Sibanye Stillwater Limited Q4 FY2025 earnings call

Strategic refresh focused on simplification, maximizing operating margins, operational excellence, portfolio simplification, and disciplined capital allocation. Key decisions included staged ramp-up of Keliber lithium project, Kloof operation's year-by-year assessment, settlement of Appian court case, and successful South African gold wage negotiations. Operational output showed continuous improvements in safety indicators, with focus on eliminating fatal incidents. Sustainability strategy advanced in renewable energy, water stewardship, and community engagement.

South African PGM operations: 2025 total 4E PGM production reached 1.8 million ounces, underground production increased 2% to over 1.6 million ounces, surface production lower by 29% at 108,000 ounces, operating costs increased by 7.3% in absolute terms, all-in sustaining costs rose 10% to just over ZAR 24,000 per 40 ounce. South African gold operations: Total production including DRDGOLD was lower by 10% at 19.7 tonnes, all-in sustaining cost increased 15% to ZAR 1.4 million per kilogram. U.S. PGM operations: Production of 284,000 3E ounces, all-in sustaining cost of $1,203 an ounce. Recycling business: Integrated acquisitions, positioned well in global metals recycling. Century zinc retreatment business: Stellar safety performance, increased production of 101 kilotonnes of payable metal, all-in sustaining costs decreased 17% to $1,920 a tonne.

South African PGM operations: Slight decline in production guidance. South African gold operations: Slightly lower output guidance due to Kloof operations. U.S. PGMs: Slight increase in output with focus on reducing unit costs. Recycling: Gold equivalent production guidance of 400,000 to 420,000 ounces. Keliber: Anticipated production of spodumene concentrate with total expenditure guidance of about EUR 180 million to EUR 190 million. Century zinc: Largely in line with 2025 production.

Volatility in lithium market impacting Keliber project, seismicity and safety risks at Kloof operation, uncertainties in global metals recycling market, and potential challenges in achieving spodumene concentrate specification grade at Keliber.

Q: On Keliber's risk of achieving specification grade in early ramp-up, A: Confident in pushing high grade based on test work and traditional concentrator technologies.

Q: On impairment due to lithium price forecast at Keliber, A: Hurdle rate around $14,000 to $15,000 per tonne.

Q: On Kloof reserve reductions, A: Safety decision first, Kloof remains profitable at current gold prices.

Q: On GFEX impact on prices, A: Heightened metal flows into China with potential price correction post settlement.

Q: On U.S. PGM repositioning, A: Focus on reducing unit costs to $1,000 per ounce.

Q: On streaming deals and hedging, A: Details on existing streams and concluded gold hedges.

Q: On simplification of assets, A: Keliber and Australian assets are strategic priorities.

Q: On renewable energy, A: Renewables pipeline expanded with details on current and upcoming projects.

Q: On SA PGM volumes and costs, A: Slight volume decline from surface and third-party, cost increase from sustaining capital.

Q: On Appian settlement accounting, A: Included in cash flow from operating activities.

Q: On uranium assets, A: Neo Metals transaction and Cooke Tailings project updates.

Q: On growth opportunities, A: Focus on current resources, collaboration with DRDGOLD.

Q: On chrome strategy, A: Chrome is material, transaction with Glencore unlocked value.

Q: On Burnstone CapEx, A: Development capital predominantly required.

Q: On Keliber costs, A: Project CapEx remains EUR 763 million with last $90 million spent in 2026.

Q: On U.S. PGM costs, A: Sustaining cost increase due to development activities.

Q: On recycling guidance, A: Slight decline with strategic shifts.

Q: On Kloof closure liabilities, A: Not applicable due to ability to flood.

Q: On share buybacks, A: Stick to dividend policy until debt in line