Sibanye Gold H1 2025 Earnings Report

Sibanye Gold EPS Results

• Actual EPS: N/A
• Consensus EPS: $0.23
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Sibanye Gold Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $3.05 billion
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Sibanye Gold Announcement Details

• Quarter: H1 2025
• Date: 8/28/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, August 28, 2025
• Conference Call Time: 8:00AM ET

Sibanye Stillwater Limited, together with its subsidiaries, operates as a precious metals mining company in South Africa, the United States, Europe, and Australia. The company produces gold; platinum group metals (PGMs), including palladium, platinum, rhodium, iridium, and ruthenium; chrome; nickel; and silver, cobalt, and copper. It owns the East Boulder and Stillwater mines located in Montana, the United States; and Columbus metallurgical complex, which smelts the material mined to produce PGM-rich filter cake, as well as conducts PGM recycling activities. The company also involved in the Kroondal, Rustenburg, Marikana, and Platinum Mile operations situated in South Africa; Mimosa located on the southern portion in Zimbabwe; the Driefontein, Kloof, Rand Refinery, and Cooke surface operations located on the West Rand of the Witwatersrand Basin; and the Beatrix situated in the southern Free State. In addition, it owns an interest in surface tailings retreatment facilities; the Marathon PGM project in Ontario, Canada; the Altar and Rio Grande copper gold projects in the Andes in north-west Argentina; the Hoedspruit; and the Burnstone and southern Free State gold projects in South Africa. Sibanye Stillwater Limited was founded in 2013 and is headquartered in Weltevreden Park, South Africa.

Sibanye Gold H1 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Group adjusted EBITDA jumped 120% year-on-year (51% excluding 45X credits) to ZAR10 bn, driving net debt/EBITDA down to 0.89x.
• Negative Sentiment: The company reported three fatalities in H1 and underperformance at its Kloof gold operations, prompting a review of the Cliff mine’s future production profile.
• Positive Sentiment: Sibanye Stillwater recognized ZAR5.2 bn of US Section 45X credits in H1, with fair-value credits projected at ZAR12.6 bn to 2034 (32% of the Stillwater acquisition cost).
• Positive Sentiment: US PGM operations cut all-in sustaining costs by 41% post-restructuring and filed an antidumping petition on Russian palladium, supporting medium-term margin recovery.
• Neutral Sentiment: The CEO succession to Richard Stewart was declared a “world-class transition,” ensuring senior-leadership continuity while outlining ongoing strategic execution.

Presentation

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

Ladies and gentlemen, good morning, good afternoon and good evening. A very warm welcome to our H1 twenty twenty five results presentation. Please take note of the safe harbor statement. It's important. There are forward looking statements within our presentation.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

Thank you. If we can move on to the next slide. As you are well aware, today is my last results presentation with Sibanye as I retire at the September. As such, the format for today is I will essentially start with an introduction covering the salient features. And, of course, all of that is focused on the 2025 or the six month period of 2025.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

And then I'll literally hand over the baton to Richard Stewart, our CEO designate. Richard will manage the rest of the presentation delivery and the Q and A. Of course, I'll also be available for questions, but I'd ask you to please address your questions to Richard. And if you specifically have something for myself, I would be happy to to answer. Thank you.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

We can move on to the salient features. Safety, of course, is our single biggest priority, and regrettably, we did have three fatalities during this reporting period. However, and as sad as that is, need to see the progress we're making, and we're making good progress with an improvement in our safety frequency rates. But of course, that will be covered in more detail in the rest of the presentation. Generally, in my view, H1 has been a period of solid delivery except for a disappointing performance at our Kluwerf gold operations.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

And again, this will be well covered later in the presentation. Pleasingly, group adjusted EBITDA was 120% higher than the same period in 2024. And all my references to previous periods will be the same period in 2024. Even if you strip out the 45 x credits, it was still 51% higher than that same period at R10,000,000,000. Obviously, from my point of view, due to solid operational performance and, of course, later in the quarter, we had the benefit sorry, later in the latter half of the first six months, we did have the benefit of increasing basket prices.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

This was retained And together with increased earnings, our leverage measured in net debt to adjusted EBITDA to 0.89 times, again, well below one and certainly very far below some of the numbers that were projected by the market earlier on in this year and late last year. Importantly, 45X credits to date amount to ZAR5.2 billion. You can see The U. S. Dollar in brackets.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

And at current conservative production rates, the total fair value of these 45 x credits out until 2034 increases to ZAR 12,600,000,000.0. I want to point out that is 32% of the acquisition value of Sibanye Stillwater of, apologies, of Stillwater, the Stillwater operations in Montana. Remembering we also raised a $500,000,000 stream on that. And also important to remember that this asset has been paid for out of previous earnings. But money raised that is not related to operations from 45x in the stream on a conservative basis amounts to 54% of the original acquisition value of the Stillwater operations, making it a very, very good acquisition.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

You would have also noted that we have launched a or filed a petition for a palladium trade remedy. And again, that's all part of our multipolarity strategy. And when you look at both 45x and assuming a successful outcome, are testament to the value already created and to value we expect to be created from completing this strategy in The US. When you look at the the graphs below, like, you will be quality information. But you will be you will you will note the punch line is the trend is your friend.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

And I'm very pleased to say that I leave this company with an increasing earnings trend and a decreasing leverage trend. And I have no doubt that Richard will take this company forward to new heights. So let's look at the last slide before I really refer to the CEO position. Again, relative total shareholder returns since listing, so not an arbitrary date. You will note we're right at the top of the list.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

And again, I know that Richard and his team, especially with an increasing commodity price, will take us back to number one. But a position I'm very proud that we have achieved under quite difficult market circumstances. If we can go to the next slide, please. Thank you. And at this point, it would be nice, Richard, if you could join me.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

I have, at previous results presentations, spoken about best practice in succession planning. I have highlighted the fact that I believe we have followed best practice. And in fact, I believe we've had a world class transition. And not just at CEO level, we have in place and later on in the presentation, Richard will certainly introduce the C team and the new members in his office. And as I've just said, I know that Richard will take this company together with his world class team to to NewHeart. So, Richard, all that really remains for me to to say, will follow your progress as an interested shareholder.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

I will watch your progress carefully. I'm not going to be one of those shareholders that asks those type of questions at results presentations. But Richard, I want to wish you all the best in your new chapter.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Neil, thank you very much. I guess if I could just take a brief opportunity to firstly say, I think when I was informed of my my appointment to be taking over from Neil in October, I got some very sage advice from a seasoned campaigner at the time for whom I have much respect, whose advice to me was just remember that what got you to this point in your career may not be what you need for the next phase. And I think over the last six months, I have realized that I don't know that you are ever 100% ready for a transition of this nature. However, as Neil has outlined, I think I would like to commend and thank our Chairman, our Board, but Neil in particular, for what has been a very well thought out, deliberate and structured transition process. This has given me the opportunity to transition out of my last role and ensure a continuation of the leadership within the South African region that remains a critical region to our business.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

It's also given me the opportunity to visit our operations and meet with stakeholders, both internal and external, but in particular, to work alongside Neil and truly understand the many nuances of our business that I don't know you always get to experience when filling an individual executive role. I truly hope that this installs confidence amongst our many stakeholders that this transition has been planned with the utmost efficiency and that with together with the experienced team that we have, we will continue to build and evolve the legacy that is Sylvania Stillwater. I'd also like to just take this opportunity to thank Neil. No doubt from the slides that you've seen him present, you would realize that the company Neil will be leaving at the September as he transitions into a new phase of life is a very different platform to what we inherited and started within 2013. We have a significant operating base.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

We have a fantastic set of resources, and we have a world class experienced and committed team that will continue to grow the legacy of Sybanya Stillwater. Neil, thank you for that.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

Thanks, Richard.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Moving on to an overview of the 2025. I think as mentioned in my last statement, we have significant continuity in the leadership of the team. For those of you who have been familiar with the team, you'll see there's very little change at a c suite level. We do, however, welcome Richard Cox into the role of the chief regional officer for Southern Africa, taking up the role that I previously fulfilled. We have not moved quickly to replace the head of business development at this stage.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

It has not been a huge priority for us over the last few months. But certainly looking ahead, that will be a position we will look to fill in the near future. Where we have seen some expansion in terms of the leadership team is in the CEO's office. James Wellstead will be known to many of you, and he will continue in his role as the head of Investor Relations and Corporate Affairs for the group. But we also welcome onboard Briney Watson.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Briney will be taking over from George Ashworth as our Chief of Staff as George retires with Neil at the September. We also welcome Kianthar Pillay, who will be moving into a group role heading up our sales and marketing, and this is very much an underpin towards our customer focus for the various metals and products that we produce. And finally, George Koutsier is joining the team as Head of Group Safety and will be reporting directly into myself. On safety, that certainly remains our number one focus and our first priority. As Neil mentioned, I think it's been very pleasing this half to see a continued sustained decline in many of our lagging indicators.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Over the past three point five years, since we started our Fate Elimination program, we have seen both our serious injury frequency rate and our total recordable injury frequency rate declining by about 15% year on year. Having achieved 3.9, the lowest ever in terms of our total recordable injury frequency rate this the first half of this year was particularly pleasing given that we had set ourselves a target of going below four by the 2025. Nevertheless, despite these improving trends, it is with a very heavy heart that we do need to still report on the loss of three colleagues during the first half of this year. Mr. Xavier Humberto at our Kerf operations, Ms. Mumkazi Jozana at our Grifontaine operations and Ms. Normser Matsolo at our Rustenburg operations. Our thoughts and prayers are with their families who will continue to receive our support. It is also sad to note that we have lost a colleague in July post the reporting period at our Stillwater operations. And similarly, our thoughts, prayers and sincere condolences go to the families of Brian Hansen.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Eliminating fatal incidents and life changing incidents is our absolute number one priority, and that is because we care. One of the ways to measure ourselves against whether or not we are progressing on this journey is through a leading indicator we've developed around our high potential incidents. And it has been pleasing that since we started measuring this in August 2022, despite a significant increase in the number of near miss reports that we are generating across our group, we have seen a consistent decline in the high energy incidents that could potentially result in a loss of life. These number of incidents have decreased from an average of around 50 to 60 incidents per month down to below 10. This still remains high and is the absolute focus of our leadership and management team to mitigate and eliminate these incidents and thereby, fatals within our operations.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

For 2025, we will continue to drive this through enhancing compliance across the group, primarily through our leadership and effective management routines, but also through embedding critical controls that mitigate against this high risk. We fully recognize that in order to have a long term sustainable elimination of fatal and and life changing incidents requires a true culture throughout the organization, a culture of care. And that too is being driven from the highest levels. Moving on to our strategic positioning. I think as Neil mentioned, when we look at how we're currently positioned, I think we're well positioned not only to survive, but in fact to thrive in what is currently a very turbulent and volatile industry and world.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

