Valterra Platinum Limited

Good morning, ladies and gentlemen. I'm Leroy Munguni, Head of Investor Relations for Volterra Platinum. Thank you for taking the time to join us for our 2025 final results, both in person and online. Let me start by welcoming our board members who are here with us in the room today, as well as our executive leadership team. From a housekeeping perspective, we do not have any fire drill planned for today. Therefore, if you hear an alarm, we request that you exit the venue safely through the doors at the back. For those of you that are near the front, please note that there are exits on either side of the venue on the lower level as well. Our fire marshals and security officials will be stationed outside the venue and will escort us to a designated assembly point. To draw your attention to the cautionary statement, I would encourage you to read it carefully in your own time. Now for the agenda for today. Craig Miller, our CEO, will take you through a brief overview of the significant milestones achieved during 2025, followed by a review of our operational and market performance. Sayuri Naidoo, our CFO, will then take you through the financial results. Finally, Craig will wrap up the presentation. As usual, we've allocated time for Q&A at the end of the presentation. I'll now hand over to Craig.

So thank you, Leroy. Good morning, everybody. And once again, thank you for joining us. I'd like to begin by reflecting on safety. So tragically, we lost two of our colleagues in work-related fatalities during 2025. Mr. Felix Kore at Unki Mine on the 20th of April, and Mr. William Nkenke at Amundables Tshaba Mine on the 22nd of July. We extend our sincerest condolences to their families, friends, and colleagues. The lessons learned from these tragic incidents are being implemented across our organization. And while we mourn these losses, we also recognize that we've made good progress on safety overall. And we've achieved a number of milestones at our operations, including 14 years without a fatality at Mototolo, 13 years at Michalakwena, and nine years at Amandibul's Dishaba mine. We've also improved our total recordable injury frequency rates by 11% to the lowest level in our history, placing us in the leading quartile amongst our peers. Safety remains our highest priority with our unwavering focus on achieving zero harm. Our teams are committed to proactively preventing injuries and we will not compromise on safety under any circumstances. We're also fully dedicated to delivering on the commitments that we have made. And with that in mind, I am delighted to say that 2025 was an exceptional year for Volterra Platinum, despite navigating a challenging external environment. Some of the progress highlighted here reflects discipline in action, from strengthening our operational excellence to executing consistently across all of our strategic priorities. Most significantly, we launched as an independent company, having successfully completed the demerger from Anglo-American PLC, as well as our secondary listing on the London Stock Exchange. Subsequently, Anglo-American PLC sold their remaining minority interest, fully completing their divestment from Volterra Platinum. Our simplified organization structure has been well embedded, with the reconstituted executive committee focused on the delivery of the strategy with clearly understood accountability lines. We've reinforced our operational capabilities through the recruitment of critical skills and services, and we will have exited all of the transitional arrangements with Anglo American by the end of 2026. Our reconstituted board comprising of 11 non-executive directors and two executive directors brings the required diversity of experience and expertise. Our relentless pursuit of operational excellence has delivered a really good performance, having exceeded our production guidance despite the weather-related impacts experienced in the first half of the year. Financially, we exceeded our targeted cost savings in 2025, which has brought our total cost and capital savings delivered over the last 24 months to R18 billion. I'm particularly pleased with this result given the macroeconomic factors impacting our cost base. Our entire organization is focused on maintaining this cost and capital discipline, notwithstanding the higher commodity price environment. And as we've previously said, each of our assets plays a well-defined role in the portfolio, and I'm glad to report that they've all contributed to the progress during 2025. Our extensive endowments of mineral resources provides an exciting growth prospects for Volterra Platinum, and I'll take you through the progress that we've made developing these projects, particularly Sunslurt and De Broghen in just a few slides. We continue to actively seek opportunities with industry players to drive demand to ensure the long-term success of our industry. Over the past year, we've maintained our focus on enhancing PGM usage in mobility, jewelry, and investment. And on the industrial front, the recently announced partnership with Johnson Mattie and Subanya Stillwater is evidence of our commitment to working with industry players to grow industrial demand. And we would certainly welcome other producer peers to join us in this venture. And of course, not to preclude us from