Environmental rehabilitation obligation and other provisions

Significant accounting judgements and estimates

Environmental rehabilitation obligation

The Group’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. The

Group recognises a provision for management’s best estimate for asset retirement and environmental obligations in the period in which

they are incurred. Actual costs incurred in future periods could differ materially from the estimates. Additionally, future changes to

environmental laws and regulations, life-of-mine estimates and discount rates could affect the carrying amounts of these provisions.

The estimated cost of remediating environmental disturbances is based on the Group’s best estimate of the actual future expenditure to

settle the present obligation at the end of the reporting period, as required by environmental regulations to remediate the current damage

caused, and depends on the nature and management’s use of the relevant operation.


These provisions are calculated using the following assumptions:
	Inflation rate	Discount rate	Discount period
2025
SA gold operations	6.5%	6.3% – 9.1%	1 – 26 years
SA PGM operations	6.5%	6.3% – 8.9%	1 – 45 years
US PGM operations	3.5%	4.8%	31 – 66 years
European operations	2.5%	2.1% – 3.8%	1 – 26 years
Australian operations	2.5%	4.3%	1 – 18 years
2024
SA gold operations	7.0%	8.3% – 11.1%	1 – 25 years
SA PGM operations	7.0%	8.3% – 11.1%	1 – 45 years
US PGM operations	3.5%	4.8%	25 – 35 years
European operations	2.5%	2.3% – 3.0%	2 – 23 years
Australian operations	2.5%	3.9%	5 – 19 years
2023
SA gold operations	7.0%	8.9% – 12.3%	1 – 25 years
SA PGM operations	7.0%	8.9% – 12.3%	1 – 48 years
US PGM operations	3.5%	4.0%	31 – 46 years
European operations	2.1%	3.1%	23 years
Australian operations	2.8%	3.7%	40 months

Onerous contract The measurement of the onerous contract provision is subject to various inputs such as estimated revenue to be generated from the contract, which is impacted by pricing and volume assumptions, as well as estimated costs to be incurred such as production costs, which include overheads, labour and manufacturing input cost. Changes to these inputs could materially impact the cash flows included in the measurement of the onerous contract provision.

Accounting Policy

Provisions are recognised when the Group has a present obligation, legal or constructive, resulting from past events and it is probable that

an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the

amount of the obligation. Provisions are measured by discounting the expected future cash flows at a pre-tax rate that reflects current

market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance

cost.

Environmental rehabilitation obligation

Long-term environmental obligations are based on the Group’s environmental management plans, in compliance with applicable

environmental and regulatory requirements. The estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for

changes in legislation, technology or other circumstances. Cost estimates are not reduced by the potential proceeds from the sale of

assets or from plant clean up at closure. Based on disturbances to date, the net present value of expected rehabilitation cost estimates is

recognised and provided for in full in the financial statements. The estimates are reviewed annually and are discounted using a risk-free

rate that is adjusted to reflect the current market assessments of the time value of money.

Annual changes in the provision consist of notional finance costs relating to the change in the present value of the provision and

inflationary increases in the provision estimate, as well as changes in estimated cost of rehabilitation, remediation and decommissioning.

Changes in estimates are capitalised or reversed against the related asset to the extent that it meets the definition of dismantling and

removing the item and restoring the site on which it is located. Costs that relate to an existing condition caused by past operations and do

not have a future economic benefit are recognised in profit or loss. If a decrease in the liability exceeds the carrying amount of the asset,

the excess is recognised immediately in profit or loss. The present value of environmental disturbances created are capitalised to mining

assets against an increase in the environmental rehabilitation obligation. Rehabilitation projects undertaken, included in the estimates, are

charged to the provision as incurred. The cost of ongoing current programmes to prevent and control environmental disturbances is

recognised in profit or loss as incurred. The unwinding of the discount due to the passage of time is recognised as finance cost, and the

capitalised cost is amortised over the remaining lives of the mines.

Onerous contract provision

Onerous contract provisions are measured at the present value of the lower of the expected cost of terminating the contract and the

expected net cost of continuing with the contract, which is determined based on the incremental cost of fulfilling the obligation under the

contract and an allocation of other cost directly related to fulfilling the contract. Before a provision is established, the Group recognises

any impairment loss on the assets associated with the contract.


