ESG: Supporting Our Strategy

Environmental, Social and Governance Report 2023

SUPPORTING OUR STRATEGY

Contents

Our ESG approach	IFC
Section 1: Overview
Financial, operational, ESG highlights	1
The year in review	2
Our ESG journey	3
Who we are	4
Vision, mission and values	5
Where we are	6
A message from our CEO	8
Our commitment to ESG	9
Section 2: Environment
E1: Tailings management and rehabilitation	12
E2: Water security and stewardship	14
E3: Climate action	16
Section 3: Social
S1: Female empowerment	20
S2: Workforce diversity and labour practices	21
S3: Employee health and safety	22
S4: Training and development	24
S5: Communities, customers and local	26
stakeholder relationships
S6: Gender-based violence	27
Section 4: Governance
G1: Responsible business	30
G2: Sustained resources, growth and	31
diversification
G3: Stakeholders and engagement	32
G4: Economic contribution	34
Glossary of terms FY2023	36
Corporate information	IBC

How to navigate this ESG report

For further information please go to:

www.sylvaniaplatinum.com

Reference to pages within the

ESG report

Our ESG approach

After releasing its inaugural environmental, social and governance (ESG) report in September 2022, this document delves into Sylvania Platinum Limited's (referred to as Sylvania or the Company) efforts to fulfil our ESG responsibilities during the 12-month period concluding on 30 June 2023.

Complementing our annual report for the financial year ended 30 June 2023, this ESG report provides a comprehensive view of our impact on the environment, the communities we engage with and our contribution to the South African economy. It spotlights the critical issues that have the potential to influence our Company's outlook and our capacity to generate value. Furthermore, it elucidates our strategies for managing these concerns to benefit our shareholders, customers, communities and workforce.

Our approach to ESG reporting continues to align with global frameworks and industry best practices, encompassing:

• Global Reporting Initiative - this framework sets the gold standard for sustainability reporting, guiding us in reporting our sustainability practices transparently.
• United Nations Sustainable Development Goals (UNSDGs) - with 17 goals aimed at addressing global challenges, we align our efforts with these objectives to contribute to the international community's wellbeing.
• Task Force on Climate-Related Financial Disclosures (TCFD) - our reporting conforms to TCFD standards, enhancing the disclosure of climate-related financial information, thereby improving transparency.
• Sustainability Accounting Standards Board (SASB) - SASB standards assist us in identifying the ESG issues most pertinent to our performance within various industry contexts.

Overview

Environment

Social

Governance

Overview

Financial highlights			Operational highlights
NET REVENUE			GROUP CASH COST/PER 4E PGM
$130.2m			$771/oz
-14%		-14%
(FY2022: $151.9m)			(FY2022: $897/oz)
GROUP EBITDA	PGM 4E BASKET PRICE
$66.0m	$2,086/oz
-20%		-28%
(FY2022: $82.8m)	(FY2022: 2,890/oz)
BASIC EPS			4E PGM PRODUCTION
17.01c			75,469oz
-18%				95,965oz 6E
(FY2022: 20.62c)	+13%
					(FY2022: 67,035oz 4E; 85,659oz 6E)
CASH BALANCE
$124.1m
+2%
(FY2022: $121.3m)

ANNUAL DIVIDEND

8p dividend

3p interim plus 5p final dividend for FY2023

Annual dividend maintained despite weaker PGM basket price

(FY2022: 8p)

ESG highlights

		Overview
	Environment
> Greenhouse gas (GHG)
	emissions (tCO2e) (excluding
	Scope 3) - slight increase as a
	result of two new MF2 plants.	Environment
> Revegetation trial on tailings
	storage facility (TSF) ongoing:
	observations of grass seed
	germination, plant growth and
	improvements in physical and
	chemical characteristics
	of tailings.
> Automated, live water balance
	system developed, with flow	Social
	meters installed to increase the
	accuracy of water flow and use
	at operations.
>	Social	Governance
> 11-years'LTI-free at the
	Doornbosch operation.
> Learnerships and bursaries
	awarded.
> 85% unionised employees.
> 103 new employees: 68 from
	host communities, and
	30% women.
> 23% female staff complement.
> Support of the Gatsheni Lifeway
	Hope non-profit organisation in
	the fight against gender-based
	violence (GBV).
	Governance

• Sylvania complies with the QCA Corporate Governance Code.
• R2.2 billion total economic contribution.
• Safety, health and environment (SHE) and ESG framework policies embed ESG in business.
• Internal ESG dashboard being developed to monitor and display ESG performance.
• Growing and sustainable business.
• Clear and transparent reporting.

Sylvania Environmental, Social and Governance Report 2023

1

Overview

Environment

Social

Governance

The year in review

Our ESG journey

Activate, transition, embed

Sylvania has demonstrated a strong commitment to responsible business practices across various aspects of its operations.

These efforts have not only ensured the successful continuation of operations in the complex energy landscape of South Africa but have

Responsible tailings management

The Company's initiatives in cleaning up older tailings facilities and constructing new, lower risk modern dams in compliance with higher environmental standards demonstrates our commitment to minimising the environmental footprint of the host mines.

