Sibanye Stillwater Limited

Good afternoon and good morning, ladies and gentlemen. Welcome to our H1 2023 results presentation. Just a few comments up front. This has been another period of our results being impacted negatively by one sort of events, some of them self inflicted and some such as the extreme weather event in Australia, an act of God or For those of you who believe in climate change, also self-inflicted by humanity. The economy and hence the running of mining operations is in a particularly tough place globally at the moment. And there could well be a downturn as we see it for some time. Remember, we referred to these more as pandemics. And this is where our anti-fragility culture or differentiator stands us in good stead, as you will see from the title. of the presentation our anti-fragility differentiator is creating significant advantage to our peers for reasons that i'm going to outline in the first section anti-fragility for those of you who are wondering what it means and i took this definition out of wikipedia is something that does not merely withstand a shock but actually improves. Anti-fragility is beyond robustness and that is a culture we drive within our company. Please take note of our safe harbour statement. I'd like to now discuss the agenda. I will continue with the introduction and cover the changing environment or what I call the anti-fragility section. The chief regional officers will present the operating review for each region separately. Charles will continue with the financial review and I'll complete the formal delivery with a brief conclusion. As you know, A company is all about the people. We've had some changes in the C-suite and some new executive management appointments. Darby Mostert left us. Timber and Corsi has stepped in as the chief organizational growth. officer, in other words, driving the strategic aspects of HR. And we are looking to fill the sustainability position, hopefully with a woman. Robert Finico, in addition to his technical and innovation responsibilities, has taken responsibility for the Australian region. And then with the resignation of Wayne Robinson in the U.S., Kevin Robertson has been promoted to executive vice president for the US PGM operations and Charles will cover that in more detail and very pleased that we have deep bench strength that we can make these changes relatively quickly and really what you don't see is the structures and the number of really good people we've got in our organization below these levels if we could go on to the next slide this is our strategy um it's built on a strategic foundation um the essentials are our primary focus 80 to 90 percent of our our focus is on our operating business and then of course the differentiators in the area where i'm going to really focus today is highlighted in the red ring. That's about building pandemic resilient ecosystems. We shared the strategy with you before, so I'm not going to go into the details, but pandemics, we define as certainly COVID-19 was a pandemic. That's a vanilla pandemic in the sense of it's a viral pandemic. The Ukraine invasion we've referred to as a pandemic. And I think the current global economic crisis is the next pandemic we're dealing with. And if you deal with pandemics and you prepare for them well ahead, you become anti-fragile, which is really the theme we want to talk about today. But of course, this is our results. And let me just move on to the salient features. And very pleasing, significant operational recovery at our gold business contributed to H1 earnings, cushioning the impact of softer PGM prices. And you are now starting to see in practical terms the counter cyclical characteristics of gold having been confirmed and something we've alluded to previously and this is enhancing our portfolio the south african pgm operations another consistent and really solid performance load curtailment and the strategy around that richard will cover that very well managed um industry leading cost control with a nine percent increase i want to say only a nine percent uh increase a lot lower than our our peers and you will see from some of the graphs i'm going to show you we very well uh positioned for the anticipated uh price weakness in terms of the us pgm operations unfortunately impacted by the shaft incident at stillwater west mine which you won't see the progress being made in our results. I do because I go to site often. But we were proactive in repositioning this business in 2022 already for this changing environment and creating sustainable value. Ongoing skill shortages are still impacting productivity, and I'm going to show you again a practical map of the number of jobs and the number of positions available across states. In terms of the European region, we started our lithium refinery. I'm going to talk more about that. Received the permit for the concentrator and the second mine. Our rights issue, the equity component of funding the project capital is now concluded. Our partners, the Finnish Mining Group, has increased their stake to 20%, contributing to that number. And the balance of that funding will come from debt. So effectively, it is now fully funded. We continue to have challenges at Sandoval. They're being addressed. Mika will talk more about that. Our feasibility studies on PGM AutoCat recycling in Europe battery recycling and conversion of that plant to a nickel sulfate plant will be completed in the second