Impala Platinum Holdings Ltd

Welcome to the webcast presentation of our results for the six months ended 31 December 2024. I am Nico Miller, the CEO of Implats. This presentation provides a high-level overview of our group's performance over the first half of 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 will start today's presentation with an overview of the group's performance and the key features. This will lead into a more detailed account of the group's operating performance presented by Patrick Malhoutwa, our Chief Operating Officer, followed by the financial results presented by Melinisha Kerber, our Chief Financial Officer, and then Sofisa Sabia, our Group Executive for Refining and Marketing, will provide an overview of the PGM markets before I finish off with our key focus areas and the outlook for the remainder of Financial Year 2025. IMPRESS has intensified its efforts to cultivate a safety-first culture across all operations, including actions to highlighting care for your own safety, holding employees accountable, and improved teamwork. Eliminating fatalities and life-changing injuries remain core values that the group is determined to realize, in line with our vision of achieving zero harm. It is deeply disappointing that the safety interventions implemented thus far have not yet translated into a meaningful improvement in the group's fatality rates. A persistent disconnect between the steady reduction in the overall number of injuries and the severity of injuries remains a key challenge. It is with profound sadness and disappointment that we report five employee fatalities in four incidents at our managed operations during the period. In a period overshadowed by the loss of life, we acknowledge the improvement in safety delivered across our managed and joint venture portfolio. Excluding injuries related to the 11 shaft incident which skewed reported metrics in the prior period, the group's last time injury frequency rate and total injury frequency rate improved by 6% and 11% respectively. Implach seeks to demonstrate best practice in environmental management, guided by our environmental strategy and ESG framework. I am proud to report that we have achieved further progress in our sustainability journey during the period. The Phase 1, 35 MW solar plant at Zimplach was commissioned in the period and the Board also approved the $54 million Phase 2a of the project for a further 45 MW. In addition, a five-year renewable energy supply agreement was concluded with Discovery Green. This will provide wind and solar renewable energy for up to 90% of the electricity demand at Impala refineries. We also delivered a sound environmental performance with no major or significant environmental incidents. We seek to leave a lasting positive legacy in the communities in which we operate. and sustainability remains a key pillar of InPlace's strategy. Despite significant financial constraints, InPlace's focus on key, high-impact and strategic community investments was maintained as we invested in projects focused on community well-being, education and skills development, enterprise development and inclusive procurement, as well as the development of resilient infrastructure, which collectively benefited more than 42,000 people and supported approximately 3,000 employment opportunities in the period. InPlace delivered a commendable performance in the first six months of our 2025 financial year. During this period, we concluded a group-wide labour restructuring and adjusted the operating parameters at several assets. Lower volumes at each of Marula and Impala Canada were compounded by a build-up of inventory at Zimplatz, which offset the strong operational delivery at our other managed as well as joint venture operations. Group 6E production declined by 4% to 1.82 million ounces. Refined volumes, which include saleable ounces at Impala Buffer King and Impala Canada, benefited from increased available processing capacity despite intermittent interruptions to both water and power supply. Strong cost control, easing input inflation and a lower labour complement all supported our unit cost performance and we are reporting a 3% increase for the period well below mining inflation. Capital expenditure also eased meaningfully. Several replacement and growth projects were completed and were commissioned in the period, and we have transferred spend at Impala Canada to working costs in line with our group accounting policies. Strong operational delivery, higher sales volume, and excellent cost containment were offset by the continued weakness in the Rand PGM price, which impacted group profitability. We generated EBITDA of R6.5 billion, headline earnings of R1.9 billion and generated free cash of R639 million. Our balance sheet remains strong and flexible. We closed the period with adjusted net cash of R6.7 billion and liquidity headroom of R17.8 billion. I will now hand over to Patrick Marutwa, our Chief Operating Officer, who will take you through an overview of our operational performance in the year.

Thank you, Nico. We navigated a group-wide labor restructuring, elevated project activity, and changes in operating parameters at several of our assets to deliver commendable production and cost performance, turning to the specific contribution to group PGM production from the different operations. Production at our managed operations declined by 5%. Another operating result anchored on the strong performance at Rostenberg. where we maintained mining flexibility and positive operating momentum. Zimplets faced poor machine availability and power challenges. Concentrate volumes were around 2% weaker, but matte volumes declined 15%. This was largely due to the temporary buildup in concentrate due to smelter and converter commissioning in the period. At Canada, as previously communicated, the production profile is tapering on the shortened life of mine. Maruda struggled, and we continue to invest significant time and effort in supporting new leadership to deliver to potential. At Imbalaba-Fukeng, some really pleasing improvements as the risks were offset by challenges at BRPM and production losses due to safety stoppages in the period. Production from our JVs increased by 2%, encouraging to see stability returning at two rivers, and Mimosa remains a consistently strong operation for the group. Finally, lower third-party deliveries reflect the underlying contract mix at IRS. Refined 6E production, which includes saleable ounces from Impala Bafouquet and Impala Canada, increased by 2%, benefiting from increased available processing capacity despite intermittent water and power interruptions. Impala ended the period with excess inventory of circa 375,000 6E ounces, about 25,000 ounces lower than at year end. In December 2024, a decision was taken to expedite the full rebuild of Fenestri at Impala Rustinberg, while in early February 2025, further unplanned repairs were completed at Furnace 5. These events have resulted in constrained processing capacity in Q3 FY2025, and while the commissioning of the expanded furnace complex in Zimpers offers us increased flexibility to navigate these events, processing constraint will slow the previously anticipated release rate of excess inventory in FY2025. Capital expenditure reflects the material slowing in growth and replacement spent at the Group as major projects were commissioned in the period. Over the past five years, Inplex has invested significantly in a series of mine replacement, growth, environmental and processing projects to strengthen the competitiveness of its portfolio. The focus during the period was on prioritizing the commissioning and optimization of several growth and replacement projects that enhance mining flexibility, secure processing flexibility, and reduce our carbon footprints, usually to cost and energy dependency. Marunusha Kaiba, our Chief Financial Officer, will now outline the Group's financial performance for the period.

