Sylvania Platinum (LSE:SLP) — Final Results for the year ended 30 June 2026

0:00 Good afternoon, and welcome to the SYLVANIA PLATINUM LIMITED final results investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and they can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. Before we begin, I would like to submit the following poll. I would now like to hand you over to CEO, Jakob Princelu. Good afternoon. Good afternoon. Thank you, Alex, and thank you, everyone, for joining us. Ronel and I, our CFO, will take you through our results presentation for our results concluded to the period end of June, so 06/30/2026. And we'll alternate through the presentation through various sections, and then we'll allow you some time at the end for questions.

0:50 I think maybe just before we move on, please just take note of our standard disclaimer so that you shouldn't solely base any investment decisions just on this presentation, and please just take note of the content. I think just to start off, and if we look at SYLVANIA and the and the investment proposition, SYLVANIA has been a cash generative dividend paying METIPPLATINUM macro mining company. It's been in operation for just over eighteen years now, and we believe offer a solid investment fundamentals. And that's what you'll be able to see again from this year's financial results. Through a combination of stable and efficient processing operations, disciplined capital allocation, and by maintaining our position as one of the lowest cost PGM producers in the industry, We continue to be cash generative with attractive margins, which we have enabled us over the years to both internally fund our growth aspirations as well as continuing to deliver attractive shareholder returns. And that's both through a combination of stable dividends as well as continuous share buybacks.

2:03 And I believe that that the shareholders can again be happy with a solid performance during 2026 and as we hope to illustrate through this presentation. I think if you just look at the the headline figures for the year, I am very proud on yet another remarkable overall performance for the peer attended review where we've carried our positive momentum from a previous financial year into, 2026 and maintained it throughout the year. From a PGM production perspective, our STOs especially performed extremely well and delivered yet another record full year performance, delivering 95,885 PGM 40 PGM ounces in the year, which is a 18% year on year improvement and has also beaten our updated annual guidance of 90 to 93,000 ounces we stated earlier.

2:59 In terms of the chrome production, it was a bit more of a challenging year. You have to have us ramp up. But in the end, we managed to produce 50,317 tons of metallurgical grade chrome concentrate, which was in line with the low end of our revised annual guidance. And then in terms of, you know, based on this stable production for the year and also attractive basket price recovery where we had a 60% improvement year on year on the basket price and a well controlled group cash cost. And I acknowledge that it's 7% up in dollar terms, but that's primarily due to the strengthening of the South African rand versus the dollar exchange rate where our rand cost was actually flat year on year.

3:48 So so the combination of disciplined cost control, good production, and a good basket price enabled us to post very good financial results for the period. And we've had, our net revenue of $226,000,000 for the year was a 117% improvement on the previous year, and our group EBITDA of 114,000,000, more than tripled from the previous financial year. Finally, following this strong performance, I am very pleased to declare that the board has approved a final cash dividend of 4p per ordinary share, which together with a 2p dividend earlier in the year brings our full year dividend to 6p compared to 2.75p in the last financial year. And I think just in addition to that, also from a shareholder return point of view, we have had a share buyback of $2,400,000 during the period. And we also just announced yesterday with our results another buyback program of another $1,500,000.

4:53 If we just look at the operations, maybe if there are some of you that are as familiar with the company, just a very brief overview. At the heart of our business, as I mentioned earlier, are the Slovenia dump operations where we operate six chrome and PGM beneficiation plants on the Bushveld Igneous Bushveld complex in South Africa, where we treat a combination of historic and current tailings sources as well as a run of mine chrome ore from our host mine partners. And these operations have been generating cash the cash and then able to growth that we have experienced over the past eighteen to nineteen years. Based on the success of our SYLVANIA operations, we are also now leveraging our expertise in PGMs and chrome recovery from dumps and ROM at our host mines through the Tava JV with LIMITED, who is our JV partner there, which are and the operation is located on the Northern end of the Western LIM.

5:52 So while our sick first six SYLVANIA dump operations are only generating a stable PGM revenue stream, The Starbulk JV is different in the sense that it now introduced an attractive diversified chrome revenue stream to our business, which I will touch on a bit more later during in the in the presentation. And then finally, we do own also some greenfield species and exploration assets that could offer some future growth optionality, which is located in the northern limb of the Bushwald Complex. But these are just covered in a in a bit more detail in our appendix at the end of that presentation. Before I head into the production numbers itself, it's always good to pause for a moment on safety.

6:39 A safe, profitable, and responsible production is a nonnegotiable standard and mindset for us, and it's also evident in the results that you can see on the slide. I'm extremely proud that the company, again, achieved an excellent overall safety performance during 2026, which was a record performance for the company. It's one of the best overall performances we've had to date. And I think while it was excellent that we can maintain our fatality free status since inception of our operations, which is now almost nineteen years, it's also we also have some very remarkable lost time injury free performances across operations, especially Durambos, who was at the industry leading fourteen years without the lost time injury. I think also noteworthy to note on this presentation is that we have seen that zero harm on our operations can also be achieved.

