Sibanye Stillwater Limited

Okay, good afternoon, good morning everybody. Shall I check we're online? All good, thank you very much. Good afternoon, good morning, evening. Those joining us online, welcome. Just before we kick off with the formal part of the presentation today, please just take note that obviously there are a lot of forward-looking statements, so please note the safe harbor statement. Before we kick off, listen, I would like to just invite George Katsia, our head of safety, perhaps just to share a safety moment with us. It is how we start all of our meetings in Sabania. So, George, over to you. Thank you. Thank you, Richard.

Good morning, good afternoon, good evening to everybody online and in person. Thanks for the opportunity. I think before we begin the formal session, Richard has asked me to do an opening safety moment. And I'd like this opportunity to reflect on the recent Nepal flooding catastrophic incident that we have seen. I was reading last night that as of yesterday, 950 people have passed and there were still around 4,400 people missing. And we do extend our sincere condolences to all involved. An absolute tragedy. What started as an unexpected rock and ice collapse rapidly escalated into a devastating disaster, reminding us that catastrophic events often emerge from hazards that are unseen, poorly understood, or outside our current experience. Within Sabania, we have seen that approximately 90% of our fatal incidents are linked to our 18-group minimum standards. These are known fatal risks and reinforces the importance of regalously applying our critical control management process, verifying critical controls, critical life-saving behaviours and critical management routines every day. These are all included in this fatal elimination booklet that has been signed off by each and every person in the company and contractors committing themselves to these standards. but there's also another important reality. Approximately 10% of our fatal incidents occur outside these known standards. These include both in-service and criminally related loss of life incidents and we have seen of that of late in the company. These are the events that challenge our assumptions, expose blind spots and reminds us that not all catastrophic risks are visible on a risk register. The lesson from Nopal is that managing known risks is not enough. Catastrophic events often develop from weak signals, changing conditions, and hazards that have not been fully recognized or understood. So as leaders, our responsibility is twofold. Firstly, ensure our critical controls are effective for the risks that we know. And secondly, remain curious, vigilant, and courageous enough to ask, what are we missing? What has changed? And what could hurt us that we have not yet considered? Thank you. Thanks.

