Valterra Platinum Limited

Good morning, ladies and gentlemen. I'm Teto Mage, Head of Investor Relations at Valterra Platinum. Thank you for taking the time to join us for our interim 2025 results, both in person as well as online. Let me start by welcoming our chairman, Norman Bazima, members of our board that are here with us today, as well as our executive leadership team. From a housekeeping perspective, We do not have a planned fire drill today, and therefore, if there is an alarm or in case of an emergency, I'm going to request that you exit using the trust doors to my left and right. At that point, you will have both our fire marshals and security to escort you to our designated assembly point. With that said, I would like to draw you to the questionary statement and would appreciate if you can read this in your own time. Now, on to the agenda for today. Craig Miller, our CFO, our CEO, apologies. Our CEO will take you through a brief overview of the significant milestones achieved in the first half of this year, followed by a review of our operational and market performance. Sayuri Naidu, our CFO, will then take you through our financial results. Finally, Craig will wrap up today's session by taking you through our outlook for the second half of the year and the medium term. As usual, we have allocated time for Q&As at the end, which I will come back to help and facilitate. Without further ado, I'm going to hand over to Craig, who will take us through today's interim results presentation.

Thanks. Thank you, Teto. And good morning, everybody. Once again, thank you very much for joining us at our conference. made in half-year results as Volterra Platinum. As you know, we've had a very busy start to the year, but it is customary for us to start with safety. Safety remains our foremost priority, so it is with deep regret that we've experienced a fatality at Unki on the 20th of April, where Mr Felix Kore lost his life in a mobile machinery-related incident. I'm also very sad to say that we recently experienced a fatality at the Shaba section of the Amundaberg mine, where Mr. William Nkenke lost his life on the 22nd of July in an incident related to a graph pack. On behalf of the entire Volterra Platinum family, we convey our sincerest condolences to Mr. Kore and Mr. Nkenke's families, friends and colleagues. While we mourn their losses, we also recognize the achievement of significant milestones across our operations, which reflects our continued dedication to achieving zero harm. These include being 13 years fatality-free at Michalakwena and Mototolo mines, 9 years fatality-free at Amandibul's Chumela mine, and more than 2.5 years last-time injury-free at the Polokoni smelter. We've also seen an improvement in our total recordable injury frequency rate of 12% to 1.46. We're pleased to highlight that we've made substantial progress against our strategic objectives, which we shared with you during our Capital Markets Day just a few months ago. We have successfully completed the demerger from the Anglo-American group, as well as our secondary listing on the London Stock Exchange. And as you would have seen in the media and all around you today, we've established our own new brand identity. With the recent appointments of independent non-executive directors, we've now concluded the recomposition of our board. We've also successfully transitioned from the Anglo-American Centralised Services to with the majority of these services now being performed internally. The balance are subject to transitional service arrangements, with the longest of which is about 18-month period, at which point we will be in a position to be able to do these activities ourselves. These developments, together with our simplified and fit-for-purpose executive committee and organisational structure, which we discussed in great detail earlier this year, demonstrate that we've delivered on our strategic priority to achieve a simplified and strengthened organisation. Our second strategic priority relates to achieving operational excellence. We'll go into this in a bit more detail throughout the presentation, but let me talk you through just a few highlights. We've delivered a resilient operational performance despite the impact of inclement weather across the portfolio, the most severe which was at the Tumela section of Abundables. I'll impact this in a bit more detail later, but we have delivered a further 2.1 billion rand in cost savings during the first half of 2025 and we're on track to meet our full year guidance of 4 billion rand. Part of our strategy is to invest in our portfolio for maximum value and to re-emphasise our focus is value over volume. The completion of the Sun Slurt Underground Project pre-feasibility study is a key step in bringing this exciting value-enhancing opportunity to fruition. The Dubrokin shaft is progressing well, having delivered first ounces in the first half of the year. And what we're most excited about is the rally in the PGM prices. It's pleasing, but not surprising, to see that the Basco prices recovery and our ability to be able to deliver into that in the second half of the year. And last but not least, during