7:31 And we've had three of our operations, who are at significant milestones in terms of, zero harm. We Durham was achieved five years, Lennox three years, and most helped one year without a single injury of any of any class operations, which is remarkable. If we now look at what enabled this record PGM production performance of ours for the year, We we have seen, first of all, that we had a a 12% year on year improvement in PGM feed tons as well as feed grades improving by 3% and then recovery efficiencies increasing by 1% for the group. And PGM feed grade, again, was based on a combination of better feed quality and feed sources from our host mines at in particular, as well as higher grade third party material we still treated during the past, financially at our Eastern operations.

8:33 The PGM feed tons and recovery efficiencies were enabled by improved plant stability and utilization as well as our continued focus on operating efficiencies, improvements during a and improvements during a period where both the Eastern and Western operations have exceeded their business plan and are carrying and we are carrying that similar momentum into 2027. So overall, an excellent operational PGM performance for the year, and as I said, a very good effort by our wind dump operations. I have mentioned earlier that the chrome ramp up and commissioning at Tahoe was slightly slower than we anticipated, but we get we I'm excited that we were able to deliver the first PGM the first termite concentrate for our operations for our own revenue purposes, and we've done 50,317 at an average yield of about 31%.

9:31 And if you look at the the the fee credits material we have in the yields, it is reasonably aligned, but we are still optimizing in this next financial year. So we'll touch in a bit more detail as we go forward. If we look at the just the year ahead, we are forecasting a PGM guidance in 2027 of between eighty five and ninety five thousand PGM ounces, and which is slightly lower than the '26 financial year. But the primary drivers there is and and you will see on the bars that our Duran, Boston, Lennox operations in in '27 a lower contribution as the third party material that they've used to treat before is now depleted, and the Trefontein also is slightly lower.

10:24 But then again, in '28 and '29, you would see Duramboss improving as we get higher additional higher grade current horizons from the new chrome section host mine on the eastern limb that would be reporting that they'll be reporting to our Durambos operation. And, also, as tar Tava started to stabilize, You can see those outlooks. From a chrome production point of view, we are expecting a much stronger performance from Tava during 2027, which I would elaborate on a bit later. And we are expecting a chrome production guidance of 110 to 140,000 ton of metallurgical concentrate this year. And then that build up to about 160 to 170,000 tons in '28 and about 180 to 190,000 in 2029.

11:18 Just in terms of our focus areas for the next financial year, I think it's it's very simple what what we need to do in the sense that we we need to continue doing all those things well that we have been doing well and that what made us successful to date as we have seen on our SYLVANIA dump operations. And then in the case of DARVA, the things that we haven't done so well yet, we need to do better so that we can improve. So we will continue to prove prioritize safety and operational excellence across the SYLVANIA dump operations and our operations with continued focus on higher grade feed sources from the current host mines and then third parties, respectively, at the dump operations. And then in terms of Tawba, we need and expect a significantly improved performance from the Tawba JV operation with specific focus on determining which areas are best to mine, then to ensure that the ore is mined efficiently, and finally, that we process it as best as possible.

12:19 And I will elaborate a bit more on this later in the presentation when I specifically touch on the Tawas section on its own. So on this note, let me hand over to Runeel to discuss some of our financial highlights before I touch on our growth projects again later. Thank you, Jako, and thank you all for joining our presentation this afternoon. The past year was characterized by exceptional financial results, positive cash generation, a resilient balance sheet, disciplined deployment of capital and meaningful value creation for shareholders. I would also like to make use of this opportunity to thank all the people and exceptional teams within SYLVANIA that made these results possible.

13:05 Every employee played a crucial role in the achievement, and we are very proud of the SYLVANIA team who made possible. As Yaqui mentioned, we had record four e PGM production for the year, which make it the second year in a row to achieve record production. The 60% increase in the US dollar four e PGM basket price year on year provided a strong tailwind to financial performance, enhancing revenue generation and profitability of the group. Cost of sales increased by 53% and includes mineral royalty tax. I will elaborate on the cost later in the presentation. The write down in the exploration asset relates to the HACRA project for which the board and management has decided not to spend additional capital on.

13:53 This is a once off noncash item. Interest received is earned on surplus cash invested in both US dollars and South African rands at an average interest rate of just over 4% across the portfolio. The balance of the interest relates to interest earned on the Taba JV related loan at the South African prime interest rate currently at 10.5%. Income tax expense includes corporate tax payable at a rate of 27% in South Africa on taxable profit as well as the deferred tax movement. The increase is driven mainly by the higher taxable income compared to the prior year. As Hakan mentioned earlier, revenue increased year on year by 117%.

