Core Insights - The precious metals market has experienced significant gains in 2025, with gold, silver, and platinum prices rising substantially, indicating a strong trend in hard assets [4][22]. Precious Metals Performance - Gold started the year at $2,645 per ounce and has risen to over $3,850, marking a gain of over 47% [4]. - Silver began at $29.60 per ounce and is now over $47, reflecting a gain of about 58% [4]. - Platinum started at $995 per ounce and is currently in the $1,600 range, achieving a gain of 60% [4]. Investment Considerations - The increase in precious metal prices is attributed to the declining value of the dollar, a trend that has been ongoing since the U.S. left the gold standard in 1971 [7][22]. - Investors are advised to hold physical metals rather than selling them, as they represent real money and are not subject to the liabilities associated with financial instruments [10][12]. Mining and Royalty Companies - The rise in precious metal prices has positively impacted mining and royalty companies, leading to significant stock price increases for several key players: - Franco Nevada Corp. (FNV) rose from $125 to $225 [15]. - Royal Gold, Inc. (RGLD) increased from $134 to $198 [15]. - Osisko Royalties (OR) went from $18 to over $39 [15]. - Wheaton Precious Metals (WPM) climbed from $56 to $110 [15]. - Major mining companies also saw substantial gains: - Barrick Mining (B) increased from $14 to $33 [18]. - Newmont Mining (NEM) rose from $38 to $84 [18]. - Agnico Eagle Mines (AEM) moved from $83 to $166 [19]. - Kinross Gold (KGC) increased from $9.50 to over $24 [19]. Market Outlook - The ongoing trend suggests that as long as precious metal prices continue to rise, royalty plays and mining companies will benefit from increased cash flow and profitability [16][24]. - The potential for a global recovery in faith in the dollar could impact precious metal prices, but such a scenario seems unlikely given current government spending trends [17][22].

Core Insights - Sibanye Stillwater Limited (NYSE:SBSW) experienced a significant surge in share prices, increasing by 16.98% week-on-week, reaching a record high due to rising platinum and gold prices [1][2] Group 1: Share Price Performance - On Friday, Sibanye's share price peaked at $11.25, marking a 52-week high, before closing at $11.16, up 4.69% for the day [2] - The increase in share prices was influenced by spot prices of gold and platinum, which rose by 0.28% and 3.37%, respectively [2] Group 2: Commodity Prices - Current spot prices are reported at $3,759.98 for gold and $1,580.56 for platinum per troy ounce [3] - The rise in gold prices is attributed to expectations of interest rate cuts, which typically weaken the US dollar, benefiting precious metals [3] Group 3: Strategic Developments - Sibanye recently completed the acquisition of Metallix Refining for $78 million, aimed at enhancing its US recycling operations [4] - The company anticipates that this acquisition will create significant value through cost and operational synergies [4]

Core Insights - Precious metals, particularly gold, continue to be a safe haven for investors during economic uncertainty, with historical trends showing increased interest during financial crises [1][2] - Precious metals stocks offer a way for equity investors to benefit from both the defensive nature of the underlying commodities and the growth potential of mining companies [2] - Gold has reached record highs in September 2025, driven by expectations of a dovish Federal Reserve, with a 93% probability of a 25-basis-point cut in October [3][4] Industry Overview - The interest in gold is expanding beyond central banks and Asian buyers to include U.S. and European investors, particularly through ETFs, as lower interest rates are anticipated [4] - The selection of the best precious metals stocks is based on U.S.-listed companies with exposure to gold, silver, palladium, or platinum, focusing on those most widely owned by hedge funds [7][8] Company Highlights - **Eldorado Gold Corp. (NYSE:EGO)**: - Market Cap: $5.7 Billion, with 25 hedge fund holders [9] - Expected gold production for 2025 is between 460,000 and 500,000 ounces, down from 520,293 ounces in 2024, but projected to increase by 44% to 605-665 Koz by 2027 [10] - Strong balance sheet with over $1.0 billion in cash and equivalents as of June 2025, and a recent price target increase from $27 to $34 by RBC Capital Markets [11][12] - **Sibanye Stillwater Ltd. (NYSE:SBSW)**: - Market Cap: $6.8 Billion, with 25 hedge fund holders [13] - Recently completed acquisition of Metallix Refining for approximately $129 million, expected to enhance U.S. recycling operations [14] - Analysts have raised price targets, with RBC Capital increasing from $8.00 to $9.50, despite mixed performance in H1 2025 results [15][16]