working with other fabricators in other areas. And finally, the recognition of Makalekwena by the Initiative for Responsible Mining Assurance with a 50 accreditation means all of our mining operations are now accredited. This is a rare global feat that sets us apart in the mining industry and reaffirms our commitment to embed sustainability into absolutely everything that we do. So now let's dive into the detail of our performance. I am encouraged to see the delivery of our strategy has led to an improvement in our underlying performance. While we've obviously benefited from the increase in the PGM basket price, the drivers of which I'll walk through a little bit later, the 68% increase in EBITDA is substantially supported by our internal actions, as well as that macroeconomic price environment. And consistent with our commitment to drive down our all-in sustaining costs in real terms, we've consistently driven down that all-in sustaining cost and have maintained this at below $1,000 per 3-ounce. Our balance sheet has strengthened materially over the second half from a four and a half billion Rand net debt position at the end of June to an 11 and a half billion net cash position at the end of the year, reflecting the outstanding free cashflow generation. This has allowed us to pay a special dividend on top of our base dividend, bringing the total dividends for the year to approximately 12 billion Rand. It's certainly not just our shareholders who are benefiting from the additional value that we are creating. As you can see, Valterra Platinum continues to be a significant contributor to both our local communities and the broader South African economy through the combination of local procurement, capital investment, social investment, and of course, salaries, wages, taxes, and royalties. All in all, we've contributed more than 83 billion rand to our stakeholders. Volterra Platinum is truly playing its part in sharing value to better our world. So turning to a bit more detail on our operational performance. We outperformed on operational delivery this year, due predominantly to the improved performance in the second half of 2025, when our operations demonstrated far greater stability and efficiency underpinned by our focus on safe and responsible mining. A record number of tons were milled at Michalikwena, which helped to more than offset the weather-related decline at Amunderbilt, resulting in total tons milled increasing 1% year-on-year. Amunderbilt's strong second-half performance, aided by the faster-than-anticipated ramp-up to steady-state volumes, exceeded guidance, with total production at 484,000 ounces. Our mass pool improved by 9% compared to 2024, underpinned by notable improvements at Machalequena as well as Amunderbilt. Overall, our refined production, which was supplemented by inventory optimization, exceeded our 3.4 million ounce guidance. Sales volumes included refined inventory destocking, totaling close to 3.5 million ounces. So delving now into the performance of some of our assets. McAllaquin has put optimization efforts led to clear improvements in its operational performance. Our strip ratio has declined 22% to four and a half times. This means that we mined 15% more volumes despite an 8% reduction in total tons mined. The efficiency improvements have allowed us some flexibility in the selection of all grades. So in line with our value over volume strategy, we've been able to process some of the lower grade stockpiles while still reducing unit costs. This has resulted in the lower head grade, which was offset by higher tons milled, delivering similar answers to what we achieved in the prior year. I'd like to take a brief moment to really emphasize that these developments provide a significant value enhancing opportunity for Meghalakwena. We can mine fewer tons and supplement the expert ore with surface level, lower grade ore stockpiles, resulting in lower operating cash costs while our volumes are maintained within our guided range. But most importantly, we can keep this tier one asset anchored in the bottom quartile of the cost curve. Other operational excellence initiatives at Machale Kwena have resulted in notable improvements in both mining and in concentrating activities. We've seen a 9% advance in drilling efficiencies and a 15% improvement in redrills, while our load and haul efficiencies have improved 24% and 18% year-on-year respectively. These positive developments have started to materialize in lower operating costs. And together with the benefits of higher co-product revenues has resulted in an 8% reduction in our oil and sustaining cost to $835 per three ounce. And so no doubt you're all keen for an update on the Sunslot Underground. not only because it's genuinely exciting, but because it has the potential to truly move the needle. Here's a reminder of why this project has the potential to be a significant strategic catalyst for Volterra Platinum. Our declines begin at the base of the Sunslot open pit, providing close access to the reef. This substantially reduces project lead time and lowers capital intensity compared to other projects in the industry. Unlike other bushfart complex reefs, its height is between 40 and 120 meters with a 45 degree dip on average, characteristics well suited for bulk underground mechanized mining. At four to six