I think firstly, looking at our commodity diversification and particularly our exposure to gold, that has assisted us to stabilize earnings through very turbulent commodity market cycles. We've also invested very strategically to position ourselves to deliver into long term strengthening markets, including the lithium market as well as PGMs. Importantly, we positioned ourselves in specific ecosystems, recognizing the global geopolitics several years ago and what we called multipolarity and that the need for local supply, especially of critical minerals, was going to increase. But not only have we positioned ourselves in these ecosystems, we've also ensured that we beneficiate the metals we mine to produce an ultimate product that is of value to the supply chains, which we serve into. We've already seen the tangible benefits of this from our U.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

S. Operations in terms of the Section 45X credits that we've received and our ability to file a petition against the unwrought palladium, an antidumping petition against unwrought palladium coming into The U. S. From Russia. We've also developed the first fully integrated lithium project in Europe, And again, with an increased focus on local supply and local protection of critical metals, this remains a critically strategic project.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Construction of Calibre is nearing completion and will be completed in the first half of next year. And we do recognize that today, the lithium market remains under pressure. And as such, we are evaluating a responsible start up to these operations. We've also seen the benefit of being granted a strategic project status at both Calibre and our Galicam project in France under the EU Critical Raw Materials Act, which has provided us with access to both grants and tax credits as these projects ramp up. I think an important aspect of our asset base are our extensive resources.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

We have significant brownfields opportunity within our existing operations, and we have already commenced selectively investing through the cycle in select projects. Many of these brownfield projects are very low capital intensity, the lowest in the industry, given that they already have much of the supporting infrastructure, surface infrastructure and overheads in place. It is pleasing to see K4 ramping up and the positive impact that, that is having on the Marikana operations, including on unit costs. And most recently in June, we also approved the commencement of the Sipumulele Bambenani mechanization project, which will see the benefits from having combined the Kroondal operations and the Rustenburg operations. This is a project that will not only significantly enhance the efficiencies and therefore costs of both Sipumulele and Bambenani, but also brings to account significant resources that were previously sterilized while these mines set in two different companies.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

We are assessing the Burnstone project that was placed on care and maintenance to preserve our balance sheet eighteen months ago, and a decision on Burnstone is likely to be made towards the end of this year. In addition, earlier this year, we did announce the JV with Glencore and Morafi to optimize value from byproducts being produced from our in particular, our South African PGM operations and chrome, a potential transaction that is currently under consideration by the Competition Commission, but that will add significant value and longevity to our operations and significant value to multiple stakeholders. And finally, our strategy is underpinned by sustainability. Sustainability will continue to underpin modern responsible mining companies, And it is extremely pleasing that during the first half of this year, we have announced an expansion of our presence in the circular economy through the acquisition of Metalex that will be complementary to our existing recycling business. Also very pleasing is to have received our first renewable energy from our Castle Wind Farm.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

This particular project was commissioned at the end of the first quarter and already to date has added significant savings of just over $20,000,000 to our energy bill in South Africa, but even more importantly, has reduced our total carbon footprint by some 60,000 tons while it's been in operation. And finally, we concluded last week our annual Marikana Memorial Lectures. I dare say if I had to take a sound bite out of these lectures, the key theme that came through, and I dare say this could be a lesson for the country as a whole, was the power of genuine stakeholder engagement. Stakeholder engagement to build trust, to understand one another, and together co create a new future, which can add significant benefits and value to all stakeholders around our operations. Moving on to our operations at a very high level, I think our SAP GM operations can best be described as stable and consistent.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

They do consistently deliver on both production and cost guidance, and we have, as I mentioned, been investing in these assets through the cycle through K4 and more recently, the decision to invest in the Sukumalele Bambenani mechanized project. Our U. S. PGM operations have delivered on their restructuring from 2024, significantly reducing absolute costs and minimizing cash outflows. With the recent Section 45X providing financial support on the increasing palladium price, these operations are returning to positive earnings.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

We do, however, recognize that within our control is costs, and to be truly competitive over the long term, reducing those costs is an absolute necessity. And we have a pathway to reduce costs to below $1,000 per Tuohy ounce over the next two to three years. As Neil mentioned, the only operations that are not currently within guidance and have been disappointing relative to our own expectations was ISA Gold operations. The operations had a tough start to the year. Pleasingly, the second quarter, both Refontein and Beatrix improved to expected output levels, and we look forward to a back to second half from both Beatrix and Refontein.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Cliff, however, was significantly impacted by seismicity. And due to safety concerns, we did reduce production in certain areas at Cliff. This coupled with some infrastructure challenges during the transition from a low volume, high grade operation to higher volume, low grade operation has meant that we have we are reassessing Cliff to understand what a stable and future looking production profile could look like from these operations within the current environment. And that work will be concluded during the second half of this year. I dare say, however, these were operations that were slated to have been closed by 2020.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

And yet still, after thirteen years of operating, they remain significantly leveraged to the gold price. And for operations that were due to have been closed today to contribute just under half 50% of our earnings, I think is a significant testament to our gold operating teams and management. Also pleasing has been the return on our investment into DRD gold, which remains our long term exposure gold. Despite significant capital investment over the past few quarters into what is called Project twenty twenty eight, a project that will not only increase production by about 30%, but also the longevity of the West Rand operations under DRD Gold, they have also managed to make a significant dividend payment for which, Neil, we are extremely grateful. Our Australian operations last year suffered at the hands of the impact of climate change, having experienced both flooding and fire within a single year.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

I think full credit to our operating teams in Australia, who took learnings from those incidents, mitigated those risks and put in remediation measures, and this year are performing well above expectation. Our recycling business remains a significant differentiator and a way to gain exposure to critical metals through low capital cost and certainly is becoming more strategically important as we see regional supply chains and regional ecosystems clambering to secure critical minerals. Sandoval is continuing to ramp down and we look to that operation going on to full time care and maintenance from January 2026. The Galycam prefeasibility project will be completed around year end, and the results of that project will drive some of our thinking around Sandoval moving forward. And finally, Calibre is track to deliver construction the construction phase by early twenty twenty six.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

We have been through the peak project capital cycle. And as I mentioned earlier, we are assessing the optimal and most responsible ramp up of Caliber given the current depressed lithium market fundamentals. I think looking at our earnings graph over the last two point five years tells the story that we have been through from an operational restructuring and repositioning. Having recognized the significantly and very fast decline in the PGM markets in 2023, we moved to restructure our loss making operations and reposition our business. Through this, we were able to arrest that earnings decline and kept it stable during that period of significant restructuring.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

And seeing the benefits of that now coming through together with good operational performance, and as Neil mentioned more recently, increasing commodity prices has seen a significant turnaround in our earnings base, more than 50% higher than what we experienced at the same time last year, excluding the one off credits, which are a real value that have been added during the period under review. Think as we move through our peak capital cycle, getting to the end of the Calibre and the K4 projects, This is an opportunity to focus on cash conversion from our operations. As Neil mentioned, it's been pleasing to see the turnaround as well and the declining trend in terms of our net debt to EBITDA. With that number coming in significantly or comfortably below one times, which is the level and target that we have set ourselves. But with increasing cash generation, our focus will now also turn on an overall reduction on our gross debt number.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

And finally, I think our capital allocation model is one we've shared with the market on several occasions and one you're probably familiar with. But again, during the difficult cycle we have been through over the last couple of years, I think just to confirm that we have remained true to our capital allocation model. Firstly, looking at project capital, we have responsibly invested through the cycle. We have completed the or nearing completion of the build of the Kalabalithium project. We're nearing completion of the K4 project as that is currently ramping up in production, and most recently approved the commencement of the Sipomoleli Bambenani mechanization project. Bernstein, as

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

I mentioned, is currently being assessed. And to talk to the responsible nature of this, we have also walked away from several investments, including the Rhyolite Ridge opportunity, the lithium project in The U. S, which did not meet our hurdle rates. We have said in terms of our capital allocation that we do want to maintain healthy cash reserves, and we have managed to maintain our target of $20,000,000,000 which provides us with the required liquidity and headroom to manage the business comfortably. I think important to highlight that our dividend policy does and will continue to remain unchanged at 25 to 35% of normalized earnings.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Over the past few years, dividends have not been paid in line with the policy, and at present, we are just starting to enter again a position of dividend paying territory. Given the current global uncertainty and commodity price volatility, we have made a decision not to pay dividends at the interim at the half years, but we will be reviewing this at the year end. And certainly, with our current outlook on the second half, should commodity prices remain where they are, we are confident that we will be back in dividend paying territory by the end of the year. Moving on to our balance sheet and debt management. I think as you've heard, our balance sheet remains in a healthy position.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

We have sufficient liquidity. We've got an undermining debt maturity ladder, which Shaul will touch on in a bit more detail. And our net debt to adjusted EBITDA has returned to below 1x and therefore de risked our balance sheet compared to where we were twelve to eighteen months ago. And finally, we have made some small but very measured and strategic growth investments. The acquisition of Metelex, which we announced in July, will expand our very strategic recycling footprint.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

And this is an acquisition that is expected to contribute immediately to the group's earnings and cash flow. And also presents significant opportunity to leverage our existing recycling relevant footprint that we have in The U. S. And internationally. And then as I mentioned, we have also announced the GlencoreMoraffy JV transaction, where we truly look to enhance value from our chrome byproducts at our SAPGM operations.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

And with that, I'll hand over to Kliantha, who will take us through an overview of the markets. Thank you.

[Kleantha Pillay, EVP - Sales & Marketing at Sibanye Stillwater]

Thank you, Richard, and good afternoon to everyone. I'm going to talk through three slides, and I'll be covering the macros, PGMs, and lithium performance over the half year as well as our expectations for the next eighteen months. Markets have been overwhelmed by the constant tariff news, which continues to create uncertainty. The cost of goods imported into The US will rise to reflect the tariffs, in turn potentially reducing demand. The US is forecast to have slower GDP growth as a result of these tariffs.

[Kleantha Pillay, EVP - Sales & Marketing at Sibanye Stillwater]

Although this has been upgraded following this passing of the spending bill. In the near term, quarter three and quarter four growth is expected to slow as the impact of tariff front running fades. Global Data's US light vehicle sales forecast has been reduced by a million ounces for 2025 and over a million ounces in 2026 to reflect the impact of the tariffs. While this will lower PGM demand, it will also impact used vehicle scrappage rates with cars being kept on the road for longer, putting pressure on the secondary supply. China is only modestly impacted by the tariffs, having reduced their reliance on The US for exports over the past few years.