14:45 The waterfall graph on revenue demonstrates that the increased basket price was the main contributor to the increase in revenue at 89, followed by the contribution of the higher than planned production of 18%. We also realized our first attributable chrome revenue from the Tawah JV during the period of $9,600,000 The chrome revenue stream contributed 4.2% to the total net revenue, with PGM contributing the balance. The pie graph in the right upper corner demonstrates that our revenue profile benefits from a balanced PGM basket, providing diversified exposure across multiple metals. For FY 2026, platinum is still the highest contributor at 42%, followed by rhodium at 33 and palladium at 11%.

15:39 The combined iridium and ruthenium contribution equates to 14%, a noticeable increase from historic trends. The mentioned increase in revenue translated directly into EBITDA, with adjusted EBITDA increasing by 289% year on year to US114.2 million dollars The write down of the HACRA project mentioned earlier was excluded from the adjusted EBITDA calculation due to its ad hoc and once off nature. Mineral royalty tax forms part of cost of sales and amounted to $7,800,000 for the period, calculated as a percentage on relevant gross sales as defined.

16:25 We remain confident in the value proposition of our co product model going forward, which is well positioned to benefit from potential increased production volumes and favorable commodity market dynamics, supporting enhanced returns over the long term. On the cost side and despite increased revenue as discussed, we continue to focus on disciplined cost and capital management. The graph on the top left hand side reflect the 4e PGM cash cost per ounce at consensus price assumptions. As indicated by the blue bars, the SDO cash cost per 4e PGM ounce amounted to $790 per ounce for the period, which equates to approximately $628 per six e PGM ounce.

17:17 The Tarbachrome cost per ton for the current period was $127 per ton, again at consensus price assumptions, and is forecasted to decrease over the next three years. The effect of an increase or decrease in the US dollar ZAR exchange rate is reflected by the gray solid and dotted lines, respectively. The total cost of sales splits is split into direct and indirect operating costs. The top five cost item in direct costs are labor, power, mining cost, consumables, and laboratory cost, as well as purchase of third party material. Although the third party material constitutes a large portion of overall cost, it continues to contribute positively and strategically to the group as a whole.

18:08 This cost is calculated on a price matrix, which is directly linked to the basket price. And therefore, in terms of elevated basket prices, the cost of third party material increases proportionally. Although with various different suppliers, this arrangement will continue into FY 2027 on the same commercial principles. Mineral royalty tax was the largest spent in the indirect cost category. When considering the cash flow for the period, the stronger PJM basket price also supported positive cash generation. Net operating activities generated cash of $101,400,000 As mentioned before, finance income is realized from surplus cash invested in both U. S. Dollars and South African rands and amounted to $1,900,000 Investing activity comprises mainly of, firstly, capital spend on both staying business and expansion capital of $32,400,000 and further, the contribution to the Limburg capital loan and the Tarbah JV working capital loan of $2,300,000 and $15,900,000 respectively.

19:27 Outflow relating to share buybacks amounted to $2,400,000 and dividend payments to $13,800,000 bringing the total cash return to shareholders for the period to $16,200,000 This then brings us to a healthy cash balance at year end of $67,300,000 Looking more closely then at our capital spend and short to medium term forecast, it is evident that the largest spend is still concentrated around the tailings and infrastructure. We continue to invest systematically in tailings storage capacity through a structured and long term capital program, recognizing the strategic value that well positioned tailings facilities provide in supporting operational flexibility, future growth opportunities and sustainable production.

20:23 However, our forecast is moving towards business improvement, growth and R and D projects to enhance our production capacity and profile and to extend the life of the operations which support long term shareholder value creation. This, for example, includes a free pre feasibility study completed during FY twenty twenty six for an anticipated new treatment facility at the Eastern LIM. The property linked to this project has already been acquired, and we are well positioned to continue further value engineering on the opportunity. Our capital allocation framework aims to maintain financial strength while investing in the future. It remained focused on maintaining a strong balance sheet, investing in value accretive growth opportunities, sustaining operational excellence and delivering returns to shareholders.

21:19 As Jakob mentioned at the beginning of the presentation, an interim dividend of 2p per ordinary share was declared and paid, and we are proud to announce that the board has approved a final dividend of 4p per ordinary share, which results in a total dividend of 6p per ordinary share for the period. This far exceeds the dividend policy's minimum of 40% of adjusted free cash flow. We have been able to pay uninterrupted dividends since 2018, and we are anticipating this trend to continue going forward. The total dividends paid to shareholders since the maiden dividend in 2018 amounts to $145,200,000 Opportunistic share buybacks are conducted from time to time and are intended to complement dividends.

22:11 A further on market share buyback program to the maximum value of $1,500,000 was also announced yesterday. The combination of consistent share buybacks and sustaining dividends reflects our continued commitment to shareholder returns. I will now hand back to Jakku further around our growth strategy going forward. Thank you, Runeel. And as we now just focus our attention on growth, I will first start with an update on the Tava JV progress and the focus areas before touching on some of the growth opportunities outside Tava. I think maybe just a first recap on Taba. Taba is probably the most significant growth project that we have executed in the past decade, and it is of particular significance, as I mentioned earlier, as it represents a significant and exciting diversification opportunity. And that's both in terms of the commodity portfolio, so it adds a revenue stream to our portfolio, our current revenue stream to our existing PGM revenue stream, but it also add a significant diversification outside the current host mines where we only at one host mine at the moment or our other six operations at only one host mine.