the period, Makhala Qena was Irma accredited, meaning that all our owned assets have achieved the all-important Irma accreditation. And according to ChatGPT, we're the only precious metals mining company in the world that has all our mines Irma accredited. Quite something. So how does all this translate into our first half performance? The realized basket price during the first half increased by about 5% in US dollar terms. But this doesn't fully capture the recent momentum in prices. Since the beginning of July, prices are up about 20% on the quarter so far. Our EBITDA margin was solid before the impact of once-off demerger-related costs and the flooding event at Amunderbilt. Despite these one-off impacts, our all-in sustaining cost remains below $1,000 per 3e oz. We've maintained a strong balance sheet despite having paid R16.5 billion in the final 2024 dividend, and notwithstanding the operational headwinds and demerger costs which I've mentioned. We closed the period with approximately 5 billion rand of net debt. Our solid financial performance and strong balance sheet has positioned us to maintain our dividend policy and the board has improved an interim dividend of 2 rand per share or half a billion rand. So turning to our operational performance. We produced just under 1.5 million ounces of PGMs of methylene concentrate and approximately 1.4 million ounces in refined production during the period. Despite the significant external headwinds, our mines demonstrated a resilient performance, while our processing operations delivered a credible one. At Mototolo and Amunderbilt, our concentrator recoveries improved by 3 and 4 percentage points respectively. whilst we achieved a 2 to 3 percentage point uplift in our chrome yields. We also achieved a 9% improvement in mass pull across the portfolio. And at Michalakwena, we're seeing early encouraging progress through the initial commissioning and optimization of the Jameson cells. So specifically at Michalakwena, total material moved reduced by 15% year-on-year, demonstrating traction from our pit optimisation strategy. While all tons mined remained flat versus the first half of 2024, reflected increased mining efficiencies. The head grade for the period was around 2.5 grams per tonne, slightly below our guided range of 2.7 to 2.9 grams per tonne. This was due to the planned processing of lower grade stockpiled materials to supplement ex-pit ore volumes. In the second half, we expect to process a greater proportion of higher-grade ore from the targeted sections in supporting a recovery in grade in line with our full-year guidance. Our metal-in-concentrate production increased by about 2% year-on-year, and our optimized mining sequence positioned Michalakwena for a significantly stronger operational performance in the second half of the year. So turning to Sunstone's underground, Just to recap what we said in March, we're taking a phased approach to the development of the Sunset Underground in order to preserve capital and progressively de-risk the project as we move through feasibility. The first phase, if it meets our capital allocation criteria, is a tracking solution which will support an initial production rate of roughly 2 to 2.5 million tonnes per annum. If Phase B meets our capital allocation hurdles, we'll then expand the ore logistics infrastructure to include a conveyor system, allowing the mine to gradually ramp up to around 5 million tonnes per annum, but post-2030, unlocking the full potential from Sunslot. Moving to the next slide, the pre-feasibility study for the Sunslot underground project was completed during the first half of the year. the results confirm that the key parameters outlined in our Capital Markets Day remain intact. These include reef grades of 4 to 6 grams per tonne, significantly higher than other mechanised underground mines in Southern Africa, as well as a competent hanging wall and favourable mining width, with an approximate reef height of 45 metres. The image on the screen shows a cross-section of the reef intersections, with the white line indicating the high-grade contact with the reef to the left. All these characteristics make the ore body amenable to efficient, bulk-mechanized underground mining, making Sunslot a highly value-accretive growth prospect for Volterra Platinum. The feasibility study is underway and is targeted for completion in the first half of 2027. at which point we'll be in a position to make an informed investment decision. We'll also continue to make solid progress on the development activities at Anslut. In the first half, we completed about 12.8 kilometres of underground exploration drilling and 1.6 kilometres of declined development. This brings the cumulative total of 43 kilometres drilled and 8 kilometres developed. Trial mining will also be undertaken over the next 18 months as part of the feasibility study, followed by a ramp-up to the Phase 1 steady state towards the end of the decade. 