Valterra Platinum Limited · JSE:VAL
Valterra Platinum — FY2024 Earnings Presentation
48 slides from Valterra Platinum's earnings presentation, Feb 17, 2025
Slide 1: Mogalakwena Open Pit unit
1 Mogalakwena Mogalakwena Rope Open Underground shovelUnderground Mogalakwena at Mogalakwena Pit unit – Charging Tunnel traveling through tunnel
Slide 2: Disclaimer
Disclaimer future business strategies and the environment in which Anglo Platinum included in this presentation is sourced from publicly American Platinum will operate in the future. Important factors available third party sources. This presentation has been prepared by Anglo American that could cau
Slide 3: Agenda
Safety 2024 highlights Update on action plan 2024 performance Capital structure as a stand-alone company Demerger update Q&A 3 Amandelbult Mototolo Concentrator RBMRChrome Copper Concentrator Tankhouse Plant
Slide 4: Safety
Safety Fatalities at own operations Number of fatalities Three fatalities at Amandelbult 4 3 Mototolo 13 years fatality free Unki 13 years fatality free 1 0 0 Mogalakwena 12 years fatality free 2017 2021 2022 2023 2024 Reducing injuries Continued safety focus TRIFR 1 Embedding lessons learned to pre
Slide 5: 2024 highlights
2024 highlights Refined PGM production EBITDA PGM basket price 3.9 Moz R20bn $1,468 2023: 3.8 Moz 2023: R24bn 2023: $1,657 2 AISC Net cash 2024 total dividend including customer prepayment $986 R18bn R19bn Target: below $1,050 Dec 2023: R15bn R71.75 per share 5
Slide 6: Update on Action Plan
Update on Action Plan 6 Mogalakwena Underground Project
Slide 7: Update on action plan
Update on action plan Cost out savings Restructuring AISC R12bn Complete $986 Target: 3,700 roles; Target: R10bn (Opex and capital) 620 contracting companies Target: below $1,050 Unit cost H1 Cost curve position Mortimer Smelter R17,540 3 of 4 April 2024 Target: R16,500-R17,500 Target: All assets in
Slide 8: Operational overview
Operational overview 8 Nickel Product Dishaba Amandelbult at RBMR Mine
Slide 9: Operational performance
Operational performance 2025 priorities 2 Continued focus on safe PGM M&C Own-mined PGM M&C operations 3.6 Moz 2.2 Moz Maintaining own-mined production 2024 guidance (3.3 - 3.7 M oz) 2024 guidance (2.1 - 2.3 Moz) Continued focus on operational excellence Progressing Mogalakwena underground PGM Refin
Slide 10: Operational performance continued: Mogalakwena
Operational performance continued 2025 priorities M&C ounces Tonnes mined Optimised blending 2% Pit optimisation: stabilised strategy medium-term plan 4% AISC3 Adjusted mining sequence to mine less waste in medium-term Within the 2024 guidance of 2.7 - 2.9 g/t 17% Blended grade at 2.7 - 2.9 g/
Slide 11: Value-optimised open-pit mining plan
Operational performance continued Value-optimised open-pit mining plan leading to medium-term benefits Resequenced and optimised Improving stripping ratios and 4E grade Operational excellence mine plan Adjusted mining sequence to mine less waste supporting our value over volume ethos ~4.5-6.7 Optimi
Slide 12: Amandelbult M&C production
Operational performance continued 2025 2025 priorities priorities M&C production Metal prill split driving Driving Amandelbult Continued drive to zero harm cash generation down the cost curve 9% ~6% is due to safety stoppages Embed safe conventional mining excellence ‘000 PGM ounces Basket price /
Slide 13: Mototolo and Der Brochen production
Operational performance continued 2025 2025 priorities priorities M&C production Productivity Der Brochen in execution Continue to improve asset stability and reliability 4% 3% Start ramp-up in 2025 Der Brochen project ramp-up ‘000 PGM ounces PGM oz / employee per annum Maximise PGM recovery and