Thank you very much, George, and a real reminder of the very volatile times we're living in. But once again, welcome. I think thank you very much for joining us today. It's a real pleasure to be able to share our results with you. I think just as a very brief introduction, in January of this year, we shared with the market our refreshed strategy. Themba George Nkosi So just a quick sound bite. There are two or three parts to the strategy. The first one is the piece in the middle. That actually describes not what we're doing but who we are as our business. It's our purpose, it's our values, it's our stakeholder ethos. That hasn't changed. I dare say that part of the company supersedes any management changes or any external events. It's who we are, it's what makes us Sabania. So that hasn't changed. The left-hand side is what our short-term priorities are. In short term, we said a couple of years. That's strengthening the business fundamentals. And if I could just try and summarize that very high level, what we mean by strengthening the business fundamentals, it's getting our operating margins increased. We all know how we do that. Costs and production. We don't control price, but that's how we drive revenue. That's our operational excellence strategy. It's about improving our effectiveness and efficiencies through our operating model. It's about increasing our return on capital and enhancing management focus through simplifying our portfolio. And ultimately we identified two enablers, looking at a systemic approach, a real enterprise thinking approach, and through, I guess, what is the glue of our company, our culture, our performance culture of caring for people. If we got all of that right, then it comes down to we should be generating a lot of cash and how do we allocate that cash, our capital allocation model. And we shared with you we had three priorities. Shareholder returns, our balance sheet, reducing our debt and ultimately investing in the sustainability of the business. And if we got those fundamentals right, I think as a company we've learned the best way to grow is to be able to be agile and have flexibility with regards to time. You make your best growth decisions at the right time in the cycle, at the right assets where you can add value. That requires flexibility. So if we get that right, we'll have the flexibility to grow in a value accretive manner, which is the key point there. We also highlighted that we had a portfolio of assets that we already have within our existing portfolio. We don't have to go out and join expensive M&A sales processes. We actually have a portfolio of assets ourselves which we could develop that have significant value to us and that was our focus. So today what we're going to touch on and really I guess hopefully show you is the three boxes we've highlighted specifically around operations and margins, capital allocation and growth. How are we tracking on the strategy that we put out at the beginning of this year? Let me apologize up front. I do understand there was a delay with our results going out from the JSE. Unfortunately, there were some technical issues. So many of you may not have had a chance to digest the numbers yet. I do apologize for that. Not much we could do, unfortunately, but glad it could get out and we can at least be on time. But just to give you some of the real headline numbers, starting at the top with our first priority, safety. I do have a slide where I'm going to unpack that a lot more. But we've had a great safety performance, whether we benchmark it against our own history, against peers, how we're doing locally. We've actually had a great performance. However, we still lost colleagues in the second quarter of this year. And until we can eliminate fatals, we have not yet achieved our ultimate safety focus. We've had a spectacular run of commodity prices, absolutely. It has been a very volatile but a high-price environment for the first half, but also full credit to our teams with a solid operational underpin, highest revenue ever for the company for a six-month period. So that's very pleasing. Our EBITDA more than doubled. I think what's relevant to point out there, last year this time we actually had a big EBITDA kick because we, in the US, recognized two years' worth of Section 45X. If we normalize for that, EBITDA was up 200%, almost three times. But the one that matters to us, and if you saw that strategy, it was about cash and margins. That's what we can control and drive. Record net operating cash, a great achievement, and solid margins. Whether we look at EBITDA margins, whether we look at all in sustaining cost margins, you'll see later, we are happy with where we are competing today. And that's led to the value. So we are declaring a dividend today. Charles will share that in detail. And when we look at the yields of that, it's certainly one of the highest yields in the industry amongst our peers. We've had a significant impact on our debt, which was one of our big objectives at the beginning of the year. And we've also managed to fund organic growth. And today we'll share with you two new projects that our board has recently approved in Burnstone and Mount Lyle. So a very exciting pipeline of projects that we've got coming through All in all, I think a six-month period for which we are very proud and has certainly helped us progress our strategy, I dare say, a lot further than I imagined we would 12 months ago when we put that together. I do just want to touch on safety. There is a reason safety features in the introduction and not the operational sections, because this is our number one priority. Why? Number one, it's people. We are a people's business. Safety is all about people. The second reason is for me if there's one measure to tell you how well your business is doing, it's safety. To get safety right, you've got to have your infrastructure working, you've got to have your people working according to plan processes and delivering, and you need people to feel like they belong and are contributing to the safety culture. So to get this right, you've got three metrics you can see in one. And I think this is why that continued downward trend when we look at our lagging indicators is so pleasing. We've been on a definite safety journey for the last five years. We can see it's reducing risk. We can see it's having an impact. We do still have a way to go, of course. But certainly in terms of our historical performances and a lot of the improvements around us, we are very proud of this. Nevertheless, we had a fatal incident at our PGM operations in the second quarter, and we had one in our gold operations, also in the second quarter this year. So having gone a quarter fatal free, tragically the second quarter, we lost three colleagues. And our sincere condolences go to the families and friends of those colleagues, Kaniela, Tiborto, and Kulisa. A question we often ask, and we were actually asked this at a big industry safety day yesterday, is do we believe fatal incidents are preventable? And I put one point on that slide that I'd just like to unpack, because last week we celebrated a significant event. Our Driftwood Tain operations went one year fatal free. The reason I raise that, Driftfontein is the second deepest mine in the world, slightly shallow than Impening. That means it's got intense seismicity, it's got intense heat, it's got intense water. We put 7,000 people underground through more than 50-year-old infrastructure every day through three shaft systems. Arguably, on an inherent risk basis, that is probably the most dangerous mine If you want to look at inherent risk. But we've got the controls, we've got the methods, and we've got the people to prevent fatals in that environment. If we can do it at Drift Fontaine, we can do it anywhere else in our business. If we've got other mines that go for five or six years fatal free, we can do it across our business. Fatal incidents are preventable in the South African mining environment. We believe that as a company, and this demonstrates it. I think the last point I just want to make is you would notice, and George did mention it, we've lost three colleagues to safety incidents in our mines. We've also lost three colleagues to crime. Crime directly related to work. A loss of life is a loss of life. That is also preventable. And today, I want us to acknowledge those loss of lives. And I want us to appeal to all stakeholders Thank you very much. Thank you very much.