Sibanye Stillwater Limited

Greetings everybody and good afternoon, good morning. Not sure what time zones everyone is in, but a warm welcome to our year end results presentation for the year ended 31 December 2022. You will note from the subtitle, we've called this a decade of shared value. and that is because we've just had our 10th anniversary and we see this as a decade of having shared significant value with our stakeholders and our shareholders. and then of course the balance of that subtitle we well positioned for future value creation and I'm sure you will see that as we proceed through this presentation. Please take note of the safe harbour statement. There are forward-looking statements in this presentation. I'm going to proceed with the first part and I will wrap up the event at the end after having invited other colleagues to join. Let me pick up on the salient features for the second half of 2022 and the year in 2022 very pleasingly. I can really be proud of the achievement around safety. We continue to show very substantial improvements in all safety indicators with the fatal injury frequency rates having improved by 75% yes 75% from 0.133 for 2021 to 0.033 for 2022. It's our best performance ever and it's something that we as a team are very proud of. As I mentioned in the beginning, this is our 10th anniversary. It's been a remarkable journey of evolution and growth, resulting in us having established a more sustainable business, which is currently pivoting to remain relevant due to the ever-changing environment we found ourselves in. And of course, we will remain relevant in the future as well. We're in a robust financial position. We generated positive free cash flow. Our net debt correction, sorry, our net cash to adjusted EBITDA remained at 0.14 times, something we're very pleased about. We did declare a final dividend of 122 South African cents per share or 26.98 US cents per ADR that amounted to 3.45 billion Rand or 191 million US dollars. We have retained our industry leading 6% dividend yield and the total dividends for the year amounted to 37 billion rand or 421 million US dollars. Again, we're pleased about that. As you would know, we've had a number of significant disruptions or events this year. I'm very pleased to say that our operations, all of them are well positioned to perform in 2023. We achieved inflation linked three-year wage settlements in our gold business. That was after having to take or implement a three-month lockout. We have closed down some loss making areas of our business, Beatrix foreshaft in particular and the KP1 processing plant. That is always a disruptive process and the section 189 is now complete. and therefore we can confidently say that we have stabilized production and gold should be well positioned to contribute significantly during 2023. Our South African PGM business remained a solid performer. We used our firm position in gold, in the gold wage negotiations, that is, to achieve an inflation linked five year wage agreement for Rustenburg and Marikana. That was a significant achievement in its own right. All in Sustaining Costs came in at just over 19,000 rand per 40 ounce or in equivalent US dollar terms, $1,180 per ounce. That's 14% higher, but that's predominantly due to reduced volumes as a result of load shedding and cable theft. And I think our cost performance was an outstanding feature of this year. and I do believe all our operations are going to continue to move down the cost curve. We're still enjoying, as you can see from the last sentence there, more than a 50% adjusted EBITDA margin. South African PGM business remains in a really robust position. Our US PGM division was impacted by extreme weather events. We also proceeded to restructure or reposition that business unit during the year. We did announce that. We've de-risked it. We've taken account of changing macroeconomic factors. and of course we've positioned it with increased flexibility by increasing the amount of development. So it's well positioned for the challenges that we all know about in the US at the moment. Themba George Nkosi, Melanie Naidoo-Vermaak, Richard Andrew Stewart The repositioned business post a few years of increased development will grow to about 700,000 2E ounces and most importantly at a cost structure of less than $1,000 per 2E ounce and that's targeted by 2027. We received and provided the green light for Calibre based on the receivable of new permits and Mika will talk you through that. Very important to note that the revised capital cost of this project, which should take into account just about all the recent inflationary increases, and that amounted to a 588 million euro capital cost. A large portion of that has already been funded through the equity infusion that we have put in through the acquisition of a majority stake in Calibre. So smart transaction for us. Our Sandoval nickel refinery, and I'll remind you that we never bought Sandoval for what it is. We bought it for what we're going to make it into, and that is a battery precursor nickel sulfate refinery. It's also going to form a base for our PGM recycling and battery recycling. We've bolstered our management team