23:32 So the I think what we're excited about is that the operation has been fully commissioned in the first half of twenty twenty six financial year, and it then continued to ramp up during the the second half of the financial year. Unfortunately, as I've community we've communicated before and at various reporting periods, the commissioning and the ramp up was not without its challenges. And while most have been largely resolved, the lower than planned run of mine feed tons and the delivered and delivered all feed grades to the plant remain one of the more significant challenges that's being addressed at the moment. We do, however, continue to work closely with our JV partner who owns the mine and is also responsible for the mining operations on behalf of the JV as well as respective specialist consultants to address the mining challenges and the runoff mine ore feed quality. We've already developed an updated geological model during the period, which now informs the resource and pit optimization and also the life of mine planning, that are currently in progress and is expected to complete it during the next quarter.

24:42 In the meantime, while improvements to the mining operation are being implemented, we continue to explore and treat alternative third party run of mine feed material to mitigate current mining risk and challenges and also to ensure that we can keep the plant full. From a processing perspective, the plant throughput and stability improved significantly towards the end and during quarter three of the 2026 and post period end. And the processing focus is now progressively shifting from plant stabilization towards improving production efficiencies and metallurgical performance to ensure we optimize the value from a material that we are treating at the at the properties we're receiving.

25:27 So finally, while the updated runoff mine feed grades are lower than originally planned, the Taba project is still expected to deliver attractive chrome production, chrome product revenues, and investment returns to the group. If you and and just to give you an idea of the the production profile and also profits from the operation within this slide, again, provide some illustration of the key operational and financial parameters. And which and and the first graph, is the base case scenario in in this graph is labeled, is in line is the scenario that's in line with the mine plan, and the runoff mine fee creates a scheduled by a host mine as well as additional conservative scenario we have added, and that's just where we allowed for a more gradual increase during the first half of twenty twenty seven in terms of the tonnes throughput and also assume slightly lower run of mine feed grades going forward in terms of dilution to the mine. But we should have a better idea on where exactly we will end up during the next three to six months, and then we would be able to update you accordingly.

26:44 So as I've mentioned earlier, despite the initial ramp up and raw quality challenges, we are experiencing, at Tava. We are still, we still do believe that it is an attractive project, and that it will continue, to contribute in terms of diversified revenue and EBITDA to the group. And you can see the EBITDA contributions in the in the bottom of the graphs. And, Tava's EBITDA contribution will, be between 810% of group EBITDA in 2028 and '29 based on the current metal price assumptions, and that obviously can increase decrease as the specific respective PGM and growth prices vary. I here's just a few photos of the operation that we've included for you, which has the plant operation, but I will leave it for you to pursue these or go through it in your own own time.

27:41 If we look at growth opportunities outside the the sorry. Outside the, we focus specifically on opportunities that add value within the PGA on our existing operations where we specifically can improve grades and and throughput. And to that end, we specifically have our at Moinui, there will be a new feed coming from the additional run of mine feed plant at our Moinu operation at the host mine, which will provide additional current risings, as well as the new chrome mine I've mentioned earlier at Duramboss, the chrome section that will provide additional current risings.

28:37 And then we continue to look opportunistically at additional an additional third party high grade third party material. In terms of other opportunities outside the current dump operations, Ronella mentioned the capital on the prefeasibility study for our for the Eastern Limb potential facility. And we have completed that prefeasibility study in q q four. We've now narrowed our options in terms of focus specifically on the dump potential of that opportunity, and we would be doing a value in or have commissioned already a value engineering study that we have to conclude, say, in the next three three to six months as well before we make a decision of finally going to a feasibility study or execution.

29:32 Also, fine fine chrome recovery from dormant chrome tailings facility is also a potential exciting opportunity, and we're building on the outcomes of our various r and d efforts and pilot plant trials, which we are progressing with a prefeasibility study also to determine the future potential of this opportunity. And then finally, similar to the DARBA opportunity we have, we continue to look for opportunities to further diversify our portfolio and and also considering potential diversification in other commodities and, where we can replicate our proven operate operating model and leverage our successful track record and expertise. And we fruit we frequently perform technical and commercial due diligences, on such complementary projects and opportunities that come across our desk, and we will continue to do so going forward.

30:27 From a market point of view, I think it's I firstly want to illustrate to us on before we go into formal supply demand fundamentals, I think it's important that we maybe just first look at the the slide, which first illustrate provide a bit more context. The pie graph on the left illustrated the pro split, which is the composition on which our four e metals appear in our ore body. We have the platinum palladium already making up the four metals, And we have a higher than typically, in the industry portion of rhodium, almost 12% in it and and platinum at a high level, which gives us a a very good basket price exposure relative to to our peers. And then in addition to that, we also have attractive iridium and ruffinium contribution. And I think Runeel pointed out that in the past financial year, the ruffinium contributed about 14% of our revenue, whereas five years ago, it was only about 5%.

