2025 Audited summarised consolidated annual results >> Commentary

Commentary

INTRODUCTION

Implats delivered a commendable performance across its mining and processing assets in FY2025. Unit costs benefited from easing input inflation and rand appreciation, but faced headwinds from lower production volumes. Following a robust first half, the Group experienced unplanned furnace maintenance and utility supply disruptions at its base and precious metals refineries. This materially impacted its ability to meet planned refined and sales volumes and resulted in an increase of excess in-process inventory to approximately 420 000 6E ounces.

Capital expenditure in FY2025 was carefully planned in response to a weak rand PGM price environment and constrained profitability. Investments were directed toward initiatives that enhance safety, improve operational efficiency and preserve the integrity of Group infrastructure.

Several notable milestones were achieved during the year, including the commissioning of a 38MW smelter and a 35MW solar power plant at Zimplats. Upgrades to Impala Rustenburg's flash dryer and Impala Refineries' base metals refinery (BMR) were completed, and the commissioning of the BMR effluent crystalliser improved environmental performance and ensured compliance with our water-use licence.

Implats remains committed to fostering a safety-first culture across all operations. Despite these efforts, it is with deep regret that we report eight fatalities across seven incidents at our managed operations during the period. We continue to prioritise safety improvements and are resolute in our mission to eliminate fatal injuries, which remain inconsistent with the ongoing improvements in both lost-time and total-injury frequency rates across the Group.

The Group delivered another strong environmental and sustainability performance. Implats remains firmly committed to achieving carbon neutrality by 2050 and is actively progressing toward its interim target of a 30% reduction in carbon emissions by FY2030, using FY2019 as the baseline. Renewable energy agreements were concluded to supply power to our refineries, and the 45MW Phase 2A solar project at Zimplats received board approval.

Our focus on high-impact, strategic social performance initiatives continued through programmes supporting community wellbeing, education, skills development and infrastructure enhancement.

Group profitability was affected by lower sales volumes and muted rand PGM pricing, as gains from higher dollar PGM prices were offset by the strengthening rand. Despite effective cost containment, operational challenges and restructuring costs at our South African and Canadian assets further impacted earnings. Free cash flow generation improved, despite lower earnings, and the Group maintained a strong and flexible balance sheet.

Implats generated EBITDA of R9.9 billion, headline earnings of R732 million or 82 cents per share and recorded a free cash flow of R2.4 billion. The Group closed the period with an adjusted net cash balance (excluding limited recourse funding) of R8.1 billion and R19.7 billion in liquidity headroom. The board of directors declared a final dividend of 165 cents per share.

FY2026 started with an improved performance at our mining operations and greater stability across the processing assets. Group production is expected to be supported by sustained momentum at Impala Rustenburg, Mimosa and Two Rivers, while restored performance at Zimplats and improved stability at Marula bode well for the outlook. Volumes at Impala Canada will decline in line with the planned cessation of commercial operations in FY2026.

Implats has introduced an optimised operating strategy and enhanced maintenance protocols across Group furnaces, with plans to begin the phased introduction of select design enhancements in FY2026. Further upgrades aimed at ensuring long-term furnace integrity and performance, while addressing changes in furnace feed mineralogy, will be implemented in scheduled rebuilds from FY2027.

Our broader strategic agenda is focused on optimal capital allocation and unlocking value across our portfolio. Supported by a strong and flexible balance sheet, we aim to deliver a resilient and higher-value Implats.

SAFETY

Implats continues to reinforce its commitment to a safety-first culture across all operations. This is driven by initiatives that promote personal responsibility, accountability and teamwork. Our approach is anchored in the consistent implementation of our eight-point safety plan, supported by robust systems and proactive risk management. We place a strong emphasis on sharing learnings from high-potential incidents across the Group and remain deeply committed to the wellbeing of employees and steadfast in its goal of eliminating fatalities and life-altering injuries, aligned with our vision of achieving zero harm.

The disciplined execution of our safety strategy has led to continued improvements in overall safety performance. However, key challenges remain; while the number and severity of injuries has declined, the number of fatal incidents has not followed the same trend. This underscores the need for further targeted interventions and addressing high-risk behaviours.

Despite our efforts, it is with deep regret we report eight fatalities in seven incidents at our managed operations during the period. These included two fatalities during a fall-of-ground, an explosives-related incident and two winch-related incidents at Impala Rustenburg, and a drowning, a winch-related incident and a rail-bound equipment incident at Impala Bafokeng's BRPM operation. We extend our heartfelt condolences to the families, friends, and colleagues of Mr Joao Jose Goma, Mr Orlando Auze Gola, Mr Fenias Boaventura Gomes, Mr Lulamile Ntamo, Mr Hilario Pedro Banze, Mr Reuben Stanford Koki, Mr Lennox Siyabonga Makiki and Mr James Tlalelo Mohlabane. Through our We Care programme, we continue to provide support to those affected.

The tragic conveyance accident at 11 Shaft on 27 November 2023, which claimed the lives of 13 colleagues, significantly impacts the comparability of fatality statistics across reporting periods. The Group's fatal-injury frequency rate (FIFR) improved by 55% to 0.057/pmmhw (FY2024: 0.127). The lost-time injury frequency rate (LTIFR) improved 11% to 3.46/pmmhw and the total-injury frequency rate (TIFR) showed a 2% improvement to 8.15/pmmhw, reflecting an improving trend in our ongoing safety drive.

The formal Department of Minerals and Petroleum Resources (DMPR) inquiry into the 11 Shaft incident began in December 2024 and is expected to continue for 12 to 18 months. We remain fully committed to implementing the recommendations that emerge.

Health and wellbeing

Employee health and wellbeing is inextricably linked to the Group's aim to achieve zero harm. Along with a singular focus on safety, the Group proactively mitigates the impact of the primary occupational and non-occupational health risks faced by its employees. Implats' Employee Wellness Programme, available to all employees and their immediate family members, has a wide-ranging suite of well-subscribed offerings, including psychosocial support and mental and financial wellness services. Recognising the integrated nature of the communities in which we operate, our proactive approach extends beyond the mine gate to encompass the wellbeing of our host communities. This includes providing access to the Group's on-site medical facilities, and health and wellness education outreach initiatives such as diagnostic wellness days, vaccination clinics and a focus on mental and financial wellness.

Further progress was made in managing the incidence of Implats' primary occupational diseases. Noise-induced hearing loss (NIHL) remains a significant industry concern. A multidisciplinary approach to reducing the impact of noise on hearing resulted in 12% fewer employees (71) certified with NIHL in FY2025.

There were no new cases of silicosis among our novice mining employees. Our occupational hygiene key indicators, specifically the level of mine dust and diesel particulate matter, continue to be effectively controlled and adhere to industry benchmarks.

Implats continues to adopt a comprehensive and integrated approach to managing HIV and tuberculosis (TB), given the close clinical and social linkages between the diseases. Historically, both have been well controlled, with strong surveillance and intervention strategies in place. However, the recent withdrawal of US funding from global and national HIV programmes presents a growing risk to the sustainability of these efforts, particularly in mine-host communities.

Despite this challenge, Implats recorded a stable new HIV infection rate of 1.3% in FY2025, significantly below the estimated national average. Over the five-year period from FY2021 to FY2025, the Group expanded its HIV testing programme substantially, with annual tests rising from under 10 000 to over 22 000. This reflects a deepening commitment to early detection, awareness and treatment. The decline in new HIV diagnoses from 4.5% to 1.3% over the same period highlights the effectiveness of targeted education, voluntary testing and access to protective measures.

