Commentary

The unaudited condensed consolidated financial results for the six months ended 30 June 2025 are presented below.

Rounding of figures may result in minor computational discrepancies in the tabulations.

Merafe's revenue and operating income are primarily generated from the Glencore-Merafe Chrome Venture (Venture), which is one of the global market leaders in ferrochrome production, with a total installed capacity of 2.3 million tonnes of ferrochrome per annum. Merafe shares 20.5% of the EBITDA from the Venture. Merafe has one reportable segment, being the mining and beneficiation of chrome ore into ferrochrome and the extraction of associated minerals. As a result, no segment report has been presented.

Merafe's share of the revenue from the Venture, which includes a management fee, decreased by 47% from the prior period to R2 519 million (June 2024: R4 744 million).

Ferrochrome revenue decreased by 60% from the prior period to R1 359 million (June 2024: R3 397 million). Key contributors to the reduced revenue were a 12% decrease in the average net cost, insurance and freight (CIF) prices and a 55% decrease in ferrochrome sales volumes to 76kt (June 2024: 167kt). The average ZAR:USD exchange rate strengthened, further dampening revenue. Chrome ore revenue decreased by 17% from the prior period to R1 004 million (June 2024: R1 213 million), driven by a 14% decrease in chrome ore sales volumes to 217kt (June 2024: 251kt) and a stronger ZAR:USD exchange rate. This performance was worsened by a 2% decrease in average sales prices over the period. PGMs concentrate sold over the period generated revenue of R156 million (June 2024: R131 million), well supported by the 7% higher average basket price of PGMs and 9% more concentrate sold. The revenue increase was in spite of a stronger ZAR:USD exchange rate.

Operating and other expenses decreased by 46% to R1 939 million (June 2024: R3 600 million). This decrease was primarily due to lower ferrochrome and chrome ore volumes sold. The impact of production costs was mixed, evidenced by ferrochrome total unit production costs, which decreased by 5% compared to the average cost for 2024 and chrome ore total unit production costs, which increased by 7% over the same period. Inflationary pressures on our unit production costs came from higher labour, engineering, maintenance and utilities costs. These were offset mainly by lower chrome ore, UG2 and reductants prices. A higher fixed cost absorption rate due to lower ferrochrome production negatively impacted the total unit production cost for ferrochrome. Operating and other expenses include Merafe's attributable share of standing charges of R214 million (June 2024: R124 million). There was a nominal write down of inventory of R2 million (June 2024: R1 million) during the six months ended
30 June 2025.

Operating and other expenses also include corporate costs of R35 million (June 2024: R45 million). Included in corporate costs is a cash-settled share-based payment credit of R1 million (June 2024: R12 million expense) and a bonus provision of R5 million (June 2024: R6 million).

Included in Merafe's EBITDA of R500 million (June 2024: R1 131 million) is a foreign exchange loss of R81 million (June 2024: R13 million).

Earnings for the six months ended 30 June 2025 amounted to R233 million (June 2024: R720 million), after taking into account depreciation, amortisation and impairments of R219 million (June 2024: R169 million), net financing income of R20 million (June 2024: R30 million) and a taxation expense of R73 million (June 2024: R284 million). The decrease in depreciation is due to the full write off of the Boshoek smelter in 2024. Although there was no impairment adjustment processed against the cash-generating unit (CGU), specific asset adjustments were processed against the Bokamoso and the Tswelopele pelletising plants, as well as the Wonderkop smelter. The full carrying values of these plants were impaired, resulting in an impairment loss of R113 million (June 2024: Rnil) over the reporting period.

Income of R5 million (June 2024: R11 million), being Merafe's proportionate share of the income from an associate of Unicorn Chrome Proprietary Limited (Unicorn Chrome), was recorded for the period.

Sustaining capital expenditure decreased by 23% to R173 million (June 2024: R226 million) due to cash preservation initiatives in response to adverse market conditions. Expansionary capital expenditure of R30 million (June 2024: R27 million) includes R25 million spent on the Eastern PGMs operations.

The unsecured credit facility with ABSA of R300 million remained unutilised at period end.

At 30 June 2025, Merafe had cash and cash equivalents of R1 142 million (December 2024: R1 795 million), which comprised cash held by Merafe of R449 million (December 2024: R603 million) and R693 million (December 2024: R1 192 million), being Merafe's share of the cash balance in the Venture and Unicorn Chrome. The cash held by the Venture for rehabilitation is not restricted cash but has been set aside to fund future environmental rehabilitation obligations. Merafe's share of this cash is R378 million (December 2024: R361 million) and is included in its share of the cash in the Venture of R693 million (December 2024: R1 192 million) referred to above.

Trade and other receivables decreased by 9% compared to the 31 December 2024 period.

Ferrochrome finished goods volume of 118kt (December 2024: 83kt) represents approximately nine to 10 months of sales. The closing inventory value increased to R2 472 million (December 2024: R1 794 million) as a result of inventory drawn down over the reporting period.

The board of directors (Board) has declared an interim gross cash dividend of 4 cents per share (June 2024: 20 cents per share).

There were no fatalities in the Venture's operations during the six-month period (December 2024: one fatality). The total recordable injury frequency rate improved to 1.50 (December 2024: 2.31).

The safety of our employees remains our top priority. We are committed to continuously improving our safety performance, focusing on the four key areas identified in our turnaround strategy: risk management, effective supervision, safety culture and contractor management.