grams per ton, the reef is materially richer than other mechanized mines in the PGM industry. Growth uplift is driven by higher grades rather than increasing volumes, enabling us to leverage the existing concentrator and tailings facilities. This approach will save us billions in upfront capex and costs. And this year, we plan to commence trial mining, which will provide critical inputs to our comprehensive feasibility study. The conclusion of the pre-feasibility study has reinforced our confidence in the 10 to 50% uplift in Mahalikwena PGM volumes and a 10 to 20% reduction in costs that we've previously communicated. Numbers that we believe will truly move that needle. With the scale of the opportunity in mind, over the past year, we've made great progress in bringing this closer to reality. The team has completed a further 30 kilometers of exploration drilling, which has informed the total upgrade of 13 million ounces to measured and indicated mineral resources, which is available for future ore reserve conversion. The underground development has advanced a further 3.2 kilometers, while the team also successfully completed the pass for the ventilation shaft one. Trial processing of the bulk ore stockpile is underway, which has accumulated to approximately 80,000 tons by year end. And we've invested about 1.4 billion rand in capex to advance the project, while over the medium term, our capex guidance remains unchanged. I really hope that you're as excited about this as we are, given the potential of this opportunity for Valterra. So moving on to our Munderbilt. I am incredibly proud of how our teams responded to the flooding. Not only did their decisive actions ensure safe and responsible evacuation of all of our employees, they also accelerated the dewatering well ahead of plan and enabled a faster than expected ramp up to normalize production. So a huge thank you to everyone that was involved. And as I've mentioned, this has enabled AmandaBuilt to exceed its revised guidance in the second half of the year, with the second half performance outperforming that of what we achieved in 2024, despite Tumela Mine only reaching steady state by September. This performance highlights the strong operating potential of this asset, with our 2026 guidance indicating an approximately 25% recovery. Despite the severe flooding impacts, Amundabelt delivered positive free cash flow, further supported by the insurance proceeds. The resilience of the quality of this ore body, with its favorable prill split and rich chrome products, driving the highest basket price in the PGM sector at around $3,000 per three ounce at current spot levels. So moving on to Mototolo. The Debrachen project development has progressed well through 2025, with all development ends successfully intersecting the reef, having navigated the weathered zone. Total develop more than doubled, reinforcing the long-term optionality and sustainability of the operation. We also achieved a 9% increase in immediately available ore reserves, enhancing near-term operational flexibility. At Mototolo, our operational excellence initiatives delivered a 12% productivity uplift. Despite the dilution from the development tons, production remained consistent with that of the prior year. So looking ahead, the ramp up of the new, more efficient De Broghen mine with the continued improvement in chrome recoveries and further optimization of the 3D clients are expected to drive Mototolo's cost further down the cost curve. Our processing operations have also seen improvements, beginning with our upstream performance. We achieved a one to 2% improvement in concentrator recoveries at both the Mandebilt and Mototolo, aligned with our strategic objective to enhance recoveries and improve margins. At Mototolo, recoveries, sorry, beg your pardon, at Machalequena, recoveries remained flat, a notable achievement given the 13% reduction in our mass pool. Abundable's 7% reduction in mass pool also contributed to the reduction across the business. And I have already mentioned Michal Aquena's record mills tons were supported by the ongoing improvements in plant availability and proactive investments into reliability. And so now for the much anticipated updates on the Jameson cells. Sorry, that was like really, you know, dramatic, so I'll take a sip. We have optimized the plant to further deliver improvements following the first half commissioning. And we are expecting additional improvements at the Michalakwena concentrators on top of the 13% I've just mentioned, as optimization continues and the plant's annualized impact is realized. We're also really encouraged by the almost one percentage point improvements in the adjusted north concentrator recoveries since the commissioning. And while the recovery uplift was not the primary objective of the introduction of the Jameson cells, the team is optimistic that further improvements may follow. So to put that impact into perspective, volumes at the Michalakwena North Concentrator declined 14%, while concentrate grade increased 16%. Importantly, there are many wider benefits to the mass pool reduction. In 2025, we saw a 21% reduction in trucks transporting concentrates. a 4% decrease in smelter electricity consumption, and a corresponding 5% reduction in CO2 emissions, delivering an estimated cost saving of about 123 