadly in line with M&C production. However, this is as always subject to any load curtailment. We'll continue driving processing stability as well as progressing the studies to convert Mortimer to a slag cleaning duty. So turning now to the markets in which we operate. The automotive industry, as you know, is the single largest consumer of PGMs, accounting for roughly two-thirds of PGM demand. Catalyzed vehicle sales, a key determinant of demand, were steady in 2024, as hybrids, which do contain PGM catalytic converters, are winning market share in comparison to 2023. Globally, light vehicle sales continued to grow in 2024, up about 2%, although a bit slower than 2023, when pent-up demand was strong, but still a robust performance compared to initial market forecasts. The share of battery electric vehicle sales rose at a relatively modest pace. This was in line with our mid-year estimates, although undershooting forecasts made at the beginning of last year. Many of the consumers have expressed a preference for plug-in hybrids and similar vehicles that contain both batteries and engines, therefore still requiring PGM catalysts. As we've highlighted previously, there are many global indicators pointing to a greater demand of internal combustion engines and various forms of hybrid vehicles over an extended period. Many of the largest automakers over the recent months have been changing their drivetrain strategies in response to consumer demands, in tune with what we've been saying for some time. The slower pace of adoption as well as the scaling back of BEV commitments by some OEMs has seen auto analysts downgrade their long-term expectations for BEVs. A year ago, analysts on average expected about a 40% share of BEVs by 2030. Now that average is below 35% and falling below our long-held expectation. Both Platinum and Palladium's exchange-traded funds saw sizable inflows in 2024, their best performance in many years, showing an improved market sentiment and therefore improved demand in the PGM sector. So turning to our estimates of demand and supply, these are similar to what we expected at Majur, although platinum is in a slightly larger deficit than palladium's deficit as a result of the higher Russian production and slightly weaker automotive demand, which also affected rhodium. But looking ahead, platinum should remain in a substantial deficit. Palladium should shift towards a surplus by 2026, but at a slower pace than we had expected due to the slower BV rollout I mentioned. And rhodium should also remain in a deficit for longer. I'll now hand you across to Siyuri to take you through the financials.

Thank you, Craig, and good morning, everyone. I am pleased to be reporting a resilient set of financial results for 2024, showcasing our deliberate and decisive action plan in response to a challenging economic environment characterized by weaker PGM prices. To summarize our performance for 2024, we achieved revenue of 109 billion Rand for the year, 13% down from 2023, primarily due to a 13% decrease in the Rand PGM basket price. Our sales volumes, on the other hand, increased by 4%, partially offsetting the impact of lower PGM prices. The implementation of the cost out initiatives delivered 12 billion rand of total cost and capital savings, exceeding our target of 10 billion rand. 7 billion rand was delivered from operating and overhead cost reductions, resulting in a 12% decrease in cost of sales. Our decisiveness in reducing costs resulted in an EBITDA of 20 billion rand and a robust mining margin of 27%. The all-in sustaining cost for the year was $986 per 3e ounce sold, well below our target of $1,050 per 3e ounce and a decrease of 13% against 2023. We generated cash from operations of 30 billion rand and incurred 15 billion rand of sustaining capital expenditure, resulting in 15 billion rand of sustaining free cash flow. We ended the year in a net cash position of 18 billion rand. Now let me unpack our cost performance for the year. We exceeded our cost out initiative targets by delivering 7.3 billion rand of operational cost reductions, more than offsetting the impact of inflation. These cost reductions were achieved through various initiatives and decisive actions, including the following. The successful execution of our operational restructuring, supply chain efficiencies, consumption reduction for key consumables such as diesel and explosives, and a disciplined approach to study work, reduced use of third parties, and more focused market development expenditure. Looking ahead, we expect to maintain the 2024 cost run rates into 2025 to offset inflation and deliver operational savings of approximately R4 billion against a 2024 cost base. Our cash operating unit cost performance was aligned to market guidance and declined 2% from 2023 to R17,540 per PGM ounce. This was achieved despite the reduction in own mine production and inflationary impacts. The all-in sustaining cost for the year was $986 per 3e ounce sold, well below our target. In 2025, the planned cost savings of a further R4 billion is expected to result in a cash operating unit cost of between R17,500 and R18,500 per PGM ounce and an all-in-sustaining cost of between $970 and $1,000 per 3e ounce sold. We delivered a resilient EBITDA performance against the backdrop of a declining PGM price environment with a PGM basket price of $1,468 per PGM ounce, the lowest since 2019. This coupled with the strengthening of the RAND reduced EBITDA by 7.4 billion RAND. 2024 inflation of 5% had a further negative impact on earnings of around 2.6 billion RAND. These uncontrollable reductions were offset by 4% higher