Thank you, Patrick. Group profitability remained challenged by lackluster Rand PGM pricing, and despite commendable operational delivery, higher sales volumes and strong cost containment, we are reporting lower earnings metrics for the period. We have benefited from improved cash flow generation, However, and our balance sheet remains strong in an adjusted net cash position with adequate liquidity headroom delivering on a key strategic imperative for the group. Looking at some of the detail. Financial metrics were negatively impacted by the combination of lower metal prices received in the period, particularly palladium and nickel, which together with a stronger achieved RAN more than offset the positive impact of stronger sales volumes resulting in lower revenue. I am really pleased with the cost performance delivered by the team in the period. Mining inflation of 4.6% moderated from the prior period and was partially offset by lower labour complements and the benefit of the translation of the dollar cost base of Impala Canada and Zemplatz at a stronger exchange rate and in total we achieved a 1% retracement in cash costs. Prior impairments at Canada and Rastenburg, and the currency appreciation to a lesser extent, also aided the decline in depreciation and the royalty line, which previously included the amortization of the prepaid royalty. The movement in stock reflected several factors. higher quantities of refined metal, the lock-up of ore and mat at Zimplatz on commissioning of the new furnace, the write-on of in-process inventory following the annual stock take, which was then partially offset by the release of in-process metal by the Impala smelters, Implat's accounted for several significant once-off cash and non-cash items in the prior period. There were impairments at Impala Canada and at Two Rivers. The latter impacted income from associates and we incurred substantial expenses on conclusion of the Arbyplat acquisition. There were no impairments in the period under review and rather other income benefited from insurance receipts of approximately R400 million and fair value gains on rehabilitation investments. The tax rate normalised in the period versus the prior period which was impacted by deferred tax credit at Zimplatz. Collectively, these factors contributed to a decline in reported EBITDA to R6.5 billion and headline earnings of 208 cents per share. Group stock-adjusted unit costs increased by 3%. Group mining inflation of 4.6% at our managed operations accounted for R909 per ounce of the increase, while the translation of the dollar cost base of Impala Canada and Zimplatz at a stronger exchange rate benefited the unit cost performance by R188 or 1% per ounce. The lower labour complement following a group-wide restructuring resulted in a further R401 per ounce or 2% benefit. Stock adjusted volumes at managed operations declined by 2% in the period. However, gross refined volumes improved by 4% and resulted in a cumulative R194 per ounce increase to unit costs. Maintaining an optimal capital structure and a strong and flexible balance sheet through the cycle remains a key strategic priority. Net cash from operating activities improved to R3.6 billion from 1.3 billion rand in the prior period. Cash generation remained constrained by lacklustre rand PGM pricing and still elevated levels of working capital, but benefited from a retracement in capital expenditure to 3.8 billion rand as spend slowed on, the Zemplatt smelter expansion, a reduction in scope at Merula Phase 2, and the reclassification of impala canada's spend to cash costs due to the shortened mine life the receipt of the june 2024 impala buffer king revenue payment of 1 billion rand in early july and tax refunds of circa 0.5 billion rand no final dividend was declared for fy 24 while R567 million was incurred on purchasing Implat's shares for its long-term incentive plans. Adjusted debt of R3.2 billion includes the deferred revenue on the Gold Stream at Impala Buffer King of R1.6 billion and drawn facilities and an overdraft at Zimplat's. So we ended the period with cash balances of 9.6 billion rand net of the Zimplatz overdraft. Implatz closed the period with adjusted cash net of debt of 6.7 billion rand. Our total committed revolving credit facility of approximately 8.3 billion rand remain undrawn resulting in closing liquidity headroom of 17.8 billion rand. Our capital allocation framework aims to deliver, sustain and grow meaningful value for all 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 resultant free cash flow across three broad pillars of balance sheet strength, growth and investment, and shareholder returns. IMPLATS recorded an adjusted free cash inflow of R1 billion in the period. R900 million was incurred to fund growth and investment through expansion capital. with residual cash flow added to cash reserves following losses incurred in the previous financial year. The Group's dividend policy is premised on returning a minimum of 30% of adjusted free cash flow pre-growth capital. However, given the limited free cash flow generation, the uncertain macroeconomic environment due to new political dispensations and still elevated working capital as we navigate reduced processing capacity utilization during smelting facility repair projects. No interim dividend has been declared, and the Board will reassess a dividend declaration at year end. Safiso will now discuss the PGM market.