Figures in million – SA rand	Notes	2025	2024	2023
Environmental rehabilitation obligation	29.1	14,000	11,805	11,355
Other provisions	29.2	278	444	1,982
Balance at end of the year		14,278	12,249	13,337
Current portion of environmental rehabilitation obligation and other provisions		(161)	(327)	(832)
Non-current portion of environmental rehabilitation obligation and other provisions		14,117	11,922	12,505

29.1 Environmental rehabilitation obligation


Figures in million - SA rand	Note	2025	2024	2023
Balance at beginning of the year		11,805	11,355	8,435
Interest charge	5.2	984	966	758
Utilisation of environmental rehabilitation obligation1		(227)	(488)	(274)
Change in estimates charged to profit or loss2		477	433	(82)
Change in estimates capitalised2		1,220	204	(419)
Environmental rehabilitation obligation on acquisition of subsidiaries		—	—	3,576
Derecognition with deemed disposal of interest in joint operation		—	—	(818)
Liabilities associated with assets held for sale		(29)	(451)	—
Foreign currency translation		(230)	(214)	179
Balance at end of the year		14,000	11,805	11,355
Reconciliation of the non-current and current portion of the environmental rehabilitation obligation:
Environmental rehabilitation obligation		14,000	11,805	11,355
Current portion of environmental rehabilitation obligation		—	—	—
Non-current portion of environmental rehabilitation obligation		14,000	11,805	11,355

1The cost of ongoing current programmes to prevent and control environmental disturbances, including reclamation activities, is charged to cost of sales as incurred

2Changes in estimates result from changes in reserves and corresponding changes in life-of-mine, changes in discount rates, changes in closure cost estimates, including

new information obtained through further studies completed and changes in laws and regulations governing environmental matters

The Group’s mining operations are required by law to undertake rehabilitation works as part of their ongoing operations. The Group makes

contributions into environmental rehabilitation obligation funds (see note 20) and holds guarantees to fund the estimated costs.

The Group's environmental rehabilitation obligation is sensitive to changes in certain assumptions applied in the calculation of the balance

of the obligation at 31 December 2025. The table below illustrates the impact of certain changes to the assumptions on the balance of the

obligation at 31 December 2025, holding all other assumptions constant:


Key assumption	Change to key assumption	Impact on the environmental rehabilitation obligation (SA rand millions)
Discount rate	1%	R1,394 million
Inflation rate	1%	R1,878 million
Discount period	1 year	R241 million

29.2 Other provisions


Figures in million - SA rand	Notes	2025	2024	2023
Balance at beginning of the year		444	1,982	117
Onerous contract provision recognised1	8.1	—	200	1,865
Legal settlement provision raised		3,607	—	—
Finance expense		—	58	—
Change in onerous contract provision recognised through profit or loss2	8.2	(124)	(1,017)	—
Payments made - cash3		(3,610)	(665)	—
Foreign currency translation		(39)	(114)	—
Balance at end of the year		278	444	1,982
Other provisions consists of:
Onerous contract provisions4		161	327	1,865
Other		117	117	117
Other provisions		278	444	1,982
Reconciliation of the non-current and current portion of other provisions:
Other provisions		278	444	1,982
Current portion of other provisions5		(161)	(327)	(832)
Non-current portion of other provisions		117	117	1,150

1This is an onerous supply contract provision relating to the raw material used in the Sandouville nickel refinery's production process, which is purchased under a single

supply contract previously maturing on 31 December 2027. Due to sustained losses incurred at the operation, the Group assessed whether the supply contract is onerous

at 31 December 2023. Consequently, the Group determined whether the unavoidable costs of meeting the obligations under the contract exceed the economic

benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of

fulfilling it and any compensation or penalties arising from failure to fulfil it. Based on this assessment, the Group recognised an onerous contract provision amounting to

R1,865 million, which represents the present value at 31 December 2023 of the penalty payable on early exiting the supply contract and the unavoidable losses to be

incurred in meeting Sandouville's obligations under the contract during the notice period. Before the separate provision for the onerous contract was established, the

Group recognised an impairment loss on assets, partially dedicated to the contract (see note 10). The onerous contract provision was calculated based on an

expectation of terminating the contract in line with the required notice period and discounted at a pre-tax rate of 5.75%, reflecting the risks specific to the provision.

During 2024, the Group agreed with the supplier to terminate this supply contract with final delivery made in January 2025. During 2024, additional provisions were raised

for onerous contracts amounting to R200 million in respect of the Sandouville nickel refinery's production process

2The provision, included in Sandouville segment, decreased due to the realisation of onerous contract losses provided for at 31 December 2023

3A payment made for R45 million (2024: R665 million) was in respect of a penalty resulting from early exiting the supply contract. The remaining payment was in respect of

the legal settlement with Appian

4Included in the 2024 balance is the onerous contract provision relating to the raw material used in the Sandouville nickel refinery's production amounting to R121 million

and the balance relates to additional provisions raised for onerous contracts in respect of the Sandouville nickel refinery's production process

5The current portion at 31 December 2025, 31 December 2024 and 31 December 2023 relates to the onerous contract provisions

Post closure water management liability

The Sibanye-Stillwater SA Region continues to monitor the potential risk of long-term acid and non-acidic mine impacted water and other

groundwater pollution challenges, also experienced by peer mining groups operating in similar geological settings.