half of this year. In terms of our financial position, strong balance sheet, our net debt is only R262 million, which translates to a 0.01 net debt to adjusted EBITDA. We did declare an interim dividend. We are very mindful that the dividend yield is low. You have my commitment to review this at year end. Depending on market conditions, we will look to again re-establish a leading dividend yield from our dividend policy, but that's a final dividend decision at year end. All right, embedding ESG. This is not just greenwashing. Our tailing storage facilities conformed with the GISTM audits. We have advanced our renewable energy program with a commitment to 89 megawatts of the castle wind farm, first step in our carbon neutrality journey. And then very pleasingly, when we start looking at our safety strategy and how it is improving our port performance relative to our global peers, I'm going to cover that, in fact, in the very next slide. So all in all, a reasonable H1 impacted, as I said, right at the beginning by one-off events. So let's have a quick look at safety. As you can see, this is the ICMM peer group. The 2021 peer ranking is the top graph, and you could see we were not in a good place. In 2022, you can see how we have, despite our deep level high risk mines, we've being clarity in that these are real issues. I think on climate change, climate records are being broken literally every day, every week. And if anyone ever doubted global warming, I think you really need to look at some of these trends. Global carbon emissions being covered by active carbon pricing initiatives, are increasing exponentially. And of course, this is the fundamental driver of the metals business that we are busy building. So we gain confirmation that we're in the right place, unfortunately, due to climate change. In terms of big squeezes, again, becoming very apparent, increasing scarcity of raw materials. is putting a huge premium on these materials i'm going to show you our entry points and what the pricing looks like today but more importantly the stewardship related to the responsibility of producing these metals is increasing on miners and being involved in recycling And recovery of these metals from waste is becoming a global imperative. And again, I want to say we've been early adopters of that. In terms of angry people, well, we've just experienced a very disruptive period in France with strikes and riots. that impacted on sand level was not the only issue. Mika will cover that in more detail. We fully are aware and sensitive to the social tensions in South Africa, but well positioned to manage that. And I will share a bit more on the South African landscape in the next few slides. In terms of multipolarity, very interesting. We are very pleased with having established ourselves in North American and European ecosystems. We are starting to see the geostrategic importance of Africa with its mineral wealth intensifying. Again, early adopters of being in the right places at the right time. Just on the South African political landscape, it's evolving rapidly. I want to say, first of all, all credit to the Centre for Risk Analysis. And I would urge you to, if you're not familiar with this scenario planning in terms of the changing South Africa, I'd urge you to make contact with John Endres, the CEO. Of course, this is not predicting an outcome. It's actually understanding the possible outcomes that are in front of us with a 2024 election looming next year. The Buffalo is the ANC and you can see there were phases where the Buffalo was charging. We've moved from a developmental phase or first age to a second age being detrimental under the leadership of Zuma. And we're now in the third age, which is an emasculated stage, which is why I am let's say, motivated as business that we can make a difference. And there are various outcomes. We can go back to a detrimental phase, we can stay in an emasculated phase, or we could move into a very constructive lean phase. You'll see references to hyenas, you'll see references to wild dogs, and clearly it's about being prepared for these changes that are coming. If we can go to the next slide, which really just encapsulates what I said about in an emasculated phase, business does have the ability to influence outcomes and should be influencing outcomes. And what you see here, and I'm not going to go through the detail, are the structures that have been put in place together with government to address energy, transport, crime and corruption. And these structures emulate what was put in place for the vaccine challenges around COVID-19. And as you know, we had a very successful outcome in business and government working together to deliver vaccines to the nation. This is in the national interest. And I do believe all these work streams are making and are going to make a very significant difference, which makes me a lot more positive about South Africa and our future. As I said, I would just include a slide showing the skills shortage and the challenges in the US. You can see all the shaded states have more jobs than people. For instance, in Montana, there are 46 people available for 100 jobs. And that's our challenge in our US PGM segment. It is changing. We've got some smart initiatives in place. But if you want to summarize, there are currently 9.8 million open jobs in the US and only 5.9 million unemployed workers. I really wish South Africa was in this situation, but