SBSW: South African ops CMD & site visits

Research evidence excerpt

SBSW: South African ops CMD & site visits

74 4.69

Bite size, low-risk projects at home Prev. 3.01 3.76 4.67 Free Cash Flow (415.3) 1,956.0 2,006.5 2,485.7

Management believe it has the best portfolio in the world and doesn't need Prev. 1,996.5 2,135.1 2,605.6

to look elsewhere (a comfort for those concerned about further M&A risk). FCF Yield NM 31.2% 32.0% 39.6%

Given the challenging demand outlook, there is a reluctance to over invest

and management can choose between the seven PGM mining projects Production: 4E koz

(Stillwater West not being considered) or various optimisations on the gold AllPricedmarketas ofdatapriorintradingUSD; allday'sfinancialmarketdataclose,in ZAR;ESTdividends(unless otherwisepaid in USD.noted).

side (PGM is favoured over gold). The E4 mine (feasibility due Q4'26) will

be an important test case of the levels of board optimism. Burnstone is the

odd one out as a greenfield but highly likely to be get go a head in H2 given

the attractive economics.

Six years of study to push assets together

Company finally in position to extract the synergies of consolidating Anglo

Platinum's Rustenburg, Lonmin and Aquarius Platinum assets into 70km

of continuous PGM operations. Easy wins from boundaries that can be

mined out and infrastructure shared. Investment in processing has been

consistent and able to accommodate 50% of Platreef phase 2 (lifts BMR

utilisation from c.30% to c.90%).

Chrome important kicker for both SLP and SBSW

Chrome already provides a very helpful kicker to revenues (5% of PGM in

2025) and should starting getting full value for its chrome by 2033, and

possibly earlier with expansions. The Chrome Management Agreement

(CMA) with Glencore accelerates discount timeline by 20 years, improves

yields and reduce operating costs.