[Kleantha Pillay, EVP - Sales & Marketing at Sibanye Stillwater]

Growth is still, however, predicted to fall short of government's five percent target. Global growth is forecast to slow to 2.6% this year, largely dragged down by the weaker outlook for The US. A combination of the weaker US dollar, range bound yields with expectations of future rates cuts, and worsening geopolitical tensions has resulted in strong gold investment demand from the over the counter markets, ETFs, and, of course, from central banks. Gold prices were up 26% in the first half of the year with average gold trading volumes of $329,000,000,000 per day during the first half, the highest for any half year period on record. Broad and sustained conflict resolution, which seems quite unlikely in the current environment, could see a moderation in price.

[Kleantha Pillay, EVP - Sales & Marketing at Sibanye Stillwater]

More likely though, should economic conditions deteriorate, exacerbating geopolitical tensions, safe haven demand will remain strong. Now moving on to PGMs. The rally in PGM prices, including those of the minor metals, is reflective of the tight supply situation in South Africa. Platinum prices have outperformed driven by lower mine supplies. And looking ahead, local production is expected to fall below the 3,800,000 ounce level this year, reflecting the lack of investment over the years coupled with aging assets.

[Kleantha Pillay, EVP - Sales & Marketing at Sibanye Stillwater]

Metal flows were significantly impacted by tariff threats, with almost 360,000 ounces of platinum flowing into US comics faults between January and April. Following the delay in reciprocal tariffs and the NPGMs being on the list of goods not subject to tariffs, Comex Vault stocks fell back to the 270,000 ounce level by mid July. Platinum lease rates have been significantly elevated through the half year with one month lease rates moving from just over 11% in January to a July peak of almost 37%. Investor interest in platinum contributed to the elevated demand with more price upside expected compared to gold, and we saw a net platinum ETF inflow of 30,000 ounces during the half year. Chinese platinum imports were up 63% year to June, driven by investment interest and as some jewelry manufacturing, which is dominated by gold, switched to the lower cost platinum metal.

[Kleantha Pillay, EVP - Sales & Marketing at Sibanye Stillwater]

While positive, Chinese consumer sentiment and the October Golden Week holidays will offer indicators of whether this actually translates into retail success. Palladium demand has also been driven by investment. We saw net palladium ETF inflows of a 115,000 ounces in the first half of the year, while more recent high prices have led to some profit taking. Since early August, positions have stabilized around the 870,000 ounce level. The increase in rhodium prices can also be attributed to the tight supply from South Africa, as well as more buying interest from auto OEMs.

[Kleantha Pillay, EVP - Sales & Marketing at Sibanye Stillwater]

Stocks are clearly depleted and some OEMs are gearing up for more stringent China six b testing standards. The demand for ruthenium has been driven by new chemicals capacity in China, and this is the production of caprolactam, which is used to make nylon fibers, as well as for the ever increasing demand for data storage boosted by the AI boom. Ruthenium prices were up 49% in the half year and have since hit all time highs of $930 per ounce. Global government and defense industry interest in securing niche critical metals has also resulted in emerging investor interest in the minor PGMs. Over the next eighteen months, we again see downward revisions to light duty vehicle production with battery electric vehicles being the most impacted, while hybrid vehicles have been slightly upgraded.

[Kleantha Pillay, EVP - Sales & Marketing at Sibanye Stillwater]

We also see some near term growth in PGM loadings as China gears up for tighter emissions testing standards. Secondary supply is expected to remain largely flat year on year, and the higher PGM prices during the first half of this year, together with some consolidation in The US recycling market, resulted in some hoarded volumes at US scrap yards being liquidated. However, scrapped vehicle numbers are expected to fall both in The US and Europe following weak new vehicle sales. In Asia, we see some pickup as Japan's new car sales improve, and China's scrappage incentive scheme lifts volumes. In summary, in the short term, the run-in PGM price has been underpinned by supply tightness and purchasing for investment and jewelry.

[Kleantha Pillay, EVP - Sales & Marketing at Sibanye Stillwater]

Longer term cyclical trends, as we all well know, are demand rather than supply driven, And we therefore remain rather cautious on prices, though the recent run has possibly set us a new higher base. The outlook to the end of next year remains positive due to higher hybrid vehicle forecasts, coupled with declining primary supply and lower levels of auto cat recycling. We expect to see both platinum and palladium remaining in deficit up to 2026 with the rhodium remark market remaining close to balance. Global growth remains the biggest risk to the forecast. And then finally, let's look at lithium where the market has remained oversupplied and prices during the first half half of the year have remained depressed.

[Kleantha Pillay, EVP - Sales & Marketing at Sibanye Stillwater]

At the average first half of the year price just over $9,000 per ton, approximately a third of all lithium supply was unprofitable. The surpluses have been exacerbated by the slowdown in battery electric vehicle demand growth, some as a result of The US tax credits for battery electric vehicles scheduled to end in September. The most recent price movement up to just over $11,000 per ton in mid August has come as a result of the Chinese government tightening its oversight of domestic lithium extraction, part of a wider push to reduce excess capacity across many industries in China. China's initial focus has been on operations that are underutilized, inefficient, and uneconomic, and also on those that may not have the correct permits. Many of the Chinese lipidolite mines are uneconomical at current price levels, but have been supported financially through vertical integration.

[Kleantha Pillay, EVP - Sales & Marketing at Sibanye Stillwater]

We see short term price pressure persisting due to oversupply. The sustainability of the recent price rally is very difficult to call as it will largely depend on the next steps the Chinese government take. We remain fairly bullish that electrification will continue to drive demand. We're forecasting a healthy 10.7% CAGR for battery electric vehicle production over the next ten years, and we expect to see lithium deficits later in this decade. This will really underpin incentive pricing for new lithium projects.

[Kleantha Pillay, EVP - Sales & Marketing at Sibanye Stillwater]

And now let me hand over to Richard Cox to talk you through the operations.

[Richard Cox, Chief Regional Officer - SA region at Sibanye Stillwater]

Thank you, Cleanther. Hello, everyone. Our South African PGM operations, which continue to deliver consistent, reliable performance, are on track to achieve guidance for the third year running and eight out of nine years overall. Total production for the 2025 was 840,400 ounces, 4% lower year on year. This reflects consistent performance from underground operations at 750,004 ounces, in line with the 2024.

[Richard Cox, Chief Regional Officer - SA region at Sibanye Stillwater]

Rustenburg up 2%, Marikana, down 1%, while surface production was down by 30% to 54,040 ounces, impacted by high seasonal rainfall affecting the entire industry in the 2025. Purchase of concentrate volumes from third parties were also 29% lower at thirty five thousand eight and forty ounces in line with revised annual contractual agreements. The 2025 production improved 13% over the first quarter across most shafts. Operating costs, excluding purchase of concentrate in Mimosa production, were well contained, increasing by just 4% to 19,300,000,000.0, which is below inflation, attributable in part to last year's restructuring and closure of high cost shafts, offsetting additional toll processing costs from crude oil shift to toll treatment of concentrate in September 2024. All in sustaining unit costs increased 11% to ZAR23.9000 per four year ounce, in line with our ZAR23.5 100 to ZAR 24,005 per 40 ounce guidance range, impacted by lower production, a 20% rise in sustaining capital mainly at Marikana and 11% lower by product credits.

[Richard Cox, Chief Regional Officer - SA region at Sibanye Stillwater]

Chrome ore sales of 1,070,000 tonnes decreased 17% with revenue down 31% to 2,200,000,000.0 due to 12% lower production of 1,160,000 tonnes under heavy rainfall and a 13% fall in chrome ore price to ZAR $2.59 per tonne. Our strategic efforts since 2016 to boost our Cromwell business have contributed to industry leading all in sustaining unit cost. Adjusted EBITDA was consistent billion year on year despite 16% fewer 4E ounces sold due to smelter rebuilds at Marikana furnaces one and two and the consequent lower volumes through the precious metal refinery circuit. This was offset by a 7% higher average basket price of 26,003 per 40 ounce. We did have a 1,600,000,000.0 inventory buildup partly from Grundahl's pipeline change, reversible of net realizable value adjustments and the smelter rebuilds.

[Richard Cox, Chief Regional Officer - SA region at Sibanye Stillwater]

And this buildup will be released in the second half of this year. The Marikana K4 project reduced 44,400 ounces, a 68% increase year on year, positively contributing to reduced unit costs at Marikana with project capital at K4 expected to decline from current levels of $3.00 5,000,000 for the '25 as the project ramps up. Our partnership with Glencore on the Marafi venture will unlock value by accelerating delivery of legacy Marikana chrome ore volumes by about twenty years, enhancing by product credits against all in sustaining cost and we're awaiting competition commission approval. We focused on moving down the cost curve and improving relative competitiveness. Pleasingly, Marikana continues to move down the cost curve as the Marikana K4 project ramps up to steady state and enhancing efficiency.

[Richard Cox, Chief Regional Officer - SA region at Sibanye Stillwater]

This positions us favorably against peers, underscoring our cost discipline and leverage in the rising PGM environment. The combined Rustenburg and Kroondal operation are moving slightly up the cost curve due to the Kroondal change in toll treatment of concentrate, which added processing costs, but profitability benefits from higher revenue and margins at elevated metal prices plus chrome ore by product offsets. Our low capital intensity brownfields projects relative to peers, such as the Bambanani Supumalele project, the Tendalani project, the Kwazi Shallows project will continue to improve competitiveness. During the 2025, the Board approved the Bambanani Sipumulele project. This project involves the extension of the Bambanani decline allowing extraction of Sipumulele UG2 reserves from low cost mechanized Bambanani infrastructure.

[Richard Cox, Chief Regional Officer - SA region at Sibanye Stillwater]

Given the improving production and sales outlook in the second half of this year and the PGM price, which has improved by 23% since the May to the current level of 31,600 per 40 ounce, the outlook for the SA PGM's operations is very positive. Our South African gold operations are highly leveraged to the gold price with an improving outlook. The average gold price received increased 36% year on year to slightly more than 1,800,000.0 per kilogram. And adjusted EBITDA, which includes DRD gold for the 2025, increased by 118% to ZAR4.8 billion from ZAR2.2 billion for the 2024. This is the highest since the 2020.

[Richard Cox, Chief Regional Officer - SA region at Sibanye Stillwater]

The contribution to group adjusted EBITDA increased to 48% from 33% for the first half twenty twenty four, confirming the strategic importance of the South African gold assets in the diversified group portfolio. Production for the 2025, including DRD gold, declined 13% to 9.3 tonnes of gold. And from managed operations, excluding DRD gold, production was lower by 14% to 7.1 tonnes. Excluding DRD gold, EBITDA increased by 166% to ZAR 3,000,000,000. Capital spend was lower by 16% to ZAR 1,700,000,000.0 with the Burnstone project on Cairn maintenance, ore reserve development down 3% to ZAR1.4 billion and sustaining capital higher by 2%.

