Impala Platinum Holdings Ltd

Welcome to the webcast presentation of our results for the six months ended 31 December 2024. I am Nico Muller, the CEO of Implats. This presentation aims to provide a high-level overview of our group's performance over the financial year. Before we begin, I draw your attention to our normal disclosure statement pertaining to any forward-looking statements that may be made today. I also remind you that detailed commentary is available on our website. I will start today's presentation with an overview of the group's performance, including safety and key features. This will lead into a more detailed account of operational performance of the group, presented by Patrick Marultwa, our Chief Operating Officer, followed by our financial results, presented by Melinisha Kerber, our CFO, and then Sofisa Shibia, our Group Executive for Refining and Marketing, will provide an overview of the PGM market before I finish off with our outlook for financial year 2024. Implex delivered strong production and commendable cost control despite navigating several serious operational challenges during the period. Safe production remains the Group's foremost priority. and we remain committed to our goal of achieving zero harm to health and safety of employees and contractors. It is therefore with great sadness that 86 of our employees were involved in an accident associated with a personnel conveyance at Impala Rustenburg's 11 shaft at the end of November. 13 employees lost their lives and a further 73 of our colleagues were injured in the incident. In addition, three employees lost their lives in separate accidents at our managed operations bringing the group's reported fatalities to 16 in the period. We mourn the passing of our team members. and extend our sincere condolences to the families, friends and colleagues. The results of the group's focus on continuous improvement in its safety performance are demonstrated in an 8.5% improvement in the last-time injury frequency rates during the period, discounting the impact of the 11-shaft event. Zero last-time injuries were reported at Mimosa, and notable safety improvements were achieved at Zimplats, Two Rivers and Marula. However, the magnitude of the tragedy significantly impacts most reported safety metrics. Zimplats is committed to building sustainable, self-sustaining and inclusive communities during and beyond mining, while also ensuring the viability of the business in a depressed metals price environment. Delivery against social and labor plan commitments is being prioritized during this period of constrained profitability, which has impacted beyond compliance social spend. InPlex's social performance framework is directed at four key focus areas. Community well-being, education and skills development, enterprise and supply development, as well as inclusive procurement and infrastructure development. Taken together, the group's social performance initiatives benefited more than 75,000 people and supported more than 4,000 employment opportunities during the period. The group again delivered an excellent environmental performance during the first half of financial year 2024. We met our targets for water recycling, and improved our carbon emission and energy use intensities through using more renewable energy, specifically at Zimplats. Good progress was made on the 35 MW solar power project at Zimplats, while bankable feasibility studies for a 30 MW solar project at Marula were also completed. Given the constrained operating environment, the group is assessing various financial options to implement the project, and Implatz is currently reviewing power purchase agreements for solar and wind projects shortlisted through its procurement program. Looking at the group's operational performance, production benefited from the maiden interim consolidation of Impala Buffer King, but notable improvements were also achieved on a like-for-like basis at other operations. Impala Rustenburg and Zimplatz anchored this outperformance while Impala Canada was successfully re-based in the period. Group 6E ounce production increased by 18% to 1.9 million ounces and was 2% higher, excluding the maiden interim contribution from Impala Buffer King. Refined 6E ounce production increased by 19% to 1.75 million ounces and was 4% higher on a like-for-like basis. as reduced load settlement in the period provided welcome relief. The benefit of volume gains and cost containment was offset by inflationary pressure related to rent depreciation, and the inclusion of the Impala Buffer King car space saw group unit costs increasing by 5% at our managed operations. Spend on our growth, beneficiation and decarbonization projects accelerated in the period with a 38% increase in capital expenditure incurred. The material retracement in PGM pricing was the defining feature of the group's financial performance. The benefit of the 12% increase in 6e oz sales volume of 1.7 million oz was fully offset by the 32% decrease in the RAND revenue basket. resulting in a 25% decline in revenue, while Implat delivered EBITDA of 8.4 billion at a 19% margin. We reported a 4.8 billion rand free cash outflow in the period, skewed by negative working capital movements and ones-off costs associated with the completing