and I think we've got a few more quarters of heavy lifting but post that Sandoval should be a contributor, a significant contributor to our business as well. As I said, we are very proud of what we've achieved in health and safety, and we've moved very constructively along our safe production journey. And I'd like to just go through some individual safety results that are important to us. If we compare 2022 to 2021, we saw 23% improvements in serious injury frequency rate, We saw a 27% improvement in lost time injury frequency rate. We saw a 29% improvement in total recordable injury frequency rate. We saw a significant reduction in fatal incidents due to our focus on the fatal elimination plan. Having said that, despite our efforts, we still had five fatalities, which is clearly five fatalities too many, but it's the lowest annual number recorded in our history. There's some interesting graphs. and as a large employer you can see how our workforce has climbed as we've grown this business from 36,000 to 85,000 employees. Very pleasingly we have, even despite the growth in the number of employees, been able to bring down and improve our safety Record. Now that was done, if you move to the right hand side at the top of the slide, that was done on the basis what I presented last year and that is we brought in an independent person to conduct a safety review and essentially our safety strategy was endorsed but there was a need identified to operationalize and institutionalize the commitment and the responsibility for safety throughout line management. There was good ownership of our safety protocols and philosophies at the top but we felt that it became weaker as we went lower down the operation and of course that has all changed. There's been a A focus on real risk reduction and we've made good advances there. And if you look at the TRIFA frequency rate, you can see also how it's come down from 2020 from 6.69 to 5.07 in 2022. We remain absolutely committed and passionate about safety and we intend to compete with our ICMM peers who many of them don't run underground mining businesses. We do intend to compete with them on that basis as well. Moving on. As I said, we've just recently celebrated our first 10 years as a business. We celebrated that by opening trading on the JSE literally a week ago. You can see the management team enjoying that event. But let's have a look at... Some of the events that have led up to us being around for this 10 years and certainly we intend to be very relevant in the next 10 and 20 years as well. We have built a business off a base of gold. I'm not going to go through this in detail. We've entered the PGM business. Early on, we focused on getting into tail injury treatment, PGM recycling. We've built a very solid base in the circular economy. and once having established ourselves as a leading PGM producer, we moved into the activities of building a portfolio of battery metals as well. Both the move into PGMs and into battery metals was preceded by very significant amounts of planning. and the move into battery metals was preceded by acquiring SFA Oxford as a leading thought provider in both PGMs and battery metals. We've built up our battery metal portfolio and more recently you would have seen us taking control of New Century Resources, which at the moment produces the greenest zinc in the world. That's our portfolio. We will be adding more sigmoid curves, but this is really about looking at the last 10 years. When you look at it on a map, we have become global. You can see we built up this unique green portfolio with a combination of PGMs, battery metals underpinned by gold as an insurance policy. And you can see that we are positioning ourselves in very specific ecosystems from a battery metals Themba George Nkosi You can see for the first time we've declared lithium and zinc reserves. They outlined in the table. I'm not going to go through the numbers in detail. And you can see that's combined with both uranium and copper. If you look at our mineral reserve pie chart, a very significant mineral reserve of just over 70 million ounces. The resource that underpins that is just under 390 million ounces and you can see the split between the different geographies and the different commodities. What that translates into in my mind is very important for investors and stakeholders to understand. If you look at the life of mine portfolios based on these These reserves, you can see these, our operations have a significant life of mine. And I want to go through them. In the South African PGM business, Krindle, 15 years. Rustenburg, 29 years. Morricona, and this excludes K4, 19 years. If you look at Cave 4 on its own, 49 years. Mimosa excluding North Hill, 13 years. North Hill on its own, 24 years. Our surface resources at Rustenburg and Marikana, both 3 years. Moving to the US Stillwater, 31 years. East Boulder, 42 years. These are world-class assets. Our South African gold business which when unbundled 10 years ago literally only had five years of life. Remarkably, Beatrix still has four years. Drew Fontaine has 10 years. Kloof has 10 years. Burnstone, 22 years. Our surface resources, depending on economics, one