31:32 So I think, first of all, we have a attractive basket. And then secondly on this graph to to note is that the PGM industry cost curve, Slovenia is well positioned in the lower quartile of the industry cost curve, and that specifically is important because in difficult periods, we are still able to make remain profitable and generate cash to fund our growth aspirations and our operations and return value to shareholders. And when we are in a positive price environment, you are able to survive. So depending on what the market movements are, SYLVANIA is still well positioned within the market to to carry on and do its operations.

32:20 This graph just illustrate to us the specific PGM metal prices that we we have. The metal prices improved. We already said that the four e metal prices increased 60% year on year on the four e basis, and you can also see that basically all the metals have had attractive appreciation over the over the year. We we still believe the the and and then I think also important on the bottom graph is the chrome price traded stable at the average level of about 280 to $285 per ton CIF during the period. We still believe the fundamentals are supportive of a higher four e PGM basket price than what we are currently seeing. But, unfortunately, the Middle East conflict has started in about March 26, as you can see on these graphs, and the remaining uncertainty about US policy and tariffs all had been weighing down on the markets. But talking about the fundamentals, let us look at some detail around the supply demand going forward.

33:36 So firstly, if we look at, from a bit of more detail, mount side, while there's different metal movements for the individual metals, the overall demand for metals in our basket remained robust. And if it wasn't for the conflict in The Middle East, as I mentioned earlier, it would have been much better. Auto catalyst still remains the primary demand driver for platinum and especially palladium and rhodium. And while the number and of internal combustion engine vehicles sales are lower, this is offset to a large extent by higher metal loadings because of higher emission standards. And also the growth in hybrid electric vehicles that still use catalysts.

34:22 And then platinum has also additional and increasing demand in the industrial sectors, especially the glass sectors and and and chemical sectors. So that is positive. And then finally, uranium and uranium demand is also increasing due to the advanced the use in advanced electronics, hard drives, and also AI related applications. And let's hope after these weekends, news, maybe AI demands that remain strong, but, nevertheless, a good demand driver. So in summary, we have a robust view on overall demand for the medium term. And then if we turn to supply, I think there's still consensus and concerns around the future supply and growth of supply from South African mines as many of the growth and expansion projects that were on the cards a few years ago have been shelved or slowed down during the previous down cycle.

35:18 And or while we've seen a a bit of upturn in the metal prices, it hasn't been enough for the market to recover from that yet, and many of those projects have not come back onto the into the pipelines. And then finally, while secondary supply from recycling has recovered somewhat during the the the past financial year, and I think it was about a 10% recovery. The levels are expected to remain at the same levels. And and, you know, and then recycling contributes between twenty two and thirty two percent of total supply for respective depending on which metal city is in the basket. So finally, based on the supply and demand balance, most analysts forecast platinum, palladium, and rhodium to be in deficit for 2026.

36:07 With platinum in deficit for the next five years and and some people even see it beyond. Palladium in deficit between one and three years depending on on some of the analyst views, while rhodium is forecast in a close balance in 2027 and then in surplus thereafter. But rhodium being so firmly traded in those small volumes have large potential volatility. If we turn our attention to the chrome production I just wanna get that. The there's quite a bit of we the chrome market perspective from if we look at that, there's a few points here, but the main driver from demand perspective is stainless steel.

36:57 Stainless steel consume more than 80% of the global ferrochrome production, and it is still the strongest demand driver and has consistently been been growing at about four to 6% per annum over the past ten years and slightly down to about three percent in 2025 and about two and a half percent for 2026. But it's still growing. And while ferrochrome and ferrochrome production is forecast as fairly flat for 2026. So while there's short term movements, the long term growth outlook remains positive. On the supply side, South Africa is the largest chrome ore producer globally and produce around 60% of global chrome ore production in 2025.

37:42 But with about 19% of South African chrome production, that was in the 2425 period coming from, U G two sources by, primarily the PGM miners, that supply could come under pressure in the longer term as u g two sources reaches end of life and production decline in coming years. And therefore, Chrome is forecasted to be in deficit from about 2029 onwards with the overall outlook for Chrome remaining robust, and and Chrome remains an attractive option for diversification. And hence, our focus on that in the production going forward. I'll hand back to Runeel just to give us a brief update on the ESG efforts before I'll throw the presentation to a close.

38:28 Thank you, Jockey. As always, ESG remains a cornerstone of SYLVANIA PLATINUM's long term value creation strategy. Through its unique retreatment business model, the company transforms historical mine residue into valuable critical minerals while supporting environmental rehabilitation. As Yaku alluded to earlier, our people and their well-being remains at the core of our business. This remains visible in our safety statistics. We maintained our excellent safety performance with zero fatalities since inception and achieved various safety records during the period. Our commitment to sustainable development extends beyond responsible resource recovery to be meaningful economic value it creates for stakeholders.