of the acquisition of Implat. No dividend has been declared. We closed the period with net cash of R5.2 billion. Merinisha will expand in more detail later in the presentation. Precious metal pricing continues to be heavily influenced by the uncertain global macroeconomic outlook and simplistically the outlook for US interest rates. The decline in dollar pricing has taken place despite a still robust medium-term outlook for our primary products. Discounted metal flows from Russia and destocking by auto OEMs and industrial end-users have caused pricing dislocation, a situation compounded by the impact of speculative flows in both platinum and palladium. While fundamental demand for our primary products remain robust, The current pricing profile requires a robust strategic response to ensure the long-term sustainability of the group. We have interrogated our planned capital profile, with several projects earmarked for deferral. Impala Canada initiated a restructuring and repositioned the operation during the period, and there is significant focus on the strategic options available to protect value at Impala Buffer King. While many group operations remain sustainable and profitable at the current depressed prices, several further actions may be necessary to ensure business sustainability in the medium term. Operating strategies are being evaluated at all operations. Our employees are the foundation of our business and we will thoroughly engage with all stakeholders and all optimization processes will be advanced with due care and sensitivity. Patrick will now take you through the operational review.

Thank you, Nico. Production metrics benefited from the maiden interim consolidation of Impara-Pafukem, but notable gains were achieved on a like-for-like basis despite several serious operational challenges. A step change in operating momentum at Impara-Rastenberg, together with strong production at Zimplet, helped counter lower throughput at Marula and Impara-Pafukem. Production from our managed operations rose 28% and was 7% higher on a like-for-like basis, excluding the ounces from impalpable gain. Volumes at our JV operations at Mimosa and Two Rivers improved 2%. Two long-term IRS contracts concluded in a prior period, and the base effect resulted as expected in a 33% decline in third-party receipts. As a result, our total 6E production volumes increased by 18% to 1.9 million ounces. Capacity at our processing operations benefited from reduced load curtailment, performing well despite the planned rebuild of our No. 5 furnace. including saleable ounces from Impala Canada and Impala Papua Cayenne group refined volumes increased by 19% to 1.8 million ounces. Unit costs benefited from volume gains and cost containment, which helped counter the impact of group mine inflation of 5.6%, as well as the impact of the translation of the dollar cost base of Impala Canada and Zimplet at a weaker exchange rate. As a result, unit cost increased by 5% to 20,334 rand per stock adjusted ounce. Our capital expenditure bill increased with the accelerated investment in replacement and growth project, the impact of the rand depreciation on spend in Zimbabwe and Canada, and the inclusion of Imbala Bafuke. Turning to the specific contribution from the different operations, operating momentum at Marula was impacted by safety stoppages following a fatal accident and industrial action resulting in a 12% decline in production. In Bala, Canada, repositioned and prioritized high-grade underground mining blocks, which offset lower mill volumes and enabled stable production. At Mimosa, 6E concentrate volumes increased by 2%, processing and plant stability improved and offset the impact of lower grade due to poor ground conditions. Two rivers recorded a 3% increase in 6E concentrate production, better grade and recoveries helped counter the constrained mining environment on the UU2 workings. Zimplet benefited from a full period of increased milling capacity and delivered a 9% increase in 6E mat production. Impala Rustinberg increased production by 11% to a five-year high, despite the loss of an estimated 30,000 ounces due to the 11 shaft accident, with pleasing gains at our growth shafts. A median interim consolidated contribution of 254,060 ounces in concentrate from Impala Wafuke was recorded, negatively impacted by safety stoppages and industrial action. Today, we published our major resource and reserve statement for impalpable bouquet, showing a significant positive impact on the group's attributable minerals resources and mineral reserves, which increased by 28% and 21% respectively. The average depth, grade, and amenability to mechanization of our mineral inventory has also improved. Following the continued retracement of rent PGM price in July 2023, a full review of capital expenditure was undertaken to trigger cash preservation and ensure positive free cash flow generation at each of our producing asset. The group is focused on ensuring residual capital is spent on addressing safety and regulatory requirements, ensuring asset integrity, and advancing our strategic objectives. A further review of near and medium-term capital expenditure is now underway at the Group. Mehrunisha Keba will now outline the Group's financial performance for the year.