GBV

Sylvania maintains a zero-tolerance approach to GBV and supports organisations working to combat GBV in its host communities.

ESG integration

ESG considerations are embedded into the Company's decision-making processes, with various training campaigns and an internal ESG

Sylvania embarked on its ESG journey by initiating the creation of its inaugural ESG report. This journey entailed identifying and mobilising the catalysts behind its ESG impact. It activated the collection of foundational data on potential significant risks to guarantee that forthcoming objectives were grounded in credible information and well-founded assumptions.

As we advanced on this path, the transition phase unfolded, characterised by the formulation of a robust ESG strategy and a comprehensive reporting framework.

Ultimately, ESG has become an integral part of Sylvania's overall business strategy. It is now embedded in every facet of our operations, and we have integrated ESG considerations into Sylvania's strategic risk register. This strategic move ensures that mitigation strategies pertaining to risks or opportunities tied to ESG factors receive top priority.

Overview

also contributed to the wellbeing of its employees and the surrounding communities.

Positive energy management

The Company's proactive approach in addressing energy challenges has enabled the maintenance of high production rates and a robust workforce during FY2023.

The acquisition of diesel generators has played a crucial role in ensuring operational continuity and contributing to South Africa's domestic economy.

While this approach may increase the carbon footprint, it underscores the importance of short-term energy alternatives in supporting the nation's capacity to combat climate change in the long run.

Water stewardship excellence

Diversity and empowerment

Sylvania has made significant progress in increasing female representation within the organisation, particularly in junior management and core skills positions, with a focus on internships and learnerships.

The workforce includes historically disadvantaged persons (HDPs) and the Company actively engages in employment equity discussions through an employee equity forum.

Employee health and safety

The Company places a high priority on the safety, health and wellbeing of its employees, displaying a commendable track record with zero fatalities and low injury numbers.

Safety campaigns and awareness programmes continue to be intensified

dashboard in development to monitor and display ESG performance.

Sustained resources and growth

The recent joint venture agreement with Limberg Mining Company (Pty) Ltd (LMC) represents a strategic move towards sustainable growth, with a focus on environmental responsibility and renewable energy options.

Stakeholder engagement

Sylvania values transparent reporting and engages with stakeholders through various channels, including investor roadshows, regulatory releases, various community forums and its website.

Economic contribution

Sylvania plays a vital role in addressing

Sylvania's ESG journey

Phase	1	Activate
		Identify potential
Purpose
			value and activate

	> ESG policy
	> ESG training and awareness
	> Materiality assessment
	> ESG strategic risk
Tasks	incorporation
	> ESG stocktake
	> Identify and prioritise the
	operational key value drivers
	> Establish ESG team

2 Transition

Prioritise and

tailor action

• Determine ESG baseline for value drivers
• ESG strategy and planning for ESG drivers
• ESG reporting
• • Compile ESG reporting toolkit
  • Compile ESG reporting framework
  • Annual ESG report

3 Embed

ESG business

integration

• Implementation of ESG monitoring systems
• Setting relevant ESG targets
• Develop high-level business cases - carbon footprint, energy, community investment and water management
• Continuous improvement
• Adopt best practices
• ESG assurance

Environment

Social

Governance

Sylvania recognises the value of water as a precious resource and has implemented effective water

to further reduce incidents.

Training and development

unemployment issues in South Africa by providing employment opportunities, internships and

ESG and Sustainability Journey

management strategies, even overcoming shortages at certain sites. Additional flow meters and collaborative efforts with host mines have enhanced water monitoring and sustainable usage, including water recovery and recirculation.

The TSF revegetation trial harnessed the potential of process water, showcasing its ability to support plant growth effectively. Through this treatment, a harmonious balance of nutrient composition and pH levels was achieved, contributing to the creation of an ideal environment for healthy plant development.

The successful utilisation of this organic amendment in conjunction with process water resulted in robust and vigorous plant growth, marking

a notable achievement in the project.

Sylvania not only provides training to its employees but also extends programmes to local communities, resulting in job placements for many participants.

This demonstrates the Company's commitment to creating opportunities beyond its workforce.

Community engagement

The Company actively engages with local communities, providing employment opportunities and contributing to corporate social investment (CSI) projects, thereby strengthening its relationship with stakeholders.

learnerships, particularly in the communities surrounding the operations. The Company's contributions extend to taxes and local procurement, further benefiting the South African economy.

The Company's commitment to responsible business practices, safety, sustainability and community engagement underscores its dedication to making a positive impact not only on its operations but also on the broader South African society and environment. These efforts are aligned with its vision for a more sustainable and inclusive future.

Data collection and assurance

This marks our second ESG report, drawing upon data gathered at specified intervals from various internal procedures throughout FY2023. It extends upon the initial disclosure presented in our 2022 annual report, benefiting from enhanced data accessibility that has allowed us to broaden our ESG reporting scope.