Implats' long-running TB programme continues to deliver strong outcomes. The Group's TB incidence rate declined from 297 to 203 per 100 000 between FY2022 and FY2025, while pulmonary TB incidence fell from 233 to 159 per 100 000. These figures remain well below the South African benchmark of 468 per 100 000, as set by the Mine Health and Safety Council. This sustained improvement reflects the success of workplace screening, treatment adherence and cross-sector collaboration. To sustain progress, our TB management programme has been expanded to include nearby host communities, reinforcing our commitment to positive broader public health outcomes.

Non-occupational and non-communicable diseases have received focused attention due to high employee obesity rates, which raise the risk of associated lifestyle diseases. Implats' medical teams screen employees for non-occupational diseases and the Group conducts comprehensive wellness campaigns which promote healthy eating habits, provide nutrition advice, encourage voluntary exercise sessions and address financial stress and substance abuse, which are key factors affecting psychological wellbeing.

SUSTAINABILITY

Implats is dedicated to the responsible management of natural resources and strives to leave a lasting positive impact in the communities in which we operate.

Sustainability is a cornerstone of Implats' strategy. Our initiatives support the United Nations' Sustainable Development Goals (SDGs), which guide our short to medium-term planning and reinforce our commitment to creating long-term value for all stakeholders.

ESG ratings and recognition

• Implats' latest annual S&P Global Corporate Sustainability Assessment score for the Dow Jones Sustainability Index (DJSI) is 66 out of 100 (2024: 61 out of 100), ranking the Group in the 96^th percentile of the mining and metals industry
• In February 2025, Implats earned its fourth consecutive inclusion in S&P's Global Sustainability Yearbook (2025), a distinction reserved for top-performing companies
• The Group holds an overall BBB rating from MSCI, reflecting excellent environmental and social performances and strong governance structures
• The Carbon Disclosure Project (CDP) rates Implats A- for water security risk management, and B for climate change action and disclosures
• The Group remains a constituent of the FTSE4Good Index Series and the FTSE/JSE Responsible Investment Top 30 Index
• All operations, except Impala Canada, are ISO 14001:2015 certified
• Impala Refineries, Marula and Zimplats are ISO 45001:2018 certified
• Impala Refineries holds the London Palladium and Platinum Markets (LPPM) Responsible Sourcing Standard certificate
• Implats conforms to the Responsible Minerals Initiative (RMI) assurance process.

Environment

Renewable and non-carbon-based electricity accounted for 31% of our total electricity consumption, down from 37% in the prior period, largely due to the reduced availability of hydroelectricity at our Zimplats operation following a regional drought. Renewable electricity from market instruments accounted for 16% of the Group's electricity mix. Implats aims to achieve carbon neutrality by 2050 and is progressing toward achieving its short-term target to reduce carbon emissions by 30% by FY2030, against FY2019 as a baseline.

Zimplats successfully commissioned the first 35MW of its intended 185MW solar power complex and the second phase, for 45MW, was approved by the board in November 2024. Implats also signed a five-year renewable energy supply agreement (RESA) to supply wheeled wind and solar renewable energy to Impala Refineries. The agreement will supply up to 90% of Impala Refineries' electricity needs from the end of Q2 FY2026, reduce scope 2 greenhouse gas (GHG) emissions by more than 852 000 tonnes CO₂e over the first five years and yield cost savings. In addition, Impala Rustenburg entered into an agreement to assess the feasibility of a 50MW solar power plant at the operation.

Carbon emission and energy use intensities deteriorated to 0.162CO₂ tonnes per tonne milled (FY2024: 0.154) and 0.830GJ per tonne milled (FY2024: 0.783), respectively. In the first half of the period Zimplats used an increased amount of coal-based electricity due to the prolonged regional drought, which constrained hydropower availability, and the operation also increased its total energy used while ramping up the expanded furnace complex.

Implats' holistic water strategy recognises and responds to water scarcity in southern Africa and the region's vulnerability to climate-change-related physical risk. As such, the Group's updated water stewardship strategy addresses water-source security, enhanced monitoring, community partnerships, water-use efficiencies and seeks to provide the infrastructure needed to ensure access to clean water for employees and mine-host communities. The Group re-uses or recycles 59% of total water used, exceeding its FY2025 water recycling target of 56% (FY2024: 55%).

There were zero major (level 5) or significant (level 4) environmental incidents, and two limited-impact (level 3) incidents (FY2024: 0, 0 and 0, respectively). No Group operation was issued with a fine or non-monetary sanction for non-compliance with environmental regulations, licences or permits.

All Implats tailings storage facilities (TSFs) retained safe operating status in the annual independent tailings review board audit. The Group supports the Global Industry Standard on Tailings Management (GISTM).

Social

Implats' maintained its focus on high-impact and strategic community investment projects. During FY2025 and excluding Group investments in employee housing and living conditions, Implats spent R274 million on projects focused on community wellbeing, education and skills development, enterprise and supplier development (ESD), inclusive procurement and developing resilient infrastructure. Taken together, these projects benefited more than 61 000 people and supported approximately 3 700 employment opportunities:

• Community wellbeing initiatives benefited more than 9 100 people, supported 350 farmers, four agricultural programmes and five gender-based violence initiatives
• Education and skills development projects reached more than 4 500 learners, provided more than 680 bursaries and learnerships for community members and supported 75 mine community schools, while Implats sponsored school sports programmes for more than 7 000 participants
• The Group's ESD and procurement activities supported more than 400 small, medium and micro enterprises (SMME), trained more than 1 600 mine-community entrepreneurs and sustained more than 2 600 employment opportunities
• 17 community infrastructure development projects were completed, positively impacting more than 21 000 people while creating 1 100 employment opportunities.

Three Peo Fund loan applications, totalling R1.7 million, were issued – the R50 million Impala Peo (seeds of change) ESD Fund was launched in the first half of the year to provide financial support to SMMEs from mine communities surrounding our operations in the broader Rustenburg region. Action plans are in place to widen access and increase utilisation of reserved funds in FY2026.

The Group strengthened relationships with the National Prosecuting Authority, the South African Police Service and the Minerals Council to collaborate on gender-based violence initiatives across South Africa, including contributions to Thuthuzela Care Centres (TCCs), the one-stop facilities government introduced to reduce secondary victimisation of sexual violence victims and assist in building robust criminal cases to improve prosecution success rates. Meanwhile, Marula, in partnership with the Red Cross, assisted host-community families who were displaced by severe regional flooding in December, an initiative funded by dividends from its Makgomo Chrome interest.

GROUP OPERATIONAL REVIEW

Tonnes milled at Group managed operations decreased by 6% to 26.29 million tonnes (FY2024: 27.89 million). Milled throughput at Zimplats was constrained by lower fleet availability and Impala Canada's volumes declined in line with its revised operating parameters. Production at Impala Rustenburg and Impala Bafokeng was impacted by safety stoppages, while Marula faced constrained mining flexibility and navigated extensive labour restructuring. 6E milled grade rose 1% to 3.78 grams per tonne (g/t) (FY2024: 3.73) as lower development rates and reduced off-reef mining resulted in improvements at Impala Rustenburg. 6E production at managed operations declined by 4% to 2.80 million ounces (FY2024: 2.92 million).