sales volumes and the cost reductions of 7.3 billion rand. Earnings were negatively impacted by wants of restructuring costs of about 2 billion rand, of which 1.3 billion rand related to the operational restructuring and 700 million rand to the demerger. The loss on associates of 1.5 billion rand related mainly to movement in the company's investment in AP Ventures. Capital spend amounted to 18.5 billion rand, a decrease of 9% from 2023. Stay-in-business capital expenditure was 6.4 billion rand, and this was mainly incurred on the capital maintenance program to maintain asset integrity, Makalakwena heavy mining equipment maintenance, and the extension of tailings facilities. the cost-out initiatives enabled sustainable reductions in SIB of around 5 billion rand through the reprioritization of projects and reducing the utilization of external specialists. Capitalized waste stripping increased to 5 billion rand from 4.2 billion rand in 2023, driven by revised mine plans at Makhala Quena, resulting in higher short-term waste volumes recognized. Life extension capital increased to 4.1 billion rand, which was mainly incurred on the HME fleet at Makhala Khwena and ramping up development at Dabrochen. Breakthrough project capital remained broadly flat at 1.7 billion rand, focusing on the Makhala Khwena footprint reduction project and the RBMR copper de-bottlenecking project. Makhalaqena underground project capital of 1.3 billion rand was incurred on the development of the Makhalaqena-Sansluet twin declines. Total capital expenditure in 2025 is expected to remain in line with 2024 spend of between 17.8 billion and 18.5 billion rand, reflecting our continued approach to prioritise disciplined spend. Our own mines delivered 19 billion rand of EBITDA. The overall mining margin of 27% was supported by our four own mined assets, with the Mokhalaqena EBITDA margin of 38% and an average of around 20% for the remaining assets. This further translated into all our mines being cash flow generative for 2024. Looking at our balance sheet, cash generated from operations in the year was utilized to fund R15.5 billion of sustaining capital, R3.1 billion on discretionary capital, and we paid R5.4 billion of dividends to shareholders, comprising of the final 2023 dividend and interim 2024 dividend. we have a strong and flexible balance sheet with net cash of R17.6 billion and increase of R2.2 billion from December 2023. Net cash excluding the customer prepayment was R5.7 billion. Now turning to our capital structure as a standalone company. We have been largely reliant on Anglo-American from a balance sheet and capital structure perspective historically. And in our view, our balance sheet is currently undelivered. The demerger provides us with a unique opportunity to construct a new and tailored capital structure optimized for life as an independent PGM producer. In assessing the optimal construction of our independent balance sheet and the appropriate levels of leverage through the cycle, we have factored in our world-class resource endowment, continued investment into our operations and assets, confidence in the recent delivery of operational excellence, which has secured an all-in-sustaining cost of below $1,000 per 3E ounce, and three of our four assets already in H1 of the cost curve. The above gives us confidence in our ability to continue generating positive cash flows and maintain a strong, resilient balance sheet while executing on our strategy throughout a range of possible PGA market scenarios, including one where there is continued price weakness. Going forward, we expect our leverage ratio will remain below one times through the cycle, supported by strong standalone liquidity. The board has declared a final 2024 dividend of three rand per share or 800 million rand equivalent to a 40% payout of headline earnings and in line with our capital allocation framework. The board has also approved an additional cash dividend of 59 rand per share or 15.7 billion rand which is considered to be the most efficient and simplest method of achieving the capital structure realignment prior to the demerger, supported by the excess cash on the balance sheet. The company has successfully undertaken additional dividends historically, as and when circumstances have warranted, and we believe that this will be an attractive form of capital return to all shareholders. Our disciplined capital allocation framework will remain unchanged, returning excess cash to shareholders as appropriate. It is anchored on investing in sustaining capital, our commitment to a base dividend of 40% of headline earnings, and finally, considering discretionary capital options for upgrades and growth at the appropriate time. As discussed, in determining a fit for purpose independent balance sheet, we have declared a 15.7 billion Rand additional cash dividend, post which the company retains a 1.1 billion Rand net cash position, including the customer prepayment on a pro forma basis. This translates to an 11 billion Rand net debt position, excluding the customer prepayment, which equates to around 0.5 times net debt to EBITDA. We have had positive and extensive engagements with both local and international lender banks who have expressed strong interest to support the standalone business. We are well-progressed on our local financing process, with our U.S. dollar process not far behind. We are confident of achieving our targeted committed debt liquidity levels, and the indicative pricing levels we have seen to date are within our expectations. I now hand you back to Craig to take you through the rest of the presentation.