it's got to. its own challenges, but I think this represents, it's not a unique Sabania Stillwater issue in Montana. It's a national US challenge. It's only Washington, California, and New York that has sufficient people to fill openings. So what I want to do is just work through each one of these in terms of the operating context that we find ourselves in, high mining inflation, the potential for impairments across the industry, and of course, restructuring. We are preparing for a prolonged and possible PGM down cycle. Load shedding and curtailment is affecting South Africa, being very well managed by my team. I will cover that. The global call for lower carbon footprint and better TSF management. We've delivered on that. The critical metals or the green rush with regional incentives driving multipolarity. And then, of course, this becomes an opportunity for those companies that are well positioned to drive value accretive and well-structured M&A. And I'm going to refer to some of the M&A we've done and being early adopters and having an anti-fragility culture has put us in a really good space. Thank you. Let's just move on to the first one. So high mining inflation and potential impairments. What... What have we done about it? Well, we have timeously restructured and closed end-of-life shafts at Kruendal, Rustenburg and Morricone in 2016 and 2019. And then some of you would remember we closed Beatrix foreshaft in 2022. That is just the nature of owning mature assets and being proactive in terms of avoiding cross-subsidization. We've executed integration across our new acquisitions, realized synergies, and we've moved our assets down the cost curve. I'm going to show you that as well. We've proactively repositioned our US PGM operations in 2022. you would remember in anticipation of PGM price weakness, in addition to some technical challenges that we had. So let's just look at some of those things. There's the cost curve. You can see where most of these assets were sitting on the right. Four of them are really in a good place. There are some areas at Marikana that need attention. I'll show you that. And then, of course, Stillwater was impacted in this period by the shaft incident. And of course, that is not a true reflection of its potential. And I would hope in the next year to 18 months, you will see it in a very different place on this cost curve. So let's look at the next slide in terms of this is the South African PGM business, and you can see there's a very small part of it that needs, let's say, to to be optimized for sustainability. We are busy with those processes. Richard will talk a lot more about some of the long-term life of mine planning we've done, and I think you will find it particularly pleasing. But we are proactively looking at these things and have been prior to spot prices moving down to these sort of levels. On the next slide, you will see the same approach for our gold business. You know, the market generalizes about our gold business being high cost, unprofitable, but you can see there's a very large portion of it that sits below the spot price line. Clearly, those areas that are sitting above are being addressed and we are considering a number of scenarios and we will look to provide more guidance in the next few weeks. But again, just because of a high gold price environment, we're not sitting on our hands. So preparing for a possible down cycle, what have we done? Well, you've just heard me talking about optimizing operations for profitability. We've had a disciplined, transparent capital allocation framework, which we've stuck to for a good number of years now. We have financial flexibility, a strong balance sheet. We have restructured our debt recently, low coupon bonds, and the dollar RCF was increased to $1 billion in April 2023. And both our RAND and dollar RCFs are undrawn. Our multi-commodity portfolio diversifies our risk exposure as well. So let's look at a couple of slides setting that out. There's our net cash or net debt to adjusted EBITDA. You can see we've been in a net cash position for some time, but we're still in a very strong balance sheet position with our net debt just at 0.01 net debt to adjust the EBITDA. Next slide, please. In terms of our capital profile, even with Calibre, Ryalight Ridge is not in this graph, but with Calibre, as I mentioned right at the beginning, the equity portion of the funding has been raised and the balance will be in debt and that's very manageable. I just want to point out if you think you're going to add a capital hump on for Ryalight Ridge, I want to point out that the purchase price is meant to cover the capital. Of course, we don't know exactly what the capital cost is gonna be. That feasibility study is being completed, but certainly the acquisition price is designed to cover the capital. So please keep that in mind when you model our company. Next slide, please. I'm not going to go into the details on the left, but suffice to say, PGM basket prices, whether you look at them in 4E or 2E, in 4E they're down 41% to date. In 2E, which is our North American basket price, it's down 27% year to date. That is very, very significant reductions in our revenue line. Next slide, please. Obviously, the demand side needs to be well understood. Again, the bullets on the left hand side underpin what we see is effectively a balanced market now in 2023. So we don't see a lot of demand drivers despite light vehicle