to three years. DRD Gold, in which we have just over a 50% interest, 20 years. When you start looking at our battery metal lithium reserves, Calibre has a 16 year life of mine. We know that's the first phase, so it's going to be significantly longer than that. We are very, very proud and these are solid underpins for sustainability of our business. When we look at earnings, we know it's been a year of disruptions. We had the gold industrial action. We were closed in the US for seven weeks based on an extreme weather event in the Montana region. yet we produced our third highest EBITDA, adjusted EBITDA for the period under review in this graph. Again, solid financial performance despite significant disruption. So that's pleasing when we normalize 2023, I think you can all look forward to a much improved adjusted EBITDA profile as long as commodity prices and macroeconomics remain as they are today. Importantly, if you look at our net cash to adjusted EBITDA, it remains constant. We remain in a net cash position and this all really underpins a very solid balance sheet and something that again has taken a lot of work to retain and maintain. When we talk about shared value, we are very proud of how our shared value has grown. If you look at our revenue, there's a 790% increase in revenue from 2013 to 2021. A 326% increase in salaries and benefits. That's all value that goes to our employees and stakeholders. A 110% increase in socio-economic development. Again, that's for the upliftment of the community. So if we look at 2021, on the right hand side of the slide, we have just under 85,000 employees. We paid 26 billion in salaries and benefits. 2.2 billion rand invested in socio-economic development. 17.9 billion rand paid to the South African fiscus in taxes and royalties. 969 million rand invested in training and development. 1.4 billion rand paid over the last two years 2021 and 2022 to approximately 46,000 beneficiaries in the form of dividends and other employee share option scheme payments. There is no doubt that when we celebrate 10 years we celebrate 10 years of sharing value with all our stakeholders and the bottom line is we are a force for good. In terms of this audience, I'm again pleased to show that a year later We still have provided leading total shareholder returns versus our peers listed in this graph since listing in 2013. And again, this is a combination of total shareholder returns. So it's capital growth, its dividends and its market buybacks included in this graph. And again, something we are very proud and pleased with. Just to talk a little bit about strategy, being as successful as these graphs and This presentation demonstrates it's important not to lose your foundation. We've developed a 3D strategy. Our foundation is similar to what it's always been, but it recognizes a slightly revised purpose and vision, but it's not a radical departure from where we've been. Our values now include innovation and they have to include innovation if we're going to achieve our strategic differentiators on the right side of this graph and I'll come to those now. What is of critical importance to us and and our primary focus as a company, it is delivering on these strategic essentials. And let me go through them. We started this presentation with safety and wellbeing, prospering in every region in which we operate. And there's lots of good news stories that I went through in terms of shared value. Operational excellence and optimizing long-term resource value. When we talk about our cost profile and moving down the cost curve, that's operational excellence. The very substantial life of mine that underpins this business is long-term resource value. Being profitable, I went through our earnings despite Themba George Nkosi being recognized as a force for good. I covered that in the discussion on shared value for stakeholders. Building this unique global portfolio of green metals and energy solutions that will contribute to the reversal of climate change is a very significant underpin to our purpose. Being inclusive, diverse and bionic is going to differentiate us in terms of the people that work in our business. They produce the results. It's all about the people. And then we use and we term pandemic resilient ecosystems as something that is an opportunity, not a challenge. When that challenge happens, we turn it into being pandemic. Themba George Nkosi We're creating a unique portfolio of green metals. As I've said, we've got gold, which underpinned the start of this company. It's an insurance policy when macroeconomics all go pear-shaped. Gold will be the last store of value and it's important to us. It's a good metal and a good commodity and it's good to have it in the portfolio of metals. Recycling tailings retreatment underpin our circular economy profile. The battery metals and there's more of them are listed at the top and then of course being a leader in PGMs provides this unique combination of green metals that are going to reverse and be important for climate change. As I've been saying, we've established a very significant presence in the circular economy. The first step in that was through DoD Gold. DoD Gold is a