31,000 tonnes of ore stockpile has been accumulated at the end of June and will be processed through the concentrated facilities as part of feasibility work. We've also reduced our current year CAPEX guidance from $2 billion to $1.5 billion, while guidance for 2026 and 2027 will be between $1.5 and $2.5 billion per annum. So turning to Amunderbilt. Whilst the extreme flooding at Amunderbilt was not in our control, the manner in which the team on the ground responded is commendable. To contextualize the extent of the flash floods, The historical average rainfall for Amunderbilt in the month of February is around 300 millimetres. On the 19th of February, we had 300 millimetres of rainfall in just over a 24-hour period. A neighbouring river burst its banks, and the upstream dam wall also failed. Part of Amunderbilt was inundated with water, particularly Tumela, which was severely flooded. We were able to leverage from the extensive experience of the management team, some of whom were at the flooding event which took place in 2008. Within a month, Tshaba and Tumela Apa recommenced operations, and a month thereafter, the open pit sections resumed operations, while Tumela Loa was focused on dewatering. Tumela Loa, which accounts for approximately 50% of Amundable's production, recommenced ahead of schedule their production in June and are currently ramping up to full production by the end of the third quarter this year. In addition, we've extensively improved our flood defence systems and have developed appropriate response measures to mitigate a similar occurrence. So given the events, it is expected that Amundabel's production in the first half of the year would be significantly lower than the prior period. but encouragingly, the Sharpa production volumes were up 1% despite the impact of flooding, which illustrates the benefits of the restructuring and the drive for operational excellence. Our priority is to ensure the safe ramp-up of Tumela Loa whilst maintaining stability at the Sharpa and Tumela Rapa in order to meet our guidance of between 450,000 and 480,000 PGM ounces for the year. which implies a material increase in production in the second half. Commiserate with the increased PGM production is the increase in chrome volumes as well, which at current chrome prices makes a meaningful contribution to Unbundable's economic cash flow. Turning now to Mototolo, the improvements in productivity, increased tons milled and enhanced flexibility at Mototolo reflects the impact of our operational excellence initiatives with key performance metrics trending in the right direction. In the first half, metering concentrate production increased by 4% due to improved output from the two existing shafts. Productivity also improved, with the PGM ounces per employee up 19% year-on-year, and mining flexibility has improved as well. Immediately available ore reserves increased by 32% compared to the prior period, supported by a 22% upliftment in the total development meters. These improvements support Mototola's continued trajectory to the lower half of the cost curve, whilst the chrome production volumes provide a further reduction in its oil and sustaining cost. So turning to our processing operations. We're on track to meet our full year guidance. Following the Q1 stock count and normalising processing availability, we've seen a strong rebound in volumes. Refined production rose by 118% quarter-on-quarter, and our base metal output increased 37%. Despite the JMSLs only being commissioned in April at Mahalakwena, and therefore not fully optimised, we've already seen an improved mass pool of about 9%, with further improvements expected as the optimisation continues in the second half. Lower mass pull translates into reduced transport costs, reduced energy use and emissions, with a 9% reduction in the total number of haulage trucks on the roads. These early wins are aligned with our broader cost and sustainability objectives. Turning briefly to our markets, The largest source of PGM demand is the automotive sector, and we've suggested consensus expectations for PGM demand in this sector is too low, given both catalysed vehicle sales and PGM loadings per vehicle, which could surprise to the outside. Taking these in turn, despite tariff and economic concerns, global light vehicle sales rose 5% year on year. According to global data, while catalyzed vehicle sales increased by about 1%. While BEVs continue to take market share, a few years ago, catalyzed vehicles were forecast to be shrinking rapidly by now, and industry forecasts have once again been reduced for the medium term as governments, OEMs and consumers reassess the speed of the transition. On PGM loadings, we highlighted in March a raft of proposals by Chinese authorities to strengthen its vehicle emissions regulations, to close loopholes and ensure vehicles meet standards on the road as well as in the lab. In May, one of those proposals was finalised, setting out a broad framework for the supervision, focusing on trucks and hybrids. We expect more decisions in the second half, and this broad approach, culminating in China 7 in a few years, could result in higher loadings. And finally, Chinese buying has been strong across the PGMs, but most notably for platinum. Both imports, including metal going into Hong Kong, and the turnover on the Shanghai Gold exchange shown here, have been elevated