production having increased or forecast to increase from 80.6 million units to just under 84 million units. So nevertheless, we have taken a prudent view and believe at best the market will be in balance. So let's move on to load shedding and curtailment affecting South Africa. Our South African operations, as I said, were well managed. There were no stockpiles or major buildups in infantry at the end of the period. We now have a renewable projects plan of over 600 megawatts with the first 89 megawatts wind farm project having now reached financial close. Very pleasingly, our first concrete step in investing in assets to ameliorate load curtailment and of course address our carbon footprint. Next slide, please. So this is just a picture of the earthworks taking place for the Newcastle Wind Energy Project, which achieved financial close in May 2023. And of course, there's more to come. Thank you. Next slide, please. In terms of a global call for low carbon footprints and better TSF management, Well, of course, our PGMs and battery metals contribute to a greener future. So that's fundamental and is a foundation of our business. We're on track to meet our carbon neutral target by 2040. And we had a very successful outcome, as I've mentioned. to the global tailings standard with all very high and extreme consequences TSFs in our South African and US regions conforming to the standard. So very pleasing. This is a slide you should be familiar with. It shows our planned decarbonization pathway, aiming to achieve carbon neutrality by 2040. What is new on the slide, however, is that we've increased our renewable energy plan to over 600 megawatts of solar and wind projects. And you can see it set out on the right hand side of the slide. Again, I'm not going to go through it in detail, but this is a slide you're familiar with and has really just been enhanced with additional commitments. All right, the critical metals or the green rush, as we're calling it, with regional incentives driving multipolarity, or you could say multipolarity is driving regional incentives. Either way, we're well positioned. We acquired and consolidated our calibre stake. um well ahead of the lithium price surge uh lithium is going to be in short supply over an extended period we absolutely convinced that in fact there's not going to be enough lithium to meet the uh projected demand for battery electric vehicles so we're in a good space we commenced the construction of the refinery in finland We also entered into a JV agreement for Ryle Heart Ridge, well ahead of the lithium price increases. The Inflation Reduction Act, and again, very pleased that we targeted the North American ecosystem, is benefiting our US PGM operations already. From the end of this year, we'll be getting a credit of 10 of qualifying production cost and that's going to be in place for 10 years we've taken an initial estimate in these financials um but i think we've been very prudent and then of course The IRA advantages for our light, which we've also seen through a $700 million conditional funding from the Department of Energy in the US. So let's just look at a couple of slides on this. They're the two ecosystems, North America and Europe. If you start on the right-hand side of the slide, when we made our first entry into calibre, the lithium price today, even after having come off a bit, is 447% higher than our initial entry. If you go to the left-hand side of the page and you look at the Raya Light Ridge investment, you can see it's still 83% higher for lithium carbonate than when we made those entries. I'm very optimistic about the Raya Light Ridge project as well, and I'll cover that in some detail. So the Calibre project is being built. James has indicated to me that many analysts do not include the, let's call it the value of Calibre, but they include the capital. That just doesn't make sense. Yes, it's a new project. Processing might be tricky, but there's very little risk to this project. So I would ask the analysts to really start giving us credit for something that is already happening. In terms of the Rye Light Ridge Lithium project, myself and some of the technical team, together with the US team, spent time on site. This project has advanced. The permitting risk has decreased significantly with the revision to the mine plan, with the South Basin now not impinging at all on the buckwheat. There's very significant upside potential as well, not only in the North Basin, where we've agreed with Ioneer to continue with some exploration, which we will fund. In addition, in the South Basin, there's additional potential, which we hope to explore shortly. i think that's all on the base of as i've said earlier the commitment from the department of energy for a conditional loan of 700 million dollars so um both lithium projects in a in a really good space um of course remember rye light ridge should be a low cost producer even though the grade is low because of the boron credits and I just wanted to make a comment. We have been involved in a number of assessments in Africa, and it is very clear to us that Africa is emerging as a key player in the energy transition. And in fact, there's a bit of a tug of war going on between the East and the West. And certainly I want to make it clear we are a Western facing company and we look forward to bringing some of these resources to account for the West. And this will be an interesting landscape that