The ESG aspects of this report undergo internal validation and, where mandated by regulatory obligations, independent verification through established processes.

ESG oversight

As mandated by the Board, Sylvania's Executive Committee acknowledges its responsibility for ensuring the integrity of the ESG report and has applied diligence in the collection of data and defining assumptions, as well as the preparation and presentation of this report. The oversight of the ESG strategy by the Board of Directors is crucial in ensuring that the Company operates in a sustainable and responsible manner.

The Board of Directors provides oversight through dedicated committees, strategy development and risk assessment, stakeholder engagement and compliance

monitoring. Senior management keep the Board updated through regular reporting, ad hoc communication, alignment with corporate goals and ensuring that ESG considerations are integrated into the Company's decision-making processes.

The Sylvania 2023 ESG report is aligned with global trends for sustainability reporting and addresses all material matters linked to the Company's core business. It offers a balanced view of how the Company addresses impacts on society, the environment and the economy in the short, medium and long term.

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Sylvania Environmental, Social and Governance Report 2023

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Overview

Environment

Social

Governance

Who we are

A leading producer of PGMs from chrome tailings

Vision, mission and values

Vision

Sylvania is a mid-tier company specialising in the reprocessing and development of platinum group metals (PGM), comprising mainly platinum, palladium, rhodium and gold, from chrome tailings, with a keen focus on cost efficiency. The operational arm, known as Sylvania dump operations (SDO), manages six chrome beneficiation and PGM processing facilities strategically located across both the Eastern and Western Limbs of the Bushveld Igneous Complex (BIC).

Pioneering the field of chrome tailings reprocessing, Sylvania processes

a combination of current and historical chrome tailings, alongside run-of-mine materials and current production from our host-mine sites. Our annual production capacity ranges from approximately 67,000 to 75,000

4E PGM ounces, contingent on capacity and the supply from our host mines. The joint venture (JV) entered into with LMC post-year-end will add an additional 6,500 attributable PGM ounces and 200,000 tons of chromite concentrate per year to the Company's existing annual production profile. The JV agreement is currently in place for 10 years, however, the parties may negotiate to further extend this. It will be the first PGM beneficiation facility of primary chrome ore and tailings on the northern part of the Western Limb of the BIC and will be an enabler for further growth opportunities in the region for the Company.

Sylvania's business model inherently contributes to environmental wellbeing, as it revolves around the reprocessing of materials that would otherwise become mining industry waste. We hold the distinction of being the pioneering company that established a commercial chrome tailings reprocessing facility, designed

to extract valuable PGMs and chrome from historical tailings. Our inaugural operation, Millsell, commenced operations in 2007. From a technological perspective, it posed relatively low operational risks and employed chemicals that were significantly less hazardous compared to those used in gold reprocessing, which, for example, often involves cyanide. Over the course of 16 years, we have successfully replicated and expanded this process, currently managing six operational plants.

At a recent strategy workshop, the Board amended the Group mission statement to extend beyond only PGMs and chrome. Various enquiries and studies are being undertaken to potentially diversify into other jurisdictions and other metals that involve similar processes. Green and critical metals are being prioritised.

Our values

The Company places high importance on ensuring safe and healthy work environments, while actively striving to reduce any adverse environmental impact. Our commitment to these principles aligns with our core values, which include fostering and enhancing the wellbeing of the communities in which we operate. We are dedicated to fostering a socially inclusive economy that benefits all stakeholders.

These values permeate every facet of our business operations, with our ESG principles fully integrated and ingrained at every level of the organisation.

Cleaning up the industry

In addition to producing historically uneconomical chrome and PGM minerals, our operations also play a crucial role in cleaning up smaller, older tailings facilities, many of which were originally constructed to lower environmental standards. We responsibly redeposit these tailings in

a more efficient and environmentally friendly manner.

The more recent tailings facilities, established over the past decade, conform to stringent regulatory standards, significantly reducing the risk of environmental contamination compared to the older historical dams. Furthermore, they consolidate numerous smaller facilities, often associated with larger environmental footprints, into more modern, larger facilities that have a reduced environmental impact.

Sylvania's retreatment processes yield chromite concentrate, which is returned to the host mine at a nominal cost, while PGMs are recovered and sold to smelters. This operational model not only generates cash but also ensures cost-effective operations.

The PGM metals we produce hold significant environmental importance, serving a dual role. They are critical components for reducing emissions in the alternative renewable energy sector and are indispensable in autocatalytic converters, which play

a pivotal role in reducing contaminants in automotive emissions.

Our primary milling and flotation operations continue to maintain steady performance, with Project Echo, the secondary milling and flotation (MF2) modules, enhancing recovery efficiencies across all our operations. We hold exclusive rights to reprocess current mine arisings and tailings dumps at our host mines, with an anticipated profitable operational lifespan of approximately 10 years, subject to specific operational conditions. The potential for extension exists as mining resources transition into reserves.

Being the best mid-tier platinum and associated metals producer in the world.