Slide 14: Record nickel and refined production
Operational performance continued 2025 priorities Return to normal Record nickel Refined production Continue driving process stability stock levels production 3% Optimise stock levels through operational excellence ‘000 3E Matte ounces ‘000 Base metal tonnes ‘000 PGM ounces -69% Mass pull at optim
Slide 15: Market performance
Market performance H2 Moves Europe Taxi 15 Hydrogen Mogalakwena Mogalakwena fuel in-pit TSF Platinum product PGM –cell drills alloy electric Blinkwater ingots vehicle Drone and grains operations
Slide 16: Catalysed vehicle sales steady as BEV growth slows
Market performance 5 Catalysed vehicle sales steady … prompting downgrade to …and contributing to improved 5 5 as BEV growth slows… longer-term BEV forecasts… market sentiment 5 6 Million vehicles BEV share of light vehicle production Annual flows into ETFs, ‘000 ounces 45% 400 End-2023 40% forecast
Slide 17: Market performance continued: Outlook
Market performance continued Outlook Platinum Palladium Rhodium Vehicle sales and production growing Prolonged deficits Surplus coming but Deficit to continue in next delayed few years Slower growth in BEVs, with potential for further change in USA 7 Mine supply forecast to be lower while recycling
Slide 18: Financial performance
Financial performance 18 Platinum Mogalakwena Mogalakwena atTSF the in-pit Platinum product PGM PMRand grains drills – Blinkwater alloy ingots Drone operations
Slide 19: Financial performance
Financial performance Revenue Basket price / PGM oz Cost and capital savings R109bn R26,695 R12bn 2023: R125bn 2023: R 30,679 / PGM oz Target: R10bn 2 AISC / 3E oz Operating free cash flow Net cash $986 R15bn R18bn Dec 2023: R15bn Target: below $1,050 2023: R3bn 19
Slide 20: Operational cost-out programme savings delivered
Financial performance continued Operational cost-out programme savings delivered 2025 focus Rand billion Deliver ~R4bn from a 2024 base -7.3 5.0 64.1 Labour and contractors ~R1 bn 1.3 (3.2) 3.2 (1.0) Consumables ~R2bn 59.1 0.5 (1.6) (0.5) (1.0) 56.8 Corporate and other ~R1bn 2023 8 Vol & Inflation C
Slide 21: Unit cost and all-in sustaining cost
Financial performance continued 3 Unit cost All-in sustaining cost R / PGM oz $ per 3E ounce -2% 896 (2,568) 1,353 17,500-18,500 17,859 -13% 17,540 1,136 986 970-1,000 2023 Lower own CPI & FX Cost 2024 2025 Guidance 2023 2024 2025 Guidance mined ounces improvements 21
Slide 22: EBITDA
Financial performance continued EBITDA Rand billion PGM basket price $1,468/PGM Uncontrollable Controllable ounce decreased 11% 24.4 Strengthening of the ZAR and (2.0) inflationary pressures (5.5) (1.5) 19.8 8.9 Cost saving initiatives exceeding (4.5) target 14.4 Once-off restructuring costs 2023 Pr
Slide 23: Focused expenditure whilst preserving cash outflow
Financial performance continued Focused expenditure whilst preserving cash outflow10 2025 focus Rand billions SIB focused on asset integrity, HME 20.5 and tailings facilities 1.7 18.5 ~17.8 – 18.5 0.9 1.7 ~1.0 Replacement capital focused on 1.3 ~2.0 Der Brochen, Tumela 1 subshaft 4.2 development, ve
Slide 24: Free cash flow by mine
Financial performance continued Mogalakwena Amandelbult Mototolo Unki Economic free cash flow (Rbn) Economic free cash flow (Rbn) Economic free cash flow (Rbn) Economic free cash flow (Rbn) 4.3 4.2 5.6 2.6 1.3 1.0 3.9 1.9 2023 2024 2023 2024 2023 2024 2023 2024 EBITDA margin 38% 18% 26% 20% Rand bas