million rands, with additional savings expected in 2026 commiserate with further improvements in mass pool. So now turning to our markets. There were several positive developments in the PGM markets during 2025. While we've all seen the overall increase in the basket price, it's important to note that there were multiple factors that contributed to the increases, with a few dominant drivers standing out. Firstly, the year began with moderate price gains, owing to a weaker US dollar. Prices accelerated as the market tightened over concerns about tariffs and weaker mine supply. And although primary supply normalized in the second quarter, stronger price gains followed from May onwards with a large price differential with gold prompting strong Chinese buying. This was then accentuated in June and July by renewed tariff concerns prompting further sizable US imports. The second half of the year benefited from strong investor purchasing, driven by the debasement trades and the launch of the Guangzhou Futures Exchange. Specific factors also contributed, such as a robust hard disk purchasing in ruthenium and the recovery of rhodium demand, particularly in the fiberglass applications. And while price movements were dynamic, they were firmly underpinned by market fundamentals. Tightening supply, stronger than expected demand as automotive sales prospects improved, and inventories that proved less abundant or more tightly held than many had anticipated. The second half of 2025 was an exceptional period for PGM prices. The full basket price ended the year 86% higher than at the start of 2025. All metals contributed to this increase, with platinum, palladium and rhodium being the largest contributors. There are two potential bullish drivers already making an impact. You may remember that we called these out specifically at our Capital Markets Day last year. Firstly, BV penetration forecasts have been revised downwards, particularly in Europe and the USA, markets where vehicles are heavily loaded with PGMs. Political developments in both regions have further supported the internal combustion engine vehicle demand. Meanwhile, the price of platinum rose considerably, but it is still trading at a substantial discount to gold. This has enabled Platinum Jewelry to gain market share in several key geographies and heightened interest in substituting PGMs for gold in various industrial applications. Our total supply and demand outlook for PGM markets points to continued tightness in the medium term. We expect global car sales to continue growing alongside an expanding world economy. Downward revisions to BEV growth in key markets are also supportive. Mine supply is expected to decline over the medium to long term, though at a slower pace than previously anticipated due to higher prices. Elevated prices will also encourage recycling volumes, but still face headwinds. And importantly, even at current price levels, new mine projects are unlikely to come online soon, nor will vehicles be scrapped any earlier. Structural constraints to materially higher supply therefore remain. Our outlook is broadly consistent with prior expectations. And in 2026, we anticipate a sizable deficit in platinum, while palladium's anticipated surplus again fails to materialize. Beyond that, platinum should remain well supported, while palladium and rhodium will shift more to balance, but at an uncertain pace. These balances exclude investor demand, which enjoyed strong tailwinds in 2026. PGMs are increasingly recognized not only as critical minerals, but a safe haven asset, reinforcing their strategic appeal. I'll now hand you over to Sayuri to take you through the financials.

Thank you, Craig, and good morning, everyone. I am pleased to be reporting a strong set of financial results for 2025. Despite the demerger activities and headwinds faced during the year, our performance underscores the robustness of our business and the strength of our operating model in driving long-term value creation. To summarize our performance, Revenue increased 7% year-on-year to R116 billion, driven by the uplift in the PGM basket price. This was partially offset by lower sales volumes, reflecting reduced MNC production, mainly from AmandaBult, and the prior year's larger release of built-up work-in-progress inventories. Our disciplined cost management approach delivered a further 5 billion rand of operational and corporate savings, more than offsetting inflationary pressures. As a result, EBITDA increased 68%. And on the back of this, the company generated sustaining free cash flow of 20 billion rand. This meant we ended the year with a strong net cash position of 11.5 billion rand, boosted by a stronger second half. In line with our disciplined and balanced capital allocation framework, the Board has declared all net cash as the final dividend, equating to R43 per share. The company delivered a solid EBITDA performance despite the operational challenges in the first half of the year. EBITDA was supported by a 26% stronger PGM dollar price of $1,852 per ounce, partially offset by the strengthening of the RAND. Input cost inflation of 5.4% reduced earnings by R2.8 billion, while royalty expenses reduced earnings by a further R1.1 billion, in line with higher revenue. Our success in delivering on our cost-out initiatives made a significant