[Richard Cox, Chief Regional Officer - SA region at Sibanye Stillwater]

Notably and historically, these managed assets unbundled in 2013 as high cost end of life assets with 13,500,000 ounces in reserve and an eight year remainder life of mine have produced 12,900,000 ounces over the past twelve years. As stated, our managed gold assets delivered billion of EBITDA in the first six months of this year. Since our R10 billion market capitalization in 2013, they've generated substantial cumulative earnings far exceeding that evaluation. With another four to ten years ahead, these are functional and viable assets that have delivered outstanding returns. Difrontera operation performance improved during the 2025 with gold production 32% higher compared to the first quarter after a January fire and March stop note by Section 54 order delayed ramp up at the Flungenani 5 shaft.

[Richard Cox, Chief Regional Officer - SA region at Sibanye Stillwater]

Susmicity in high grade VCR stopes also lead to crew reassignments to lower grade areas. At Beatrix, we've built up a stockpile of ore ahead of the metallurgical plant due to ongoing upgrades and infrastructure constraints that have temporarily reduced throughput. This includes approximately 28,000 tonnes containing around 92 kilograms of gold, which we expect to process fully during the second half of this year. Overall, the mine itself is performing very well and rather the targeted improvements to the leach and carbon regeneration circuits that have necessitated this reduction in processing capacity leading to the temporary buildup. Turning to Clough, our operations faced a tough 2025, primarily driven by increased seismicity in high grade isolated blocks of ground, along with infrastructure limitations in the shaft or pass and ventilation systems at Tutankhamun Shaft.

[Richard Cox, Chief Regional Officer - SA region at Sibanye Stillwater]

These issues have resulted in stop start operations that further impact stability of production. Compounding this with two significant incidents, a tragic fatal accident at Tutankani 1 Shaft in January together with a Section 54 stoppage resulting in a loss of about 25,000 ounces and a shaft incident in May at the Manana 7 Shaft causing a further loss of roughly 2,000 ounces. Throughout our decisions have been guided by a strong emphasis on safety and the site's limited operational flexibility. Longer term, Cliff's life of mine is currently under comprehensive review to optimize the plan for long term sustainability and commercial viability, all the while upholding our unwavering commitment to safe production practices. Gold wage negotiations started in mid July this year and are progressing constructively to date.

[Richard Cox, Chief Regional Officer - SA region at Sibanye Stillwater]

Production and all in sustaining cost guidance for the managed operations for the full year has been revised to between fifteen sixteen tonnes and between and R1,550,000 per kilogram, following the first half performance and constraints at the Cluth operations. Our Bernstein project is being evaluated in the current high gold price environment together with funding options for value. Turning to DRD goals, stable operating performance supported by higher gold prices that boosted earnings. Production decreased by 8% to 2.27 tonnes of gold for the 2025. All in sustaining costs increased 15% to 1,080,000.00 per kilogram.

[Richard Cox, Chief Regional Officer - SA region at Sibanye Stillwater]

Adjusted EBITDA grew 70% year on year to ZAR 1,800,000,000.0 for the 2025. This strong result enabled a final dividend of ZAR0.40 per share for the year ended thirty June twenty twenty five, with about ZAR178 million accruing to Sibanye Stillwater. We thank DRD Gold for this dividend and the consistent cash flow the company provides. Our investment in DRD Gold's circular economy model continues to deliver reliable earnings across market cycles. Looking forward to the second half of the year, we expect improved results from Trifontaine and from Beatrix with Cliff operations under review.

[Richard Cox, Chief Regional Officer - SA region at Sibanye Stillwater]

Encouragingly, the third quarter average gold price to date at slightly more than ZAR1.9 million per kilogram, 7% above the first half, if sustained, further profitability gains are anticipated. I'll now hand over to Charles from The U. S. Operations.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

Thank you, Richard. In our Montana PGM operations for the half year 2025, we produced a 141,000 ounces at an all in sustaining cost of $1,207 an ounce. This was in line with our plan, which as compared to our performance pre restructuring late last year, saw a 41% decrease in all in sustaining costs and a 52% reduction in total capital to $45,000,000. We had several disruptions during q two, one of which was commissioning of an electric furnace number two in Columbus, which resulted in an inventory lockup of approximately 5,700 ounces. This is cleared post quarter.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

As you'll see, adjusted EBITDA for the half year was a $151,000,000. Richard Cox showed in the industry cost curve in his presentation that the store order assets are current currently sitting in the middle of the pack, whereas a year ago, we were the highest cost producer in the industry on the same graph. The team has done significant work to affect the shift, and our intent is to keep moving down the cost curve. But to get to a consistent thousand dollar an ounce cost character in these Montana operations from our current run rates of just under $1,400 an ounce before the section 45 x credit is gonna take several years and requires a large number of changes from equipment through to debottlenecking all aspects of the mining and ore handling process in both Stillwater and East Boulder. That work is underway.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

It's looking good. We have a lot of heavy lifting to do this to hit that aspirational target, but I think we're well on the way, and we'll talk to that as we go in the future on on the plan for next year, etcetera. Section 45 x of the inflation reduction act saw a benefit for the mining operations of a 159,000,000 credited to costs in the half year. The impairment of 238,000,000 was not related to operations, but rather was due to a change in accounting treatment from the original evergreen treatment of section 45 x and the original inflation reduction act to it now being phased out from 2031 through to 2034 with a 25% step down each year. Our treatment of section 45 x in our books has followed the letter of the law from the original inflation reduction act now to revisions on the the newly promulgated big beautiful act, which revised tax and spending policies in The US.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

We will be making our formal 45 x submissions with revised tax filings during the second half of this year. We would expect the cash flow for the 2023 filing and the 2024 filing years to be realized next year in 2026. You will have also seen that together with the United Steelworkers, we recently filed an antidumping and countervailing duty petition against unwrought Russian palladium imports into The US. The petitions were filed with the US Department of Commerce and the US International Trade Commission. The goal of US antidumping and countervailing duty law is to ensure that domestic producers can compete on a level playing field by addressing the market distortions caused by unfair trade practices elsewhere.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

These investigations by Commerce and the ITC should take approximately thirteen months. The preliminary duties and determinations are expected in the next three to five months. The heavily subsidized Russian imports have been sold below market prices since 2022. And at the very time that we reduced annual production at our Montana operations by 200,000 ounces and cut 700 jobs because of low palladium prices, Russian imports stepped up into The US. Imports of unrawled palladium from Russia into The US increased by 35% from 2022 to 2024 and increased by another 50% in the 2025.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

It is this unfair trade practice specifically that we are addressing with the trade remedies that we have available to us in The US. In handing over to Grant to talk to our recycling business, let me just note that while AutoCAD recycling remains subdued in The US and hence impacts our Columbus recycling business, our move into industrial scrap and e scrap recycling through Relden is performing above plan, which is very pleasing to see. We are also excited to add Metallics to this platform in the near future, which will allow us to unlock further synergies as we build out a substantial critical minerals recycling business that is complementary to our USPGM mining business. Thank you.

[Grant Stuart, Head - Recycling & Global Operations at Sibanye Stillwater]

Thanks very much, Charles, and good day, everyone. Our recycling journey in Montana began over two decades ago when space melt capacity was first leveraged to process spent autocatalytic converters. What started off as an efficiency initiative has evolved into a strategic platform. Since acquiring Stillwater in 2017, we have deliberately strengthened and expanded this capability transforming Columbus into the cornerstone of our recycling business and the springboard for broader growth. While the global auto cat recycling market remains under pressure with macroeconomic factors extending a vehicle's life on the road and thereby limiting short term volume recovery, Columbus continues to perform as a stable cash generative platform.

[Grant Stuart, Head - Recycling & Global Operations at Sibanye Stillwater]

In the 2025 average daily feed was 9.6 short tons per day slightly below the prior year due in part to market factors but also due to the transition to a second furnace which resulted in a temporary inventory buildup of 147 tons containing an estimated 12,003 PGM ounces. With the electric furnace now operational, inventories are expected to normalize in 2025. Together with the $126,000,000 of Section 45X credits that Charles has just mentioned, Columbus delivered an adjusted EBITDA of $129,000,000 or R2.4 billion. As part of our growth strategy, we acquired Raldon fifteen months ago. Raldon has been a successfully integrated entity into our organization and delivered $20,000,000 in operating cash flows year to date, equating to an adjusted EBITDA of R80 million dollars or R330 million.

[Grant Stuart, Head - Recycling & Global Operations at Sibanye Stillwater]

Rraldan is structurally well positioned underpinned by strong Fortune 500 customer base, a disciplined operating model with a sharp focus on cost management and a suite of industrial and precious metals. Year to date, we have processed 8,600,000 pounds of industrial scrap and waste and sold 64,000 ounces of gold, nine thirty three ounces of silver, 20,000 ounces of PGMs and 1,500,000 pounds of copper. Most recently, we announced the acquisition of Metallics. Now Metallics further strengthens our value proposition by adding scale, advanced processing technologies and a logistics fleet that extends our sourcing reach across The U. S.

[Grant Stuart, Head - Recycling & Global Operations at Sibanye Stillwater]

Together with Weldon, we will have presence in Mexico, India, United Kingdom, South Korea and Taiwan. Metallics brings increased volumes of gold, silver, PGMs and copper, and like Weldon, is expected to be cash generative from day one. So what we have now is a platform with real structural integrity and reach. Our AutoCAD platform is the mature foundation with PGM scale, dependable assay capability, quick turnaround times and a business with integrity and reputation. Raldon has diversification engine with a geographic reach and competence and scale in gold and silver and now Metallics as the accelerator of scale and innovation.

[Grant Stuart, Head - Recycling & Global Operations at Sibanye Stillwater]

It is expected that the transaction will close in September now that we have all regulatory approvals in hand. In conclusion, this is more than a series of acquisitions. It's a strategic convergence that redefines what's possible in precious metal recycling and positions us uniquely to shape a cleaner, greener future. Thanks, and over to you, Robert.

[Robert van Niekerk, Chief Technical & Innovation Officer at Sibanye Stillwater]

Thank you, Grant, and hello, everybody. I'm pleased to report that the Australian operations had a good start to 2025. They produced 51,000 tons of payable zinc metal, which is a twenty two percent year on increase. This level of production even exceeded my only expectations and was thanks to less rain this year compared to last year and also the successful implementation of remedial measures to address address risk excess of rainfall. As one would expect, with an increase in production costs come down, and the unit costs this year are 21% lower than for the same period last year.

