Valterra Platinum Limited

Good morning everyone.

We'll realize probably around 200,000 answers of PGMs.

Leroy Mnguni, Leroy Mnguni which is completely different to everyone else in the industry. So we split base metals and PGMs because this local process post the converter plant and that creates an enabler for us that doesn't create any capacity constraints but a lot of optionality on how we run our PGM flow and our base metal flow. So to Craig's point there is no capacity constraints and Sunslot doesn't have and Impact, in fact, on a downstream processing capacity. There's lots of optionality in our flow sheet, as you can see from the results that Craig and Sayurie actually presented as well. Thanks.

Thanks, Ajit. I think it looks like there's a couple of questions on the call. If we could please cover those.

Thank you. First question comes from Kateko Matonzi of Investic Bank. Please go ahead.

Good morning. Thank you for taking my call and congratulations on the good financial numbers. My question, I'm going to follow up from the question that Steven Friedman actually asked. Thank you very much. Thank you. Second half on metal in concentrates. Why are we still guiding at 3,000 to 4,000? Because essentially, if it's more even, we should be looking at 3.4 or even a little bit above. And a big congratulations to Agit. He continues to optimize that pipeline and squeeze that pipeline. Is there still more room for more inventory liquidation? That has continued to actually surprise me. And then second question, how are you thinking about buybacks as one of the methods of retaining value to shareholders? You have a very bullish outlook, at least for the next few years, if you look at your deficits, your metal deficits. Where your stock is trading right now, how are you thinking about potential buybacks? Thank you. Okay, I'll try to do refined production.

and then Sayurie can do the buybacks and demerger costs. So in Kiteka, I think you've sort of started to articulate how you can think about the second half of the year. As I said, we optimized the inventory of the additional 200,000 ounces in the first half. Thank you very much. Hopefully that helps. And I don't believe that we've got any more.

Okay, so more on the upper end of guidance.

You guys are much smarter than me. You're working out in your models, huh? Okay, so if we're good on that, then we can go and see the buybacks.

Yeah, sure. In terms of buybacks, you're very right in that we do see significant value in our share at current market values. Share buybacks still remains a mechanism available to us to return cash to shareholders. However, there are a few factors we do need to consider when we decide whether it's a dividend or a buyback. One of that is shareholder preferences. In our engagements with our shareholders, the large preference is around an additional dividend. Hence, we opted for that route. And also, I think just from looking at the current market volatility, for us to generate significant value from a share buyback, it needs to be of a substantial value and in the current context. for us the market volatility doesn't seem like the appropriate mechanism at this point but we will continue to review this at each reporting cycle In terms of the demerger costs, a large part of that was concluded in 2025. What was remaining this year was large small bits around the rebranding as well as some of the IT costs that we're incurring together with Anglo-American. And now that we've transitioned, a large part of that is completed. So it's really small in 2026. It's probably around 300, 400 million rand at most.

And then there was the question on how much more metal that Jet has in his cupboard.

No, Jet tells us that he's got nothing left.

So, yeah, we... All right. Nkateko, does that cover your questions? I'll take that as yes. Next question on the conference call, please.

Next question comes from Adrian Hammond of SVG. Please go ahead.

Good morning, Craig and team. Firstly, a question for Willie on Munderbilt 1 subshaft. This is quite a forecast you're giving for the next few decades to sustain that profile. Could you just give a bit more color on where is 1 subshaft located relative to existing infrastructure? and what sort of CapEx are we looking at to get that into production? And then for Hilton, since you've given us some numbers, forecasts in your market outlook, could you describe what sort of growth the data centers are going to provide for your PGMs, Platinum, Ruthenium, Iridium, Rhodium? Thanks.

Thank you for the question, Adrian. So if you look at the Monobolt portfolio, it's basically just downed up. It's a decline. Essentially a decline extension, down dip of the Mala 1 shaft. You still have to access via the vertical shaft to get down to the shop shaft. And it's a combination of decline basically on a parandip in the footwall. And then you open up normal conventional wallages, north and south, typical layout that you have in a conventional mine with razors. Thank you very much. How we allocate capital to this project. So it's like a prudent just-in-time to maintain the production profile. Not build the profile, but to maintain the production profile. So it's really opening up haulages and the first stoping areas as you deplete on the upper levels and then just maintaining that momentum. So to the point that you've made, so in the guidance that we had, that's roughly in about 500 to 600 million capital profile, and essentially it's really opening up, getting to the first race lines on the religious. Also bearing in mind, as we did show that number, but what's also interesting is there's still Marensky on that, so it's not just UG2, there's also Marensky still, very much so, Thank you very much. That's the 500 to 600 million as we've got it and then maintaining that profile. I hope that answers the question.

And maybe just to recap on the CapEx as well as part of it.

Yeah, that's the 500 to 600 million Rand capital and it's in the number. Thanks.

And Hilton, yeah. Sorry, Hilton.

Yeah, entertaining subject, Adrian. Thanks for the question. So, you know, we see about 350,000 ounces of ruthenium demand going into hard disk drives at the moment. And the question is how much of that is going into data centers. It's quite substantial. And then if you're going, okay, how much of this is AI related and what are the AI impacts? You know, there are AI impacts across a number of the industrial demand sectors from crucibles to emissions control to connectors and hard disk drives. And then you look at the fact that people are talking about 10 times infrastructure improvements or increases over the next 10 years. We think opportunities are quite substantial. So we see opportunities north of a million ounces, which is in our broader part of the 10. And in the higher confidence element, there's a significant portion of that higher confidence demand, which is AI-related as well. Hope that answers your question.