Slide 25: Net cash including customer prepayment
Financial performance continued Net cash including customer prepayment Rand billion Net cash excluding the customer prepayment increased to R5.7 bn Invested in sustaining capital to 8.0 ensure the sustainability of our (15.5) business 19.8 (3.1) R3.1bn on discretionary capital (5.4) (1.6) 17.6 15.4
Slide 26: Capital structure as a stand-alone company
Capital structure as a stand-alone company Haul truck Amandelbult Casting matteat Mogalakwena Dishaba at open-pit Mine Smelter Polokwane 26
Slide 27: Capital structure considerations
Capital structure The demerger catalyses considerations of an appropriate, stand alone capital structure Balancing capital returns to shareholders while ensuring the ability to execute against our strategic priorities Confidence underpinning our capital structure Cornerstones of an optimal capital s
Slide 28: 2024 earnings and dividend per share
Capital structure continued 2024 earnings and dividend per share Rand per share H1 Interim dividend H2 Final dividend R?/share Base dividend R?/share Additional cash dividend 40% headline earnings H1 H2 H2 32.05 59.00 R9.75/share R3/share R59/share 12.75 40% Total shareholder returns pay-out 3.00 H1
Slide 29: Disciplined capital allocation framework
Capital structure continued Disciplined capital allocation framework Pro-forma net cash/ (debt) including customer prepayment Rand billion Pro-forma debt of ~R10.8 bn (excluding R30.2 bn customer prepayment) < 1.0 x net debt : EBITDA Cash from operations R15.5 bn 2024 sustaining capital 17.6 R3.4 bn
Slide 30: Demerger update and management's medium term focus
Demerger update and management’s medium term focus 30 Amandelbult Casting matteDishaba Mine Smelter at Polokwane
Slide 31: Demerger update: key focus areas
Demerger update Key focus areas 2025 Continued delivery of our strategy to ensure the safe and efficient delivery of our targets March 24: Capital Markets Day Fit for purpose organisational structure April Responsible and orderly separation from Anglo Early April: AAP Prospectus AAplc circular A
Slide 32: Changes to exco
Demerger update continued Changes to exco • Riaan Blignaut • Sicelo Ntuli • Wade Bickley • Benny Oeyen stepped down 31 December 2024 Craig Miller Chief Executive Officer Willie Theron Agit Singh Sayurie Naidoo Yvonne Mfolo Virginia Tyobeka Martin Poggiolini Hilton Mining Processing Chief Financial C
Slide 33: Strategic pillars
Demerger update continued Advancing Pursuing operational Investing in Simplified and strengthened Driving demand to ensure safety and health excellence our portfolio organisation long-term success Integrating sustainability in what we do Playing a leadership role to protect and create value, focused
Slide 34: Delivery against Action Plan announced in February 2024
Delivery against Action Plan announced in February 2024 Rightsized business to deliver on strategy – operational restructuring completed Processing assets stability from significant targeted investments made Mogalakwena optimised mine plan progressed Demerger from Anglo American plc into a stand-alo
Slide 35: Thank you
Thank you 35 Underground Measuring – tunnelat Unki Minetemperate Unki Mine at the undergroundPolokwane Smelter
Slide 36: Q&A
Mototolo Mine – Overview of Der Brochen Q&A 36 Marking exploration Water sampling cores at Mototolo/Der at Mogalakwena Brochen Casting of Palladium ingots at PMR
Slide 37: Appendix
Appendix 37 Mototolo Measuring – Chrome Unki Minetemperate Plant at the Polokwane Smelter tunnel underground
Slide 38: Stakeholder value creation