[Robert van Niekerk, Chief Technical & Innovation Officer at Sibanye Stillwater]

The h one group performance was supported by an 11% increase in the average zinc metal price. It increased from $2,366 a ton in 2024 to $2,626 per ton in 2025. Worthwhile mentioning is the treatment charges, which were less than 50% of what they were last year. This in part due to the industry benchmark, which was lower, but also the team capitalizing on very lucrative spot sale agreements in the first half of this year. Increased metal production, reduced costs, higher metal price, all contributed to an adjusted EBITDA of $36,000,000 which was significantly more than the $19,000,000 loss of 2024.

[Robert van Niekerk, Chief Technical & Innovation Officer at Sibanye Stillwater]

Looking at the remaining six months for the year, we've hedged approximately 60% of our zinc which we can produce, and this adds a cap and a flow of between 4,900 Australian dollars per ton and 4,100 Australian dollars per ton. And this coupled with a decent performance is gonna assist us to contribute very significantly to the organization again. Closing up with the development projects, the feasibility study for the Matlal copper project in Tasmania is progressing well, and I'm expecting it to be finished before the end of this year. And then the phosphate feasibility study, which uses the Century existing infrastructure, is expected to be finished in the first quarter of next year. At this point, I'll hand over to Mika. Thank you very much.

[Mika Seitovirta, Chief Regional Officer - Europe at Sibanye Stillwater]

Thanks, Rob, and hi, all. Greetings from Finland. We have two strategic projects in the region Europe, which are classified as strategic by the European Commission, And it's obviously related to Critical Minerals Act. We are quite proud of that. Although market for lithium is currently challenging, We can see that the electric vehicle volumes are growing again in the region Europe.

[Mika Seitovirta, Chief Regional Officer - Europe at Sibanye Stillwater]

If you look at q two sales numbers, it was almost 30% positive year on year. Our long term view about EVs and lithium has not changed. We see it very positively. And what we can say also is that particularly when we are having the pole position to enter the lithium hydroxide market in Europe. So we are confident that that will give us longer term a lot of opportunities.

[Mika Seitovirta, Chief Regional Officer - Europe at Sibanye Stillwater]

We are on schedule, and we are also on the CapEx plan, which was revised just some time ago to €783,000,000. As you can see, 577 so far has been used, and we haven't changed the guidance for the total year '25 on this one. It's still €300,000,000. The permits are in place for us to start, and we did an impairment because of the lithium price outlook being more challenging than what it was before. This impairment is about 35% of the value.

[Mika Seitovirta, Chief Regional Officer - Europe at Sibanye Stillwater]

Currently, we are working on different options, different financial scenarios, different risk management actions, how to mitigate the risks during the ramp up, but also looking what is the most responsible way of ramping up and starting this operation for all the stakeholders. Let's then move to Sandoval, France. Actually, we are working on two streams there. One is about history, and the other one is about future. We have ramped down the current production during h one, and we are now preparing you q '3 for care and maintenance.

[Mika Seitovirta, Chief Regional Officer - Europe at Sibanye Stillwater]

We continue that q four, and at the end of the year, we are going to be in care and maintenance. The future work is obviously about GALICAM. And GALICAM project is now going forward in a good way. We believe that we can finalize the pre feasibility study around the year end. Maybe just few words about the ramp down of the current production.

[Mika Seitovirta, Chief Regional Officer - Europe at Sibanye Stillwater]

We have been following the plan, and the plan was to ramp it down at the end of h one, and we are there. We have also agreed already with 72 out of our 200 headcount, to leave the company still during this year. We are negotiating with the unions in good faith to do further reductions in order to reach the care and maintenance position at the end of the year. What does it mean? We are targeting give and take to 60 in this headcount reduction, and half of that would be Keram maintenance and the other half is GALICAM project.

[Mika Seitovirta, Chief Regional Officer - Europe at Sibanye Stillwater]

About GALICAM, I said it's advancing well, and we have very good encouraging results from the lab tests. The PCAM product is not yet ready. We are still working with the density of the product. We are going to do tests in the cells and so on. But the research and development work together with the engineering work is progressing well.

[Mika Seitovirta, Chief Regional Officer - Europe at Sibanye Stillwater]

We are also looking for possible partners to mitigate the risks further and to make sure that we are part of the right ecosystems if we make the decision after the feasibility study to continue. So thank you very much all, and over to you, Shah.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

Thank you, Mika, and good afternoon to all participants on the call. It is my pleasure to take you through the financial results for the six months ended thirty June twenty twenty five. Group revenue decreased by 1% to R54,800,000,000 with increased commodity prices offset by lower volumes. Cost of sales decreased by 20%. However, if we normalize for the impact of section 45 x for 2023 and 2024, it reduced by 11% or R5,400,000,000.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

EBITDA increased from R6,600,000,000 to R15,100,000,000. And if we normalize for the section 45 impact of 2023 and 2024, it increased by 60% to R10,700,000,000. Moving on to impairments. The US operations realized an impairment of R4,200,000,000, and this was due to the section 45 x credit phase out in 2034, which was clarified in the one big beautiful bill act recently enacted in The United States. Previously, this legislation had an evergreen time frame for section 45 x.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

The impairment at Caliber of R5,300,000,000 was predominantly due to changes in economic factors, most notably the lithium price assumptions. At Mimosa, we also booked a R461,000,000 in payment due to the increased operating cost and capital and the introduction of the Zimbabwean beneficiation tax on platinum. The net impact of all of this was a loss for the period of R3,900,000,000, but it turns into a profit of R1,900,000,000 if we exclude the noncash impairments and the historical section 45 x credits. Headline earnings per share increased from 10 South African cents per share to a 190 South African cents per share or a 19 times increase. On the dividends, as mentioned by Richard, due to the current volatile global economic and geopolitical environment, we felt it prudent not to pay an interim dividend.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

A decision will be taken at the end of the year once we've had some time to see if the commodity price performance is sustainable. Turning to our debt position, Gross debt increased to R40,200,000,000 from the December 2024 reported number of R39,400,000,000. Net debt stands at 19,200,000,000, and available cash was R21,000,000,000. And available liquidity, which includes our undrawn facilities, is just under R47,000,000,000. On the bonds, we remain on track to refinance the $20.26 $675,000,000 notes in half one twenty twenty six.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

At this stage, we are targeting downsizing the notes to $500,000,000. Also pleasingly, the $20.28 $500,000,000 convertible bond is now in the money as the share price have been trading well above the conversion price of approximately R24 a share. Just to note that this convertible bond is callable in November 2026. I will now hand over to Melanie Naidu for Mark to provide an update on our renewable energy portfolio. Thank you, Melanie.

[Melanie Naidoo-Vermaak, Chief Sustainability Officer at Sibanye Stillwater]

Thank you very much, Shah. Good morning, good afternoon, and good evening to all our attendees. As Neil and Richard have often emphasized, sustainability is a principle, one that's deep embedded in the group's strategy, its operations, and values. Our sustainability framework comprises several key pillars with our commitment to decarbonization being one of the most critical. The group's renewable energy program is our most powerful lever for decarbonization given that 92% of our group emissions originate from Eskom.

[Melanie Naidoo-Vermaak, Chief Sustainability Officer at Sibanye Stillwater]

And through the development of our large scale solar and wind projects, alongside innovative energy solutions, we're actively reducing our emissions. We're lowering our operational costs and strengthening energy security. And the milestones achieved this year demonstrate that we are firmly on track to meet our 600 megawatt renewable energy target by 2027. At the March year, Castle Wind Farm entered commercial operation, already giving us 56 gigawatts of clean energy with a R21,600,000 cost saving for the South African region. And our Springbok solar facility is under going grid compliance certification as we speak, and we expect our first energy from that project in the next few days.

[Melanie Naidoo-Vermaak, Chief Sustainability Officer at Sibanye Stillwater]

The graphs on this slide show our growing portfolio of privately developed renewable projects, which when fully operational, will get us to the 30% substitution of our utility energy supply by mid twenty twenty seven, and that would reduce our annual emissions by 1,500,000 tons of c o two equivalent. And these projects, coupled to our pipeline in development, gets us to that 600 megawatt target by 2027, driving tangible progress toward a more sustainable and resilient energy future. Thank you. Richard, handing back to you to conclude.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Thank you very much, Melanie. So I think just to move us into a final conclusion for today's presentation. I think as mentioned earlier, most of our operations are still well within guidance, and we look forward to a very constructive 2025. The only guidance that we are revising in line with, as I discussed, the review of the current turf operations is our South African gold guidance, which has been revised down from 16 to 17 tons of gold to 15 to 16 tons of gold at all in sustaining costs of between ZAR1.45 million and ZAR1.55 million per kilogram. The balance of guidance, as I say, remains unchanged from what we put out earlier this year.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Thank you very much to all of my colleagues for the detailed presentations given. So I think in conclusion, as you can see from both the heading as well as the strap line on the slide, our immediate focus is very much on prioritizing safe production, optimizing our margins and ultimately continuing to strengthen our balance sheet. As described earlier, I think we have a unique asset portfolio and are very well strategic positioned to not only survive, but thrive in the very turbulent market conditions we currently find ourselves in. Our production turnaround has been pleasing post the repositioning and restructuring, and good progress made on eliminating fatalities, albeit that still remains our number one focus. Our improved operational performance has underpinned the financial turnaround that we have seen over the last six months.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

And today, of our operations are either generating positive cash flow or very close to it, and we expect to see that turning during 2026. The closure of Sandoval later this year will continue to reduce losses further from that operation. And as we move through the peak funding of both Calibre and K4, we look to a higher cash flow conversion and that benefiting our overall gross debt position. The significant Section 45 payments, we look to that cash coming through in 2026, again benefiting the balance sheet. And today, we remain very bullish on gold given the current market dynamics and are cautiously optimistic about the outlook for PGM markets, fundamentally remaining very bullish in the medium term, but in the short term, remain focused on the fundamentals coming through.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

I think our balance sheet is healthy. We have a low leverage. We have ample liquidity and sufficient debt headroom with a derisked debt maturity ladder ahead of us. We have been responsible with our capital allocation during a very difficult cycle, both managing to preserve the balance sheet, but at the same time investing to ensure the longevity of our business. Overall, the outlook for the second half, particularly if commodity prices remain where they are, is extremely positive, both on an operational and from a financial perspective.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

But we recognize that our absolute focus needs to be on what is within our control, which means a sustained safety improvement combined with operational and cost discipline, which will remain our absolute core focus. Thank you once again for joining us today, and I'll now hand over to James to manage any questions you may have. Thank you.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thanks, everyone, and well done gents for the presentation. Starting with a question from Arnold Van Kraan from Nedbank. Richard, you had some challenges at the SA Gold ops. Have we seen the brunt of the impact of these challenges? I assume meaning end.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

And when do you expect the operational performance to stabilize? How should we think about the SA gold production and CapEx profile over the next two to three years?