and accelerated throughout the first half. This appears tied to a recovery in the Chinese jewellery market, which has struggled since for many years. It's clear that there's been an uptick in interest from jewellers, looking for a better value proposition than gold. Chinese consumers will likely match this enthusiasm given new collections and the promotional campaigns which are currently underway. These developments have had a positive impact on pricing. As I said, I realised basket price in the first half was about 5% higher year on year. led by gains in rhodium, platinum and ruthenium. However, in July, so far, market prices for the basket have risen by another 20% on those levels, with rapid gains for platinum, which has hit an 11-year high, and ruthenium, which is now approaching a 2021 high. Despite the rally in the PGM basket price, we continue to believe that the current price levels remain below the thresholds required for operations to generate positive cash flows and to incentivize new production. Returning to supply and demand, the balances by our estimates for 2025 and forecast for 2026 are little change from what we shared with you at the annual results for 2024, though there have been some interesting developments. In Platinum, we expect continuing deficits at a slightly higher level on the assumption that jewellery demand in China improves as expected. For Palladium, we see the markets moving into surplus, but once again at a slower pace than previously anticipated. The 2025 deficit is a little higher than anticipated, as risk to auto sales and production from tariffs are offset by lower supply. Rhodium remains in deficit for the next two years. Overall, vehicle sales are growing, but there are risks from tariffs and a potential economic slowdown. BV sales are higher, but the uptick is slower than expected from a few years ago. And importantly, investor interest is rising, and jewellery demand is a potential positive upside surprise. Mine supply is weaker, and recycling is only slowly picking up. I'll now hand you across to Sayuri, who will take you through the financials.

Thank you, Craig, and good morning, everyone. I am pleased to report a solid set of financial results for our first reporting period as a standalone company. While our financial performance was adversely impacted by the Mundable flooding event and expected one-off demerger and separation costs, from a controllable perspective, we continued to demonstrate disciplined cost and capital management. to summarize our performance for the first half of 2025. The company achieved revenue of R42 billion for the half year, down 19% due to a 25% decline in PGM sales volumes. This was due to lower MNC production, the prior period's release of built-up work-in-progress inventories, and the three-yearly stock count at the precious metals refinery. This decrease was partially offset by the US dollar PGM basket price strengthening by 5%. EBITDA was R7 billion after taking into account the one-off demerger-related costs. This translated into an EBITDA mining margin of 22%. We continued to implement our cost-out program, which delivered R2.1 billion of operational and corporate cost savings. The unit cost for the first half of the year was R17,952 per PGM ounce, excluding the impact of the Mandeville flood, and represents a 2% decrease against 2024. We ended the period with a strong balance sheet. Net debt was R5 billion, including the customer prepayment, and net debt to EBITDA was 0.3 times, well below our target of less than one times through the cycle. And in line with our capital allocation framework, the board declared an interim dividend of 2 rand per share, or half a billion rand, which reflects the payout of 40% of headline earnings. Unpacking our EBITDA, EBITDA was 46% lower at 6.6 billion rand. The flooding event resulted in 4.6 billion rand lower earnings, whilst the demerger-related costs had a 1.4 billion rand negative impact on earnings. Excluding these one-off impacts, EBITDA was R12.6 billion, 2% higher than the first half of 2024. This was driven by a 3% higher PGM rand basket price at R27,631 per PGM ounce, as well as the cost savings of R2.1 billion. These benefits were partially offset by lower volumes as a result of the stock take at the PMR in the first quarter, as well as the prior year work-in-progress drawdown. Looking ahead to the second half of the year, earnings are expected to be supported by stronger PGM prices, a planned step-up in production, supporting higher sales volumes, and the achievement of the full R4 billion cost savings. Furthermore, the insurance claim related to the Amandaville flood event is in progress, with an interim payment of around R1.4 billion expected in August. The total claim is anticipated to be between R4 and R5 billion before deductibles, the majority of which is expected to be received this year. We are on track to deliver the targeted savings of R4 billion in 2025, with R2.1 billion delivered in the first half of the year. The cost reductions delivered included R1.1 billion from labour and contractor costs, resulting from the flow-through benefits of the operational restructuring completed in 