Mission

To grow our low-cost and efficient business by leveraging our existing asset base and continuing innovation through existing and future strategic partnerships, while proactively considering commodity and geographic diversification. Creating value for stakeholders by being an innovative, agile and sustainable operator of choice.

Values

We value the safety and health of all

Employees are at the heart of our Company and we place their safety and health above all else in everything we do.

We value the fundamental rights of people

We treat all people with dignity and respect.

We value honesty and integrity

We act honestly and show integrity by continuously striving towards "doing what we say we are going to do" and showing commitment towards our accountabilities of delivering high-performance outcomes, thus projecting an image of professionalism and meeting the expectations of our colleagues, investors, business partners and social partners.

We respect the environment

We act in a manner that is sustainable and environmentally responsible, applying professional and innovative methods.

We value the culture, traditional rights and society in which we operate

Our actions will support the communities in which we work while honouring their heritage and traditions.

Overview

Environment

Social

Governance

4

Sylvania Environmental, Social and Governance Report 2023

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Overview

Environment

Social

Governance

Where we are

NORTHERN	B
LIMB	0 SCALE 50km

Location

Locality within South Africa

Exploration

	N
Operations	11
Polokwane
	(Pietersburg)
	N
	Mokopane 1
THABA JV	(Potgietersrus)
A
WESTERN
LIMB
Nylsvlei RAMSAR	4
Modimolle		5
(Nylstroom)		6
N	Groblersdal
1

EASTERN

LIMB

Overview

Environment

Harca

Aurora

PTM Waterberg

Blouberg

Municipality

Polokwane

Municipality

Exploration assets

Volspruit

		Rustenburg							Dullstroom
1 2 3	N
4		Pretoria
			N				Middelburg
			14

	N
Krugersdorp	4

N

4

Social

Volspruit, located at the south of the Northern Limb of the Bushveld Complex, is a shallow PGE-Ni-Cu deposit

Johannesburg

Mogalakwena Municipality

N11 PolPolokwane

AngloPlatinum N1 Ivanhoe

Mokopane

likely to be developed as an open-cast operation. Optimisation studies are underway on the project.

Sylvania dump operations (SDOs)

Attractive cash-generative,low-cost operations on the Eastern and Western

RUSTENBURG LAYERED SUITE

■	Granites and allied rocks
■	Upper zone
■	Main zone
■	Critical, lower and marginal zones
-	Merensky reef
-	UG2 chromitite layer
PR	Platreef
		Main roads
		Main river

Governance

Volspruit

Exploration assets

Far Northern Limb

The Far Northern Limb projects include two contiguous PGE-Ni-Cu projects, Aurora and Hacra, on the extreme north of the Northern Limb of the BCI.

Reinterpretation of historical work has identified the presence of T-Zone reefs across the projects resulting in a Mineral Resource being declared on a small portion of Aurora. Work continues to improve the confidence on the continuity of these reefs.

	NORTHERN	B
	LIMB			0 SCALE 50km
			N
			11
				Polokwane
			N	(Pietersburg)
			Mokopane 1
	THABA JV		(Potgietersrus)
		A
WESTERN					EASTERN
LIMB					LIMB
		Nylsvlei RAMSAR	4
		Modimolle		5
		(Nylstroom)		6
		N		Groblersdal
		1
					N
Rustenburg			Dullstroom	4
1 2 3
N					Mbombela
4	Pretoria
				Middelburg		(Nelspruit)
	N
	14

	N
Krugersdorp	4
	Johannesburg

Limbs of the BCI, South Africa.

The SDOs comprise six chrome beneficiation and PGM processing plants, treating a combination of run of mine (ROM) and current and historical chrome tailings at host-mine sites.

SDOs: Millsell, Mooinooi, Lesedi, Doornbosch, Lannex and Tweefontein.

Thaba joint venture (JV)

Transformational Thaba JV will comprise chrome beneficiation and PGM processing plants, treating a combination of ROM and historical chrome tailings from JV partner, adding a full margin chromite concentrate revenue stream to diversify the Group's income and reliance on a single host-mine company.

SLP	Sylvania
SDO	Sylvania dump operations
■	Younger cover rocks
■	Younger alkaline intrusions and carbonatites

LEGEND

Operating Sylvania complexes

1. Millsell (SDO)
2. Mooinooi - Dump and ROM (SDO)
3. Lesedi (SDO)

Acquired: Nov '17

Previously Phoenix Platinum

1. Doornbosch (SDO)
2. Lannex (SDO)
3. Tweefontein (SDO) Thaba JV

Mineral projects

1. Volspruit
2. Northern Limb projects

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Overview

Environment

Social

Governance

A message from our CEO

Our commitment to ESG

I am proud to present to you our second annual ESG report, Supporting Our Strategy.

As we reflect on the progress we have made towards embedding ESG throughout our operations, it is important to acknowledge the challenges we face as a mining company in South Africa.

The acquisition of diesel generator support highlights the issues we face in balancing operational continuity with the pressure to reduce fossil fuel-based energy use. While this may contribute to an increase in our overall carbon footprint, it is crucial for our continued operations and contribution to

waste management, keeping in mind the minor contribution of non-mineral waste to GHG emissions.

