- Financial Turnaround: Achieved highest EBITDA in 3 years at ZAR 38 billion and 300% increase in headline EPS to ZAR 244 cents, driven by 16% revenue growth and 8% cost reduction.
- Gold Operations Performance: Adjusted EBITDA surged 115% to ZAR 12.5 billion due to 39% higher gold prices, offsetting 10% production decline and 15% cost increase to ZAR 1.4M/gram.
- Capital Allocation Strategy: Divided capital equally among shareholder returns (ZAR 131c/share dividend), debt reduction (targeting 50% gross debt cut from ZAR 2.2B), and growth, maintaining net gearing below 1x EBITDA.
- PGM & Recycling Expansion: U.S. PGM operations reported $1,203/3E ounce cost, while recycling acquisitions (Reldan, Metallix) created a low-capital PGM recycling platform with stable margins.
- Renewable Energy & Sustainability: Expanded renewable capacity to 765 MW (near Kusile unit) and aims for 40% emissions reduction by 2030, alongside 700 MW target by 2028 through projects like Umsinde and Witberg wind farms.
Operational Performance
The company's operational performance was also strong, with its PGM operations maintaining consistent delivery and meeting or exceeding guidance. The total 4E PGM production reached 1.8 million ounces in 2025, with a 2% increase in underground production. The company's gold operations generated strong cash flows, with a 39% increase in the gold price received helping to mitigate a 10% decline in production.
Valuation Metrics
To understand what's priced in, we can look at some valuation metrics. The company's P/E Ratio is -35.32, indicating that the market is pricing in a significant improvement in earnings. The P/B Ratio is 4.62, suggesting that the company's shares are trading at a premium to their book value. The EV/EBITDA ratio is 8.66, which is relatively low, indicating that the company's enterprise value is not excessively high compared to its EBITDA. As Richard Stewart mentioned, "We aim to reduce gross debt by 50% from ZAR 2.2 billion over the next 2 to 3 years, with a consistent net gearing target below 1x net debt to EBITDA."
Outlook
The company's outlook for 2026 is positive, with production guidance indicating a slight decline in South African PGM operations and an increase in U.S. PGM operations. The company's focus on operational excellence, simplification, and disciplined capital allocation is expected to drive future growth. Analysts estimate next year's revenue growth at -2.2%, indicating a challenging environment, but the company's diversified portfolio and strong financial position should help it navigate any difficulties.
Dividend and Capital Allocation
The company declared a dividend of ZAR 131 cents per share, which is at the top end of its dividend policy. The company's capital allocation model focuses on three pillars: dividend policy, debt repayment, and growth. The company aims to reduce its gross debt by 50% over the next 2 to 3 years and is committed to its dividend policy, with no plans to consider share buybacks until the debt is reduced.