From the desk of the Co-CEOs

The first quarter of FY23/24 ended at the mark of 7% for full bonus quarter qualifiers and on track for annual despite 15% underperformance in May due to rain. We need to highlight that not all areas performed as expected, we made sales target by selling product inventory, meaning both plants did below on producing the product, these challenges are being addressed with respective teams. In April 2023, first month of financial year [FY23/24], MS achieved a record of 131 088 tons plant feed, and the FX Plant achieved a record of 277 989 tons plant feed setting new records for both plants. In the months of May and June both plants were slightly above budget, and in July 2023 both plants achieved new records with the DMS feed on 148 316 tons and the FX feed on 274 728 tons.

“A safe work environment is not because of the absence of accidents, but due to the presence of controls”

On the Safety front, as at the end of the first quarter, Palesa Coal recorded 132 Medical Treatment Incident free days, 556 Lost Time Injuries free days, and 2303 Fatal Incident free days. There are red flags as we had property damage incidents, some TMM related indicating we are at risk for potential serious accident. Palesa will also initiate a drive to turn this around with your co- operation. General standards in workplace are poor, this reflects attitude and behavior that must be changed. We wish to extend our gratitude for such team effort. – Aadil & Pieter