39:17 As reflected in the table on the left of the presentation, the payment of corporate and employee taxes and salaries and wages continues to support the South African fiscal framework and contribute positively to household income and economic activity in local communities. Procurement spend further supports local community businesses, reinforcing the commitment to create lasting value in the regions where we operate. Together, these contributions demonstrate SYLVANIA's role as a valuable economic participant that supports communities, government revenue generation, employment creation, and sustainable regional development in a responsible manner while delivering long term value to shareholders. I'll hand back to Yako now to take us through the last section of the presentation.

40:09 Thank you, Ronald. And just in closing, looking ahead at 2027 and beyond. So the STO so when dump operation is expecting to continue the strong performance, as I said earlier, during 2027. And as we stabilize and optimize the Java JV operation, we expect to produce between eighty five and ninety five thousand ounces of PGMs during the year and also a 110,240,000 tons of chrome product for '27. And based on this production and the PGM basket price assumption and our consensus for the '27 financial year is about $2,612 per ounce and a crude price of about $292,195 dollars per ton a CF, we estimate our EBITDA to increase by about 12% to approximately a $129,000,000 for 2027, which then improved to about $139,000,000 in '29 as when the DARBA contribution stabilizes.

41:14 So I think, finally, we have illustrated and included the plus and minus 10 sensitivities again on this chart to just give you an indication and illustrate that we still maintain a healthy EBITDA margin at the potential downside scenario. So even if it these metal prices declined by about 10%, while there's attractive upside if the markets improve. So overall, I think we're in a in a good position. So in closing, I believe that this was a very solid set of results for 2027, and I'm very happy that we could, again, deliver significant value to our shareholders as we have done over the years. As I said in my opening and hopefully been able to demonstrate through these results in the presentation, I believe that SYLVANIA offers a solid investment fundamentals.

42:07 And with our stable and profitable production and attractive cash generation combined with optionality for growth, we are well positioned to continue adding stable and attractive returns to our shareholders for many years to come. So thank you very much, and we would be happy to field some questions. That's great. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the top right corner of your screen. While the company take a few moments to view those questions submitted today, I would like to remind you the recording of this presentation along with a copy of the slides and the published Q and A can be accessed via our Investor dashboard. I'm Yako, if I may now hand back to you to chair the Q and A, and I'll pick up from you at the end. Thank you. Thank you, Alex.

42:53 And I'm just going to questions and let me see. We have one pre submitted question, and then most of the questions came through as we spoke. So bear with us. We're just reviewing and maybe considering the the question as they are. The first question pre submitted said, given SYLVANIA's strong balance sheet and cash generative operations, could you provide some insight into the company's longer term growth ambitions beyond the current South African PGM business in particular? Would management consider expanding geographically outside South Africa or diversifying into other commodities where SYLVANIA's technical expertise and capital discipline could create value. I believe the company currently trades at a significant discount despite its strong financial position, and I wonder whether broader diversification and additional growth platforms could ultimately help the market assign a higher valuation to the business. So I think maybe I I've touched on on our growth aspirations. We certainly are continuing to explore alternative opportunities, and we continuously review of some technical and commercial due diligences on new opportunities.

43:55 In terms of diversification from a commodity point of view, we we do, from time to time, consider alternative commodities, which is complementary to our where our current expertise and experience and technology could be complementary. For instance, where we do gravity separation on chrome, many of the technologies and processes we use could be replicated in manganese, copper, manganese, cobalt, nickel cobalt, tantalum, tin, the heavy metals, typically. Whereas on the PGM flotation side, the flotation technology could be, again, replicated in terms of base metal flotation, copper, nickel, cobalt, base metal flotation, as well as potential hard rock lithium flotation.

44:41 So and those metals that I've mentioned are all in the critical mineral list of many countries. So part of we we could use our technology and experience in. From a geographical diversification point of view, you know, we have a very strong asset base and experience in Africa, so that obviously is is is one advantage for us. But we do, from time to time, again, consider potential alternative jurisdictions, mostly in Southern Africa where we have the management reach and stuff where where our technical and production teams can reach. So we have identified Namibia, Botswana, and Zambia in particular as particular mining friendly jurisdictions.

45:28 So we do from time to time look there. So if that if that answers the question and and what we would look at. The next question, ask and assess mining weekly talked about the use of platinum in hydrogen trucks, which are used in the mining industry in South Africa. Pennsylvania platinum used hydrogen trucks in the in their operations and bypass diesel. And, yeah, somebody say it's always from Ireland. Says, cheers from Ireland. But, yeah, the I think the hydrogen trucks, and I know historically, and and, Volterra has had a big drive there. They've developed the first hydrogen truck in a few years ago already, and there's a lot development there. I think where we are and where the technology currently is at at this time, it's probably unlikely that we, in the near term, would be deploying that. I think we looking at our current operations, the size of operation relative to those bigger mines like Mogalakwena where they have the big hydrogen trucks, we we continuously view ways of how to optimize diesel consumption on the operation through additives and and other means, the technology, but I I don't think we would anytime soon, the technology is at such a phase or state that we would be employing it in our operation in in the in the near term.

