Impala Platinum Hldgs Ltd

Welcome to the webcast presentation of our results for the half year ended 31 December 2025. 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 an account of the Group's operational performance, presented by Patrick Marutwa, our Chief Operating Officer, followed by the financial results, presented by Merinisha Kerber, our Chief Financial Officer, and then Safisha Sabir, 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 FY2026. We continue to strengthen our commitment to a safety-first culture at all our operations and we remain deeply committed to the wellbeing of our employees. The Group's Strategic Safety Programme continued to advance during this period with the steady progress recorded across all operations. Compliance with critical safety behaviours continues to vary, underscoring the need to further embed consistent, safe operating practices. We are pleased to report that no fatal incidents were reported at group mining and processing operations in the six-month period. Regrettably, however, an employee at Impala Rustenburg was fatally injured in a motor vehicle accident in December 2025. It is also with profound sadness we report that post-period end, one employee was fatally injured in a rigging accident at Impala Rustenburg's south shaft. We acknowledged the safety delivered across our managed and joint venture portfolio, which led to a 7% improved lost time injury frequency rate. The total injury frequency rate deteriorated marginally, largely due to the precautionary medical referral of all employees exposed to smoke inhalation following an underground fire in the first quarter. INPLAS seeks to demonstrate best practice in environmental management, guided by our environmental strategy and ESG framework. I am pleased to report that we achieved further progress in our sustainability journey during the period. We delivered a sound environmental performance with no major, significant or limited environmental incidents. Our renewable electricity use in the period was steady at 31% and our water recycling and reuse remained high at 57%. Zimplat's first 35 MW of its intended 185 MW solar power complex reached design capacity during the period. and construction has started on the 45 MW second phase which is on track for technical completion in August 2026. All tailings storage facilities retain compliance in the annual independent tailings review board audit. Our achievements were again recognized by several global agencies in their annual rankings and ratings. The group continued strengthening sustainable community development in the first half. Our social and labour plans and Beyond Compliance project focused on community wellbeing, education and skills development, enterprise and supplier development and inclusive procurement, as well as developing resilient community infrastructure. Across the group, this initiative benefited over 43,000 people and supported more than 2,900 community jobs in the period. InPlace delivered a robust operational performance across its mining and processing assets. Notable gains were achieved in the second quarter, underpinned by delivery at our key operations and greater stability in the processing portfolio. Group 6E production increased by 1% to 1.8 million ounces. Refined 6E production, including the saleable ounces from Impala Rustenburg's North Shafts, which was formerly known as Impala Buffer King, and Impala Canada, was stable at 1.78 million 6E ounces. We report an 11% unit cost increase for the period. Mining inflation was compounded by spend on engineering and infrastructure initiatives and structural salary adjustments at Zemplats. Group capital expenditure declined as several processing and expansion projects were completed, with the timing of cash flows and projects also impacting reported spend. Our operational delivery enabled Implus to fully benefit from the step change in Rand PGM pricing, resulting in a strong financial performance and free cash flow generation. The group generated an EBITDA of R18.1 billion, headline earnings of R9.3 billion or R1035 per share and recorded a free cash flow of R7 billion. Implast closed the period with an adjusted net cash balance of 12.1 billion rand and 28.8 billion rand in liquidity headroom. The Board of Directors declared an interim dividend of 410 cents per share representing a payout of around 60% of adjusted free cash flow generated in the six months. I will now hand over to Patrick Marutwa, our Chief Operating Officer, who will take you through an overview of our operational performance.

Thank you, Nico. The groups delivered a commendable production and cost performance. Turning to the specific contributions to group PGM production from the different operations. Production at our managed operations increased by 1%. It is important to note that the consolidation of the Impala-Rastimba complex was completed in FY 2025. As a result, Reported production volumes from Impala Rustimac now comprise stock-adjusted ounces from the south and central shaft together with ounces of saleable metal from the north shaft, formerly known as Impala Bafuke. On this consolidated basis, 6E production declined by 2%. In the first quarter, momentum was negatively affected by increased regulatory stoppages and unstable power supply. Zimplus benefited from strategic interventions to ease mining constraints with improved availability of trackless mobile machinery supplemented by open pit or throughput. Production in the prior period was impacted by the accumulation of inventory on smelter commissioning. At Inbala Canada, as previously communicated, the production profile is tapering on the shortened life of mine and the operation delivered to plan. Although Marula reported lower production, the operation delivered to plan as we focus on increased development to address constrained mining flexibility and benefited from increased employee efficiencies. Producting from our joint ventures declined by 3%. At two reverse, grade and yield improvements offset reduced mill throughput, while Mimosa's volume declined due to processing instability and increasingly challenging ground conditions as mining progresses into the outer extremities of the ore body. Finally, third-party receipts benefited from improved deliveries from the underlying customer operations. Refined 6E production, which includes saleable ounces from Impala Rusty McNorshaft and Impala Canada, was stable. Processing operations performed well with record milling rates delivered at base metal refinery. The scheduled rebuild of furnace 4 was initiated as planned in December 2025. In place ended the period with excess inventory of approximately 400,060 ounces, 20,000 ounces lower than at our FY2025 year end. Inventory increased as expected in the first quarter as annual maintenance was completed, with a drawdown of 80,000 ounces in the second quarter. Capital expenditure declined as processing projects at Zimplet were completed and commissioned. Capital expenditure at the Impala Kanata was expensed in a period. The sustained improvement in PGM prices enabled us to start revalidating feasibility studies and early works for a phased restart life-of-mine reserve extension project. This included Pala-Rastimbex 14, 20 and BRPM North-South and the Two Rivers-Marinski project. In terms of our ongoing project, the Mopani mine replacement at Zimplet remains the cornerstone of long-term volume strategy and remains on target for technical completion in August 2028. The Zimplet 45 MW second phase solar plant is advancing well. Imperial Refinery's new Finance Metals Phase 4 project is progressing as planned. Reflecting our disciplined approach to cash management, the Zimbras SO2 abatement project was re-phased with Phase 1 set to resume in the third quarter. Marunisha Keba, our Chief Financial Officer, will now outline the group's financial performance for the period.