The safety, health and wellbeing of our employees is central to Sylvania's values, which is evidenced by the fact that we have been fatality-free since our inception. The Doornbosch plant has recently recorded a remarkable

11 years without a lost-time injury (LTI), which is a phenomenal achievement by industry and global standards.

Furthermore, we launched our

Make It Personal campaign to improve and maintain personal safety on site. We believe that by making safety

a personal matter that everyone has responsibility for, it will become second nature and help ensure all workers

reduces the volume of waste but also minimises the potential for pollution.

In the social sphere, we are dedicated to increasing the representation of women within our business. In the past financial year, we welcomed 103 new employees, with 68 coming from hosting communities and 38 of them women, representing 30% of the total. Female empowerment is an important focus area for us, and we will continue to work towards greater gender diversity and inclusion.

We remain committed to running our business with integrity and responsibility to the environment, community and all our stakeholders. Our short-term goals and ongoing initiatives demonstrate our dedication

The mining sector is facing increasing scrutiny due to its potential operational risks and its impact on the environment, as well as its influence on employees and communities.

We regard our responsibilities toward the planet and its inhabitants with the same gravity as our obligations to our valued customers and shareholders.

We firmly believe that a sustainable business is one that fosters a diverse and inclusive workforce where employees can thrive. It is also one

that conducts its operations responsibly, minimising its environmental footprint while contributing positively to the wellbeing of the communities in which it operates.

Our approach harmonises with the 10 principles for sustainable development outlined by the International Council on Mining and Metals (ICMM). These principles integrate with the 17 UNSDGs forming the cornerstone of our commitment to sustainable practices and responsible corporate citizenship.

Overview

Environment

Social

South Africa's domestic economy. Economic upliftment is a key consideration in our social development and in building resilience to climate change.

Considering these challenges, we have set short-term goals for sourcing energy to be implemented by 2025. We are actively investigating alternative options such as synthetic fuel/biodiesel for generators. We are continuously reviewing the energy efficiency of our current equipment and infrastructure, including the potential for converting to hybrid mining vehicles. Furthermore, we follow a hierarchy of reduce - reuse

- recycle - energy recovery - landfill for

make it home safely every day in order to achieve the mining sector's goal of zero harm to all.

We are also committed to minimising land clearance for operational demands, prioritising rehabilitation when it is unavoidable and ensuring future financial provisioning for rehabilitation efforts. Water management is integrated within the host mines' circuits, with water entering our circuits through current arisings and leaving either through the production process or as tailings. We continuously work on reworking mineral waste dumps and redepositing or recycling tailings, which not only

to sustainability and responsible practices. By transparently reporting our ESG progress, we hold ourselves accountable for our commitment to a sustainable future.

Jaco Prinsloo

CEO

Making a positive contribution

How mining companies can contribute to the Sustainable Development Goals

ICMM 10 Principles

			1	Ethical business and
				sound governance
			2	Sustainable development
				in decision-making
			3	Respect for human rights
			4	Effective risk management
			5	Health and safety
				performance
	ICMM		6	Environmental
principles 1 2 3 4 5 6 7 8 9 10	10 9 8 7 6 5 4 3 2 1	principles	performance
	International Council		7	Conservation of biodiversity
	on Mining & Metals
				and land-use planning

Governance

We remain committed to running our business with integrity and responsibility to the environment, community and all our stakeholders.

Jaco Prinsloo

Chief Executive Officer (CEO)

8	Responsible use and
	supply of materials
9	Social contribution
10	Engagement and
	transparent reporting

Established in May 2003, the principles respond to the key challenges identified by the Mining, Minerals and Sustainable Development Project's agenda for change. We expect all member companies to implement the principles in full and to transparently report on performance.

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02

Environment

E1: Tailings management	12
and rehabilitation
E2: Water security	14
and stewardship
E3: Climate action	16

10 Sylvania Environmental, Social and Governance Report 2023

Sylvania Environmental, Social and Governance Report 2023 11

Overview

Environment

Social

Governance

Overview

Environment

Social

Governance

Environment

E1: Tailings management and rehabilitation

Sylvania value	ICMM reference	UN SDG reference
The way we do business	Guiding principles	The ESG goals

Environment

Production and TSF

IndicatorUnitFY2022 FY2023 Trend

E	Tons treated (total feed SDO)	tons	2,393,355	2,615,994
G	Failing storage facility compliance/high	Number of		-
potential incident relating to the TSF	material risks	1

Sylvania will continue to measure its compliance against the GISTM international standard, even though the Company is not required to comply with the GISTM. Management has proactively engaged with consultants to perform a gap analysis with regards to the Company's tailings dams. Management regularly consults with the local communities and an open communication channel is kept through various platforms, including community liaison officers. Sylvania believes that this standard represents a significant positive step towards raising the standards in tailings management worldwide and is committed to the standard and the ideals it aims to achieve.