46:48 There was another question that says, do you expect the change of metals mix in the four EPGMs for STO operations in '27 and going forward? So with us treating the middle group and l lower group, the MG and LGCs on the chrome deposits in the Bushveld Complex, we we see quite a a stable pro split. We have mentioned that we have a more attractive pro split. Our pearl split is typically, especially in rhodium, significantly higher than Merensky and UG2 ores that that the primary PGM minus mine. But for our resources that we're currently exploring, we expect it to to remain quite stable. Saying that, we do know that our LG or the lower group material has slightly higher rhodium content or more attractive. It can be up to 14% 14 to 15% rhodium.

47:43 And the chrome section project on the eastern limb, what we'll feed to Durambos might increase that slightly in terms of the l g six potential. But it I don't expect the material change in the overall composition, say, over the next three to five years for the SYLVANIA DAP operations. Then there's another question that says, for how many years into the future is the ROM feed from the host mines guaranteed? So let me start with the easy one. At Taba, we have a current agreed JV term of ten years. And and and and at this stage, we're planning for for ten years of front of mind material. We do have an option in in our agreement to negotiate with our JV partner and extension beyond that term as there is sufficient run of mine material available at the Tara mine. So that is giving you idea on Tara's life of project. If we look at Moinui and Lenex, we'll be treating run of mine material. Moinui has a significantly longer life and and well beyond ten years of of run of mine. And as I mentioned earlier, the the Moinui project also increasing the run of mine capacity at Moinway.

48:54 At our Lennox operation, you know, those time frames vary from three to five years as the mine plannings go and and various sources, and and we continue to assess that, but Lennox is capable of running fully on dump material as well as run of my as run of my as run of mine material that tapers down in future years. There's another question that says capital guidance for '27 was significantly increased compared to the one indicated at the end of twenty twenty five results. Do do the indicated investment expenditure for '28 cover all the needs, or are there additional investment projects being considered that are not included in 2028 guidance?

49:41 I think as explained in the presentation, we we some of the Tailings Dam capital that we initially planned in in in '26 pushed over into '27 as we had some regulatory delays on on two of the dams. But and and then we have quite a increase in stay in business improvement and also growth and expansion research and development capital. And those are particularly focused at increasing our production profile and also life of operations going forward. From Tailings Dam point of view itself, the question asked if if all the needs are covered for. By the end of twenty eight, we will have most of the dams covered. There's one additional Tailings Dam at Moinway that would probably be only be constructed in about twenty thirty, thirty one. That is not in the current production profile, but otherwise, we we see capital significantly declining between '20 say, it'll be over '29 to 30, and then thereafter, the Buenos Aires is done.

50:48 And as I said, what's important is if you look at when we had the base in '20 at the end of financial year 2025, we had a production profile and guidance estimate of 80 to 85,000 ounces. And, you know, in in in the year or two years before that, we probably were thinking between sixty and seventy thousand ounces. So we have, over the years, with the capital we employed to upgrade our plants to improve technology and and to put these tailings dam life ahead of us, enabled our operations to now treat, as you can see at the moment, between eighty and ninety and even up to 95,000 ounces. So I do think our capital has been well invested. One of the next questions says why the anticipation of potentially suboptimal feed grade and tonnes looking forward at Dhawar JV?

51:40 Why the application of potentially suboptimal feed grade and tonnes looking forward at the Dhawar JV? I think I did explain why we scaled down those feed grades at Tawa. And as I said, it it comes to firstly, that we've seen from geological model, slightly lower feed grade than what we initially anticipated operation. And then we provide in the early, say, in the next six year six months a stabilization where we prove the dilution from the current higher levels of dilution to to getting closer to steady state dilution in the second half of this financial year. So that is the main reason for tapering that down. And there was also a question that says, what kind of scale can you tell us in mind of the eastern limb? Look. As I said, we we have been doing that prefeasibility study. We we because we have eliminated the the run of mine section that are focusing on the dump now in particular, you know, I would think in in scale wise, we it would be typical like one of our other dump operations, and you you could, I think, look at between five to 10,000 ounces a a year from operation like that and and so on. So that is typically where we look at now. Chrome would be lower because it's just the dump Chrome and not run of mine for available.