global leader in mine tailings reprocessing. It produces some of the greenest gold in the world. It's a sound investment for the group, but it's also removing environmental legacies. of South African Gold Mining, and that's through the clearing of hundreds of hectares and restoring land back to its original profile and providing it for redevelopment. Our US PGM recycling business is one of the largest global PGM recycling businesses in North America. And to put it in perspective, recycling emits six times less tons of carbon dioxide, 63 times less water, and it generates 90 times less waste than underground mines. and again I would say this produces some of the greenest PGMs in the world. New Century in Australia where we've just taken a controlling position is a leading Australian mine tailings management and economic rehabilitation company. It produces the greenest zinc in the world. by reprocessing legacy based metal tailings. And again, it makes a positive contribution to the environment. So very pleased and very proud of our growing presence in the circular economy. I just wanted to talk a little bit about the markets and always qualify what we say about the markets. We are not experts in the markets. I think we've got a good feel for what's happening with all our links into the various parts of the PGM and gold and battery electric vehicle markets. But we have since conducted further research through SFA and we all know that every time you open a new report on battery electric vehicles, the analysts have increased the projected penetration rates for battery electric vehicles. Asobanya Stillwater, for some time we've been saying these penetration rates are overstated. I said them at last year's year end results and I'll say them again at this one. These penetration rates are overstated and I'm going to show you why. So if you look at the graph on the right hand side, you can see that we have assessed projects from What are existing mines? What can recycling do? And we're just looking at lithium here. What is probable projects? What are low risk possible projects? What are medium risk possible projects? And what are high risk projects? And if we include all those, there is still a shortfall of 3.5 million battery electric vehicles that are not going to have sufficient or any lithium for their batteries. When you look at this, 64% of BEVs are at risk by 2030. Themba George Nkosi But what it does do, and it's reflected in this graph, which now shows the combination of gasoline, fuel cell and diesel engines that are going to make up the global car park. What the previous graph is implying is that the long-term future of internal combustion engines is actually a reality and internal combustion engines are going to be around longer and there's an assumption made when analysts look at penetration rates, I'm not sure that they look at technological advances that are going to take place with internal combustion engines such as sustainable fuels and so on. The bottom line is that Subanya Stillwater having a foot in the water or in the markets, both on the battery electric vehicle side and on the internal combustion engine side through PGMs, we're very well positioned. And of course, the hydrogen economy underpins the future energy requirements through PGMs as well. Our business is very well positioned. There will be growth in battery electric vehicles, perhaps not as much as being promoted and the perception that internal combustion engines are coming to their end relatively quickly now is also incorrect. So we believe we have a sustainable business both in PGMs and in the battery metals. So with that, I'm going to now hand over to the operational team consisting of Richard Stewart in South Africa, Charles Carter in the Americas, Grant Stewart as the head of recycling, and Mika Seitovirta in the European region. So over to you, Richard.

Thank you. Thank you very much, Neil, and good afternoon and good morning, ladies and gentlemen. As we talk through the operating results of the Southern African region, there were certainly two impacts that significantly hit our business last year. The one, of course, is the ongoing failure of ESCOM and the significant load curtailment that impacted not only us, but the entire industry. We saw a significant impact on not only the levels, but also the duration of load curtailment during the last four months of last year. as a business we've become quite accustomed to being able to manage the load curtailment well historically and it hasn't had a significant impact on our revenue line and this has largely been managed through a working capital approach whereby we keep our key operations and rock breaking going through a stockpiling strategy we are able to process that ore during off periods and holiday periods Unfortunately, with a significant increase that we saw during the last four months of last year, this became difficult to maintain and did start having a direct impact. Although that impact was small over the course of the whole of the year at our gold operations, we lost 38 kilograms, but I think importantly that 38 kilograms was lost as a result of, for the first time, having to actually stop