Financial Data and Key Metrics Changes - Group adjusted EBITDA increased by 120% compared to the same period in 2024, reaching ZAR 10 billion, and even excluding the 45X credits, it was still 51% higher [6][7] - Net debt to adjusted EBITDA improved to 0.89 times, significantly below the market's earlier projections [7] - The total fair value of the 45X credits is projected to increase to ZAR 12.6 billion by 2034, representing 32% of the acquisition value of the Stillwater operations [8] Business Line Data and Key Metrics Changes - South African PGM operations produced 840,400 ounces, a 4% decrease year-on-year, with underground operations consistent at 750,000 ounces [60] - South African gold operations saw a 36% increase in average gold price received, reaching slightly more than ZAR 1.8 million per kilogram, while adjusted EBITDA increased by 118% to ZAR 4.8 billion [66] - Montana PGM operations produced 141,000 ounces at an all-in sustaining cost of $1,207 per ounce, reflecting a 41% decrease in costs compared to pre-restructuring [75] Market Data and Key Metrics Changes - Gold prices increased by 26% in the first half of the year, with average trading volumes reaching $329 billion per day, the highest for any half-year period on record [49] - PGM prices have rallied due to tight supply, with platinum prices outperforming due to lower mine supplies [50] - Lithium market remains oversupplied, with average prices around $9,000 per ton, but recent price movements have seen a rise to over $11,000 per ton due to Chinese government actions [57][58] Company Strategy and Development Direction - The company is focused on commodity diversification, particularly in gold and lithium, to stabilize earnings during volatile market cycles [26] - A multipolarity strategy is being implemented to enhance local supply of critical minerals, with significant investments in lithium projects in Europe [26][29] - Sustainability remains a core aspect of the company's strategy, with recent acquisitions aimed at expanding recycling capabilities [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive in a turbulent industry, highlighting a strong earnings trend and decreasing leverage [25][11] - The outlook for the second half of the year is positive, with expectations of improved results driven by higher commodity prices [74] - Management acknowledged challenges in certain operations but emphasized ongoing assessments to optimize production and maintain safety [71][72] Other Important Information - The company reported three fatalities during the reporting period, emphasizing safety as the top priority and ongoing efforts to improve safety metrics [5][23] - A strategic project status was granted for both the Calibre and Galicam projects under the EU Critical Raw Materials Act, providing access to grants and tax credits [29] Q&A Session Summary Question: What is the outlook for dividend payments? - The company has decided not to pay dividends at the interim stage but will review this at year-end, with confidence in returning to dividend-paying territory if commodity prices remain stable [42][43] Question: How is the company addressing the challenges in the gold operations? - Management is actively reviewing the Cliff operations to optimize long-term sustainability and has revised production guidance for managed operations [72][74] Question: What are the expectations for the lithium market? - The company remains bullish on the long-term demand for lithium, forecasting a healthy CAGR for battery electric vehicle production over the next decade [58]

