Revenue
Revenue from the SA PGM operations decreased by 12% to R26,649 million (US$1,424 million) due to a 28% lower average rand 4E basket price of
R24,499/4Eoz (US$1,309/4Eoz), partially offset by a 16% or 125,631 4Eoz increase in PGMs sold and a 1% increase in the sale of third-party purchase
of concentrate (PoC) ounces. The increase in 4Eoz sold was a consequence of higher production volumes and higher opening stock in 2024.
At the US PGM underground operations revenue decreased by 9% to US$260 million (R4,850 million), mainly due to a 30% decrease in the average
2E basket price to US$977, partially offset by a 27% increase in ounces sold, correlated with the higher production achieved. The rand average 2E
basket price decreased 28% to R18,289/2Eoz, offset by the higher sales volumes resulting in a 7% decrease in rand revenue to US$260 million
(R4,850 million). Revenue from the US PGM recycling operation decreased by 53% from US$422 million (R7,692 million) to US$198 million (R3,710
million) due to a 54% lower average realised basket price of US$1,252/3Eoz, partially offset by a 3% increase in recycled ounces sold. The 3%
weaker rand translated into a 52% decrease in recycling revenue to US$198 million (R3,710 million).
Since its acquisition the Reldan, operations sold silver (855,870 Toz), gold (41,868 Toz), platinum (7,143 Toz), palladium (7,500 Toz), copper (1,066,236
Lbs) and mixed scrap (2,044,892 Lbs) generating revenue of US$121 million (R2,266 million).
Revenue from the managed SA gold operations decreased by 6% to R11,614 million (US$619 million) mainly due to lower volumes. Production was
impacted by the closure of Kloof 4 shaft during H2 2023 and increased seismic activity which restricted access to high grade panels at Kloof 1
shaft, seismicity and geological challenges which restricted access to high grade panels at Driefontein and management safety
stoppages and a fall of ground incident at Beatrix, partially offset by a 18% higher rand gold price of R1,324,997/kg (US$2,201/oz). Revenue from
DRDGOLD increased by 15% to R3,266 million (US$174 million) due to a 19% higher rand gold price received of R1,330,888/kg (US$2,211/oz),
partially offset by 4% lower sales volumes.
At the European region, revenue from the Sandouville nickel refinery increased marginally from R1,677 million (US$92 million) to R1,685 million
(US$90 million), mainly due to a 29% increase in total nickel sold correlated with the higher production, partially offset by a 22% lower nickel
equivalent basket price of R380,190/tNi (US$20,309/tNi).
In the Australian region, revenue from the Century zinc retreatment operation increased by 158% to R1,304 million (US$619 million) mainly due to six
months' contribution in H1 2024 compared to four months for H1 2023 since acquisition and a 13% increase in volume of zinc sold (payable) in
concentrate at a 48% higher average equivalent zinc concentrate price of R44,297/zinc tonne (ztn) (US$2,366/ztn).
Cost of sales, before amortisation and depreciation
Cost of sales, before amortisation and depreciation at the SA PGM operations increased by 19% to R21,623 million (US$1,155 million) mainly due to
additional contractor costs for secondary support, higher utility costs to mitigate ventilation constraints and higher maintenance costs, higher
chrome costs and costs due to the addition of the 50% share in Kroondal. Mined underground 4E PGM production increased by 3% to 689,396 4Eoz
due to the consolidation of an additional 50% of Kroondal production following the acquisition of Anglo American Platinum Limited's (Anglo) 50%
share in the PSA during Q4 2023, partially offset by lower production following the restructuring and closure of four shafts through S189 consultations
during Q1 2024 and the Siphumelele shaft incident at Rustenburg. Surface production volumes excluding third-party PoC were 4% higher at 77,396
4Eoz. Third-party PoC at the Marikana smelting and refining operations increased by 1% to 50,146 4Eoz. PoC material is purchased at a higher cost
than own mined ore, due to the direct correlation to the basket price of PGMs.