6E concentrate production from the Group's joint ventures (JVs) declined by 1% to 542 000 ounces (FY2024: 547 000). Mimosa delivered sustained operating momentum despite intermittent power interruptions and Two Rivers improved its UG2 mining performance, which was offset by lower milled volumes of low-grade Merensky ore. At Impala Refining Services (IRS), 6E in concentrate receipts from third-party customers increased by 9% to 209 000 ounces (FY2024: 191 000), with better-than-expected deliveries from key contracts. In total, Group 6E production decreased by 3% to 3.55 million ounces (FY2024: 3.65 million).

Group processing capacity was limited by unplanned maintenance in South Africa and the commissioning of the expanded furnace complex at Zimplats, while heavy rains and utility supply interruptions impacted the base and precious metals refineries in the period. In December 2024, a decision was taken to expedite the full rebuild of Furnace 3 at Impala Rustenburg, while in early February 2025, unplanned repairs were completed at Furnace 5, resulting in the deferral of 150 000 ounces of refined 6E production. Interruptions to the water, power and hydrogen supply to Impala Refineries had a further 80 000 6E ounce impact.

Refined 6E production, which includes saleable ounces from Impala Bafokeng and Impala Canada, was stable at 3.37 million ounces (FY2024: 3.38 million). Implats ended the period with excess inventory of approximately 420 000 6E ounces (FY2024: 390 000).

Implats has introduced an optimised operating strategy and enhanced maintenance protocols across its Group furnaces. The phased introduction of select design enhancements will commence in FY2026, beginning with the scheduled rebuild of Furnace 4 in December 2026. Further enhancements include a redesigned furnace configuration aimed at ensuring long-term integrity and performance, while addressing changes in furnace feed mineralogy. The full rollout of the optimised design will be incorporated into scheduled rebuilds from FY2027 onward.

In addition, the residual impact of administrative delays affecting the movement of Mimosa concentrate to both IRS and Zimplats during FY2025, is expected to extend the timeframe for destocking previously accumulated excess inventory. Completion of this process is now anticipated in FY2029.

Mining inflation across managed operations moderated in the period, while costs also benefited from a lower labour complement and the translation of subsidiaries' cash costs at a stronger rand exchange rate. Unit costs were negatively impacted by ESOT and ex-gratia payments to employees, the expensing of capital at Impala Canada and lower stock-adjusted equivalent refined volumes at managed operations. Group stock-adjusted unit costs increased by 7% to R22 491 per 6E ounce (FY2024: R20 922) and were 5.5% higher at R22 075 per 6E ounce on a like-for-like basis (excluding Impala Canada capex, and ESOT and ex-gratia employee payments made in the period).

Capital expenditure at managed operations declined 50% to R7.0 billion (FY2024: R14.0 billion) due to lower growth and replacement capital as key projects neared completion. Stay-in-business capital retraced as Zimplats completed the first phase of its solar project and spend at Impala Canada was transferred to working costs, in line with the Group's accounting policies and the shortened life-of-mine at the operation. Stay-in-business spend of R5.4 billion, replacement spend of R676 million and expansion capital of R924 million decreased by 33%, 63% and 77% respectively.

Impala

Operating momentum at Impala Rustenburg was impeded by safety stoppages in the period. While both the LTIFR and TIFR achieved were at record lows, four accidents resulted in five fatalities with prolonged associated safety stoppages at the affected shafts. Total development declined by 9%, in line with the planned reduction in waste development. Mineable face length was maintained at the targeted 25 kilometres to ensure mining flexibility implemented through structural changes and process improvements in FY2024. Labour was restructured in late FY2024, with additional reductions in Q4 FY2025, resulting in a 3% lower period-end employee complement. Tonnes milled per employee costed improved by 2% to 248 tonnes per employee (FY2024: 243).

Tonnes milled declined by 2% to 9.99 million tonnes (FY2024: 10.20 million) due to safety stoppages and water-supply disruptions experienced in the period. Milled grade increased by 2% to 4.08g/t (FY2024: 3.99), reaching a seven-year high. This improvement was driven by lower development tonnage and the successful implementation of grade control initiatives aimed at sustaining higher grades. Stock-adjusted 6E production was stable at 1.28 million ounces (FY2024: 1.28 million). Refined volumes improved by 2% to 1.24 million 6E ounces (FY2024: 1.21 million), despite reduced smelter availability in H2 FY2025.

Total cash costs, including corporate and marketing costs, increased by 7% to R30.0 billion (FY2024: R27.9 billion) and were 5% higher at R29.4 billion on a like-for-like basis, excluding the R618 million ex-gratia employee payments and accrual for the employee profit-share agreement. On-mine inflation was 6.2%, partially offset by a lower employee complement. Stock-adjusted unit costs increased by 8% to R23 520 per 6E ounce (FY2024: R21 772) and, excluding the R485 per 6E ounce ex-gratia employee payments, were 6% higher at R23 035.

Capital expenditure decreased by 13% to R2.7 billion (FY2024: R3.1 billion) as several mining and processing projects were completed and cash preservation measures were implemented. R823 million (FY2024: R1.1 billion) was invested in projects at the smelter and refineries during the period. The furnace rebuild at the Rustenburg smelters and the BMR debottlenecking at Impala Refineries in Springs were completed, and work progressed on the new Final Metals Phase 4 upgrade at the Precious Metals Refinery.

6E sales volumes declined by 3% to 1.23 million ounces (FY2024: 1.26 million), while the achieved rand revenue per 6E ounce sold improved by 3% to R25 187 (FY2024: R24 542) resulting in stable sales revenue. Gross profit benefited from reduced depreciation and lower royalties but was impeded by higher in-process inventories and ex-gratia employee payments, resulting in a loss of R870 million (FY2024: gross profit of R207 million). EBITDA in the prior period was impacted by the IFRS 2 B-BBEE charge of R1.1 billion and R197 million in restructuring costs partially offset by insurance proceeds of R300 million. In FY2025, labour restructuring costs were more than offset by the receipt of insurance proceeds of R440 million and Impala generated EBITDA of R2.5 billion at an 8% margin. Free cash flow generation was constrained by lower sales volumes and higher costs, and Impala recorded a free cash outflow of R398 million (FY2024: free cash inflow of R1.5 billion) and contributed a headline loss of R25 million (FY2024: headline loss of R611 million) to the Group.

Following the consolidation of Impala Bafokeng, the newly integrated Impala Rustenburg operations have been reorganised into three shaft groupings to enhance operational oversight and strategic planning: North shafts (BRPM North and South, Styldrift, Maseve), Central shafts (6, 12, 14 and 20 shafts) and South shafts (E&F, 1, 10, 11 and 16 shafts). The Central and South shafts are expected to produce between 1.25 to 1.30 million 6E ounces on a stock-adjusted basis in FY2026.

The North shafts are expected to produce between 500 000 and 540 000 6E ounces in concentrate during FY2026. After adjusting for third-party offtake terms, this equates to saleable volumes of between 425 000 and 460 000 6E ounces. Collectively, stock-adjusted production at Impala Rustenburg is expected to be between 1.67 and 1.76 million 6E ounces in FY2026. Refined production and sales volumes for the year will benefit from the expected reduction in excess inventory.