53:01 When is the dividend payment date? Now I think it was in the announcement. I don't know if you were able to Yeah. Do you have the dates? Yeah. So the final dividend of 4 p ordinary share is payable will be paid on the 12/04/2026 to corporate investors. Okay. What is the current six e basket price? I I don't you you we did have it in the presentation. I'm not thinking if I no. We only have the 4 e basket price in our things. I'll while I'm talking and going to the next question, I'll see if Runeel can find it quick enough. Otherwise, that's something we'll have to get back on. There's another question that says, from your perspective as producer, do you agree with the market outlook now for a calendar year surplus versus deficits this year as it predicted at the beginning of the year due to slower China demand.

54:01 Because I think the the if you look at the supply of fundamentals, there's the the the balance. I think there's a lot of uncertainty that came in at the beginning of the year with as the Middle East conflict started. And that obviously drove consumer behavior, the growth, the the demand and and the number of p two combustion engine vehicles that and and small vehicles in total, commercial vehicles that have been built. So so those things impacted. But I think on the balance of it, you know, if I look at most of the analysts, everybody's in agreement that at least '26 will be in in deficit. And as I said, platinum and palladium in deficit for '27 and eight. And and then as I said, it's slightly changed slightly for for palladium.

54:52 So, yeah, I'm I'm not in a position to argue necessarily with with with with with those analysts. I I don't have first hand experience to to say if, you you know, they they would be wrong. Then there was a question to set how much is outstanding on Tava JV loan, and is it still increasing or being repaid? When do you estimate it to be repaid? Ronelle, you can maybe just give us a bit more information there. So the total outstanding on the loans are just short of $50,000,000, and that is inclusive of the accrued interest. We are not foreseeing at the current market African fundamentals that we will have to contribute more to those loans.

55:39 The interest will keep on accruing on those loans, but we can't see any further capital contributions to the loan. So no further cash outflow from our side. And again, at the current market prices and fundamentals in the base case that Jakub provided detail on during the presentation, we are anticipating for those loans to be started to be paid back towards the end of twenty twenty eight. Okay. I think then the last question I I had here is it was third party material processing. Are these long term contracts, and are they continuous monitoring to maintain the high level of yield? So I think, first of all, the we we the previous third part material at the Eastern Limb that we've been reporting on for, let's say, in the past two years, there we had a long term agreement in place, and and we had a set volume that we were treating, and that there has been that agreement has came to an end has come to an end at the end of of June.

56:44 We still have currently various approaches for third party material. I think maybe it's it's an important point to discuss because when you look at the the increasing demand in terms of chrome overall, there is increasing operations starting up and plants treating. And, also, we know our host mine is increasing their run of mine arisings, but there's not necessarily enough tailings treatment capacity and tailings facilities available in the in the industry to accommodate all that feed, and especially PGM treatment facilities and and and and tailings facilities. So we are continuously approached by bodies saying, you know, would we be able to take the tailings from their operations and do it? And and by us having the the network of tailings deposition facilities that we have at our respective sites And with the capacity we have ahead of our operations, we are in a preferential or advantageous position to to benefit from additional third party material coming in. So they are one or two suppliers that have, significant and big enough resources where we are currently negotiating to secure longer term offtakes, and then we would obviously, bring it into our formal planning going forward.

58:04 And then as I said, there are various smaller suppliers who are on a ad hoc basis as the the amount of of chrome increase are approaching us and and which might lead to longer term supply depending on on on their operations. So we continuously evaluate that. But the key for us is making sure we have the right infrastructure in the right places, and we have adequate tailings deposition capacity. And our capital allocation program is has been designed around that. And that's why we focus specifically on the STELEX infrastructure as well as our business improvement and also our growth projects in terms of capital. Thank you. I think that was the all the questions that I have here on my on my board. That's great, Yako. Yes. Runeel, thank you very much indeed for adjusting those questions for investors today.

58:54 But Yako, before we direct investors to provide you with their feedback, which is particularly important to yourself and the company, could I please just ask you for a few closing comments? Yeah. Thank you, Alex. I think maybe just in closing and and in conclusion, as I said, I'm very pleased to the current performance and and this past year's performance of of of the company. And but I also acknowledge that we still have optimization work to do at Tawai specifically, and and we've mentioned that. But I do believe that those challenges are well understood and that, you know, we we we know what it is to focus on, but also I am comfortable that we have plausible action plans to implement so that we can address that going forward. So I am excited about our future and and also what we would be able to offer for shareholders going forward.

59:45 And I think maybe just and Ronnel touched on it briefly, but, you know, after the like like we have had, it's maybe I also just wanna acknowledge our management and production teams and all the employees who have, contributed towards, a record year of performance and which continue to enable us, to advance our strategic growth initiatives in a safe and responsible manner, and also our board who is, guiding and supporting us, both through great and challenging times. And then finally, I think just our valued shareholders for all your trust and support. We look, forward to continue our journey with you and to continue adding value for you. So thank you very much. Fantastic. Thank you once again for updating investors today.

1:00:32 Could I please ask investors not to close this session as you now be automatically redirected to provide you feedback, which help the company better understand your views and expectations. On behalf of the management team, we would like to thank you for attending today's presentation, and good afternoon to you all.