is going to evolve. So I wanted to conclude this section just talking about value accretive and well-structured M&A. Of course, you know, I'm very proud about what we have achieved as a team in terms of our PGM acquisitions. And I will remind you of that again in the next few slides. And in fact, these acquisitions have paid for themselves multiple times over. And I think there are many, many examples of assets that never pay for themselves, which is why some companies don't embark on M&A. I think it's a strong point of ours. And of course, we will continue to look for value accretive opportunities. Approaching value driven growth with smart structures and innovative financing is something that I need to bring to your attention. We do not really like competitive processes because you end up being sucked into the hype. You end up being sucked into overpaying or you lose out because of your positioning around what is fair value. The sort of structures that have worked very well for us And all the sort of structures you will see us implementing, and there's many good examples, is where we invest in the assets rather than buying assets from shareholders. I've just spoken about Ryalight Ridge. Calibre was a similar investment, predominantly investing in the pre-fees and the feasibility studies, exploration. and rather investing in the ground. There was some shareholder takeouts, but investments in Africa, for instance, in Mopani, are not going to be paying shareholders up front, as an example. Probably the best example of smart structures is Rustenburg Platinum, where there was an earn-in both Anglo and ourselves did extremely well out of that structure. Those are the type of structures we think of and implement. Obviously, partnerships are important and that enables optimum value creation. So let's look at a couple of the underlying slides in this. You all know the sigmoid curves that have taken us to where we are. I want to point out and I really want you to focus on the red areas there. We initially leveraged our operating skills for commodity diversification. In other words, we did well in turning around the original Goldfields assets that gave us the credibility to move into PGMs, utilizing our core skills. Once we had done that and established a bit of a base in PGMs, we were able to leverage those exact same operating skills in a new commodity to move into the US and start our geographical diversification. And you can be critical. of still water, but it's paid for itself. And please remember that with probably still another 30 or 40 years of life. What we learned in moving into the PGMs was doing things somewhat different to our peers in this industry. we and we realized there was a lot of benefit in terms of understanding the value chain and moving down further to the end user and hence we leveraged our market and value chain knowledge to diversifying to green metals tailings and expand recycling and i'm going to come to that stewardship of those three elements now but moving downstream is a very, very important part in terms of the business we are entering into. So, as I said, when you understand there's a big squeeze, when you understand the importance of decarbonizing the planet and that the metals are a critical constraint, the intention is not to abuse it, but to embrace resource stewardship. And it's not just through primary mining. In our view, you can't be in the sector if you only are conducting primary mining. So as you know, over a period of time, we've built our secondary mining business that now has Two Legs, DoD Gold and New Century Resources. And of course, we are in the recycling business in Montana with Auto Catalyst, one of the biggest recyclers in the US. But we are actively exploring opportunities for further recycling of precious metals and of course, ultimately, electric vehicle batteries. So that's a very important concept and it does move us downstream in a responsible way. We are not going to build gigafactories. We may invest in gigafactories in a small way, but this does move us downstream. Next slide, please. So if you look at our timing in terms of our entry into the PGM business, it couldn't have been better. And that's really the only point I'm going to make. And when you couple that with our early entry into the lithium market, again, I think you can see a track record of doing things at the right time. Next slide, please. This is an interesting slide with two key messages. We fully understand our current multiple and what causes that. But you can see when you look down the multiple column, you can see diversified companies do attract a better multiple because they are less risky, less exposure to market cyclicality. And then, of course, as you move downstream, you also see an increase in market multiples. So that bodes well for us. The one aspect on this slide in case You didn't think payback of all our assets was enough. If you compare our return on invested capital to some of our peers, you can see that in really good company, we have also provided a better return to our shareholders in terms of invested capital. So the strategy, the concept of moving slightly further downstream bodes well for us, our returns to our shareholders. um through doing things at the right time in the commodity markets has provided very significant benefits doesn't matter how you measure it next slide please this is a an interesting slide and um The critical minerals that