Thanks, Jyoti.

Right. The next question on the call, please.

It comes from Rene Hochreiter of NOAA Capital Markets. Please go ahead.

Good morning, everybody. Great results. Blew all consensus out of the water. Well done. Did I hear correctly? Q426 from Zansloot, first oar from underground. Is that correct?

Thanks Renee, thanks very much. No, it's the trial mining which will take place in Q4 from Sunstreet Underground and the investment decision to be taken in the first half of 2027. Okay, fine.

And also with the PGM prices up now 30% year on year, should we take 70% of HEPSA's dividend policy going forward at least for this year?

No, our dividend policy remains at 40% of headline earnings. And as I said earlier, we'll review at the next reporting cycle. As we said, we'll look to return excess cash to shareholders as well.

Okay. And then just one more question. With all your relationship building with Johnson Matthey and Umicore and Sabania and so on, Do you think you'll ever return to the very close relationship you had with Johnson Matthey about 10 years ago, before one of your predecessors terminated that relationship?

I think the real opportunity for us is really working on some of those demand and future growth opportunities and that's where our focus is. I think the value that we've been able to create as a standalone company through what we do from a marketing perspective and an ability to now work with others, not just exclusively with one, I think is ultimately beneficial for Valtteri Platinum and also for the industry.

Thank you very much. Well done again. Thank you.

Thanks, operator. We'll take the last question on the line before going back to the webcast.

Thank you. Next question comes from Richard Hatch of Berenberg. Please go ahead.

Thanks. Yeah, morning all, and thanks for the time. Just a few questions. First one, can you just give us an update on what you're seeing in the switching and substitution part of the market? That's the first one. in the auto sector. The second one, just a point of clarification, Sayurie, just on that 1.45 billion insurance proceeds for H2, should we be booking that in the income statement as well as the cash flow statement? And then, thirdly, just on Mohola Quena, I've noticed the costs have picked up quite substantially, half on half, and you say in the release that you're expecting them to come down. I just wonder if you can give us a bit of a steer as to how much we should expect them to come down by? Thanks.

Yes, so Richard, so I think let me try the last one. Sayurie, the question was the increase in Makhala Kwena price, Makhala Kwena costs, half on half. I think the large proportion of that is driven because we didn't capitalize as much waste in the first half of 2026 as what we did in 2025. So therefore, Richard, I think it's always important for Makhala Kwena that you actually have a look at it on an oil and sustaining cost basis. And you'll see, actually, on that basis, we came down 1% on 2026, even with the higher oil prices. Sorry, Sayurie, did you want to do that?

Yeah, yeah. In terms of the insurance claim, yes, you'll see that it came through in July, so you'll see it in your income statement and the cash flow as well in the second half. The 1.45 billion.

Yeah. And then there was the substitution. Substitution.

So with the prices as they are, there is an economic incentive to substitute. We don't see anybody re-homologating, I hope I said that right, existing catalyst formulations. So where the catalyst formulations are set, they'll stay as they are. It'll have an impact on catalysts in design at this stage and then we'll Thank you very much.

Just to wrap up the questions on the webcast, Shashi from Citibank would like to know, can you please provide more details on industrial users substituting platinum for gold, particularly the possible market size in terms of ounces?

So it's Capital Markets Day, thanks for the question. Capital Markets Day, we said that there were 9 million ounces of gold in industrial applications and we thought that there was potential to unlock 10% of that at least. In the work that we're doing and with the partnerships, so we remain of that view, importantly. We still think there's 900,000 ounces worth of potential there. In the work that we're doing with the partners that we have, we can see at least 300,000 answers of that coming down the pipeline, and we are becoming more confident that given the stage of those projects, that's realizable. And we continue to be of the view that that's just what we can see. Other people's efforts, given the pricing, should unlock further benefits too. Hope that answers your question.

Peter Kromberg from Merger Market would like to know, does Volterra intend to be a regular issuer under its DMTN program? When does it expect to return to the bond market?

So as I've said earlier, we have 55 billion rand of headroom and I'm quite comfortable with the liquidity that we do have available. We've got 27.7 billion rand in committed bank facilities. The reason we actually went into the bond market is really to diversify our funding sources and it also came at about a 1% lower cost of borrowing. So that did help us from a cost of capital perspective.

Thank you. And then we do have a question here from one of our employees. I'll keep them anonymous. So since the longer-term outlook points to a supply deficit, should we not be investing more capital in exploration and waste stripping?

Yeah, thanks very much for the question. I think what we do realize, given the quality of the Volterra Platinum resource base, we see the opportunities that I've articulated both at Makhala Kwenner, Mototolo, we're investing in Amundabelt. So I think the capital allocation is really clear in terms of where we see those opportunities and we'll continue to do that. Thanks, Craig. And then I don't see any more questions on the line, but I'd just like to make sure. So no further questions on the line? Last call in the room.

Thank you very much. I'll hand over to Craig to close for us.

Thanks. Thanks Leroy. So once again, thanks very much for joining us today. Thank you for your support and for your engagement and just for me to wish everybody a safe and a good day. Thank you.