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Arnold, good afternoon. Thanks very much for that question. So I think as we mentioned, I do think that both Beatrix and Driefontein have stabilized. I think always important to remember and that's the point we were trying to highlight. Assets of this size when they get to this point in their lives are very operationally geared.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

And of course, they don't have the levels of flexibility that they had five or ten years ago. But certainly those two operations seem to have stabilized well. I think our major challenge has of course been the Clerf operations. And on the back of the seismicity and some of the decisions we've made around what we will not consider mining predominantly from a safety perspective and the infrastructure that we've got there, we are undertaking that review to understand what Cliff's outlook looks like. So I think to try and give you some sort of high level numbers, I think what we can expect over the next couple of years, Drufontein is probably going to be producing in the region of eight to 8.5 tons of gold or let's call it quarter of a million ounces odd.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

I think Beatrix is probably around half of that, so about four tons of gold, 125,000 ounces. Cliff has historically been doing and expected to do in the region of about five to six tons. I think we can expect to see that probably halving based on what we have seen. But that is the work that we are finalizing and we'll come to the market within the near future. So I'd be saying from our underground operations going forward probably in the region of about four and seventy five thousand, 480,000 ounces per annum.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Of course, we've obviously got our surface operations and DRD on top of that. I think the CapEx question is a good one. If you go back and look at our capital profile over the years, it's been pretty consistent at about ZAR3.5 billion per annum over the last few years excluding project CapEx. And again, as I say, are large operations with a lot of fixed infrastructure. Most of that goes into sustaining infrastructure.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

So we've sustained that throughout and that won't change. I think sustaining capital in terms of that infrastructure is almost irrelevant in terms of the total volume you're outputting. So I would say you can expect the capital to remain roughly the same at about GBP3.5 billion.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thanks, Rich. I must say it does look like some of these analysts and investors are a bit quick off the trigger because they're asking questions that were covered in the presentation, but all my hard work done for nothing. Just first one from Rene Hochreiter on congrats and I'm not directing that at Rene by the way. Congrats on the Section 45 benefits, 45X benefits. Can you expand on how you can get costs down below $1,000 per ounce at Stillwater?

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Rich, do you want to take that or hand it to Charles? Charles, would you like

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

to comment on that one?

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

Yes, sure. Thanks, James and Rich. And thanks, Rene, for the question. So I think the short answer is there are no immediate silver bullets. This is a a shift over time.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

It's it's one that we've done a lot of work on and continue to work on. I think I think when you look at both Stillwater East and you look at East Boulder, there are two big shifts over time that you need to affect. The one is to fully mechanize mechanize cut and fill, and the second is to increase sublevel extraction. Now we've done recently some really good internal work on on mining cycles, and and what that shows you is is that time spent at the face is is largely related to bolting, 36% on average, and secondly, mucking, 21% on average. And if you if you're looking to address that, we we we've done a number of things.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

One is we're trialing a a fully mechanized bolter. What this does is it increases your height and length of each round. So you get some dilution with that, but but you potentially get a lot more ounces per blast cycle. Now now if we get that right and and and the early trials on a Komatsu mechanized bolted at Stillwater East are good, then then there's a knock on effect you have to address because you now have higher tonnage and volumes. You've got to look very carefully at your ore ore handling.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

So we got some debottlenecking to do there, certainly at Stillwater. At at East Boulder, you've got a different dip angle on the ore body, so you've gotta go with a smaller bolter. So all of this work is is daylight in the fact that there is a real opportunity set here to realize lower cost, improved productivity, enhanced mining cycles. But as you increase ounces, you've now got to look very carefully at your your tailings capacities and so and and your rock dump capacity. So what we've done at East Boulder through this year is we've deferred some capital spend on those expansions.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

So so there's a kind of, you know, there's a there's a confluence of factors that have to be worked quite carefully. Now we absolutely know we can get towards a thousand dollars an ounce over over a couple of years. If you work all of these different components and and you start to spend back the capital to to enhance the the tailings capacity, particularly at East Boulder. So that trade off work is underway. I think I think by year end, we'll have that well in hand.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

We will be guiding the market early next year on what what that looks like near term. I hope, Renee, that addresses key aspects of your question. And if you, you know, moving towards sub sublevel extraction on greater opportunity sets, then there's a lot of geotech work we're busy doing to to understand how that can work most effectively. So it's it's work in hand. And then, you know, we've also done really good work at the back end on on on the mine planning, introducing a digital twin capability.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

So I think our sort of trade off optimization work is is is a step change from where it was a year or two ago. When you put this all together, I'm quite comfortable when we start talking to this early next year. You know, we'll we'll we'll have a good roadway. Again, it's not a one quarter wonder, so this is gonna take two to three years to really get that right. Thanks.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thank you, Charles. The next question is from Lorenzo Parisi at JPMorgan. Again, think these are answered or were answered in the presentation. But how confident are we to receive the $285,000,000 actual cash inflow next year from the Section 45X credits? Would we expect to receive additional Section 45X credits in future on top of the $285,000,000 I think Neil indicated a fair value that was quite sizable from future Section 45X credits.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Can you remind us of the expected CapEx for next year? And then at current prices, would you expect to generate free cash flow next year, but also the lower CapEx spend, but excluding Section 45X credits? I think that's probably for Charles.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

Thanks. Look, on 45X, I mean, we're following the letter of the law. We're doing tax submissions and revisions in in the second half, and then and then it runs a process. So it's it's legislated. You know, it we are we are still first cabs off the rank on this.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

So so, you know, until we get the check-in the mail next year, I'm I'm obviously cautious, but there's nothing that suggests you wouldn't get that. So so hence, our current accounting treatment. But I think the whole industry is is now navigating the early submissions on 45 x. So there's a look back for two years, and that's what we've been dealing with in the numbers today. And then there's obviously a look forward over the next several years.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

So, you know, it's a very material positive addition to to US critical minerals mining. And and I think it's it's, you know, one that we've been very directly involved with in the prior administration and also with the current administration to make sure that it it works well. So I I I think the mechanics are mapped out in in law. I think the process, you know, is there, and and we are busy navigating that. So, you know, we we we expect the the the the cash returns next year.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

James, just remind me of the second part of the question, please.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Okay. Let me just get back to the

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

Just capital. So we will guide capital at Stallwater next year with our market release once we've got it through through our executive and board on on the late year planning submissions. And on pricing, you know so so, you know, we've seen we've seen positive movement in in particularly palladium in the last couple of months. Obviously, we can't bank that yet. It you know, we would expect that to keep firming.

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

So I think once you get into a $2.02 e price that that's in the 12 to 13 hundreds, you you know, and given all the heavy lifting we're doing to to improve operating efficiency cost and cost structures, then, you know, the the net of that is is you start to return to positive cash flow, and that is absolutely our intent. Exactly the timing of that, it'll be price dependent, and, you know, it'll it'll be dependent on on all the work we're doing to move down the cost curve. And as we've tried to demonstrate, there's been a real shift in the last twelve months, and we continue on that journey.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thanks, Charles. Sibanye Stillwater has announced it will acquire U. S. Precious metals recycler Metallics in a deal valued at $82,000,000 in cash. When shall this be finalized?

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

And will this affect the 2025 figures and how? What is the sense okay, maybe that's the first part of the question. I'll ask the second part later. Charles, do you want to take that?

[Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater]

James, I think let Grant go. I mean, I can address it, but it'd be good for Grant to work with it. Thanks.

[Grant Stuart, Head - Recycling & Global Operations at Sibanye Stillwater]

Yeah. Thanks, James. Thanks, Charles. The deal the transaction is looking to close towards the back end of this month. So, yes, we're looking towards September for the welcoming of the Telx team onboard.

[Grant Stuart, Head - Recycling & Global Operations at Sibanye Stillwater]

As far as the strategy goes and the integration, we're looking at clearly optimizing and making sure that we realize synergies from that. So we expect that that the operation will be cash generative from day one, together with the synergies and optimization opportunities definitely impacting positively the financials for 2025.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thanks, Grant. The second part, I'll guide to Richard is what is the sense in the longer term for Sylvania Stillwater when thinking about the strategy of the company?

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Thanks very much, James. If that relates specifically to recycling, not quite sure, but let me just answer that. I think strategically recycling is a critical part of our business that we've always discussed in terms of getting exposure to the circular economy. I think it gives us exposure to many different critical metals that are very quickly and at relatively low capital cost. And I dare say that cycling is becoming increasingly important in the world not only a footprint perspective, but also in terms of being a source of quick supply of local critical metals in terms of security of supply for certain regions.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

So recycling certainly still remains a core part of the strategy. And it is a nice steady margin business for us. I think if the question related more to the general strategy of the company, I think as we have shared before, we don't see a significant shift in strategy coming. I think hopefully as you would have picked up from the presentation, our immediate focus and short term focus is very much on our operational excellence, on increasing margins and of course continuing to strengthen the balance sheet. But in terms of long term strategy, we will continue to review and refine that together with our board to take into account the environment we're operating in.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

But we certainly don't see significant or massive changes coming in that regard. Thanks.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thanks, Richard. While we're on the topic of recycling, this is from Rene Hochreiter again. What PGM incentive basket price do you think is needed for recycling to return? Are current spot basket prices of around $1,700 per ounce higher than this incentive price.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Richard? Rene, thank you. So I don't think it's quite as simple as looking for a trigger price. I think that's oversimplifying it. This is obviously a significant business we've been in for a while.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

I think as I've shared before, in my mind, are probably four big drivers to ultimately what drives recycling. Price does play a role, tends to play more of a role sort of higher up in terms of higher up in the value chain sort of at a collector level. I think as you get lower down in the recycling chain, is more of a margin business. But that's really the fact that price plays. I think much bigger drivers really go around scrappage rates of vehicles.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

And of course that is far more linked to macroeconomics. I think another big driver is interest rates. Recycling business is working capital intensive throughout the chain and interest rates tend to have a can eat a lot into those margins. So that's quite a big driver. And then the final one is supply chain efficiencies.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

And certainly, think more globally, we have seen a lot of breakdown in those supply chains over the last few years. And I think that will continue to make it a bit more disruptive or more expensive to move material around the world. So now I think it's a combination of those rather than necessarily looking for a single price trigger point at which we can expect a return. In terms of the market, as we've said before, many of those actually work in reverse to the drivers of primary demand. So you tend to get an overall balanced market. Thanks, Renee.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

I can just say that a lot of the market forecasters have been expecting recycling to recover for the last two or three years, but no sign of it yet. This is from Nkiteko Matonzi. Can you give guidance on the life of mine of Batopele and the surface operations at SAPGM? Do you plan to open up new tailings dams? I guess that's a question about capacity of our Tailings Dam. Richard?