Stakeholder value creation Taxes and royalties Local procurement Enduring stakeholder value Rand billion R3 billion R28 billion 148 131 85 Salaries and wages Social investment 72 R16 billion R0.6 billion 2021 2022 2023 2024 11 12 Capital investment Dividends paid R5 billion Taxes and royalties Socia
Slide 39: Outlook: guidance and estimates
Outlook Unit 2025 2026 2027 Guidance Estimate Estimate Metal-in-concentrate (M&C) Total PGMs (M ounces) 3.0 – 3.4 3.0 – 3.4 3.0 – 3.5 - own-mined (M ounces) 2.1 – 2.3 2.1 – 2.3 2.3 – 2.5 - Purchase of concentrate (POC) (M ounces) 0.9 – 1.1 0.9 – 1.1 0.7 – 1.0 Refined PGM production (M ounces) 3.0 –
Slide 40: Outlook continued: 2025 focus capital
Outlook continued 2025 Focus ~19.0 – 19.8 ~19.0 – 20.1 18.5 ~17.8 – 18.5 0.5 0.8 1.7 ~1.0 3.2 3.3 SIB focused on asset integrity, HME 1.3 ~2.0 and tailings facilities 3.5 4.0 5.0 ~4.0 Replacement capital focused on Der Brochen, Tumela 1 subshaft 5.1 4.5 4.1 ~4.3-4.6 development, ventilation shafts a
Slide 41: Sensitivity analysis
EBITDA Impact of 10% change Sensitivity analysis - 2024 Spot 31 Jan 2025 Average realised in average realised price and FX Commodity / unit Platinum ($/oz) 971 955 2,340 Palladium ($/oz) 992 1,003 1,878 Rhodium ($/oz) 4,650 4,637 1,495 Gold ($/oz) 2,793 2,559 333 Nickel ($/ton) 15,280 16,926 666 Cop
Slide 42: Net cash December 2024
Appendix Net cash Effect of Net Cash SIB and Economic 13 14 Tax paid Net cash 31 Project Deferred exchange Dividends Customer Assets generated / Waste free and net Other 31 December December capital Consideration rate changes paid prepayment (Utilised) Capital cash flow interest 2024 2023 on cash Mo
Slide 43: Cost base
Appendix 2024 Cost base (Rbn) Volume % PGMs (koz) Labour Contractors Utilities Consumables Maintenance Sundries Opencast Mining 8.9 45% 18% 4% 2% 36% 33% 7% 964 Conventional 10.7 29% 53% 4% 9% 14% 9% 11% Mining 642 Mechanised Mining 7.1 26% 39% 10% 7% 20% 13% 11% 585 Concentrating 9.3 13% 2% 25% 23%
Slide 44: Basket price and revenue by mine
Appendix Modikwa Exit & C&M 15 Company Mogalakwena Amandelbult Mototolo Unki Mining POC AAP share mines (ex-trading)16 Net sales revenue (US$ million) from platinum 428 325 131 115 63 13 1,076 696 1,784 from palladium 484 153 88 101 58 8 894 357 1,297 from rhodium 133 281 111 52 53 13 644 488 1,172
Slide 45: All-in sustaining costs by mine
Appendix Mogalakwena Amandelbult Mototolo Unki Modikwa Kroondal Mining Cost ($ million) Cash operating costs 781 710 252 253 167 1 2,164 Other costs and marketing 180 219 51 80 26 22 586 SIB and waste stripping capital 452 30 22 39 18 0 561 a Total costs 1,413 959 325 372 211 23 3,311 Revenue from o
Slide 46: Appendix: net revenue and cost reconciliation
Appendix Amandelbult Mototolo Exit mines & Modikwa Company – (R million) Mogalakwena incl incl Der Unki Care and Mined POC & Toll Trading Other Company AAP share (ex trading) 15 EDD 17 Brochen maintenance a = (b x c)/1000 + d Net revenue 28,728 20,340 7,367 7,486 4,041 728 68,690 39,832 465 108,987
Slide 47: Definitions and footnotes
1) Total recordable injury frequency rate (TRIFR) is a measure of all injuries requiring treatment above first aid per 1,000,000 hours worked (slide 4) 2) On a like-for-like basis, normalised for Kroondal in the prior period 2023 (slide 9) 3) All-in sustaining costs (AISC) (slide 10-12) (Slide 21) 4
Slide 48: Investor Relations
Investor Relations Theto Maake theto.maake@angloamerican.com Tel: +27 (0) 83 489 5215 Marcela Grochowina marcela.grochowina@angloamerican.com Tel: +27 (0) 82 400 3222 48 UnkiRustenburg Smelter base metal refineries