we are focused on are a very small part of the metals market. So if you interpret my comments as we are trying to emulate a Rio Tinto, an Anglo-American or a BHP, we are not. If you follow these bars, you can see iron ore, all other metals translates into the orange stacked bar, you know, with aluminium, manganese. Copper, of course, is a significant block. But when you move into the little green block at the bottom, and I probably should highlight nickel at 2.8 million tons. If you move into technology and precious metals, it's that little green block expanded into the bigger green block. You can see the type of metals that we are looking at. And if you expand the precious metals into golden PGMs, you can see it's a tiny portion. My point is this. that this is a very small market, even including lithium in the bottom middle of the green block and copper, which we see as a critical metal. We are still operating in a very small segment of the market. It's a niche part of the market. And although we're going to be diversified, we're not trying to diversify like your traditional diversified mining company. So hopefully that's also useful in understanding our strategy and where we focused. Thank you. So at this stage, I'm going to hand over to the chief regional officers.

um to go through their regions in in detail and the first one up is richard stewart thank you richard good afternoon ladies and gentlemen and thank you very much neil i think as is always the case at sebanya we'll commence this part of the presentation with safety I think as Neil has highlighted, the year-on-year progress in terms of our safety from 2021 to 2022 has been very pleasing. Clearly, however, we are still on a journey where our ultimate destination is about zero harm. And the first step in terms of the first milestone in that journey is around eliminating fatality sustainably from our operation. I think it's pleasing that a lot of the momentum from 2021 through into the first quarter of this year, but very disappointing that on the 31st of March and into April, we experienced three fatal incidents across our operations. One at Burnstone, where we tragically lost four contracting colleagues and two at Audrey Fontaine operations. The way we are addressing eliminating fatalities from our operations is through our fatal elimination strategy. This strategy is a fundamental risk approach. that really revolves around identifying the highest risks that can result in fatal incidents and mitigating these risks through critical controls, critical life-saving behaviors and management routines. I think what does give us a level of comfort is that when we look at the incidents we've experienced, both fatal incidents as well as high potential incidents that we analyze, we have noted that all of those could have been avoided with the exception of burnstone had our critical controls behaviors and management routines been effectively implemented all of the time this does give us a level of comfort that we have developed the right toolbox to eliminate these fatalities i think when i sit back and reflect on it i see how our safety journey in the company over the last few years has developed from being safety as an operational focus to safety as a strategic essential across all aspects of our business, to now having the toolbox in place to mitigate risks. Clearly, our immediate focus is on ensuring that that gets embedded throughout the organization and truly delivers on our safety first strategy. I think what gives me comfort that we are making progress on that journey is looking at things like self-stoppages, where for the first time we have now seen the number of self-stoppages, in other words, our crew, frontline crews, frontline supervisors, making more safety-related stoppages than what is made by safety departments or management. This to me is an indication that our teams are truly becoming empowered, enabled and engaged to exercise their right not to undertake any risky work. And through that, we will block the path to fatal incidents occurring on our operations. I think another pleasing trend is the continued decline in our serious injury frequency rate, which often the incidents that result in serious injuries are the same incidents that could be more serious resulting in fatals. And seeing this constant decline in many of our operations today delivering the lowest serious injury frequency rate we've ever seen does tell us that we are on the right journey, that our commitment to eliminating fatalities across our operations remains our absolute number one agenda. Many of you will recall that I sat here in February of this year and indicated that if we saw a continued increase in the level of load curtailment that we saw during the second half of 2022, and we did not respond to it in any way, that the impact of load curtailment could be as high as 15% on our business. Well, I'm very relieved today to say that that has not transpired, and it's not transpired for two reasons. Firstly, Our forecasts of what load curtailment could have been based on the end of last year, the actual curtailment levels have been lower, albeit we have still experienced more load curtailment this year than the whole of last year, but it is lower than what we forecast. And that is largely down to three things. Firstly, ESCOM's Energy Availability Factor, or EAF, has increased from 50% to 57%, and they've also expended a lot more in terms of