2024, and approximately 450 vendors off-bordered to date. R0.6 billion delivered from the optimization of consumables and efficiencies, benefiting from a total cost-of-ownership approach to procurement, and about R0.5 billion in corporate costs and other sundry-related savings. Since the launch of our 2024 action plan, we have delivered operating cost savings of 9.5 billion rand and a further 5 billion rand in stay-in-business capital reductions, enabling us to more than offset inflation for two consecutive years. Our cash operating unit costs declined 2% from 2024 to 17,952 rand per PGM ounce. This reflects our commitment to cost discipline. Including the mandible flood impacts, the cash operating unit cost was 20,580 rand per PGM ounce. Full year cash operating unit cost guidance has been revised to between 19,000 and 19,500 rand per PGM ounce. We are confident in meeting the revised unit cost guidance as the mandible Tumela lower section ramps up and our operational excellence initiatives gain traction. The all-in-sustaining cost for the first half of the year, excluding the impact of the mandible flooding, was $962 per 3e ounce. The all-in-sustaining cost at each of our operations, with the exception of a mandible, was largely in line with the prior period, despite the lower sales volumes, and each asset continues to deliver solid margins. All in sustaining costs for the year is expected to be between $970 to $1,000 per 3e ounce, supported by the targeted cost savings, sustaining capital optimization, and higher sales volumes. Looking at the one-off demerger and separation-related costs in more detail, total one-off demerger-related costs remain consistent with the guidance we previously provided of around 1.5 to 2 billion rand, for advisory costs, system separation costs, and corporate identity changes, and 4.2 billion rand for the settlement of historical services provided by Anglo American. A large portion of these costs were already accrued in 2024. In the first half, we accrued a further 1.4 billion rand. In terms of cash flows, we paid 2.8 billion rand in the first half, comprising of 2.2 billion rand to Anglo American and about 0.6 billion rand in advisory and corporate rebranding costs. And in the second half, we anticipate a further cash outflow of approximately 2.7 billion rand. We remain on track to deliver 1 to 1.5 billion rand in annual post-de-merger run rate savings, with around 1 billion rand expected to be realized in 2026. These savings will be driven by the phasing out of transitional services arrangements, optimized labor structures, reduced overheads, as well as a more simplified operating model. Minimal dis-energies of approximately 0.2 billion rand, I anticipated, lowered from our previous estimate of around half a billion rand. Year-to-date capital spend amounted to 7.9 billion rand. Stay-in-business capital expenditure was R2.7 billion, mainly focused on maintaining asset integrity across all our operations, extension of tailings facilities at Michalakwena, and the flood recovery at Amandabult. At Michalakwena, capitalized waste stripping decreased to R2.4 billion, driven by the pit optimization, reducing capitalized waste tons. Life extension capital was 1.6 billion rand and was mainly incurred on the development at Dabrochen. Makhalakwena underground project capital remained broadly flat at 0.6 billion rand and was incurred on drilling at the Sunsroot underground. The expected capital expenditure for 2025 for the feasibility study, bulk sampling, trial mining and further drilling is around 1.5 billion rand. Total capital expenditure guidance for 2025 has been lowered by approximately R1 billion to between R17 and R17.5 billion. This is due to prudent cash management, project prioritization, and more agile project execution. We started the year with a net cash position of R17.6 billion and paid a final 2024 dividend of R16.5 billion. as we reset our capital structure as a standalone entity. During the period, cash generated from operations was R11.6 billion, excluding the one-off impacts already mentioned. This was utilized to fund R7.9 billion of capital expenditure, as well as taxes and interest payments of R1 billion. We ended in a net cash position of R2.2 billion if we exclude the one-offs, However, including these, we ended the period in a net debt position of R4.9 billion. The net debt to EBITDA ratio was 0.3 times, including the customer prepayment. And net debt was R16.5 billion, excluding the customer prepayment. Following the demerger, the refinancing process was successfully concluded. Our committed facilities amounted to R31 billion, with R14.4 billion drawn as of 30 June. Our liquidity headroom was R27 billion. In line with our disciplined and balanced capital allocation framework, the board declared an interim dividend of two rand per share, or half a billion rand, equivalent to a 40% payout of headline earnings. This marks the 16th consecutive dividend payment since reinstatement in 2017, a best-in-class track record across the PGM sector that underscores our commitment to shareholder returns. I will now hand you back to Craig to take you through the rest of the presentation.