ESG in action: environmental restoration

We have made significant progress on the revegetation project we reported

We are still refining methods, but this shows how far we have come in developing effective and sustainable approaches to TSF rehabilitation, as OMI Solutions CEO Robyn Mellett explains.

"Observations of grass seed germination, plant growth and improvements in the physical and chemical characteristics of the tailings have been encouraging," she says. "It shows that it is possible to overcome the inherent limitations of tailings and create an environment that supports vegetation.

"In addition, there's an ongoing commitment to further research and development in this field, to discover even more effective and groundbreaking solutions for restoring and reclaiming mining areas. It's a forward-thinking approach ensuring sustainable land management

Overview

Environment

Social

The ongoing reworking of mineral waste dumps, with the subsequent redepositing or recycling of tailings onto the same or improved TSF, yields significant environmental benefits. This practice not only reduces the volume of mineral waste but also minimises the potential for pollution arising from seepage or tailings spillages.

The SDO holds responsibility for the rehabilitation of areas affected by our business activities, conducted under the host mines' mining rights. Our current TSFs are meticulously designed to operate with an acceptable level of risk, fully compliant with the Department of Mineral Resources and Energy (DMRE) Mandatory Code of Practice for Mine Residue Deposits (DME 16/3/2/5-A1).

The TSF design encompasses the following features:

• Subsurface drainage systems.

Given the nature of Sylvania's operations and activities, the overall impact is inherently positive. The total feed, measured in tons treated, has seen a gradual increase compared to FY2022. Compliance with the Global Industry Standard on Tailings Management (GISTM), in terms of the operations, condition and management for the Tweefontein, Lannex, Millsell, Lesedi, Mooinooi and Doornbosch operations, was assessed in separate annual reports. The results of the assessments indicated positive findings.

Key

Not relevant to ESG performance, or insufficient data to assess

The standard has no less than

77 requirements, integrating social, environmental and local economic and technical considerations aimed at achieving the goal of zero harm to people and the environment. The standard was developed after the tragic failure of a tailings facility at Brumadinho, Brazil, in 2019. It was developed through an independent process convened by the ICMM and environmental organisations, the United Nations Environment Programme and Principles for Responsible Investment.

Positive increase (improvement)

last year to find an alternative method to rehabilitating and/or capping TSFs. We have been working with an environmental and agricultural engineering consultancy, OMI Solutions, to find a method that is sustainable, efficient and cost-effective for all stakeholders.

Over the last three years, we have investigated mixing topsoil with tailings, using growth stimulators and incorporating organic amendments with tailings. The organic method showed the most promising results, leading to improvements in drainage, water holding capacity, nutrient levels and overall plant cover.

The project also observed positive ecological impacts, with the return of biodiversity on site, evidenced by the presence of locusts, dragonflies and butterflies.

practices and contributing to the long-term environmental sustainability of mining operations."

Governance

> Installation of standpipe piezometers	Positive decrease		Negative increase (worsening)
for the continuous determination,	(improvement)
monitoring, and recording of the	Negative decrease		Environment	E
interstitial water table.	(worsening)
> Structural stability ensured through	Consistent/no change			Social	S
heel walls and the cycle underflow
wedge.
				Governance	G

Environmental restoration	FY2021	FY2021	FY2022	FY20231
Total area: vegetation cleared (ha)	156	157	185	180
Rehabilitation provisioning - USD*	3,646,044	4,539,937	5,936,804	4,040,854

* Provision is provided for in ZAR and converted to USD at each reporting date.

1 The reduction in the total vegetation cleared is due to some of the environmental restoration/rehabilitation work having been completed. This is also reflected in the reduction in the closure liability (rehabilitation provision).

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Overview

Environment

Social

Governance

Environment continued

E2: Water security and stewardship

Sylvania value	ICMM reference	UN SDG reference
The way we do business	Guiding principles	The ESG goals

Environment Social

Water

	Indicator	Unit	FY20222	FY2023	Trend
			Insufficient comparable data
E			due to instrumentation	6,623,556
Water consumption	m³	limitations	N/A
			Insufficient comparable data
E			due to instrumentation	5,872,600
Water recycled/reused	m³	limitations	N/A
		water	Insufficient comparable data
		consumed (m³)
E		/total tons	due to instrumentation	2.53
Water consumption intensity	treated	limitations	N/A

2 Previous water consumption data that was available was "calculated" based on production. Various formulas were used to determine the water used based on tons treated.

Water management and conservation - a top priority

In South Africa, where rainfall averages approximately half of the global norm, the management of our water resources holds an equally high priority as the management of our production and financial operations.

To safeguard this invaluable resource, we have adopted a targeted approach encompassing the measurement, monitoring, management and control of water consumption through a comprehensive water conservation and water demand management strategy as disclosed in the 2022 ESG report.

Our overarching objective is to implement measures and initiatives that deliver the following outcomes:

> Reduction in expected water usage

or water demand.

> Augmentation of water resource

capacity or supply.