diesel to keep the lights on. Both of those remain high risks and we continue to monitor them carefully. I think a more pleasing and sustainable impact has been the response from the private sector and private individuals, where we have seen solar capacity more than double over the course of this year and currently sits at about 4.4 gigawatts of power across the grid, relieving energy curtailment at least during certain times of the day. Taking that lower curtailment forecast combined with what we've done internally, which has really been around the development of a digital model that has allowed us to simulate and predict the optimal load curtailment response actions. And really what that means is we can still deliver ESCOM's requirement for curtailing our load, but doing it in a way that ensures the best possible financial outcome from our business perspective. Utilizing this tool together with some of our competitive advantages, such as having spare processing capacity, particularly at our PGM operations, has allowed us to minimize the impact of load curtailment quite significantly. And during the first half of the year, we saw 2% impact as a result of load curtailment, which was significantly lower than it could have been, and very pleasingly did not have any stockpile or at the end of the half where we managed to treat all of that. At our gold operations, due to additional redundancy, load curtailment doesn't impact on production output, but does impact costs. And again, pleasingly, those costs were significantly less with the implementation of our new load curtailment model. I think this model is a true testament, not only to our key value of innovation in the company, but also a testament to the resilience of our operating teams in the face of some real challenges. As we move on to our PGM operations, I think fair to say that our PGM operations are steady and had a very solid performance again during the first half of the year. Compared to the same period last year, we were marginally down 3% down on production, came up just under 800,000 ounces, excluding third-party material. And that decline was largely planned as a result of the closure of the Sumonier shaft at our Kruendal operations. I think also pleasing has been our response to copper cable theft. Last year, you would recall, I indicated that cable theft, in fact, had the same impact on production output as what load curtailment did. But very pleasingly, during the second quarter of this year, we saw for the first time in several quarters a decrease in terms of the impact of cable theft through the commitment of our protection services teams and operating teams coming up with innovative ways across the country. In terms of cost management, PGM operations sustained an exemplary cost management coming in at just under R20,000 before he answered an all-in sustaining cost basis. And although that is 9% higher than the corresponding period last year, That does, of course, come with slightly lower production, but considering that mining PPI over the same period was well above 15%, that performance saw us continue to move down the industry cost curve, with these operations truly becoming highly competitive in terms of costs and margins that are produced. Adjusted EBITDA was down 44%, largely as a result of a 22% lower basket price that was received, and that came in at just under 12 billion rand. What will provide some relief this year is that we made our final payment to Anglo-American in terms of the Rustenburg earnout at the first half of this year, with any free cash coming from Rustenburg now being for the benefit of those shareholders, including our minority shareholders at Rustenburg. And finally, we are looking to conclude our Crandall wage negotiations in the coming weeks. I think what has been particularly pleasing over the last couple of months is the work that we've done on developing what a long-life PGM life of mine profile could look like. I think many of you will recall when we acquired these operations, in particular Morricano and to a lesser extent Rustenburg, In order to maintain a production profile with the plans that we acquired them with, required significant capital investment. At Morikana, it was about 12 billion rand over four or five years. And this was clearly something that, given the market conditions at the time, we did not want to tolerate. That meant we developed our own plans that required significantly less capital investment. Kruendal, likewise, had a short life of mine up until 2026 at the time. This did, however, lead to, I dare say, a perception that these were short-lived assets and actually nothing could be further from the truth. These assets still have significant resources. We have, over the last few years, been working through several projects, completing feasibility studies, and what we are showing in this profile is just some of those projects that have been completed, most of which are brownfields projects and therefore requiring relatively low capital intensity to develop. But what this profile shows, and we'd certainly share more information with the market in the coming months, but is that we can comfortably sustain a business of well above 1.5 million ounces for well in excess of 10 years. Then finally, moving on to our gold operations, clearly compared to the comparative period of last year, a significant turnaround where the first half of last year was impacted by the industrial