Impala Refining Services (IRS)

Receipts of 6E matte and concentrates from the managed operations at Zimplats and Marula decreased by 8% to 800 000 ounces (FY2024: 870 000) – Marula faced constrained mining flexibility and extensive labour restructuring, and matte production at Zimplats was hampered by lower fleet availability and smelter commissioning. 6E receipts from our JVs – Two Rivers and Mimosa – declined by 7%, with stable deliveries from Two Rivers offset by administrative delays on the purchase and delivery of concentrates from Mimosa. Third-party receipts increased by 9% to 209 000 ounces, with better-than-expected deliveries from key contracts in the period. In aggregate, gross 6E receipts were 6% lower at 1.51 million ounces (FY2024: 1.61 million). Refined 6E volumes of 1.50 million ounces increased by 1% (FY2024: 1.49 million), with processing capacity constrained by furnace maintenance, and utility supply and rain interruptions at the refineries.

The cash operating costs associated with smelting, refining and marketing IRS production declined by 13% to R1.9 billion (FY2024: R2.2 billion), reflecting lower refined base metal volumes and a moderation in the increase in Eskom tariffs.

6E sales volumes were largely unchanged at 1.52 million ounces (FY2024: 1.51 million). Softer palladium and nickel prices amplified the effects of rand strength, resulting in a 2% decline in revenue per 6E ounce sold to R25 162 (FY2024: R25 720). The cost of metals purchased increased by 7% to R34.3 billion (FY2024: R32.0 billion) – higher nickel volumes and third-party purchases offset weaker gross 6E PGM receipts.

IRS recorded headline profit and EBITDA of R3.5 billion and R4.7 billion respectively (FY2024: R3.8 billion and R5.2 billion). Despite higher work-in-progress inventory, free cash flow generated rebounded to R3.4 billion from R99 million in the prior year, and IRS contributed R3.5 billion to Group headline earnings (FY2024: R3.8 billion).

Receipts of third-party 6E in concentrate are expected to be between 180 000 and 200 000 ounces in FY2026, while refined output and sales at IRS are set to benefit from improved available processing capacity.

Impala Bafokeng

Impala Bafokeng was repositioned through labour restructuring and its operating parameters were revised in FY2025. The notable progress achieved at Styldrift was largely offset by production losses at BRPM due to lengthy safety stoppages following three fatal accidents, the impact of heavy rainfall on processing operations, and water and power disruptions experienced in the period.

Tonnes milled were 2% lower at 4.16 million tonnes (FY2024: 4.24 million), while grade declined by 1% to 4.30g/t (FY2024: 4.36) due to constrained mining flexibility at BRPM and higher development-to-stoping ratios. 6E concentrate production was stable at 481 000 ounces (FY2024: 483 000) and benefited from improved processing recoveries. Styldrift increased 6E production by 7% to 201 000 ounces (FY2024: 188 000), offsetting the 7% decline in volumes at BRPM to 275 000 ounces (FY2024: 294 000).

Cash costs were stable at R9.9 billion, with mining inflation of 5.9% offset by the savings achieved from revised operating parameters, reduced corporate overheads and a lower labour complement. Unit costs were largely flat at R20 507 per 6E ounce in concentrate (FY2024: R20 406).

Capital expenditure reduced by 33% to R962 million (FY2024: R1.4 billion) as cost-containment measures were implemented.

Revenue benefited from fair value gains, which bolstered marginal pricing gains and stable sales volumes, but gross profit was impacted by higher depreciation and royalties, resulting in a gross loss of R970 million (FY2024: R994 million).

EBITDA improved to R378 million (FY2024: -R1.4 billion) – in the prior period it was negatively impacted by several once-off costs associated with the conclusion of the Royal Bafokeng Platinum acquisition and labour restructuring, together with the IFRS 2 B-BBEE charge of R788 million. Free cash outflow reduced to R77 million (FY2024: -R3.1 billion), benefiting from the delayed receipt of the final FY2024 concentrate debtor. A headline loss of R947 million was recorded (FY2024: R1.9 billion).

Marula

Production at Marula was impacted by constrained mining flexibility and two phases of labour restructuring in the first and final quarter of the year. Changes in leadership and management routines were embedded and improved operational stability is expected in FY2026. A decision to curtail the Marula Phase 2 project will impact life-of-mine in the longer term, and an improvement in Marula's operating and financial performance is required to motivate a phased reinstatement of planned spend and infrastructure extension.

Milled volumes declined by 9% to 1.68 million tonnes (FY2024: 1.85 million). Grade was impacted by lower stoping-to-development ratios, exacerbated by the transferring of crews to development during the year. Milled grade declined by 7% to 3.97g/t (FY2024: 4.28) and 6E concentrate production declined by 10% to 202 000 ounces (FY2024: 223 000).

Total cash costs increased by 1% to R4.4 billion (FY2024: R4.4 billion), with mining inflation offset by a lower labour complement and reduced community spend. Unit costs were negatively impacted by weaker production volumes and increased by 12% to R2 632 per tonne milled and R21 902 per 6E ounce in concentrate (FY2024: R2 356 and R19 530).

Capital expenditure declined by 19% to R402 million (FY2024: R497 million) as spend on the Phase 2 project slowed and stay-in-business spend reduced.

Revenue benefited from higher rhodium prices but was adversely affected by weaker palladium prices and lower 6E sales volumes, which retraced by 11% to 201 000 ounces (FY2024: 226 000). The gross loss widened to R937 million from R532 million in the prior year. Marula recorded negative EBITDA of R565 million and the headline loss of R545 million was compounded by intercompany adjustments (FY2024: EBITDA of -R100 million and a headline profit of R203 million). The free cash outflow widened to R798 million (FY2024: R161 million) with weaker sales volumes and rand PGM pricing offsetting the impact of reduced capital expenditure.

Marula is expected to produce between 190 000 and 210 000 6E ounces in concentrate in FY2026.

Two Rivers

Production at Two Rivers stabilised due to improved operational delivery at the UG2 operations. The Merensky project was successfully placed on care and maintenance after the concentrator was commissioned, and a labour restructuring was completed in the first quarter of the period. Operating momentum was hampered by inclement weather, when heavy rainfall in February damaged electrical substations and the access bridge to the mine.

Mined volumes declined by 13% and tonnes milled were 2% lower at 3.48 million (FY2024: 3.57 million) with improved UG2 throughput offset by reduced quantities of Merensky ore mined and milled. Grade was impacted by the Merensky ore milled and declined by 4% to 3.01g/t (FY2024: 3.12) and 6E concentrate production was marginally lower at 289 000 ounces (FY2024: 291 000).

Total cash costs increased by 2% to R4.8 billion (FY2024: R4.7 billion) with on-mine inflation offset by cost and labour savings following labour rationalisation. Stock-adjusted unit costs (which include the cost of the Merensky stockpile milled) increased by 6% to R17 487 per 6E ounce (FY2024: R16 513), while the unit cost per tonne milled rose 4% to R1 365 (FY2024: R1 310).

Capital expenditure fell by 76% to R969 million (FY2024: R4.0 billion), with expansion capital declining by 92% to R256 million as the Merensky project was commissioned and placed on care and maintenance.

