African Rainbow Minerals (ARI) Investor update summary

Strategic project overview

• Bokoni and Nkomati are positioned as flagship assets, with Bokoni providing a high-grade, long-life PGM growth platform and Nkomati offering a capital-efficient restart as South Africa’s only primary nickel producer.

• Both projects are underpinned by rigorous, independently reviewed definitive feasibility studies and leverage existing infrastructure to reduce execution risk.

• Bokoni is expected to add 350,000–400,000 ounces of PGMs annually at steady state, with a 19-year plan depleting only 13% of its measured and indicated UG2 resource.

• Nkomati’s restart leverages a 13-year mine life, existing infrastructure, and a diversified revenue stream, with first production targeted for the second half of FY 2027.

• Both projects support disciplined growth, portfolio quality, and long-term value creation, leveraging high-grade resources and existing infrastructure.

Technical and operational execution

• Bokoni’s plan transitions from a subscale, mechanized model to a phased, reserve-led system combining conventional stoping and mechanized off-reef development for optimal grade and cost.

• The ramp-up strategy uses existing 60ktpm plant first, then adds a new 120ktpm concentrator, with tailings and infrastructure sequenced to match mine readiness.

• Conservative production and stoping rate assumptions provide headroom and confidence in achieving targets, with historical capital investment reducing future development needs.

• Nkomati’s plan starts with high-chromite PCMZ ore, transitions to higher-nickel MMZ ore, and includes processing optimization opportunities for future upside.

• Phased construction and ramp-up for Bokoni and Nkomati align capacity with mine readiness, minimising execution risk and capital outlay.

Financial outlook and capital allocation

• Bokoni’s nominal capital estimate is ZAR 15.2 billion (15% contingency), with a post-tax NPV of ZAR 5.9 billion at an 18.47% discount rate and a 28% IRR; annual free cash flow at steady state is projected at ZAR 4 billion.

• Nkomati’s restart requires ZAR 753 million in capital, delivers a post-tax NPV of ZAR 764 million, a 28.4% IRR, and a 5.3-year payback, with improved offtake terms driving stronger economics.

• Bokoni’s CapEx is 20% USD-denominated (at ZAR 17/USD), with peak funding of ZAR 10.4 billion funded by cash reserves, early project cash flow, and some debt.

• Both projects are structured to manage downside risk through phased capital deployment, conservative ramp-up, and strong cost controls.

• Capital allocation decisions are based on strict internal criteria, with Bokoni’s high grade, scale, and cost competitiveness ranking it favorably against other opportunities.