shafts for a few shifts. At our PGM operations, we suffered a loss of just under 23,000 ounces, and that was despite having spare processing capacity where we were able to completely catch up the stockpiles that we had over the December period. I think what is increasingly concerning is the forecast for 2023. If we take into account what we saw in the last four months of last year, what we've seen in the first two months of this year, and forecast a continually decreasing energy availability factor from ESCOM. That actually paints quite a dire picture for 2023, particularly during the winter months of this year. And if that forecast comes to fruition, we estimate that it could impact as much as 15% of total production output in our operations and in the South African industry in general. I think importantly to recognize that as the levels and the duration of curtailment goes up, the potential impact on production goes up exponentially because your ability to manage those working capital and stockpiles significantly decreases. This unfortunately has some significant unintended consequences, not just for the industry, but for the country as a whole. Losing revenue on our shafts will impact government's ability to earn revenue through taxes and royalties. and this is the exact revenue they require in order to address the challenges at ESCO. Marginal shafts will become increasingly unprofitable and this may force early closure of these shafts which will exacerbate the already dire job situation in the country. Of course we understand the impact of our stakeholders downstream. Smaller communities and suppliers to the company will be impacted. Ultimately we are looking at a spiral here which if not addressed will become significantly worse in the coming years. The Minerals Council has indicated that the mining industry alone has a total of about 7.5 gigawatts of renewable projects that are currently in the pipeline. The only long-term solution to the load shedding and curtailment issue is firstly ESCOM's energy availability factor getting their reliability back up and secondly additional generation. While these renewable projects will significantly add to the generation capacity, it's not the ultimate solution for mining companies who still require a significant amount of baseload. However, as stakeholders, we need to be working together to remove any red tape in order to get this additional generation online as quickly as possible. That has to be the single agenda for all stakeholders today. When we move into looking at the gold business, gold last year was significantly disrupted by the industrial action we experienced in the second quarter of the year. And for the year as a whole, that pleasingly ramped up during the second half of the year, with steady state levels being achieved during the fourth quarter. For the year as a whole, we produced 620,000 ounces of gold. And as I say, that normalized during the fourth quarter of the year. All in sustaining costs, we were of course negatively impacted by the much lower output levels, but I think very pleasing was the absolute cost control, both during the industrial action and during the subsequent ramp-up period, where we managed to reduce our absolute costs by some R3 billion, despite a very high inflationary environment. DRD Gold produced 5% lower for the A comparative period to 2021, and they produced that at an all-in sustaining cost of about R800,000 a kilogram, some 20% higher due to exceptionally high costs, specifically related to fuel, steel, ammonia, and electricity. I think, pleasingly, we did see a significant reduction in terms of the loss that was suffered In H1, we had a R3.1 billion EBITDA loss directly as a result of the industrial action, and that narrowed to R440 million during the second half of the year, considering that the third quarter was still a highly disruptive quarter where we were incurring full costs but only realising a portion of our revenue. I think this business is well positioned for the upcoming year. A very tough decision was made towards the end of last year to look at a process to either restructure or close our KP1 plant in Beatrix foreshaft, which have been loss making for an extended period of time. And that process is due to conclude in March of this year. I think those engagements have been constructive and a lot of effort undertaken to minimize the impact of forced retrenchment on employees. but certainly that'll reposition us well in terms of the sustainability for the rest of the gold business as we move into 2023. Finally, Burnstone was also impacted by the industrial action. That project is in ramp up with a critical part being the development and ultimately that project has been delayed with first production from Burnstone now forecast for 2024. Move on to the PGM operations. In addition to the load curtailment, the second factor that really impacted production this year was copper cable theft, particularly at our Marikana operations. There we saw almost a fourfold increase in the number of cable theft incidents from the first quarter to the fourth quarter and has now truly become highly organized syndicates that are participating in