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Thanks very much. The life of mine at Butter Paddy is about four or five years that is remaining there. I think in terms of the surface strategy, that's a good question. I think at the moment, we currently have official reserves of about two years, if I'm not mistaken, in that sort of ballpark. They are quite short life.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

And that's been intentional in that we've really just continued with those operations almost year to year. I think as we have alluded to before, and this is also where some significant value from the potential future partnership with Glencore and Morafi can play a role is we have been working on quite a significant surface strategy. We do have significant tailings dams that still contain both PGMs and chrome. And that is a strategy that we will be or a project that we'll be looking to finalize towards the end of this year and probably will be coming to the market with that early in the New Year. But we do have significant surface resources, which do have a lot of value that we are looking to unlock.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

In terms of new tailings capacity, we have got plenty of capacity either on existing tailings or within permitted footprints for ready for the life of our current operations. So happy with the deposition capacity we've got. But certainly we are looking at much bigger surface potential similar to what we've unlocked on our gold operations that will be coming to market in the near future.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thanks, Richard. Another one from Nkateko. Richard talked about higher cash conversion as the CapEx spend on Kiloband KF4 started to conclude. Does it mean M and A is no longer a priority in the I think she probably means as we generate more cash, are we going to spend more on M and A?

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Thanks, James. Nktegula, let me answer your question. Think James put a different twist on it there. But let me just I think be clear on the view. Listen, I think importantly, M and A has always been part of the DNA of the company.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

I think we have shown how we've been able to create significant value through it over the years. And I think it will continue to be part of the DNA going forward. Importantly, of course, is the timing of how you grow, when you grow, and that's driven by a multitude of factors, lot of which is obviously dependent on your current strength and ability as well as value propositions that may be out there. So I think to give you two short answers, M and A will remain part of the DNA of the company. But in the short and medium term, as we've highlighted, our current focus is on our existing operations, optimizing margins and we do have some brownfields projects which we've committed to and that will remain our focus for now.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thanks. And I hope my twist was right, but apologies in Kiteko. This one from ING Bank And moving on to Kaleb questions. What does the responsible start of Kaleb refer to, if I may ask? Is it related to mine or the refinery part of the project producing lithium hydroxide? Richard?

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Thanks very much. I think as you've quite rightly pointed out, Killebur is very much an integrated project that comprises of mining operation, concentrator and refinery. I think if we step back and look at the project overall, as mentioned, this is the only current refinery in Europe and one of very few outside of China. And I think we remain very bullish on the lithium price in the long term. But the prices are very depressed right now.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

And to commence operations at a significant loss is just not something that we believe is in the best interest of all stakeholders. So we are evaluating multiple opportunities. Some of them include potential revenue drivers because this is such a critical project in Europe. Are there opportunities where we can get competitive pricing to recognize that opportunity? And others may include either phased or much slower ramp ups.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

These are all the options that we are looking at responsibly. And that's what we mean by responsible start up. But at current spot prices and where it has been right now, our focus is to ensure we minimize risk and minimize losses to all stakeholders. Critically, we do recognize, of course, well that there are multiple stakeholders included in this, various financiers and of course, the projects themselves. And all of that will be taken into consideration as part of these decisions.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thanks, Richard. A question from Alexandra Simiandi from William Blair. What do we expect the production costs to be at Calibre? And where do we expect it to be in the global cost curve? I'll direct it to you, Richard, first.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Thanks. I think at the moment, of course, it does depend on how we ramp up and the timing of that. But roughly speaking, the total cost at the moment, you're looking at about $12,000 to $12,500 per tonne. That would put us in the currently in the fourth quartile of existing projects today. What is important to look at and I think that's why we're looking at it carefully is what future cost curve looks like when we start looking out a few years.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

That does become competitive. But I think that also does set some sort of target of where we'd be looking for the market to be as we move forward.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thank you. From Bradley Beerwinkle, a retail investor. Please talk about the uranium business progress, neo energy as well as the tailings. What is Greg Cochrane cooking up? Sorry, it's a pun on Cook dump, but okay.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

How much zinc is still left in the dumps and in the ground at Century? And are there any mine developments surrounding the underground pipeline at Century? Does the Mount Lyall feasibility focus include recoveries from the historical waste dumped into the river? Rich, do you want did you get all those or should I ask them one by one?

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Think James, if I could, let me tackle the uranium ones and then perhaps if you could just pick up on the others. I think just on the uranium side, as you correctly mentioned, we are in a sales process of Beatrix four to Neo Metals. That process is continuing. We are awaiting some regulatory approvals in that regard. So that is in process.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

The Cook tailings project, which is obviously a significant uranium resource, we are looking for that feasibility to be completed towards the end of this year. And then we will see how best to progress with that project. But certainly it is significant project and a significant resource where we do believe there'll be a lot of value coming from that. But that will be driven by the outcome of the feasibility later this year.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

The next year, so the other two questions were around Century. How much zinc is still left in the dumps and in the ground at Century? And then are there any mine developments surrounding the underground pipeline at Century?

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Thanks, James. Let me have an initial comment and Rob, if you'd like to add anything. But in terms of resources, we've got roughly two years worth of the zinc operations remaining in tailings dams. And yes, there are significant resources surrounding that infrastructure, in particular phosphate. And that certainly could be an opportunity to utilize that infrastructure going forward.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

It is a feasibility study that we are working on with the owners of that project. Probably worth noting that phosphate was recently included in the critical minerals list that was recently published in The U. S. But yes, there are other resources around that.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

And then a question on Mount Lyall, the feasibility focus, does it include recoveries from historical this is waste dumped, I would have said tailings deposited into the river.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Not as far as I'm aware, but perhaps Rob could ask if you've got any comments to add to that?

[Robert van Niekerk, Chief Technical & Innovation Officer at Sibanye Stillwater]

Richard, I can confirm you're correct. The feasibility study deals only with the underground operation. Having said that, any surface sources, whether in waste material or surface tails, and can and will be considered as optimization to the feasibility study, but the study expected by the end of the year only focuses on underground material. Thanks.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

A question from Cipulele Mdudu from Matrix. Are you not worried that these inventory buildup will be released in H2 twenty twenty five comments will put downward pressure on PGM prices in the near term as it seems that the industry has built up inventories.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Richard? Thanks very much. No, I think is the short answer. I think what's really driven up the prices, yes, I think some of the supply shortage that came out, particularly during Q1 out of primary production in South Africa, did was one of the triggers to prices moving. But I think that, that's something that's been well understood and modeled.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Overall, supply continues to decline. So I think these are short movements. More of a driver to what we've seen in terms of the commodity price increases has been the investment buying and the increased buying, particularly going into China, as Kiantha mentioned. So I don't think the release of inventory coming I think there are a few companies, as you quite rightly mentioned, where we're seeing inventory coming out in over the next few quarters. But I don't think it's big enough to materially move the market, no.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

And much of it does come out over an extended period of time. I think the bigger fact is that overall primary supply continues to decline at the moment, particularly out of South Africa over the coming years.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

The next question from Antoine Dassault. The question is on Galycam about timing, CapEx installation, R and D work, etcetera. So I think we've said in the book that the pre feasibility study is going to be done by the end of the year. And obviously, those numbers will be revealed after that. So I don't think we'll carry on with that question.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

There was a question from William Blair as well. Sorry, I missed what Charles said. Is there a plan to tender part of the 26s to reduce them to $500,000,000 ahead of H1 twenty twenty six when you plan to refi? Or did Charl mean that the new bond will be $500,000,000 I guess? Thanks.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

Yes, thank you. And no, we do not have any plans to tender the bond before H1 twenty twenty six. The plan is to use some of our excess liquidity and launch a smaller $500,000,000 bond. As Richard has explained, there is a focus on gross debt reduction. And if you look at our debt, it's really chunky, really consists of four blocks being the 2026 bond, the 2028 convertible, the 2029 bond and then the Kilobyr debt.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

We don't get a lot of opportunities to address the chunkiness of the debt. And that's why at this stage, the planning stage, we are considering a AUD500 million bond to be issued in half one twenty twenty six. Thank you.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

A question from John Mahacher. The company has not been profitable since 2022, which was when the downturn in the commodity prices happened. It seems 2025 will be a third year in a row making a loss. I don't think that's strictly correct. But when do you expect the company to become profitable again? Richard or Charl?

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

Charl? Yes. Thank you. So thank you for the question. And if you look at the bottom line numbers, we do report losses, but those include the impairments that we had to take.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

We do operate in a cyclical business, and we suffer the vagaries of the market, specifically with reference to commodity prices. So those have necessitated that we do write downs on some of our assets, predominantly The U. S. And more recently on Kaleba. If you do strip out for those noncash impairments, we've made profit in all of those years.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

Even if we include this year's impairments of just under 10,000,000,000, we do forecast that we should make a bottom line profit, including that number. But as I've said, you really have to add those numbers back. They relate to historical acquisitions and due to the accounting standards determining that we have to do those impairment assessments. Thank you.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thanks, Shaul. Just before we go to the phone lines, I think we'll just end with the question or a comment from Steve Shepherd. Not a difficult question from me this time, which is unusual for Steve. But if you think it is appropriate, I'd like to wish Neil a long and happy retirement. The oldies amongst us know that he's been a legend in the mining industry.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

And to Richard, all the very best of luck filling Neil's big shoes. For what it's worth, I believe the group is going to be in strong hands with you. All the best to Neil and Rich. Thanks, Steve. I think can we go to the phone lines for questions?

[Operator]

Thank you. First question comes from Adrian Hammond of SBG. Please go ahead.

[Adrian Hammond, Executive Director at SBG Securities]

Thanks, operator. Good afternoon, everyone. I have a few questions. Firstly, for Shar on free cash flow. I see you've changed the definition to include deferred revenue.

[Adrian Hammond, Executive Director at SBG Securities]

I see that there's a low and why have you included this time? Why have you changed the definition? And then for your EBITDA that you've explained in the one of the slides with the Section 45 credits, how much deferred revenues in your EBITDA for the first half? And then in your net debt to EBITDA calculation, sorry, a lot of accounting questions, you do have a challenging set of accounts. Does the net debt certainly, the net debt benefits from any prepayments that you've arranged.

[Adrian Hammond, Executive Director at SBG Securities]

But does the EBITDA as well include the deferred revenue relating to that so that we can just understand your calculation there?