Sales volumes were stable, while rand revenue per ounce sold eased on lower palladium and nickel pricing. However, revenue rose by 5% to R6.2 billion (FY2024: R5.9 billion), benefiting from positive fair value adjustments. The cost of sales was impacted by the higher change in metal inventories due to the milling of Merensky stockpiles but benefited from reduced depreciation following the R2.9 billion (pre-tax) impairment in the prior year. Gross profit improved to R720 million from R538 million in FY2024. Headline earnings were impacted by negative intercompany adjustments on inventory movement and amounted to R50 million (FY2024: R580 million). Free cash outflows were negatively impacted by cash payments for capital and no dividends were received by Implats in FY2025.

In FY2026, Two Rivers is expected to produce between 270 000 and 300 000 6E ounces of concentrate.

Zimplats

Mined and milled volumes at Zimplats were impeded by lower fleet availability, while both mined and processed volumes were challenged by extensive project commissioning and intermittent power supply interruptions. A decision was taken to bolster near-term mined volumes through a short-term, open pit mining programme, with first ore generated in February 2025.

Mined and milled tonnage both decreased by 6% with milled volumes of 7.47 million tonnes (FY2024: 7.91 million). Milled grade benefited from improved grade control and, despite lower-grade open-cast throughput, it rose 1% to 3.37g/t (FY2024: 3.32). 6E concentrate volumes declined by 6% to 628 000 ounces (FY2024: 664 000). The new 38MW furnace and expanded converter capacity was commissioned and optimised over the period, with production volumes impacted by 'first fill' – 6E matte production declined by 6% to 606 000 ounces (FY2024: 646 000).

Total cash costs were impacted by the higher running costs of the expanded smelting complex and associated power tariffs, the re-establishment of opencast operations and elevated fleet maintenance spend in the period but benefited from lower selling expenses, labour savings and initial savings from the installation of the solar project. Zimplats achieved negligible overall US dollar inflation and gross costs increased to US$549 million (FY2024: US$532 million). Translated costs benefited from rand appreciation and were unchanged at R10.0 billion (FY2024: R9.9 billion). Unit costs increased by 9% to US$73 per tonne milled, while stock-adjusted costs per 6E ounce in matte increased by 8% to US$898 (FY2024: US$829) on lower throughput and higher smelting costs.

Capital expenditure decreased by 63% to US$161 million (FY2024: US$440 million) and was 64% lower in rand terms as spend on growth and replacement projects slowed. The 35MW solar plant reached design generation capacity and the 45MW Phase 2A of the solar project was approved in the period and will contribute to higher stay-in-business capital in FY2026.

6E sales volumes declined by 4% to 613 000 ounces (FY2024: 641 000), but revenue increased by 4%, bolstered by positive fair value adjustments and a marginal improvement in rand pricing. Gross profit improved by 16% to R1.8 billion (FY2024: R1.5 billion), while EBITDA rose to R3.6 billion (FY2024: R3.0 billion). As a result of lower capital spend, free cash outflow moderated to R277 million (FY2024: R2.4 billion) while Zimplats' headline earnings Group contribution declined to R291 million (FY2024: R2.0 billion), impacted by intercompany adjustments due to higher in-process inventory and closing rand prices.

Zimplats is operating at steady state. In FY2026, short-term underground mining constraints are set to be countered by opencast contributions and stable operation at the expanded furnace complex, with 6E matte volumes forecast at between 630 000 and 660 000 ounces.

Mimosa

Mimosa delivered another strong operating performance, with higher milled throughput and exemplary cost control, despite the challenging operating context in Zimbabwe and intermittent regional power disruptions.

Milled throughput improved marginally to 2.91 million tonnes (FY2024: 2.89 million), grade was stable at 3.61g/t, but processing recoveries were constrained by power interruptions impeding plant stability. 6E production in concentrate declined by 1% to 254 000 ounces (FY2024: 255 000).

Costs which increased by 2% to US$271 million (FY2024: US$265 million), benefited from easing input inflation and lower selling expenses but were adversely affected by local currency inflation. Rand appreciation moderated the impact on the translated cost base, resulting in a 1% improvement to R4.9 billion (FY2024: R5.0 billion). Unit costs per tonne milled and per 6E ounce in concentrate rose by 1% and 3% to US$93 and US$1 069, respectively (FY2024: US$92 and US$1 039).

Capital expenditure declined by 49% to US$46 million and was 50% lower in rand terms at R836 million (FY2024: US$90 million and R1.7 billion). Spend in the prior comparable period was elevated by the TSF expansion.

Lower received palladium and nickel pricing impacted Mimosa's sales revenue, and administrative delays in exporting concentrates to IRS resulted in higher concentrate inventory. As a result, 6E sales volumes retraced by 16% to 214 000 ounces (FY2024: 255 000). The gross loss moderated to R433 million (FY2024: R604 million). In FY2025, intercompany adjustments due to higher in-process inventory resulted in an attributable headline loss of R420 million (FY2024: R175 million loss, excluding the attributable post-tax impairment of R686 million). Free cash flow benefited from lower capital expenditure and Implats received R316 million (FY2024: R91 million) in dividends from Mimosa in the period.

The decision not to progress the North Hill project was taken due to market conditions and has impacted Mimosa's expected life-of-mine. Efforts remain focused to improve efficiencies in the current operations and explore alternate life-of-mine extension options. Mimosa is expected to produce between 240 000 and 260 000 6E ounces in concentrate in FY2026.

Impala Canada

Production at Impala Canada reflected the revised operating strategy implemented in FY2024 in response to the deterioration in PGM pricing. As operations ramp down, the focus on maximising higher-margin ounces over the remaining life-of-mine has resulted in lower mined and milled volumes and a reduced cost base. Commercial operations are expected to cease in May 2026, resulting in several adjustments to the accounting treatment of the operating and financial results in the period.

Mined volumes declined by 11% to 2.95 million tonnes, in line with the rebased production profile and cut-off grades, while milled volumes were 19% lower at 2.99 million tonnes (FY2024: 3.68 million). Milled grade improved by 3% to 2.98g/t (FY2024: 2.90) with reduced throughput of low-grade surface stockpiles, and 6E production in concentrate decreased by 15% to 237 000 ounces (FY2024: 281 000).

On-mine inflation of 2.4% was offset by lower volumes and cost-saving initiatives. Capital expenditure was transferred to working costs in the period, in line with Group accounting policies and reduced life-of-mine, and total costs increased by 4% to C$319 million (FY2024: total costs of C$306 million and capital expenditure of C$54 million). The impact of rand appreciation resulted in a 2% decline to R4.1 billion (FY2024: total costs of R4.2 billion). Stock-adjusted unit costs increased by 19% and 12% to C$1 348 and R17 532 per ounce, respectively (FY2024: C$1 129 and R15 592).

Sales revenue declined by 17%, impacted by lower sales volumes, weaker palladium pricing and rand strength. Depreciation accelerated in line with revised rehabilitation provisioning and the planned cessation of commercial operations in FY2026. Gross losses increased to R525 million (FY2024: loss of R94 million). Severance costs were provisioned and no deferred tax was raised on the losses incurred during the period, resulting in a negative EBITDA of R253 million and an attributable headline loss of R1.1 billion (FY2024: EBITDA of R577 million and an attributable headline loss of R308 million). Free cash flow generation improved to R236 million (FY2024: R96 million) as lower costs and capital spend were bolstered by the weaker exchange rate.

Impala Canada is expected to deliver 6E concentrate volumes of between 170 000 and 190 000 ounces prior to ceasing commercial production in May 2026.