Acid mine drainage (AMD) specifically relates to the acidification and contamination of naturally occurring water resources by pyrite-

bearing rock/ ore contained in underground mines, rock dumps, tailings facilities and pits on surface. The SA Region has made progress in

reliably determining the financial impact that AMD and groundwater pollution may have on the Group. The quantification of any post-

closure latent environmental impacts is affected by the proposed Financial Provisioning Regulations (2015, as amended), as well as

determining and finalising a workable solution, and approval of management’s plans and strategies to prepare a sufficiently reliable

estimate. The effective date of the regulations is yet to be announced.

All water-related risks, whether operational or post-closure, are dealt with as part of our enterprise risk management framework. As at 31

December 2025, closure liability assessments make financial provision of R3,123 million (undiscounted) for what it specifically termed “Post-

closure aspects”. This includes but is not limited to amongst others, post-closure water management aspects such as initial and post-decant

surface and groundwater monitoring, wetlands, biomonitoring and aquatics monitoring and care-and-maintenance monitoring.

This value also includes a revised post-closure water treatment scenario for the Marikana operations. During the operational life-of-mine,

pre-closure, the Group aims to investigate, identify and implement practical, sustainable and cost-effective solutions that, where possible,

reduces post-closure impacts as effectively as possible, whilst also promoting the establishment and implementation of self-sustaining

ecosystems and processes, respectively, that would require very limited or no ongoing active management by the operation, in a post-

closure scenario. This is directly aligned to the Group’s long-term vision of full water stewardship maturity by 2033.

Appian Capital legal settlement

Included in the transaction and project costs of R4,543 million on the income statement, is the settlement amount of R3,607 million relating

to the Appian Capital legal settlement during 2025.

On 26 October 2021, Sibanye-Stillwater entered into share purchase agreements (the Atlantic Nickel SPA and the MVV SPA, respectively

(together, the SPAs)) to acquire the Santa Rita nickel mine and Serrote copper mine (together, the Assets) from affiliates of Appian Capital

Advisory LLP (Appian). On 9 November 2021, a geotechnical event occurred at the Santa Rita Mine. After becoming aware of the

geotechnical event, Sibanye-Stillwater assessed the event and its effect and concluded that the event was and was reasonably expected

to be material and adverse to the business, financial condition, results of operations, the properties, assets, liabilities or operations of the

Santa Rita Mine. Sibanye-Stillwater therefore considered that a condition to closing under the Atlantic Nickel SPA had not been satisfied.

Accordingly, Sibanye-Stillwater gave notice of termination of the Atlantic Nickel SPA on 24 January 2022. As the MVV SPA was conditional

on the closing of the Atlantic Nickel SPA, Sibanye-Stillwater also gave notice of termination of the MVV SPA on the same day. On 3 February

2022, Appian sent a letter to Sibanye-Stillwater indicating that it was terminating the SPAs by reason of Sibanye-Stillwater’s wrongful

repudiation and/or renunciation of the SPAs.

Legal proceedings commenced in 2024. The first phase of the proceedings related to whether the geotechnical event was, or could

reasonably be expected to be, material and adverse (the Liability Trial). In a judgment handed down on 10 October 2024, the Court ruled

that the geotechnical event was not, and was not reasonably expected to be, material and adverse, such that Sibanye-Stillwater was not

entitled to terminate the SPAs. However, the Court dismissed Appian's claim of wilful misconduct, ruling that the management of Sibanye-

Stillwater genuinely believed that it was entitled to terminate the SPAs in the best interests of Sibanye-Stillwater.

The second phase of the proceedings was scheduled to proceed to trial in November 2025 (the Quantum Trial), at which the Court would

have determined the damages that Sibanye-Stillwater may be required to pay to Appian. On 10 November 2025, before the Quantum Trial

commenced, Sibanye-Stillwater and Appian agreed a commercial settlement of the dispute for a total payment of US$215 million

(R3,607 million) (including legal fees). The Group recognised the settlement of the dispute under transaction and project costs of R4,543

million on the income statement and included it in Group corporate on the segment report. Some of the legal fees were already settled

after the Liability Trial, with the remaining payment, after foreign exchange movements, amounting to R3,565 million settled on 9 December

2025, after South African Reserve Bank approval.