Implats delivered a strong financial performance with significantly improved EBITDA, free cash flow generation, balance sheet strength and liquidity headroom. The benefit of strong metal pricing was maximized through a commendable operating performance and sustained cost control. This strategic delivery supported improved shareholder returns with circa 60% of adjusted free cash flow generated returned to shareholders through the interim dividend. Looking at some of the detail. Financial metrics were boosted by the combination of stable 6E sales volumes delivered into higher metal pricing in the period. Particularly, the prices received for platinum, rhodium, palladium and ruthenium ran the appreciation only marginally offset the benefit of stronger US dollar metal prices. Moving to the cost performance in the period, Group mining inflation of 5.5% was compounded by additional engineering and infrastructure spend as we continue to improve asset integrity and performance across our operations. In total, group cash costs increased by 10%. Depreciation rose 30% on higher charges at Impala Rastenberg's North Sharps, and accelerated depreciation at Impala Canada. The movement in stock reflects higher metal pricing and unit costs. Profitability at both joint ventures, Mimosa and Two Rivers, rebounded on higher achieved sales revenue and sound operational delivery. Reported earnings from associates were, however, impacted by unrealized profit in stock adjustments of almost one billion rand. Implats recorded EBITDA of R18.1 billion at an EBITDA margin of 30%. Headline earnings and headline earnings per share rose more than fivefold to R9.3 billion and R10.35 per share. Group stock adjusted unit costs increased by 11%. Group mining inflation of 5.5% contributed R1,120 per ounce to the unit cost increase. Changes in volumes and yield resulted in a 727 or 3.5% increase. Higher spend on engineering and infrastructure resulted in a 515 rand or 2.5% per ounce increase, while the translation impact of the stronger rand on the cost base at Zimplatz and Impala Canada resulted in a 134 rand per ounce benefit to unit costs. Maintaining an optimal capital structure and a strong and flexible balance sheet through the cycle remains a key strategic priority, and I am particularly pleased with the developments we are reporting today. Cash generation rebounded on the step change in PGM pricing, with net cash from operating activities increasing to 9.8 billion rand from 3.6 billion rand in the prior comparable period. Free cash flow benefited from moderated capital expenditure outflows as processing projects at Zimplatz neared completion and the Phase 2 project spend at Merula was halted. In total, Implats recorded a free cash inflow of R7 billion. Cash and cash equivalents increased by R3.9 billion and, after accounting for exchange rates, the group closed the period with cash and cash equivalents of R15.2 billion. During the period, Implatz refinanced its committed revolving credit facility, which now consists of a R12 billion ZAR tranche and a R120 million US dollar tranche, with associated accordion options of R2 billion and US$30 million, respectively. These facilities are in place until September 2028 with an option to extend for a further two years. As part of the refinancing, certain changes were made to the definition of net cash or debt in calculation of the covenants. This has resulted in the Group's restated definition of this metric, which closed the period at R12.1 billion adjusted net cash. Together with un-drawn facilities of R14 billion available on the revolving credit facility, EMPLATS closed the period with improved liquidity headroom of R28.8 billion. Our capital allocation framework aims to deliver, sustain and grow meaningful value for all our stakeholders. As a reminder, we first allocate cash flow to sustaining capital, which ensures that our assets operate safely, optimally and sustainably. Thereafter, 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. After adjusting for foreign exchange translation losses, the group realized an adjusted cash inflow of R6.2 billion. 2.2 billion rand or 36% was allocated to strengthening the balance sheet. Of this, 1.4 billion rand was paid in additional taxes shortly after period end. Circa 200 million or 3% was directed towards growth and investment primarily to fund strategic projects at the Group's processing operations together with contributions to AP Ventures. IMPLATS's dividend policy is premised on returning a minimum of 30% of adjusted free cash flow after growth capital. However, after considering the Group's financial performance, robust balance sheet and the prevailing market conditions, the Board declared an interim cash dividend of 410 cents per share, amounting to 3.7 billion rand. including dividends paid to minorities in the period. This equates to approximately 60% of adjusted free cash flow returned to shareholders. Adjusting for the additional tax payments, this rises to an allocation of 80%, aligned with our philosophy to provide returns above the dividend policy minimum during supportive market conditions. Safiso Sibia, our Group Executive for Refining and Marketing, will now discuss the PGA market.