Cost of sales, before amortisation and depreciation at the US PGM underground operations increased by 20% to US$274 million (R5,121 million) due
to the increase in volumes and higher materials, maintenance, services and contractor costs. Sales volumes increased by 27% to 241,206 2Eoz with
production volumes increasing by 16% to 238,139 2Eoz mainly due to the impact of the 2023 shaft incident at the Stillwater West mine which
reduced production by 24,600 2Eoz for H1 2023. Production for H1 2024 was favourable due to year-on-year improvements in both tonnes milled
and grade achieved. Cost of sales, before amortisation and depreciation at the US PGM recycling operation decreased, in line with revenue, by
53% from US$402 million (R7,321 million) to US$190 million (R3,563 million) due to the continuing challenging global autocatalyst recycling market
which continues to affect receipt rates of spent autocatalysts.
Since acquisition, cost of sales, before amortisation and depreciation of the Reldan operations was US$121 million (R2,257 million).
Cost of sales, before amortisation and depreciation at the managed SA gold operations decreased by 4% to R9,823 million (US$525 million) mainly
due to 21% or 2,163kg lower production which was as a result of the closure of Kloof 4 shaft during H2 2023, increased seismic activity which
restricted access to high grade panels at Kloof 1 shaft, Driefontein seismicity and geological challenges which restricted access to high grade
panels and Beatrix management safety stoppages and a fall of ground incident. The decrease in cost of sales before amortisation and
depreciation due to lower volumes was partially offset by above average inflationary increases in consumables costs, higher contractor rates and
annual electricity increases, combined with higher engineering maintenance overtime. Cost of sales, before amortisation and depreciation from
DRDGOLD increased by 14% to R2,160 million (US$115 million) due to the Ergo clean-up programme to augment lost tonnages from the delayed
start up of replacement sites (particularly Rooikraal) to depleted major reclamation sites which significantly increased machine hire costs and
contract reclamation costs.
Cost of sales, before amortisation and depreciation at the Sandouville nickel refinery decreased by 18% to R1,914 million (US$102 million) mainly
due to lower maintenance, personnel and reagent costs, carbon tax refund and a 2023 electricity adjustment. Production was 22% higher at the
Sandouville refinery mainly due to improved process plant stability and reliability following maintenance work on the cathode circuit during 2023,
partially constrained by 20 days of plant shutdown due to chlorine leakage, disruption of matte supply due to a strike in Finland and an electrical
defect on the electrowinning workshop.
Cost of sales, before amortisation and depreciation at the Century zinc retreatment operation increased by 88% to R1,600 million (US$85 million)
mainly due to higher consumable stores, power, contractor costs and 13% higher sales volumes. Production was 74% higher at 42 kilotonnes of zinc
metal (payable) mainly due to two additional months included in H1 2024 following the acquisition during H1 2023 and production for Q2 2024
recovered from the flooding event during Q1 2024.
Loss for the period
Profit for H1 2024 decreased by 192% from R7,786 million (US$427 million) to a loss of R7,138 million (US$379 million) mainly due to impairments raised,
a combination of lower PGM revenue and higher cost of sales as discussed above. H1 2024 impairments raised of R7,499 million (US$401 million)
related to the US PGM underground operations (Stillwater CGU). The loss was offset by a higher gain on financial instruments of R988 million (US$53
million) and higher other income of R1,069 million (US$57 million) which are discussed in the sections below.
Adjusted EBITDA
Adjusted EBITDA includes other cash costs, care and maintenance costs; lease payments; strike costs and corporate social investment costs (see
note 11.1 of the condensed consolidated financial statements for a reconciliation of profit before royalties, carbon tax and tax to adjusted
EBITDA). Care and maintenance costs for H1 2024 were R465 million (US$25 million) at Cooke (H1 2023: R438 million or US$24 million), R10 million
(US$1 million) at Beatrix (H1 2023: R225 million or US$12 million), R243 million (US$13 million) at Kloof (H1 2023: R71 million or US$4 million), R16 million
(US$1 million) at Burnstone (H1 2023: R0 million or US$0 million), R0 million (US$0 million) at DRDGOLD (H1 2023: R1 million or US$0 million), R34 million
(US$2 million) at Marikana (H1 2023: R44 million or US$2 million), R5 million (US$0 million) at Rustenburg (H1 2023: R0 million or US$0 million) and R5