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

Yes.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

Thank thank you, Adrian. Yes, we did change the definition. We specifically looked at the impact that the cash receipts has on those numbers because those numbers simply had the entry in where we actually recognize the deferred revenue. So you really have to match the two, show the inflow and the outflow. And it's for that reason why we've changed that definition just to make it more clear.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

Insofar as the EBITDA, I don't have the exact number, but it's probably about ZAR1 billion. There's definitely ZAR733 for the chrome portion. And then there's obviously the deferred revenue from the Stillwater stream and the recently announced Franco Nevada stream. So it's roughly about ZAR1 billion of deferred revenue that's being recognized in our numbers. On the net debt to EBITDA, yes, we have shown the inflows insofar as the cash is concerned and the impact that, that has on the debt or the net debt number.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

But similarly, we do recognize the deferred revenue in the EBITDA calculation as it comes in on that revenue line. So there is a matching of that Adrian. It's not just simply we're not just picking the fruits of the one portion, but we're also showing the other side as well.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thank you. Next question please, operator.

[Adrian Hammond, Executive Director at SBG Securities]

Thanks.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Is it still you, Adrian.

[Adrian Hammond, Executive Director at SBG Securities]

Just wanted to understand Calibre that the outlook there seems to suggest you may delay the ramp up? And would that mean you push CapEx out or you cut CapEx in the near term? And then just want to understand the permit situation has been some of it's still pending appeal. So just trying to understand what the real implication is to the project based on those appeals.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Much. Let me I can perhaps just touch on your capital question, and Mika will hand over to you just to unpack the permits. So what we in terms of capital, we will continue the build of the project and finish the build of the project, which is in the first half of next year. So the project capital, we will complete. I think it makes sense to complete the project fully.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

What we really are looking at in terms of the responsible start up is whether that startup is slowed down or delayed in some form or another compared to the original plan. So that is the work that is currently being looked at. So no impact on project capital. Of course, part of the reason we're looking at it is the cost of the startup. And once we have made a final decision on that, we will come to the market with that.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

But no change on project capital. We will complete that build of the project. Mika, could I perhaps hand over to you just to pick up the permit questions? Thanks.

[Mika Seitovirta, Chief Regional Officer - Europe at Sibanye Stillwater]

Yes, thank you very much. We are ready to go when it comes to permits. So concerning this one appeal, we need to remember that we have an enhancement order so we can start to concentrate it despite of this appeal. We also think that the likelihood that, that appeal would change anything is almost nonexistent. Thank you.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thank you, operator. Is there another question? I believe there was another one pending.

[Operator]

Yes, sir. Next question comes from Chris Nicholson of RMB Morgan Stanley. Please go ahead.

[Chris Nicholson, Head - Research at Morgan Stanley]

Thank you, everyone. Good afternoon. Good morning. I have three questions, but I'll ask them quite quickly. So just to understand on the IRA credit, you've shown a cumulative future value of that.

[Chris Nicholson, Head - Research at Morgan Stanley]

Is that full amount in cash? Or I seem to remember that in the future, there may be some portion that is only available in tax offsets. Could you just confirm that? And second, the IRA credit, which relates to the recycling business, do you expect to be able to hold on to all of that? Or do you anticipate that your customers who you I guess, collectors who you're buying from will want to share in that, just in the same way that you've obviously come to some agreement with Johnson Matthey on the underground mining?

[Chris Nicholson, Head - Research at Morgan Stanley]

And then final one, just do you have capacity to process Rustenburg and Kroondal at your own operations should you not be able to renew the toll agreement with Volterra from the end of next year?

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Chris, thank you. Thanks very much. Perhaps I can pick up the third part of your question and ask Charl and Charles perhaps just to deal with the first two. Chris, the short answer is yes. If we did have to process at our own operations, we certainly could do that.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

We do have the opportunity to do that. I think there are as I've said many times before, I think there are ways optimize value better across the industry. And in that regard, we are continuing to engage with Valtera. But if we did have to move and process across our own, would. It would likely have an impact on we would have to play a little bit with things mass pools, etcetera, to make it work, but we do have a solution if we have to.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

But we think there is better value and hence continue to engage. Shaul, could I perhaps pass over to you just on the

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

Chris. On the IRA credits, you're all right. There is a initially, it's cash and thereafter, it is an offset. However, there is a market for that offset. So effectively, you can unsell that at a discounted rate, which based on historical numbers is in the order of 90% to 95%.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

So yes, there is a portion that is offset against future taxes, but you have the ability to generate cash off that. Peter, you can maybe confirm what the dates are. And then Peter, insofar as the recycling customers are concerned, maybe you can also just weigh in there. Thanks.

[Pieter Henning, SVP - Finance at Sibanye Stillwater]

Good morning, all.

[Pieter Henning, SVP - Finance at Sibanye Stillwater]

As it relates to the recycling customers, they don't really have a path to the 45X credits. But we've got certificates from all of them that effectively that they can't claim. It is obviously a market that we need to evaluate going forward. But at this point in time, there's no real risk from that point of view. Yes, nothing else to add.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

You. I think there's one more question on the line, operator.

[Operator]

Yes, sir. Question comes from Dmitry Lyachenko of Investment Capital Ukraine. Please go ahead.

[Dmitriy Dyachenko, Financial Analyst at Investment Capital Ukraine (ICU)]

Okay. Can you hear me? Hi, everyone. Thanks for the presentation. And I have a question regarding the Dernstom project.

[Dmitriy Dyachenko, Financial Analyst at Investment Capital Ukraine (ICU)]

I saw media reports in June suggesting that company was going to restart the project. And now you say the project is currently being assessed. It's a decision expected by the end of the year. The question is what factors will influence the decision, the price of gold maybe, because to me, the long history of the project's development indicates some problems with the geology. And for now, if the project more likely to be restarted or to remain on care and maintenance. Thank you.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Dmitry, thank you very much. And I think it's worth just sort of going back to the reason we put Bonestone on care and maintenance in the first place was very much around preserving the balance sheet. And I think that's the major things that we are currently assessing once again almost relates more to capital allocation in the coming year. So the project is technically sound. We understand what's needed.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

We did start the ramp up. And of course, we have done all the necessary studies. So it's more around looking at what the detailed numbers would look like over the next twelve to twenty four months to get the project restarted since it's been put on care and maintenance and how that ultimately will fit into capital allocation going forward. Also looking at alternative mechanisms to potentially finance that startup. So that's the assessment far more so than any technical concerns or gold price, I should mention.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thank you. Question from Lorenzo for Charl. I think would we call the convertible bond soon? As far as I know, we can't call before 2026 anyway.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

Yes. Thank you, Lorenzo. No, I mean, call period only starts in November 2026 or shortly thereafter. Thereafter. Actually, think it's the December 19.

[Charl Keyter, CFO & Executive Director at Sibanye Stillwater]

Yes, the price is well within that range now. But at this stage, we simply don't have the ability to call it.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thank you. A question from Itumeling Rancho from St. Bannister Waters, actually. Considering that many countries are looking for alternative trading partners to The U. S.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

In light of the tariff war, is it not the time to look East from a strategic growth perspective? Diversifying into Europe is consistent with the apparent paradigm shift to find alternatives, so a lower risk in that regard for current projects. So I think it's two questions, Europe and China.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Thanks very much, James. I think as we outlined in the strategic overview of the presentation, I think a large part of our strength is that we have positioned ourselves in ecosystems over the last few years where we believe we can be competitive. And one of those has been The U. S. So we have been very successful in The U.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

S. I think as we've been outlining today, and that remains part of the strategy is to deliver into those Western ecosystems. This is why we beneficiate our metals and that's why we've developed footprint in those areas. So that will continue with the strategy as I mentioned during the presentation.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thanks. Last question from Robert Senat at Seaver Hill Capital. First, I want to compliment Neil's bold acquisition of Stillwater and look forward to Richard's future efforts going forward. I'd like to know though why Sabania Stillwater has not acquired the missing card that would give the company the best possible hand, a royal flush, and that is silver. I believe Subanya needs the diversification that silver can provide.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Have you gotten to sell Roberts or but let me pass it on to Richard, please.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

Yes. Robert, thank you very much. Listen, I think a very interesting suggestion. Earlier on, I was asked a question around strategically how we see recycling playing a part of our business. And I think your question relates really well to that.

[Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater]

I think at the moment, in fact, we do have significant exposure to silver in that we produce almost 2,000,000 ounces a year out of our recycling operations. So I think that's a really good example of where you can get relatively material and quick exposure to some of these critical metals through expanding those footprints. So I do agree with you, it's a great part of the mix. In our case, we've really focused over the recent times in getting that exposure through our recycling footprint. Thank you.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thanks, Richard, and thanks for all the questions. We really enjoyed the interaction. We are now done. I think we've had answered all the questions that were sent through on the webcast. So I'd like to hand over to outgoing CEO, Neil Frohneman for a last word.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

Thank you, James. And I think let me start off by saying you saw the Sibanye team in action today. And let me start off by complimenting them, Richard and the rest of the team that actually prepared these results, prepared this presentation and it included all the preparation for the board work as well. So well done. I thought you guys and ladies all did very well.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

Let me also just thank my team for all the support that I've had over many years. And as I've said, and I don't say it privately either that I believe this is the best team in the mining industry and they'll certainly demonstrate it. Also want to thank everyone on the call and specifically those that made positive comments about myself and Richard, Steve, thank you. And there were some comments on the question sent. We recognize that and note them.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

Thank you very much. The company is in great shape, got a good strategy. As I've said, there's never going to be a dinosaur, does things off the wall, sometimes very hard for people on the outside to follow. But this company is going places and under Richard's stewardship, I look forward to seeing that. So thank you very much everybody.

[Neal Froneman, CEO & Executive Director at Sibanye Stillwater]

For those on the inside that did all this work, those on the outside that make all this happen for your good questions and your support. Thank you very much.

[James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater]

Thank you, Neil.

Participants

Analysts

• Neal Froneman, CEO & Executive Director at Sibanye Stillwater
• Richard Stewart, CEO Designate & Executive Director at Sibanye Stillwater
• Kleantha Pillay, EVP - Sales & Marketing at Sibanye Stillwater
• Richard Cox, Chief Regional Officer - SA region at Sibanye Stillwater
• Charles Carter, Chief Regional Officer of Americas at Sibanye Stillwater
• Grant Stuart, Head - Recycling & Global Operations at Sibanye Stillwater
• Robert van Niekerk, Chief Technical & Innovation Officer at Sibanye Stillwater
• Mika Seitovirta, Chief Regional Officer - Europe at Sibanye Stillwater
• Charl Keyter, CFO & Executive Director at Sibanye Stillwater
• Melanie Naidoo-Vermaak, Chief Sustainability Officer at Sibanye Stillwater
• James Wellsted, EVP - IR & Corporate Affairs at Sibanye Stillwater
• Adrian Hammond, Executive Director at SBG Securities
• Chris Nicholson, Head - Research at Morgan Stanley
• Pieter Henning, SVP - Finance at Sibanye Stillwater
• Dmitriy Dyachenko, Financial Analyst at Investment Capital Ukraine (ICU)