In the six-month period, there was one case of occupational illness recorded in the Venture (June 2024: nil). Reduction of exposure at sources remains our priority.

The Venture's commitment to creating a healthy work environment remains steadfast. We will continue promoting not only the health and safety of our workers but also the wellbeing of the communities in which we operate. Our approach goes beyond the workplace, recognising that a healthy community supports a thriving workforce. Through proactive health initiatives, partnerships with local organisations and sustainable practices, we have and will continue to create lasting, positive impacts that extend far beyond our facilities.

We will review all health risk assessments and maintain our pre-, annual and exit medical surveillance to monitor the occupational health of our workforce. Implementing our Health Standards and Health Hazards Exposure Limits is a core strategic focus, integrated with our baseline review to confirm exposures through quantitative data analysis.

Environmental, Social and Governance (ESG) compliance is a fundamental pillar of our business operations. Our social impact has grown stronger, reflecting our commitment to people and communities. The Venture's supplier code of conduct outlines the expectations and requirements for suppliers, especially those providing metals and minerals. It aligns with the Organisation for Economic Co-Operation and Development's Due Diligence Guidance for sourcing minerals responsibly from conflictaffected and high-risk areas. We foster strong relationships with employees, suppliers, customers and communities by promoting fair labour practices, employee rights and a commitment to diversity, equity and inclusion. The Venture's local employment and procurement strategy prioritises enterprise development and job creation for women, youth and other vulnerable groups, supported by targeted capacity-building initiatives for entrepreneurship and employment readiness.

The Venture has engaged with its communities to share feedback on the outcomes of the Human Rights Impact Assessments, ensuring transparency and inclusive dialogue. The priority human rights risks identified include:

• worker health and safety – addressing occupational hazards and promoting safe working conditions;
• road safety – mitigating traffic-related risks for both employees and local communities;
• contractor practices – ensuring that contractors align with our human rights and safety standards; and
• security – strengthening responsible security practices through training and oversight in line with Voluntary Principles on Security and Human Rights.

As a member of the International Council on Mining and Metals, the Venture adheres to the mining principles, which include 10 sustainable development principles and eight position statements covering issues from biodiversity to water management. We recorded no major or catastrophic environmental incidents in the reporting period. We have completed the assessment of material water-stress risks and set local water targets, implementing actions to reduce impacts and improve performance against these targets. Additionally, we have embarked on a project to visualise our knowledge base using geographic information system solutions to support decision-making processes.

The Venture's decarbonisation objectives are aligned with those of the Glencore plc Group. Our portfolio profile provides the flexibility to decarbonise our footprint. We aim to achieve a 50% reduction in our total CO₂ emissions by 2035 compared to our 2019 baseline. Some of our strategic elements towards achieving our target include managing our operational footprint and taking advantage of opportunities to reduce our scope three emissions.

Merafe's attributable ferrochrome production decreased significantly from 154kt in June 2024 to 112kt for the six-month period ended 30 June 2025. The decrease is due to the suspension of smelting operations in response to adverse market conditions.

Operations at the Boshoek and Wonderkop smelters were suspended during the second quarter of 2025 following the business review process. In addition, the Lion smelter operations have been suspended to allow for scheduled maintenance and planned rebuilds.

Total unit cost of ferrochrome production decreased by 5% from December 2024 as a result of lower chrome ore market costs, reductants, power and fixed costs that were offset by increased plant and other costs.

Merafe's saleable chrome ore production decreased by 8% period-on-period due to trackless mobile machinery and conveyor breakdowns.

Total unit cost of chrome ore production increased by 7% from December 2024 to R1 645/tonne, which is in line with mining inflation.

Saleable PGM production increased from 6 738oz to 7 073oz.

There were no material changes to the Mineral Reserves, Mineral Resources and Mining Rights of the participants in the Venture from those reported in Merafe's Integrated Annual Report for the year ended 31 December 2024.

Stainless steel production across key regions recorded robust growth in the first half of the year. Output in China and Indonesia each increased by 6.3%¹ period-on-period, while India posted a 6.6%¹ rise. In contrast, production in the United States remained flat, and European output declined by 7.8%¹, reflecting ongoing structural challenges and cost pressures.

Sustained demand for chrome ore, combined with limited supply growth, supported elevated pricing levels. Chrome ore exports to China were 8.3mt¹ in May 2025 (June 2024: 8.4mt¹), 6.9mt¹ being from South Africa.

Ferrochrome conversion spreads remained at historically low levels, driven by the continued increase in low-cost Chinese production. This trend highlights China's growing dominance in global ferrochrome supply, now accounting for approximately 53%¹ of total output.

¹ CRU Data.

The South African ferrochrome and chrome ore sectors are at a crucial juncture. While challenges related to energy supply and global competition persist, the recent proactive measures by the South African government to support the ferrochrome industry through policy interventions and incentivising beneficiation present a cautiously optimistic outlook, particularly for our ferrochrome business in the medium to long term. Our chrome business will need to adapt to potential shifts in domestic demand, while continuing to monitor the significant influence of the Chinese market. Both sectors of our business will benefit from further stability in energy supply and the effective implementation of proposed regulatory changes. The Venture will continue to engage with key stakeholders towards finding sustainable solutions, particularly for our smelting business.

We remain cautious in our approach to the remaining six months of the financial year and will continue to focus on efficient operations, cash preservation, cost control and efficient capital allocation.

We are committed to creating shared value for our stakeholders.

Sandton

8 August 2025