MINERAL RESOURCES AND MINERAL RESERVES

The Group's attributable Mineral Resource estimate decreased by 0.5% to 315.0 million 6E ounces, with positive adjustments at Lac des Iles on the inclusion of the Camp Lake resource and updates to the Waterberg model, offset by total production depletion.

Group attributable Mineral Reserves decreased by 10% to 49.1 million 6E ounces due to total production depletion and the exclusion of 2.2 million 6E ounces of reserves at the Marula Phase 2 UG2 project, offsetting higher mineable areas at Impala Bafokeng and Zimplats.

FINANCIAL REVIEW

Group profitability was impacted by lacklustre rand PGM pricing, with rand appreciation offsetting the benefit of higher dollar PGM pricing. Despite good cost containment, this was compounded by operational challenges at the mining and processing operations and restructuring costs at the South African and Canadian assets.

Revenue was 1% or R0.9 billion lower at R85.5 billion (FY2024: R86.4 billion) versus the prior comparable period:

• Lower sales volumes resulted in a 1% or R1.1 billion decrease in revenue. 6E sales declined by 2% to 3.37 million ounces – palladium sales were 6% lower at 1.12 million ounces due to reduced output at Impala Canada and destocking in the prior comparable period, which was offset by higher platinum and rhodium sales of 1.59 million and 196 400 ounces, respectively
• Higher dollar metal prices contributed to a 2% or R1.8 billion increase in revenue. Stronger platinum, rhodium and gold pricing accounted for a R1.5 billion, R1.7 billion and R1.4 billion improvement in revenue, respectively, and offset the impact of weaker palladium (-R2.1 billion) and nickel (-R0.7 billion) prices. Dollar revenue per 6E ounce sold increased by 3% to US$1 389 per ounce (FY2024: US$1 350)
• The achieved rand appreciated by 3% to R18.12/US$ (FY2024: R18.71) resulting in a R2.8 billion or 3% reduction in revenue, which offset marginal gains in US dollar metal pricing. Rand revenue per 6E ounce sold was largely unchanged at R25 172 per ounce (FY2024: R25 257)
• Higher closing metal prices resulted in a R0.5 billion revenue gain (FY2024: loss of R0.5 billion) from fair value movements at Impala Bafokeng and Impala Canada.

The cost of sales was 3% or R2.1 billion higher at R83.0 billion (FY2024: R80.9 billion):

• Cash costs increased by 3% or R1.8 billion to R60.3 billion off Group mining inflation of 4.7%. Ex-gratia payments and the accrual for ESOT payments to employees at Impala Rustenburg, as well as expensing of capital at Impala Canada offset the savings effected from a lower labour complement and the benefit of rand appreciation on the translation of foreign subsidiaries' costs
• The cost of metals purchased increased by 15% or R2.0 billion on higher volumes of nickel purchases, fair value movements and increased receipts from third-party contracts – partially offset by lower receipts from Mimosa
• Depreciation decreased by 4%, or R332 million, with lower charges due to impairments in the prior comparable period, partially offset by the accelerated depreciation at Impala Canada
• The credit to the cost of sales arising from movement in inventory rose to R3.5 billion (FY2024: R1.9 billion) due to increased quantities of refined and in-process inventory and higher unit costs.

Stock-adjusted unit costs increased by 7% or R1 569 per 6E ounce to R22 491 (FY2024 R20 922):

• Group mining inflation at managed operations was 4.7%, contributing R958 per 6E ounce to the increase as pricing pressures continued to ease across Implats' southern African operating geographies. Inflation of 5.9% at South African operations moderated from 6.5% in FY2024 and, in Zimbabwe, deflation realised on labour and utilities resulted in negligible inflation (from 4.1% in FY2024). Canadian dollar inflation of 2.4% at Impala Canada rose from 1.1% in the prior comparable period
• Stock-adjusted production volumes at managed operations declined by 5% due to weaker volumes at Impala Canada, Marula and Zimplats. Smelting costs were impacted by the commissioning of the new Zimplats furnace – Zimplats' US dollar smelting costs increased by 63% – partially offset by higher mining grades and improved production from Impala Refineries. Overall volume changes resulted in a 3% or R587 per 6E ounce increase in unit costs
• The lower labour complement from a Group-wide restructuring translated into a R441 per 6E ounce benefit to unit costs, with a further R156 per 6E ounce improvement from the translation of subsidiaries' cash costs at the stronger exchange rate
• The transfer of capital spend at Impala Canada to working costs contributed R185 per 6E ounce to the increase. Ex-gratia and ESOT employee payments added a further R231 per ounce to unit costs in the period.

The Group generated a gross profit of R2.4 billion (FY2024: R5.5 billion) at a gross profit margin of 3% (FY2024: 6%).

Profit in the prior comparable period was impacted by several significant, once-off, non-cash items. There were no impairments in the period under review.

Net foreign exchange losses eased to R294 million (FY2024: R924 million), while net finance costs were negligible at R12 million (FY2024: net finance income of R116 million), with a period-end exchange rate of R17.72/US$ (FY2024: R18.19). Other income comprised the receipt of insurance proceeds and fair value gains on rehabilitation investments, while other expenses included R635 million incurred on restructuring costs at managed operations in the period. Included in the restructuring costs is a R440 million provision for severance in respect of Impala Canada.

The loss from earnings at the JVs – Mimosa and Two Rivers – moderated to R497 million from R1.2 billion in FY2024, when impairments of R1.7 billion lowered post-tax earnings. Their earnings in the current period were adversely impacted by the movement of unrealised profit on inventory of R250 million (FY2024: unrealised loss of R590 million).

Implats recorded EBITDA of R9.9 billion (FY2024: R12.4 billion) at an EBITDA margin of 12% (FY2024: 14%).

The R786 million tax charge resulted in an effective tax rate of 53% (FY2024: R3 275 million credit and 16%). The effective tax charge was elevated primarily due to the absence of deferred tax recognition on the losses incurred by Impala Canada during the period, as well as the inclusion of post-tax loss from associates in profit before tax.

Headline earnings declined by 70% to R732 million and 82 cents per share (FY2024: R2.4 billion and 269 cents per share).

Basic earnings improved to R761 million and 85 cents per share from a loss of R17.3 billion or 1 929 cents per share in the prior comparable period, when the cumulative impact of impairments resulted in a post-tax charge of R19.8 billion or 2 204 cents per share.

The weighted average number of shares in issue for the period increased to 897.45 million from 897.36 million in the prior comparable period, with period-end shares of 904.37 million in issue, unchanged from the prior comparable period.

Net cash from operating activities of R7.4 billion increased from R6.9 billion in the prior comparable period. Impala Bafokeng received its June 2024 revenue receipt in early July 2024, while the receipt of insurance proceeds of R740 million also helped offset the working capital impact of higher Group in-process and refined inventory.

Capital cash outflows declined by 51% to R6.9 billion (FY2024: R14.0 billion). Stay-in-business spend decreased by 35% to R5.3 billion (FY2024: R8.1 billion) as Zimplats' solar project was completed and Impala Canada spend was transferred. Replacement spend of R676 million (FY2024: R1.8 billion) declined by 63% on Zimplats completing mining projects and reduced spend on Marula Phase 2. Expansion capital of R0.9 billion (FY2024: R4.1 billion) declined by 77%, largely due to the commissioning of Zimplats' expanded smelter complex. The Group received R963 million in finance income (FY2024: R1.0 billion) and R451 million in dividends (FY2024: R249 million) from JVs and associates.