Thank you, Patrick. Weaker PGM pricing was the defining feature of the group's financial performance in the period. Performance was negatively impacted by the combination of the retracement in US dollar PGM pricing, which more than offset the positive impact of a notable gain in sales volumes and a weaker RAND, resulting in materially lower reported revenue. The maiden interim consolidation of the cost base of Impala Buffer King together with several once-off costs incurred on the conclusion of the RB Platt acquisition. Mining inflation of 5.6%, which though moderating from the prior period, was compounded by the translation of the dollar cost base of Impala Canada and Zimplat at a weaker exchange rate, offsetting to some extent the benefit of lower royalties and the cost of metals purchased. In addition, we need to highlight the impairments associated with Impala Canada and our interest in the Two Rivers joint venture. The effective tax rate for the period was lowered by a deferred tax credit at Zimplat, which was partially offset by a change in the corporate tax rate in Zimbabwe. Collectively, these factors resulted in a decline in EBITDA to R8.4 billion and both lower basic and headline earnings of R1.80 and R3.65 per share, respectively. Group stock-adjusted unit costs increased by 5%, or R988 per 6 e-ounce. Group mining inflation of 5.6% at our managed operations contributed R1045 per ounce, while the translation of the dollar cost base of Impala Canada and Zimplat at a weaker exchange rate contributed a further 2%, or R380 per ounce. Impala Buffer King's consolidation resulted in an R818 per ounce increase in reported unit costs, with PGM in concentrate production as adjusted for off-take terms in the calculation of group unit costs. These increases were partially offset by the benefit of volume gains and the discretionary employee bonus payment in the prior period, which did not recur. On a like-for-like basis, normalized unit costs, excluding impala buffeting and the benefit of the employee payment, rose by just 3% to R19,516 per ounce. Maintaining an optimal capital structure and a strong and flexible balance sheet through the cycle remains a key strategic priority for Implat. Cash generation was constrained by weak pricing, significant transaction-related costs on the RB Plat acquisition, elevated capital expenditure, and several working capital adjustments relating to the timing of payment and the accumulation of in-process inventory. Capital expenditure increased by 38% as spend on our replacement and expansion projects accelerated and capex at our Canadian and Zimbabwean operations were impacted by RAN depreciation. Dividend payments of 1.8 billion RAN were made during the period to both Implat's shareholders and to the minority shareholders of Zimplat and Impala Chrome. 11.4 billion rand was spent on the acquisition of Arby Platt equity during the period, with a further 943 million rand incurred on acquisition-related costs, particularly related to the share incentive schemes. After accounting for the PIC housing loan and the Gold Stream at Impala Buffer King, Implats closed the period with net cash of 5.2 billion rand. Our committed RCF facility of 6.5 billion rand and 94 million dollars remain undrawn at year end resulting in closing liquidity headroom of 16.7 billion rand. Our capital allocation framework aims to deliver, sustain and grow meaningful value for all our stakeholders. As a reminder, we adjust free cash flow in each period for non-discretionary outflows and add back expansion capital. We then allocate the resulting free cash across three broad pillars of balance sheet strength, growth and investment, and shareholder return. The group realized an adjusted free cash outflow of 3.1 billion rand in the period. No interim dividend was declared in line with the group's dividend policy, which is premised on returning a minimum of adjusted free cash flow pre-growth capital. Safiso will now discuss the PGA market.