> Enhancement of the efficiency in the

operation, maintenance and

management of infrastructure,

including systems, pipes, valves,

pumps, meters and related

equipment.

preserving water resources and promoting the judicious and effective use of water.

This strategy aligns closely with the guidelines outlined by the South African mining sector and the Department of Water and Sanitation (DWS). It encompasses three distinct phases, with the initial phase successfully completed in FY2022, and the ongoing implementation of phase 2 currently underway.

Phase one (FY2022)

During the initial phase, conducted in FY2022, focus was on evaluating the effectiveness of the current water monitoring system across all six Sylvania plants. The analysis aimed to pinpoint deficiencies in monitoring information, monitoring devices, water monitoring practices, as well as identify areas of concern related to water losses and operational practices.

Phase two (FY2023)

In the second phase, which unfolded in FY2023, new water management initiatives were introduced. This included the development of an automated, real-time water balance system, featuring strategically placed

monitoring within the operations. Additionally, Sylvania initiated

a feasibility study to explore the construction and utilisation of thickeners as a means to reduce water volume losses in the tailings.

Phase three (FY2024) Looking ahead to phase three, scheduled to commence in FY2024, the primary focus will be on optimising the existing water management systems. The aim is to proactively address controllable water losses stemming from factors such as unlined trenches, stormwater and return water dam losses.

Sylvania's commitment to water conservation will persist as the Company investigates potential modifications to its plants to reduce water demand. Moreover, trade-off studies will be considered that factor in climate impact and demands to support comprehensive water conservation plans aligned with the water balance objectives. The risk management process will include the identification of upstream risks that may impact water availability and quality, along with a thorough review of available water sources.

Overview

Environment

Social

Governance

Water is an invaluable resource, and efficient management of both its supply and utilisation plays a pivotal role in sustaining Sylvania's operations.

Recognising the challenges posed by water shortages, we have diligently explored various strategies to secure, manage, monitor and regulate water consumption. Notably, we have augmented our monitoring capabilities by installing additional flow meters since the previous reporting year, thereby enhancing the precision of our water usage tracking.

Our processing facilities are seamlessly integrated with the water distribution systems of our host mines. Water flows into the Sylvania system through the receipt of current arisings from the host mine. Subsequently, it exits the system through various channels, including the production of Cr2O3 concentrate or PGM concentrate, discharge into the tailings stream, or

through consumption and process- related losses.

The tailings, once processed, are directed to a tailings dam. While significant water is naturally lost through evaporation and entrapment (almost 50% of all water sent to the tailings dam), the majority reclaimed and redirected to the return water dam for recirculation to the host mine. To supplement our water supply, we source make-up water from the dewatering processes in the underground mining areas of the host mine.

The cumulative volume of water consumed during production, as well as the raw water utilised across Sylvania's operations, is quantified through production data. It is important to note that these figures do not encompass the water consumption metrics of the host mine itself.

In prior years, certain values mentioned above were not computed due to limitations in our monitoring processes. However, Sylvania has since implemented measures to enhance the precision of our data monitoring, ensuring more accurate calculations going forward.

Key

Environment

E

> Minimisation of water loss or waste,

while concurrently safeguarding and

flow meters along critical lines to enhance the precision of water flow measurements and utilisation

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Sylvania Environmental, Social and Governance Report 2023 15

Overview

Environment

Social

Governance

Environment continued

E3: Climate action

Sylvania value	ICMM reference	UN SDG reference
The way we do business	Guiding principles	The ESG goals

Environment

Energy and GHG emissions

IndicatorUnitFY2022 FY2023 Trend

E	Power consumption	kWh	88,247,499	96,113,178		3
E		kWh/tons		37
Energy intensity	treated	37
E	Diesel consumption	L	105,689	99,292
E		4
GHG emissions (Scope 1 and 2)	CO2e/ton	94,671	99,388
E		CO2/tons		0.038
GHG emission intensity	treated	0.040

1. Increase on total power used due to the Lesedi plant being fed by the Eskom Grid (no longer diesel generators). Overall production profile increased from FY2022 (i.e. more tons treated = more power needed). The addition of two new MF2 plants added to energy consumption.
2. Slight increase due to increased power consumption. Reduction in diesel consumption for power generation contributed has also aided in increasing the GHG emissions (i.e. diesel has a higher impact than Eskom).

key climate-related actions within the organisation related to governance, strategy, risk management, metrics and targets.

Operational energy security

We are continuing to focus on stabilising and upgrading components of the internal energy reticulation systems.

South Africa still faces challenges with loadshedding and copper cable theft. However, thanks to site generators, our production capabilities and electrical infrastructure have remained largely operational.

National power utility outages still disrupt production and significant operational hours were lost at one plant during the financial year. To overcome this, we have carried out

a feasibility study for the installation of two generators at both the Lesedi and Millsell plants. These will be operational during HY1 in FY2024.

A desktop study was undertaken to investigate the possibility of installing photovoltaic (PV) panels on roof structures at all operations, and we are in the process of completing

a feasibility study for a 1MW PV installation at our Lesedi plant.