actions. At our gold operations, we produced about just over 416,000 ounces of gold during the first half of this year. And as Neil mentioned, counter-cyclical, where we saw a 22% decrease in our PGM basket, at gold we saw a 22% increase in the gold price. Gold was produced at an all-in sustaining cost of just over a million rand per kilogram during the half. Our goal has been a bit of a story of two tales. I think post the H1 closure, we have suffered two significant events. The first one was a fire at our Driefontein 5 shaft that occurred on the 12th of July. This also impacted Driefontein 1 shaft for a couple of weeks. But I'm very pleased to say that we have started ramping up production again at 5 shaft with crews going underground and that production ramping up again. We do forecast, however, that this could have an impact of about 900 kilograms relative to the original guidance given for the full year. In addition to the fire, we have suffered significant levels of seismicity across several of our operations, most notably Dreyfontein 4 shaft and Dreyfontein 8 shaft, but also at Kluwerth 4 shaft. At Kluwerth 4 shaft in particular, The increase in seismicity has impacted our flexibility and essentially increased the footprint that we've needed to mine in order to sustain output. And that in turn has compounded cooling and ventilation constraints. We also announced that on the 30th of July, we had a very unfortunate incident to a foreshaft where the counterweight to our conveyor system got caught in the shaft, unknown on what it was caught. However, that fell down the shaft, creating damage below 39 level to 46 level. And as a result, that has ceased production at that operation. We are currently still assessing the impact of this incident combined with the seismicity and cooling and ventilation constraints that and for that reason have included no further production from CLR4 for the balance of this year. So our gold operations are really a story of having a few shafts which have had some real challenges regarding seismicity and the fire. However, the rest of our operations pleasingly are producing as expected in that plan and generating good profits at current prices. Thanks very much, and I'll now hand over to Charles.

Thank you, Richard. Our first half results in the U.S. were unfortunately negatively impacted by the Stillwater Shaft incident, which we fully communicated to the market at the time. In addition, as Neil has noted in his earlier comments, we are experiencing an ongoing skills shortage amongst miners and mechanics in particular. This is due to an exceptionally tight labor market in Montana with unemployment at around 2.4%. and those with technical skills being spoiled for choice on new mining opportunities elsewhere in the U.S., as well as non-mining employment opportunities in Montana, such as construction and infrastructure build. We are starting to get some success with new recruitment and retention strategies, and we are also focusing on longer-term initiatives, such as in-house training of mechanics and miners to build a skills pipeline for the longer term. At the same time, as you're well aware, we've experienced sharply lower 2E PGM prices, which has reduced cash flows while we still have been set on maintaining development spend so as to create greater flexibility in our ore bodies at both Kilwater and East Boulder over the median term. As we lift volumes through the remainder of the year, we will see lower unit prices while we are also reviewing all aspects of our spend so as to better position the business potential lower prices going forward. As Grant will cover shortly, 3E recycling volumes have also been sharply reduced through the past six months, in keeping with an industry-wide recycling slowdown in North America. The six months saw mine 2E production of 205,513 ounces. This 11% lower production was attributable to the Stillwater shaft incident, which saw an eight-week stoppage which largely impacted the west mine, while East Boulder continued to experience skill shortages and some continuing difficult ground conditions that reduced production as against plan. And all in sustaining cost of $1,737.02, which was 27% higher due to lower production and higher development costs, is now being turned around through the remainder of the year. In July and through August, we have seen higher volumes at Stillwater in particular, and we are working hard to get East Boulder back on plan. So we are expecting a second half that tracks back to plan with a better production and cost profile at both operations. You will also see that these results have started to estimate a production cost credit that flows from the Inflation Reduction Act that has been legislated. Although we are still awaiting detailed codification from the IRS to amongst other regulators on its specific treatment for our business. So we have been conservative in its application until such time as we have firm guidance from the regulators. Before handing over to Grant Stewart to talk to recycling, let me just acknowledge Wayne Robinson's retirement and note that I'm excited by the addition of Kevin Robinson to America's team. Neil has reflected on the leadership changes, but let me add that Kevin brings a wealth of geological and mining experience to his new role, and he has hit the ground running as we work hard to return these operations to plan through the remainder of the year. Thank you.