this cable theft and require a far more concerted multi-stakeholder effort to deal with this scourge. Simonier shaft at Kruendal has been ramping down and reaching the end of its life. That shaft is planned to be closed during 2023. And Butter Paley had a tough year last year as it mined through the Hex River fault, where both ground conditions and the extent of that fault were far more extensive than what we originally expected. It was, however, very pleasing that they got through the fault by the end of last year and managed to do so without a single serious injury. We managed to process the stockpiles that had been built up over the December holidays, but nevertheless, as mentioned earlier, lost just over 20,000 ounces of gold due to load curtailment. Particularly pleasing in PGMs again was the cost management. There, in absolute terms, we were able to contain our costs to within inflation. That is, despite the fact that mining PPI in South Africa was around Themba George Nkosi I think we also look forward to 2023 where Rustenburg has now settled its earn out with Anglo Platinum over which was associated with the acquisition of these assets and from 2023 onwards the full cash flows 35% of which have historically been paid to Anglo Platinum will now accrue to the Rustenburg shareholders. Just looking at the cost curves that have been published, and of course, this has been published on our data and those companies that have reported, many still to report, I think very pleasing and we would expect to see our mechanized corundial operations in the first quartile. But equally pleasing is seeing Rustenburg solidly in the second quartile, given that these are predominantly conventional operations. As we see some of the benefits of the PSA transaction coming through, we would expect to see Rustenburg continue to move down the cost curve as some of these benefits are realized. Morricone did have a tough year with the cable theft, as we mentioned, but also that is spending a significant amount of capital at the moment on K4. and as we see K4 ramping up and the benefit of that production coming through onto the bottom line and the capital coming off, we certainly look forward to the Marikana operations also comfortably making their way down into the second quartile. Stillwater, as we know, had a tough year, disruptions as a result of the flooding and a rebase plan, but as Charles will highlight to you, Stillwater is well set to continue down the cost curve as they ramp up to steady state on that new operational plan. I'll hand over to Charles to present the U.S. operations. Thank you.

Thank you, Richard, and good morning, good afternoon to participants. I think you're all familiar with the reset we did mid-last year when we revised our plan and gave a series of presentations as to how we saw the medium-term and long-term optionality of and all the work needed to reposition the business for long-term flexibility, cost management and to do justice to a world-class ore body. And I think you're also all familiar with the fact that we had a significantly disrupted 2022 with flooding and other weather events and we've had to manage the business accordingly in the short term. So obviously a frustrating 2022 year outcome, but I think the critical focus has to be on what we're doing to reposition this business long term. So you will have seen what we believe is a prudent response to a changing environment. I think one that is impacting all the companies that you follow, and certainly us in Montana, is a very tight U.S. labor market. So you have a 3.4% national unemployment rate and you have a 2.8% unemployment rate in Montana specifically. And so we've been backing that all year and I'll talk both to the macro impacts and then what we're doing specifically to address that. But I think importantly, we've had to manage through the year significant employee turnover So average all-in turnover has been 18% across the business in Montana in 2022. But much more importantly, when you go to specific job categories and key roles in the operations, you see 24% minor turnover, 20% mechanics turnover, 24% supervisor turnover, 25% geologist turnover, and 24% Planner Turnover. So that's not an issue that we're complacent about, but it is a reality of our work environment, both in mining in the US right now, and then on our two operations that have fairly remote access, long travel times and very limited housing options in proximity to the operations. and then where these skill sets are spoiled for choice on job opportunities both in mining and outside of mining both in Montana and across the US. A very tough situation to manage but I think we've started to get on the front foot on this and I'll reflect on that in a moment. So you've got a tough labour market, you've got skill shortages, you're having to pay up for skills, and importantly, you're having to adjust your work cycles, shift cycle times and put in various bonus incentives to both attract and retain core skills. And we've been doing all of that and we've been doing it with some success through the year and particularly as we hit late year and as we go into this year, we feel like we are starting to