US$60 million (R1.1 billion) of Zimplats' US$120 million (R2.1 billion) borrowing base facility was drawn in the period, a further US$35 million (R620 million) was accessed through a US$41 million (R727 million) short-term loan facility, and R76 million was drawn from short-term revolving loan facilities denominated in Zimbabwe Gold (ZWG).

The Group's R1.8 billion in borrowings, together with deferred revenue associated with Impala Bafokeng's gold streaming facility (R1.6 billion) and the PIC housing facility (R1.4 billion) resulted in gross closing debt of R4.7 billion, excluding R674 million in finance leases (FY2024: gross debt of R4.0 billion, excluding leases of R853 million).

Closing net cash balances of R11.5 billion, net of R128 million in restricted cash, improved from R9.5 billion in the prior comparable period. Due to limited recourse to Implats, the PIC loan is excluded from debt calculations for the purpose of covenants, resulting in closing adjusted net cash of R8.1 billion (FY2024: R6.9 billion). At the end of the period, the Group had undrawn dual-tranche revolving credit facilities (RCFs) of R6.5 billion and US$93.8 million in place, resulting in improved liquidity headroom of R19.7 billion (FY2024: R17.7 billion).

Implats' capital allocation framework is designed to sustain and grow meaningful value for all stakeholders, deliver attractive returns to shareholders and preserve financial flexibility for the Group.

During the period, Implats invested R6.9 billion in capital expenditure, with a further R0.6 billion allocated to acquiring shares for the Group's share incentive schemes. After adjusting for foreign exchange translation losses and R0.9 billion in growth capital, the Group realised an adjusted free cash inflow of R2.6 billion (FY2024: outflow of R0.5 billion).

A total of R1.0 billion in cash was directed toward growth and investment, primarily to fund strategic projects at the Group's processing operations. Implats' balance sheet remains strong and flexible, with a net cash position, undrawn revolving credit facilities and circa 420 000 6E ounces of excess in-process inventory, which will be released in a phased manner over the medium term. Following three years of elevated capital and the completion of several major projects, the Group's capital intensity has moderated, supporting improved cash generation and strategic flexibility.

Implats' dividend policy is premised on returning a minimum of 30% adjusted free cash flow (pre-growth capital) to shareholders. After considering the Group's financial performance, robust balance sheet, future capital requirements and improving market conditions, the board declared a final cash dividend of 165 cents per share, amounting to R1.5 billion. Including dividends paid to Impala Chrome minorities in the period, this equates to an approximate 60% allocation of adjusted free cash flow to shareholder returns in FY2025.

PGM MARKET REVIEW (calendar years unless otherwise stated)

After navigating a series of prolonged and unprecedented shocks, the global economy appeared to have stabilised in 2024 with steady, yet underwhelming growth rates predicted in the near term. However, the landscape shifted materially in the first half of 2025 as governments around the world re-ordered policy priorities amid heightened uncertainty, particularly around US President Donald Trump's tariff pronouncements.

Market commentators lowered expectations for global growth to reflect effective tariff rates at multidecade highs and global inflation is now expected to decline at a slower rate than previously expected as interest rates are likely to remain elevated for longer. The potential impact of tariffs, persistent geopolitical tensions and the increasingly divergent outlook for growth, inflation and interest rates across major economies continue to present risks to the global macro-economic outlook.

The impact of tariffs on automotive and industrial PGM demand will take some time to emerge and will weigh on business and consumer confidence. Further near-term adjustments to current forecasts are likely. Primary PGM supply continues to face headwinds, while platinum jewellery and investment demand have benefited from renewed interest. All three major PGM markets – platinum, palladium and rhodium – are likely to remain in fundamental deficit in 2025, with market shortfalls increasing from prior estimates.

Pricing

PGM prices in FY2025 were characterised by two distinct periods: H1 FY2025 saw a lacklustre price performance with gold outperforming the white metals, weak investor sentiment and sustained dollar strength. Physical markets reflected ample liquidity as peer producers and industrial customers destocked previously accumulated inventory. Markets tightened in H2 FY2025 as precious metal inventory was on-shored to the US ahead of potential tariffs and lease rates increased. Physical demand remained robust and refined supply from South Africa weakened from the elevated base created by the destocking. PGM prices rallied further in the final weeks of FY2025, with speculative positioning shifting on price appreciation and an improved market narrative. At period-end, closing metal prices were noticeably firmer.

Platinum prices were rangebound between US$900 and US$1 000 per ounce in the second half of calendar 2024, with speculative trading volumes and pricing heavily influenced by macro-economic news flow. Pricing rallied in Q2 2025 – strong physical demand from China coincided with weak refined South African supply and lacklustre auto catalyst recycling. Pricing momentum was maintained in the final weeks of FY2025, despite profit taking and net sales by ETFs.

Palladium prices in H2 2024 were negatively impacted by the sustained flow of discounted Russian primary supply and significant speculative trading on NYMEX (the New York Mercantile Exchange). Pricing in H1 2025 benefited from the platinum price rally, with renewed ETF purchases and a substantial reduction in the net short position on NYMEX.

Rhodium prices benefited from tight physical markets, characterised by peer-group purchasing to fulfil contractual obligations in early 2025, and firm end-use demand. After rallying to more than US$6 000 per ounce in Q1 2025, rhodium prices found consistent support above US$5 000 per ounce through Q2 2025, with ETF purchases drawing on market liquidity during a period of low refined output from South African producers. Over the past three years, rhodium price rallies were capped by increased flows of autocat scrap. In 2025, however, there has been limited news flow about price-induced inventory release.

Automotive

According to Global Data, sales of light-duty vehicles (LV) amounted to 44.5 million units in H1 2025, rising by 5% from the prior comparable period. The latest Global Data forecast, released in mid-July 2025, incorporates its current assumptions around the US tariff policy going forward and the implications for the wider economy and the automotive industry specifically. This outlook sees the automotive industry on a weaker footing due to a downgraded US outlook – its forecasts suggest growth will moderate in the coming months with 1% sales growth expected in 2025 and market stagnation in 2026 as the impact of tariffs takes hold. In addition to broader tariffs, the automotive sector is facing extra tariffs on vehicles imported into the US and increased tariffs on parts, which will inflate vehicle prices for the US consumer.

LV production output boosts earlier this year (in a bid to get ahead of the tariffs) have given way to a period of 'payback', where the producers most exposed to US tariff shocks are bracing for slower incoming demand. Due to the highly entwined nature of the auto supply industry, the tariff impact will be most pronounced in North America. The 2025 and 2026 LV production forecast now stands at 90.9 and 91.4 million units, respectively, reflecting annual growth of just 0.6% and 0.5%.

After a poor performance in 2024, when the global passenger battery electric vehicle (BEV) market grew by just 13%, 2025 has seen improvement. In H1 2025, LV BEV demand was up 35% year-on-year, with notable geographic exceptions. Europe and China drove BEV demand growth, with a January to June expansion of 24% and 47%, respectively. By contrast, the US BEV market expanded by less than 7% as President Trump rolled back EV incentives and regulatory targets that promote plug-in vehicles. This saw falling consumer interest in BEVs and led to original equipment manufacturers (OEMs) pivoting to more traditional powertrain types.