Thank you, Mehrounisha. Trade policy and geopolitical uncertainty intensified through 2025, perpetuating macroeconomic volatility. This supported increased investor market interest in precious metals, amplifying flows into physically constrained PGM markets. List rates remain elevated by historical standards, signaling ongoing tightness Liquidity was further constrained by ETF purchasing and rising U.S. inventory levels. U.S. trade policy remained a key risk with Section 232 investigations into critical minerals and potential anti-dumping duties on palladium of Russian origin elevated concerns about potential tariffs on PGMs. The Platinum and Palladium futures launch on the Guangzhou Futures Exchange further reshaped PGM market dynamics, with exceptional early trading volumes ahead of increased margin requirements in late December. After a lengthy period of range-bound trading, the platinum price ignited in late May 2025. Strong prices persisted into the closing months of 2025, with elevated futures volume and ETF purchases driving prices through USD 2,000 per ounce. Platinum is deriving support from historically high gold prices, with the price rally supported by underlying market fundamentals. Palladium pricing was boosted by its association with platinum and to a lesser degree gold, as well as notable physical tightening over 2025 as US anti-dumping investigations made headline news. Mineral rhodium pricing gained steadily over 2025 with rising concerns about tariffs and highly consolidated geographic supply lending price support. while the minor PGMs are not screen-traded. Market consensus is that speculative investment and stockpiling have boosted prices and tightened markets for rhodium, ruthenium, and iridium. Our received dollar basket price improved by 44% to US$1,917 per 6e oz sold. Rent appreciation marginally offset the benefit of stronger U.S. dollar metal prices, and rent revenue increased by 40% to 33,261 rands per 6 e-ounce sold. Constrained primary supply, robust industrial demand, and resurgent jewelry and investment offtake resulted in all three major PGM markets of platinum, palladium, and rhodium recording market deficits in 2025. Both platinum and palladium are expected to remain in deficit in 2026, The rhodium market is expected to be broadly balanced in 2026 as secondary supply increases and South African producers reuse previously accumulated in-process inventory. Demand is vulnerable to lackluster auto forecasts for sales and production, with upside demand risk from higher-catalyzed vehicle market share and another period of strong physical investment demand. PGM pricing is likely to be driven by broader macroeconomic and geopolitical factors. The prevailing backdrop of security of critical mineral supply is likely to lend pricing support. Turning to supplies. Primary supply is for each of platinum, palladium and rhodium in 2025 as North American production profiles were adjusted in response to low prices and the release of inventory at South African producers eased from the elevated levels seen in 2024. South African production expectations were also downgraded during the year as extreme weather events and processing maintenance undercut our turn. Primary platinum and rhodium supply should increase marginally in 2026 on improved capacity utilization at South African processing assets. Palladium volumes, however, will reflect the short-term dip in focus supply from Russia and are expected to retrace. Secondary supply delivered largely to expectations in 2025, with limited upward adjustments to collection rates during the year, despite the rapid improvement in pricing and the implied economics of scrap. The cost and complexity of collecting, funding, and transporting spent material remains high. However, shifts in trade policy and increasing concerns about the security of critical mineral supply should shift the existing channels for aggregation to centralized processing facilities in developed world territories. Our base case estimates assumes that collection rates will improve in line with the recovery in light vehicle sales and that the collective platinum, palladium and rhodium supply from secondary sources will increase by 9% in 2026. Nico will now conclude this presentation.

Thank you, Sofiso. Encouraging operational momentum and stability across the processing assets provides a solid foundation for delivery for the remainder of our financial year. Key operational priorities include maintaining the improved safety performance, further embedding the enhanced maintenance protocols across the processing operations, consolidating efficiencies and strengthening productivity across the expanded Impala Rustenburg complex, and realizing the benefits of improved mining flexibility and operational stability at Marula. Our strategy remains anchored in safe, efficient, and profitable production, optimal capital allocation, and unlocking the considerable value inherent in our portfolio. Strong free cash flow generation combined with a robust balance sheet and our strategic focus on the delivery of long-term value creation underpins our capacity to navigate challenges and maximize opportunities. InPlatts' guidance on production, unit cost and capital expenditure remains unchanged from the previously provided guidance with the release of our 2025 financial year-end results in September last year. Group 6E refined and saleable production is expected to be between 3.4 and 3.6 million ounces. Group unit costs are expected to be between 23,500 and 24,500 rand per 6 e-ounce on a stock-adjusted basis. Group capital expenditure is forecast to be between 8 and 9 billion rand. This guidance assumes an exchange rate of 16.85 rand to the US dollar and 1.38 Canadian dollar to the US dollar. Thank you for taking the time to listen to this webcast.