get a handle on this with some good outcomes. I think you would have also seen from our repositioning that we're positioning these assets through the commodity cycle. So right now we're enjoying very healthy pricing on the revenue side and that's allowing us to do the difficult work we need to do to reposition while we've got that. But we're repositioning with a view that over time we will hit tougher price lines and we will be have the flexibility to manage that accordingly. But in the short term, we have to do a lot of work to get that right. So you're not seeing short term gains on costs and you're seeing high inflation impacting the business. But we're doing the work needed to put in robust pricing structures, long term skill sets, mind planning, and all of the support systems are being modernized with a view to a long term flexible high margin set of operations. You would have also seen from our presentation earlier last year that we've cut growth capital. We think we've got the capital that we need for what we're doing. But we are spending a lot right now just on getting development flexibility right and improving the overall developed state of the operations. And I think just to trying to give a bit of context on that. It's important to understand at Stillwater West, we have limited flexibility currently. Our development ends are in the depression zone and within the Stillwater East fault zone. So we've got complex ground we are mining through. It doesn't have great grade and it's giving us A big focus on our mining methodology short term and what we have to do with backfill, complex ground conditions and variable grade. And so you've seen that in the reduced volumes and you've seen it in the reduced recoveries. But we have to mine through these environments and position for the longer term where we start to get better grades, better continuity, and we can open up much more flexibility. and so the focus right now is on definition drilling to assist mine design as we navigate this. We get through at Stillwater West, we get through that depression zone only in 2025. So just to manage expectations, we have a lot of work to do through this year and into next. to get this right and we have no other option than to mine through it. And so you're gonna see the lower volumes and you're gonna see the higher cost structures while we do that. But the benefit of that is what gives us confidence around the volume grade and cost improvements that you see in the medium term. Because when we're through the depression zone at Stillwater West, we expect great improvement in the off shaft east area and we will lift production once we east of the Stillwater East fall zone in 2026. We will also in that window have put in the engineering fill underground that we've alerted you to and that's where the capital is in the next three years. And that really repositions the Stillwater East asset base for the kind of quality mining and the flexibility and the returns that we expect in the medium term. I think what's also important on understanding what we're navigating is we've had some good success. We've completed the 56 level all in on the Benbow decline. So we've opened up a significant football lateral that now needs to be drilled. And, you know, that's work that really takes us through this year into next. And I think two to three years out, the benefit of that is you're gonna start to see net reserve additions post depletion. So we're gonna open up reserve optionality and all of this is good for the medium to long-term, but it's work that's costing us right now and it's work we have to do for the long-term benefit of these assets. And then similarly at East Boulder, it's a slightly different set of conditions that constrain us through this year, but also give us flexibility further up. So at the moment we're navigating significant geological factors that have moved mining to the west at East Boulder, and here we've seen more faulting. and we have variable ore body continuity and hence we have slightly lower grades than we're expecting. But we're putting a lot of short-term controls just to focus on quality of mining, controls on our ore body widths, our sampling and our quality cleanouts. And a factor that ties both the tight labor market, our recruitment strategies and this kind of grade issue is the fact that we have a much younger geological workforce that we've brought in now and that needs training and development on a very difficult ore body that is visually mapped each day by geologists on the face for the miner to exploit and needs quite a lot of training. But most of our face geologists have less than one year experience at the operation. So a focus on training and development, a focus on management controls and setting this up again for the medium to long term to get the right skill sets, processes and activities and behaviors in place to navigate to the medium term. So all of this is about a sustainable business long term, but just to manage expectations, lots of work to do through this year and into next year. to start to see the benefits. Linked to that, we have a very strong focus on project interventions. So we call it project 