In terms of market share, Europe's BEV market has achieved 17% in H1 2025 to date, which is expected to be adequate to achieve the 'softened' EU 2025 new car CO₂ roadmap – provided BEV growth continues into 2026 and 2027. China's BEV price war, a relentless stream of new BEV product, and continued support via purchase tax exemptions and a pro-NEV (new energy vehicle) scrappage scheme has driven significant expansion this year. While other plug-in EV types (plug-in hybrid EVs and extended-range EVs) continue to grow in China, in a reversal of the 2024 trend, their 2025 growth rates are slower than BEV growth rates.

The BEV share of global LV sales began 2025 at 12.5% and is forecast to end the year at 14.8%. Other growth areas include full hybrids, which are seeing strong demand in Europe and the US, while plug-in hybrids are prospering in Europe during a regulatory window around their CO₂ ratings.

Industrial

Industrial demand for PGMs is driven by the chemical, glass, electrical, biomedical and petroleum sectors and is impacted by utilisation rates and changes in installed capacity. An improvement in industrial demand is expected in 2025 on stabilising chemical demand and higher anticipated offtake from the petroleum and liquid fuels sectors, as well as the data-centre-driven expansion in the electronics sector. Glass demand is also expected to expand, supporting demand for both platinum and rhodium.

PGM demand from the hydrogen economy reached circa 82 000 ounces in 2024. It is expected to increase to 100 000 ounces in 2025 and approach 500 000 ounces by 2030 as markets develop for electrolysis, storage and stationary and transport fuel cells. At present, demand is dominated by stationary and portable fuel cell demand, but electrolysis is expected to become a market driver in the near term before a ramp-up in both heavy and light duty fuel cell EVs drives longer-term growth.

Hydrogen adoption encountered notable headwinds in the final months of 2024 – the sector faced financial pressures and tepid market momentum. In the US, the 'One Big Beautiful Bill Act' amended the Inflation Reduction Act, particularly by curtailing or phasing out several clean energy tax credits, including the Clean Hydrogen Production Tax Credit. Conversely, Europe is showing a more decisive shift – moving from clean energy ambition to execution – with binding policies backed by significant capital. Policy clarity on hydrogen imperatives and the alignment of newly formed governments should help steady the outlook over the remainder of 2025.

Jewellery

The outlook for jewellery demand has been a notable positive development in 2025, with resurgent Chinese jewellery fabrication driving shifting sentiment and tightening liquidity in the platinum market. With rising gold prices and underperforming gold jewellery demand, wholesalers and regional retailers took profits in Q1 2025 by liquidating unsold gold inventory and rebuilding platinum stocks. The phenomenon accelerated in April, May and June. The size of the Chinese market and still-low levels of inventory could support sustained purchasing over the remainder of 2025 and, as a result, expectations for annual fabrication have been upgraded. There is a risk that still-weak domestic consumer confidence could see consumption fail to replicate the strength in fabrication over the medium term, resulting in high inventory levels and a threat of destocking.

The developed jewellery markets in Japan, the US and Europe are also performing better than expected, with platinum demand supported by low diamond prices and the steep discount to gold. In contrast, in India, the high gold price impacted jewellery store traffic and jewellery volumes and US tariffs have hurt export volumes. As a result, the outlook for Indian demand in 2025 has been revised lower. In total, strong Chinese fabrication and robust European and US demand should see jewellery demand rise to a multi-year high of 2.2 million ounces in 2025.

Investment

Investor sentiment and activity has improved and supported pricing in 2025. As of 30 June 2025, platinum, palladium and rhodium ETFs in Europe, Asia, North America, Australia, Japan and South Africa held a total of 3.30 million ounces platinum and 923 000 ounces palladium, with 2025 year-to-date outflows of 444 100 ounces platinum and inflows of 114 000 ounces of palladium. Rhodium ETF activity was also elevated, with holdings of 13 000 ounces – some 4 000 ounces higher in 2025.

Global retail investment (bars and coins) rose in H1 2025, with profit-taking in Japan offset by robust large bar demand in China and growth in both Europe and North America, despite constrained product offerings.

Implats' definition of the investment market includes ETF flows and net bar and coin purchases. In total, we estimate year-to-date investments of 231 000 ounces of platinum and 115 000 ounces of palladium.

Supplies

Primary supply is expected to ease slightly for platinum and rhodium in 2025, with a more material retracement in palladium, as North American production profiles reflect revisions in response to weak prices. Estimates for the inventory draw-down in 2025 have also been revised due to the higher-than-expected release in 2024, but also in response to processing maintenance at South African producers in H1 2025.

Secondary PGM supply stabilised in 2024, but expectations for growth were trimmed through the year as collection rates again failed to rebound to the extent expected. The cost and complexity of collecting, funding and transporting spent catalyst material remains high, and opinions are divided on the quantum of catalyst 'hoarding'.

The pace of supply expansion is a key factor driving easing markets in the medium term, premised on a recovery in Western outturn and growth in the nascent Chinese market. The key leading indicator for scrap volumes remains LV sales, and the outlook in 2025 has been clouded by tariff uncertainty. Further, tariffs could obstruct the movement of collected auto catalyst scrap to aggregators, smelters and refineries in the US, resulting in further work-in-process shifts in the supply chain, and countering the tailwind of improved PGM pricing witnessed over 2025.

OUTLOOK

FY2026 began with an improved performance at our mining operations and stability across Group processing assets. Rand PGM pricing gains have been maintained in the early months of FY2026, despite the traditionally quiet Northern Hemisphere 'summer lull' and continued macro-economic uncertainty, including tariff-related developments. Sales are set to benefit from the delayed destocking of accumulated in-process inventory.

Our operational focus remains firmly on improving safety outcomes and arresting the unacceptable incidence of fatal injuries. In FY2026, we will intensify efforts across several key areas: managing the orderly wind-down of commercial operations at Impala Canada, ensuring continued employee relations stability, realising operational efficiencies at our newly consolidated Impala Rustenburg operations and securing operational improvements at Marula.

Our broader strategic agenda centres on optimal capital allocation and maximising the optionality and opportunities within our portfolio, supported by our strong and flexible balance sheet, to deliver a resilient and higher-value Implats.

Guidance

Group production in FY2026 will be supported by sustained operating momentum at Impala Rustenburg, Mimosa and Two Rivers, while restored momentum at Zimplats and improved stability at Marula bode well for the Group's outlook. Impala Canada volumes will decline in line with the planned end of commercial operations during the year.

Refined volumes are expected to benefit from improved annual processing availability at both Impala Rustenburg and Zimplats, driven by an optimised operating strategy and enhanced maintenance protocols, and the destocking of previously accumulated inventory, a process expected to be completed by FY2029.

Group 6E refined and saleable production is expected to be between 3.4 and 3.6 million ounces. Group unit costs are forecast to rise by between 4% to 9% to between R23 500 and R24 500 per 6E ounce on a stock-adjusted basis. Group capital expenditure is forecast to be between R8 billion and R9 billion, with negligible growth capital expected. This guidance assumes exchange rates of R18.00/US$ and C$1.39/US$, respectively.

¹    Includes Impala Canada and Impala Rustenburg's North shafts saleable ounces.
²    Managed operations, stock-adjusted and inclusive of ESOT and ex-gratia employee payments.
*    South – E&F, 1, 10, 11 and 16 shafts.
**   Central – 6, 12, 14 and 20 shafts.
*** North – BRPM North and South, Styldrift and Maseve shafts.