Financial Data and Key Metrics Changes - Group adjusted EBITDA increased by 120% compared to the same period in 2024, reaching ZAR 10 billion, and even excluding the 45X credits, it was still 51% higher [5][6] - Net debt to adjusted EBITDA ratio improved to 0.89 times, significantly below the market's earlier projections [6] - The total fair value of 45X credits is projected to increase to ZAR 12.6 billion by 2034, representing 32% of the acquisition value of the Stillwater operations [7] Business Line Data and Key Metrics Changes - South African PGM operations produced 840,400 ounces, a 4% decrease year-on-year, with underground operations consistent at 750,000 ounces [59] - South African gold operations saw a 36% increase in average gold price received, reaching slightly more than ZAR 1.8 million per kilogram, while adjusted EBITDA increased by 118% to ZAR 4.8 billion [65][66] - U.S. PGM operations produced 141,000 ounces at an all-in sustaining cost of $1,207 per ounce, reflecting a 41% decrease in costs compared to pre-restructuring [74] Market Data and Key Metrics Changes - Gold prices increased by 26% in the first half of the year, with average trading volumes reaching $329 billion per day, the highest for any half-year period on record [48] - PGM prices have rallied due to tight supply, with platinum prices outperforming driven by lower mine supplies [49] - Lithium market remains oversupplied, with average prices just over $9,000 per ton, affecting profitability for a third of lithium supply [56] Company Strategy and Development Direction - The company is focused on commodity diversification, particularly in gold and lithium, to stabilize earnings during volatile market cycles [25] - A multipolarity strategy is being implemented to enhance local supply of critical minerals, including a petition for a palladium trade remedy [8][26] - The company is investing in brownfield projects with low capital intensity to improve competitiveness and efficiency [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's increasing earnings trend and decreasing leverage, indicating a positive outlook for future performance [9] - The company acknowledges the challenges posed by geopolitical tensions and tariff impacts on market demand, particularly in the U.S. [46] - Future growth is anticipated in the PGM and lithium markets, despite current pressures, with a focus on sustainable practices and stakeholder engagement [30][57] Other Important Information - The company has launched a petition against unwrought palladium imports from Russia, addressing unfair trade practices [78] - The acquisition of Metalex is expected to enhance the company's recycling footprint and contribute to earnings [43] - The company is assessing the Burnstone project for potential future development [29] Q&A Session Summary Question: What is the outlook for dividend payments? - The company has decided not to pay dividends at the interim stage but will review this at year-end, with confidence in returning to dividend-paying territory if commodity prices remain stable [41] Question: How is the company addressing safety concerns? - The company reported three fatalities during the reporting period but noted improvements in safety frequency rates and a commitment to eliminating fatal incidents [21][22] Question: What are the expectations for the lithium market? - The lithium market is currently oversupplied, but the company remains bullish on long-term demand driven by electrification, forecasting a healthy CAGR for battery electric vehicle production [57]

Enhancing financial resilience through safe production Operating and financial results for the six months ended 30 June 2025 (H1 2025) Disclaimer FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this presentation may be forward-looking statements. Forward-looking statements may be identif ...