406, which is 52 different project managed focus areas that impact development, mining mix, equipment, procurement, costs, HR, ESG and safety. combined with a very strong innovation focus. And that gives us the confidence as well, together with the flexibility that we're opening up on these ore buildings over the next two to three years to believe that we can get our cost structures below $1,000 an ounce. So on this slide, you'll see that we've had a tough production and cost year in 2022 at the Montana operations. What this slide doesn't reflect on, and I think it's important to flag it, is we've had our best ever safety year. So that's reflected in the group results. And there's been a very strong focus on safety through the year across all team members and with very strong outcomes. So we're pleased with that. We've also had a good development year exactly on plan. So across the two operations, we've put in 44.9 kilometers of primary development in 2022 and 38.1 kilometers of secondary development. And that really talks to the all-body flexibility in the medium term that we're striving to open up. But in 2022 and also in 2023, you don't really see the development state seeing the benefits of that. That really comes a year or so out. but I think both on safety and on development and development obviously quite costly in this market environment using contractors but it's very much part of the spend we have to do right now to get the medium-term flexibility that'll lift margins. 2022 obviously also heavily disrupted flood and other events that you're all familiar with and I've touched on the tight labor market and the kinds of inflation escalations that we're having to manage. I think on the skills issues, it's important to note that we've put in interventions that are starting to bear fruit. So we've piloted new shift rosters, seven on seven off to attract a more mobile out of state workforce and that's working alongside current shift cycles. We've put in recruitment and retention incentives. We're working hard on solving for housing, and we're starting to see the benefits of that. But it is a younger, more flexible workforce, and we've put in lots of training to ensure that we have the kind of continuity that will give us the productivity that we need. So all of that is starting to daylight green shoots. And it tells us that if we work on the right things in the right way, we'll get the outcomes. We're also expecting this labor market to soften through the year. It doesn't make us complacent, but it means that people who've cycled out might start coming back. And certainly you'll see that in the next two to three years, I think. So on the labor side, I'm not unhappy with where we are. It is a tough environment, but it's a manageable one. and I think we've been quite innovative in how we work those challenges. But on things like the mechanic attrition, it's forced us short term to rely on contracting interventions alongside our mechanics and employment. So we've also had to draw on OEM mechanics obviously at a higher cost. So on cost structures, short term, you see the impacts from tight labor market, high attrition rates through to greater use of contracting, greater use of OEM on maintenance and mechanic skills and the like. So that gives us limited flexibility in Q1 now. But again, we believe we can apply the same sort of things that we've done on minor recruitment and retention to mechanics, and we're busy working on that. So through the year, I'm comfortable we'll start to get back on the front foot on that, and that'll help on the cross-structural side short term. All of this takes you to a caution about quarter-on-quarter expectation that we'll see dramatic improvements. I'm trying to give you a strong sense that we've got a two to three year game plan that's well in focus. It's starting to bear fruit. It's a slow grind to open up optionality and cost improvement. But the 406 interventions on procurement, equipment, on our maintenance strategy and the like will start to bear fruit through this year. So I think I think we're going to see a year ahead of us now where we target in 500 to 530 odd ounces and our cost structures are still going to be in the 1400 to 1500 range. But as we work the problems and open up flexibility, we start to daylight improvements both on the volume side and on the cost structure side coming into next year. But I think there's a really strong culture emerging at the operating level on buying into the medium-term to long-term strategy and the benefits of the current changes underway on systems and approaches to how we do things. And I'm confident that we'll get an incremental improvement through this year, quarter by quarter, hopefully. But it's not without its volatility and it's not without a challenge in macro context that we have to really lift our game to address. But all of this is about the long-term optionality and the quality of this whole body and doing justice to that and being prepared to do the spend right now while we've got healthy prices to set us up for long-term value extraction. So with that, let me hand off to Grant to talk about recycling and equally challenging context. Thank you.