contribution to the uplift in earnings. As you are aware, earnings were also affected by the one-off demerger-related expenses, which have been largely completed, and the impact of the Amandabal flooding event, although insurance proceeds mitigated the majority of that impact. Mining operations contributed R29 billion to EBITDA, at a mining margin of 38%, while POC and toll contracts contributed R9 billion at a margin of 21%. Since launching our operational excellence drive, we have delivered a decisive reset of our controllable cost base, which is down 18% since 2023. The 5 billion rand saved in 2025 was achieved across several areas, including consumables optimization of 2.2 billion rand, 1.4 billion rand from labour and contractors, reflecting the flow-through benefits of the operational restructuring undertaken in 2024, and a further 1.4 billion rand as a result of the simplified operating model post the demerger and other corporate cost reductions. As a result of our cost-out program, we achieved a cash operating unit cost of R19,488 per PGM ounce, in line with our revised guidance. Guidance for 2026 is R19,000 to R20,000 per PGM ounce, reflecting a partial inflation offset from ongoing cost-saving initiatives and increased production from AmandaBolt. We are also targeting a further R1 to R1.5 billion in cost savings for 2027 as a result of the demerger, with some of these benefits expected to materialize in 2026. Full-year capital expenditure amounted to R17 billion at the lower end of our guidance. Sustaining capital expenditure was R12.5 billion, with a primary focus on asset maintenance, furnace rebuilds and mining equipment replacement. Sustaining capital also includes capitalized waste stripping, which declined 1 billion rand from 2024 due to lower waste tons mined, consistent with our value over volume strategy. Discretionary capital of 4.5 billion rand was directed to Sunslot Underground development and drilling, as well as surface infrastructure and development at De Broghen. We also commenced work on the repurposing of the Mortimer smelter. As we move into 2026, total capital expenditure is expected to remain broadly in line with 2025 at 17 to 18 billion rand. This is 1 to 2 billion rand lower than our previous guidance of 19 billion rand, again reiterating our continued commitment to cost and capital efficiency. Of this 12.5 billion rand will be incurred in sustaining capital to maintain asset integrity and 4.5 to 5 billion rand on discretionary capital. Turning to the impact of our cost and capital efficiency on oil and sustaining cost, which was $987 per 3 e-ounce, below guidance and flat year-on-year. Notably, this represents a 13% decrease from 2023, underscoring our cost control. I would like to highlight that going forward, we have revised our calculation methodology for all-in-sustaining cost to include life extension capital to align with our updated capital definitions. On this basis, the all-in-sustaining cost for 2025 was $1,039 per 3 e-ounce. Looking at the cost curve on the right-hand side of the slide, all of our own mined assets are firmly in the first half of the cost curve. Amanda Bolt's strong co-product credits, together with the benefits of the insurance proceeds, have contributed to its positioning in the second quartile, despite the impacts of the flooding. Over 2026, all in sustaining cost guidance is around $1,050 per 3e ounce, assuming an exchange rate of 17 rand to the dollar. The company closed the year with a robust balance sheet, ending in a net cash position of 11.5 billion rand. Since 30 June 2025, the company generated cash from operations of 28 billion rand, and of the total 17 billion rand capital expenditure, 9 billion rand was incurred in the second half of the year, alongside the payment of the interim dividend. I have already talked to the one-off cash impacts relating to the demerger, which had an impact of R2.9 billion in the second half. We also received R2.5 billion in insurance proceeds. The flood claim is now in its final stages, having reached the end of the indemnity period, and we anticipate receiving the final payment during the first half of 2026. Liquidity headroom at the end of the period was 43 billion rand. Our banking group remains broad and strong, comprising both local and international institutions with committed facilities in both rand and the US dollar. 2025 marked a major milestone for our standalone journey as we secured our inaugural global credit rating from S&P, achieving investment-grade status. In addition, we established a domestic medium-term note program, enabling us to issue listed debt in the South African bond market. This will provide an opportunity to diversify our debt funding sources and potentially lower our cost of borrowing. And in line with our capital allocation framework, the Board has declared a final dividend of R11.5 billion, or R43 per share, comprising a base dividend of R23 per share, or R6.2 billion, in line with our policy of 40% payout of headline earnings, and a special dividend of R20 per share, or R5.3 billion. This brings our total 2025 dividend to R12 billion, or R45 per share. This marks our 17th consecutive dividend since reinstatement in 2017, affirming our commitment to industry-leading and consistent shareholder returns. I will now hand you back to Craig to wrap up.