MANTENGU LIMITED - Amended Short Form Announcement: Audited Results for the Year Ended 28 February 2026

Evidence from the filing

• Disposal of Blue Ridge for R50m removes the loss-making subsidiary, ending its ongoing cash drain once completed.

  “The Board announced on 12 June 2026 that, it entered into advanced negotiations to dispose of Blue Ridge for a purchase consideration of R50 million.”

• Section 189 process expected to complete in early August 2026 will cut Sublime's monthly costs by ~80%, addressing the largest FY2026 loss segment.

  “The Board announced on 14 May 2026 that it commenced a consultation process with Sublime employees and trade union in terms of Section 189 of the Labour Relations Act 66 of 1995. This process is expected to be completed in early August 2026.”

• New HMS Bergbau offtake replaces RWE, ending the prior counterparty's unilateral below-market pricing power on chrome sales.

  “Langpan entered into new offtake and funding agreements with HMS Bergbau Africa (Pty) Ltd ("HMSBA") to replace RWE as its chrome offtaker.”

• Board's decision to keep Sublime offline avoided an incremental R7m/month Eskom energy charge, showing cost discipline over continuing to bleed cash.

  “Sublime Technologies shut down in May 2025 for routine maintenance. The Board took the decision not to resume production in July 2025 after completion of this maintenance. The rationale for this was that Sublime would have incurred an additional energy charge of R7 million per month because its tariff agreement with Eskom expired on 31 March 2025.”

• Group reported R315m loss with current liabilities exceeding current assets by R283m, triggering a material going concern uncertainty note from the auditor.

  “Although the group's total assets exceed total liabilities by R230 million, the group's current liabilities exceed current assets by R283 million. The Group incurred a loss of R315 million for the year ended 28 February 2026. As stated in Note 34, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the group's and company's ability to continue as a going concern.”

• Auditor issued a qualified 'except for' opinion spanning B-BBEE liability, inventory and ECL matters, with the board publicly disputing the auditor's conclusions.

  “The 2026 AFS have been audited by the Company's auditor, HLB CMA (South Africa) Inc., who expressed a qualified "except for" opinion thereon.”

• Auditor flagged that R570m Blue Ridge B-BBEE liability was incorrectly eliminated against equity; the dispute is unresolved and no quantum is agreed.

  “The liability, although recognised in Blue Ridge Platinum (Proprietary) Limited's separate accounting records, was incorrectly eliminated against equity in the Group financial statements, of which 30% has not been transferred out, and the loss recognised. IFRS 9 also requires a financial liability to be recognised at its fair value on day one. Sufficient reliable evidence was not available to quantify the fair value of the financial liability by the Group to the B-BBEE parties, and alternative audit procedures did not provide us with sufficient appropriate audit evidence to conclude in this regard.”

• Auditor flagged a material ECL allowance was not recognised on intercompany loans to loss-making Langpan, Meerust and Blue Ridge subsidiaries under IFRS 9.

  “Management has not recognised an expected credit loss allowance on intercompany loans receivable as required by IFRS 9. Based on the financial condition, liquidity constraints, and repayment uncertainty of certain counterparties (specifically, Langpan Mining, Meerust Chrome and Blue Ridge), indicators of impairment exist and a material ECL allowance is required.”

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