Thanks, Yuri. So as we look forward to becoming an independent, fit-for-purpose company, the key dates from here on our journey are as follows. Firstly, we'll host the Capital Markets Day on the 24th of March, with our prospectus release date being early April, and Anglo-Americans' annual general meeting taking place on the 30th of April, at which its shareholders will vote on the demerger. We remain on track for an orderly separation from Anglo-American and transitioning to the new company from June, which will be listed both on the Johannesburg Stock Exchange as well as carrying a secondary listing on the London Stock Exchange. And consistent with the commitment to deliver a responsible demerger, Anglo-American intends to retain a 19.9% shareholding in Anglo-American platinum in order to further help manage the flow back by reducing the absolute size of the shareholding that will be demerged. Anglo American will no longer have any representation on the Anglo Platinum Board post the merger and intends to exit its residual shareholding responsibly over time and subject to the customary lockup provisions. The demergers also presented an opportunity to review the skills, expertise, and the experience, as well as ways of working to ensure that we have a fit for purpose organization structure as a standalone company. We've taken this opportunity to concentrate on simplicity, clarity, and operational efficiency with a focus on strong expertise in mining and processing with clear governance structures in place. This work is well advanced and should be completed prior to the demerger. So in terms of the executive team, which will lead this company going forward, Vili Teron has been appointed the Executive Head of Mining Operations. Ajit Singh is the Executive Head of Processing Operations. Suri Naidu is the Chief Financial Officer. Yvonne Mfolo has been appointed as Executive Head of Corporate Affairs and Sustainability. Virginia Tobeka is our Executive Head of People and Organization. Martin Poggiolini has been appointed as Executive Head of Corporate Development. And Hilton Ingram has been appointed in the combined role of Executive Head of Marketing and Market Development. We have a portfolio of world-class assets underpinned by an extensive PGM resource base and an opportunity as a standalone company to extract long-term value for all our stakeholders in a disciplined way. Our strategy remains clear now and post-emerger and can be articulated in five key priorities, all of which are measurable as we attain to achieve our objectives. Our core focus is advancing safety and health with the aim of achieving zero harm, pursuing operational excellence, which will result in expanding our cashflow margins. We also continue to invest in our portfolio as we deem appropriate, as we sustain profitability and target revenue growth from our world-class resource endowment with a strong focus on generating value over volume. We'll look towards a simplified and strengthened organization as we attract, retain, and bolster key leadership positions to deliver a sustainable and competitive advantage. And through active market development, we'll look to continue to drive demand for the products we produce. We will integrate sustainability into everything we do by playing a leadership role to protect and create value focused on climate and energy, ethical value chains, as well as local communities. So in conclusion, we started 2024 to set the business up for a sustainable future and have started to see the benefits of this work materialize. We've right-sized our business to deliver on our strategy through the completion of the operational restructuring. We focused on improving our operational performance across the value chain, recognizing that there is still more work to be done. The improvements in our processing operations have enabled a solid performance owing to their stability and reliability. And at Mahalo Kena, the pit optimization work is yielding positive momentum and the underground studies and exploration decline developments are progressing to support the long-term value creation from this asset. And we're on track with our demerger from Anglo American to become a standalone PGM leader. This positions us very firmly for an exciting future. So I think that concludes our presentation. So thank you once again for joining us. I'll hand you across to Teto who will facilitate the questions and answers.