Sibanye-Stillwater American Depositary Shares, each representing four ordinary shares 2026 H1 Earnings Call

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

Good morning, good afternoon, good evening to everybody online and in person. Thanks for the opportunity. I think before we begin the formal session, Richard has asked me to do an opening safety moment, and I would like this opportunity to reflect on the recent Nepal flooding catastrophic incident that we have seen. I was reading last night that as of yesterday, 950 people have passed, and there were still around 4,400 people missing. And we do extend our sincere condolences to all involved. An absolute tragedy. What started as an unexpected rock and ice collapse rapidly escalated into a devastating disaster, reminding us that catastrophic events often emerge from hazards that are unseen, poorly understood, or outside our current experience. Within Sibanye, we have seen that approximately 90% of our fatal incidents are linked to our 18 group minimum standards.

These are known fatal risks and reinforces the importance of rigorously applying our critical control management process, verifying critical controls, critical life-saving behaviors, and critical management routines every day. These are all included in this fatal elimination booklet that has been signed off by each and every person in the company and contractors committing themselves to these standards. But there is also another important reality. Approximately 10% of our fatal incidents occur outside these known standards. These include both in-service and criminally related loss of life incidents, and we have seen that of late in the company. These are the events that challenge our assumptions, expose blind spots, and reminds us that not all catastrophic risks are visible on a risk register. The lesson from Nepal is that managing known risks is not enough.

Catastrophic events often develop from weak signals, changing conditions, and hazards that have not been fully recognized or understood. As leaders, our responsibility is twofold. Firstly, ensure our critical controls are effective for the risks that we know, and secondly, remain curious, vigilant, and courageous enough to ask, what are we missing? What has changed, and what could hurt us that we have not yet considered? Thank you. Thanks. Thanks, George.

Yep. Awesome. Thank you very much, George, and a real reminder of the very volatile times we are living in.

Once again, welcome. Thank you very much for joining us today. It is a real pleasure to be able to share our results with you. Just as a very brief introduction, in January of this year, we shared with the market our refreshed strategy. This was a strategy that spoke about how as a company, we were going to create a future-focused to high-performing, future-focused metals business. Today is not about strategy, but what I would like to do is just a brief refresh of what we presented back in January, because what today is really about is how are we progressing on this journey. Just a quick soundbite. There are two or three parts to the strategy. The first one is the piece in the middle.

That actually describes not what we are doing, but who we are as our business. It is our purpose, it is our values, it is our stakeholder ethos. That has not changed. I dare say that part of the company supersedes any management changes or any external events. It is who we are. It is what makes us Sibanye-Stillwater. So that has not changed. The left-hand side is what our short-term priorities are, and short-term, we said a couple of years. That is strengthening the business fundamentals. If I could just try and summarize that very high level what we mean by strengthening the business fundamentals, it is getting our operating margins increased. We all know how we do that, costs and production. We do not control price, but that is how we drive revenue. That is our operational excellence strategy. It is about improving our effectiveness and efficiencies through our operating model.

It is about increasing our return on capital and enhancing management focus through simplifying our portfolio. Ultimately, we identify two enablers, looking at a systemic approach, a real enterprise thinking approach, and through, I guess, what is the glue of our company, our culture, our performance culture of care, caring for people. If we got all of that right, then it comes down to we should be generating a lot of cash, and how do we allocate that cash? Our capital allocation model. We shared with you we had three priorities, shareholder returns, our balance sheet, reducing our debt, and ultimately investing in the sustainability of the business. If we got those fundamentals right, I think as a company we have learnt the best way to grow is to be able to be agile and have flexibility with regards to time.

You make your best growth decisions at the right time in the cycle, at the right assets where you can add value that requires flexibility. If we get that right, we will have the flexibility to grow in a value-accretive manner, which is the key point there. But we also highlighted that we had a portfolio of assets that we already have within our existing portfolio. We do not have to go out and join expensive M&A sales processes. We actually have a portfolio of assets ourselves which we could develop that have significant value to us, and that was our focus. Today, what we are going to touch on and really, I guess, hopefully show you is the three boxes we have highlighted specifically around operations and margins, capital allocation, and growth. How are we tracking on the strategy that we put out at the beginning of this year?

Let me apologize upfront. I do understand there was a delay with our results going out from the JSE. Unfortunately, there were some technical issues, so many of you may not have had a chance to digest the numbers yet. I do apologize for that. Not much we could do, unfortunately, but glad it could get out, and we can at least be on time now. Just to give you some of the real headline numbers, starting at the top with our first priority, safety. I do have a slide where I am going to unpack that a lot more, but we have had a great safety performance. Whether we benchmark it against our own history, against peers, how we are doing locally, we have actually had a great performance. However, we still lost colleagues in the second quarter of this year.

Until we can eliminate fatals, we have not yet achieved our ultimate safety focus. We have had a spectacular run of commodity prices, absolutely. It has been a very volatile but a high-price environment for the first half, but also full credit to our teams with a solid operational underpin, highest revenue ever for the company for a 6-month period. That is very pleasing. Our EBITDA more than doubled. I think what is relevant to point out there, last year this time we actually had a big EBITDA kick because we, in the U.S., recognized 2 years' worth of Section 45X. If we normalize for that, EBITDA was up 200%, almost 3 times. But the one that matters to us, and if you saw that strategy, it was about cash and margins. That is what we can control and drive. Record net operating cash, a great achievement, and solid margins.

Whether we look at EBITDA margins, whether we look at all-in sustaining cost margins, you will see later we are happy with where we are competing within our business, and that has led to the value. We are declaring a dividend today. Charles will share that in detail. When we look at the yields of that, it is certainly one of the highest yields in the industry amongst our peers. We have had a significant impact on our debt, which was one of our big objectives at the beginning of the year. We have also managed to fund organic growth, and today we will share with you two new projects that our board has recently approved in Burnstone and Mt Lyell. A very exciting pipeline of projects that we have got coming through.

But all in all, I think a 6-month period for which we are very proud and has certainly helped us progress our strategy, I dare say, a lot further than I imagined we would 12 months ago when we put that together. I do just want to touch on safety. There is a reason safety features in the introduction and not the operational sections, because this is our number 1 priority. Why? Number 1, it's people. We are a people's business. Safety is all about people. The second reason is, for me, if there's one measure to tell you how well your business is doing, that's safety. To get safety right, you got to have your infrastructure working, you got to have your people working according to plan, processes, and delivering, and you need people to feel like they belong and are contributing to the safety culture.

To get this right, you got three metrics you can see in one. And I think this is why that continued downward trend when we look at our lagging indicators is so pleasing. We've been on a definite safety journey for the last five years. We can see it's reducing risk. We can see it's having an impact. We do still have a way to go, of course. But certainly, in terms of our historical performances and a lot of the improvements around us, we are very proud of this. Nevertheless, we had a fatal incident at our PGM operations in the second quarter, and we had one in our gold operations also in the second quarter of this year.