In addition, we are undertaking a cost/ benefit analysis into mobile micro-grid

administrative offices is also being considered. This option requires

a connection with the current electrical reticulation infrastructure, which will reduce demand during the day. Initial investigations indicated that this would require less capital outlay than the micro-grid standalone solution.

In addition, we commenced discussions with an intermediary off-taker and service provider to understand the process and possible opportunities for future power off-take agreements.

Reducing Scope 1 and 2 energy sources

We have established short-term objectives for both Scope 1 and Scope 2 energy sources, with target implementation for 2025.

Scope 1

> We are actively exploring the

adoption of synthetic fuel/biodiesel

for our generators. Additionally, we

continually assess the energy

efficiency of our existing equipment

and infrastructure, including the

potential transition to hybrid mining

vehicles.

> While non-mineral waste contributes

minimally to GHG emissions, we

adhere to a waste management

hierarchy that prioritises actions in

Substantial progress has been made on the revegetation project as an alternative method to rehabilitating and/or capping TSFs.

A property group listed on the Johannesburg Stock Exchange is the facility manager and landlord of our corporate head office and, therefore, its activities have a direct impact on our ESG initiatives. Its ESG strategy states that all buildings within the direct control of the organisation should operate at net zero carbon by 2030, and all other buildings which are not in direct control of the organisation by 2050. The Sylvania head office park has been identified as a possible facility for solar generation by 2027 and this will ultimately reduce our Scope 1 emissions in the future.

Scope 2

We are in the process of re-evaluating the feasibility of deploying solar PV plants to augment our daily power requirements at Doornbosch and Tweefontein.

Furthermore, we are actively seeking proposals and cost estimates for the implementation of green energy solutions, encompassing both solar and gas initiatives, for our administrative offices and employee change houses across all our sites.

Overview

Environment

Social

Governance

We recognise the role Sylvania plays in supporting a low carbon transition, and also recognise how our Company contributes to GHG emissions. We have taken great strides in unpacking the climate risks and opportunities associated with our operations. In addition, our well-defined ESG framework includes actions to ensure we monitor and measure our climate impact. Longer term, this will help us set measurable targets for GHG emissions.

Optimising our energy usage is key to reducing carbon emissions, and we are

Carbon transition journey

Our carbon transition journey toward a carbon-neutral future commences by first identifying our present and future energy needs. We focus on securing the necessary energy to power our operations while concurrently enhancing energy efficiency, lowering energy consumption and ultimately, substituting or diminishing our reliance on conventional Scope 1 and Scope 2 energy sources with renewable alternatives whenever feasible.

The exact timing and severity of the

that are consistent, comparable, reliable, clear and efficient and provide decision-useful information to investors.

In FY2023, we developed a baseline of climate reporting that follows these TCFD principles. Our work included:

> Developing a gap assessment in

terms of the TCFD recommendations

which considers Sylvania's current

suite of reporting and the areas

related to climate change.

> A strategic climate risk assessment

considering both physical and

solar power generation at Mooinooi and Lesedi. This is a standalone system capable of supplying power for

24 hours, mainly for the office area. The micro-grid solar solution comprises battery storage, solar panels and a shipping container with inverters.

Alternative grid-tied solar solutions that can be installed on the existing roof infrastructure for power supply to

the following order: reduction, reuse,

recycling, energy recovery, and, as

a last resort, landfill disposal.

> We are committed to minimising

land clearance to the extent

possible, aligning it with operational

needs. In cases where land

clearance is unavoidable, the

Company provides financial

provisions for land rehabilitation.

CO2e/ton

We are currently in discussion with a local supplier and investigating the possibility of converting our fleet of vehicles to hybrid models once these become available in South Africa.

Carbon footprint

Scope 1 and 2 emissions have decreased from the previous financial year reporting period.

continuously assessing and quantifying our energy needs, risks and impacts.

South Africa is currently in an energy crisis and has experienced an average of Stage 4 loadshedding every day in FY2023 (24 hours of outages over

a four-day period). This has increased from an average of Stage 3 (18 hours over four days) in FY2022. The cause is an ageing infrastructure and lack of alternative energy producers, so our energy management activities this year must be viewed in this context.

physical effects of climate change are difficult to estimate. TCFD aims to address this uncertainty by developing recommendations for voluntary climate-related financial disclosures

Key

Consistent/no change

Positive decrease (improvement)

transitional climate risks, as well as a

financial analysis of potential

implications of both risks and

opportunities.

> A baseline TCFD report recording

Negative increase (worsening)

Environment

E

	Scope 1		Scope 2
Period
FY2022	FY2023	FY2022	FY2023
Q1	60	71	23,737	23,680
Q2	63	75	24,517	23,802
Q3	63	122	23,286	23,321
Q4	69	83	25,308	23,601
Total	265	351	99,958	94,403

Commencing in 2026, we will begin the collection and reporting of GHG Scope 3-related data. As part of our forward-looking strategy, we are actively working on incorporating ESG principles into our CSI projects, with a particular emphasis on renewable initiatives benefiting both our communities and employees.

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