Financial Performance - Basic loss reduced to R3.6 billion (US$194 million), while headline earnings increased to R5.4 billion (US$292 million), a 19-fold increase compared to H1 2024 [4]. - Group adjusted EBITDA rose to R15.1 billion (US$818 million), representing a 127% year-on-year increase [4]. - Adjusted EBITDA for SA gold operations increased by 118% to R4.8 billion (US$260 million), despite a 13% decrease in production [4]. - Adjusted EBITDA from SA PGM operations for H1 2025 was R4.8 billion (US$260 million), consistent with H1 2024, despite a 16% decrease in 4E PGM sold year-on-year [20]. - Adjusted EBITDA for the US PGM operations increased substantially to US$151 million (R2.8 billion) for H1 2025, a 457% increase compared to H1 2024 [27]. - Group adjusted EBITDA (excluding all S45X credits) increased by 51% to R10.0 billion (US$533 million) for H1 2025 from R6.6 billion (US$355 million) for H1 2024 [50]. - Adjusted EBITDA including S45X credits for H1 2025 was US$129 million (R2.4 billion), 16 times higher than US$8 million (R147 million) for H1 2024 [96]. - The loss for H1 2025 decreased by 44% to R3,906 million, primarily due to lower net cost of sales and recognition of S45X advanced manufacturing production credits [129]. - Profit before royalties, carbon tax, and tax for the six months ended 30 June 2025 was R1,915 million (approximately US$97 million), while for the six months ended 30 June 2024, it was a loss of R5,584 million (approximately US$297 million) [135][140]. Debt and Cash Flow - Net debt to adjusted EBITDA improved to 0.89x as of 30 June 2025, down from 1.79x at 31 December 2024 [4]. - The Group's free cash flow improved by R12.4 billion (US$610 million) to positive R4.5 billion (US$243 million) for H1 2025, compared to a free cash outflow of R6.9 billion (US$367 million) for H1 2024 [53]. - Group free cash flow (FCF) was significantly boosted by R9.2 billion (US$500 million) from the Franco Nevada streaming transaction, with a potential FCF outflow of R4.7 billion (US$258 million) without this transaction [54]. - The Group's cash balance increased by 31% to R21.0 billion (US$1.1 billion) as of June 30, 2025, primarily due to streaming proceeds, while gross debt rose by 2% to R40.2 billion (US$2.3 billion) [55]. - Net debt decreased by R4.2 billion (US$169 million) to R19.2 billion (US$1.1 billion), resulting in a net debt to adjusted EBITDA ratio of 0.89x, supported by a 64% increase in trailing adjusted EBITDA to R21.5 billion (US$1.2 billion) [56]. - The Group realized net cash from operating activities of R13,177 million for H1 2025, a significant increase from R3,697 million in H1 2024 [145]. - Adjusted free cash flow for H1 2025 was R4,473 million, compared to negative R6,875 million in H1 2024, primarily driven by cash proceeds from the Franco-Nevada streaming transaction [147]. Production and Operations - South African PGM operations maintained steady production and good cost management, ensuring ongoing profitability [4]. - US PGM operations benefited from US$159 million (R2.8 billion) in total S45X credits, contributing to improved profitability post-restructuring [4]. - The Century zinc retreatment operations achieved adjusted EBITDA of US$36 million (R657 million) for H1 2025, a turnaround from an adjusted EBITDA loss of US$19 million (R351 million) in H1 2024 [38]. - Gold production from managed SA gold operations decreased by 14% to 7,072 kg (227,370 oz) for H1 2025, primarily due to challenges at the Kloof operation [105]. - Total PGM production for the six months ended June 2025 was 750,150 4Eoz, with a significant increase from 751,064 4Eoz in June 2024, representing a year-over-year growth of approximately 0.15% [158]. - The average rand 4E basket price for Q3 2025 to date is R31,328/4Eoz, which is 16% higher than for H1 2025, indicating potential for increased earnings in H2 2025 [21]. - The average gold price received by SA managed operations for H1 2025 increased by 33% to R1,756,996/kg (US$2,972/oz), significantly enhancing operational profitability [32]. Safety and Environmental Performance - Total Recordable Injury Frequency Rate (TRIFR) improved to 3.90 per million hours worked, a 12% reduction from H1 2024 [12]. - Serious Injury Frequency Rate (SIFR) and TRIFR have shown favorable declines of 14% and 16% respectively over the past 3.5 years [12]. - The Group's safety indicators improved, with the lost time injury frequency rate (LTIFR) decreasing by 11% from 3.99 to 3.57 per million hours worked in H1 2025 [83]. Capital Expenditure and Projects - The Keliber lithium project is nearing completion, with project capex expected to conclude in H1 2026 [4]. - The Marikana K4 shaft project is nearing completion, with capital expenditure expected to decline from R309 million (US$17 million) for H1 2025, contributing to increased revenue as production ramps up [61]. - Total capital expenditure for H1 2025 decreased by 52% year-on-year to US$45 million (R829 million), with sustaining capital down 68% to US$7 million (R121 million) [91]. - Capital expenditure for H1 2025 was €152 million (R3.1 billion), consistent with guidance of €300 million (R5.9 billion) for 2025 [116]. Impairments and Financial Instruments - Impairments recorded were R9,666 million, with R4,230 million related to US PGM operations [134]. - The total finance expense was R2,553 million, with R900 million attributed to US PGM operations [134]. - The company reported a loss on financial instruments for H1 2025 was R391 million, a net loss of R1,887 million compared to a gain of R1,496 million for H1 2024 [138]. - Impairments recognized at 30 June 2025 amounted to R9,666 million, including R5,344 million related to the Keliber lithium project and R3,828 million due to changes in US tax credits [139][144]. Revenue and Sales - Group revenue for H1 2025 decreased by 1% to R54,767 million, primarily due to lower sales volumes at most operations, except for the Century zinc retreatment and Reldan operations [125]. - Revenue from industrial and electronic waste recycling activities was 4,789 million SA rand, reflecting a significant increase from 2,266 million SA rand in June 2024 [179]. - Gold mining activities generated 12,414 million SA rand, while PGM mining activities contributed 26,781 million SA rand for the same period [174].

Core Insights - Sibanye Stillwater Limited has transitioned from being primarily a South African gold-mining company to a global player in the mining sector, now producing significant amounts of platinum-group metals and entering the battery minerals market, including lithium [1] Company Overview - The company operates mines that focus on gold, platinum-group metals, and is expanding into battery minerals, indicating a strategic diversification of its product offerings [1]

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