Sasol Limited (NYSE:SSL) Q4 2023 Earnings Call Transcript

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While we’re seeing some normal variation within the P50, we encourage that it is actually – these are indicative numbers that we’re not able to share until they’ve submitted to Mozambique. But what is actually showing is that the upside, which is more the P90 is actually increased compared to original assumptions. So it’s within the ballpark. It doesn’t affect our FY ’28 assumptions because we’ve actually assumed a cap of 35 petajoules in South Africa, given the current arrangements with – on the FDP. So overall, I think we’ve got more upside, but it’s too early to comment on what that looks like, and we will follow a very rigorous process as we’ve done in the past. In terms of the opportunities in South Africa, we are noting that we’re encouraged, and we continue to engage with the respective partners to be able to understand some of the key technical questions that we have around the opportunities.

At the same time, we also want to understand the economic viability thereof. The technical question is also the number of subsurface issues which I’m willing to address offline as well as the surface issues in terms of the opportunities associated with timing, what does it mean given the environmental requirements, given the land required to be able to use that unconventional technology. So we are working closely together. But at the end of the day, it’s going to be an economical assumption. So if it’s actually competitive to any of our other opportunities, it will be part of the all other contingent resources that we’re exploring. And this is not the only one. We’re also looking at opportunities in South Africa. We’re looking at opportunities in Namibia as well.

So all of those will be compared as we move forward.

Adrian Hammond: Okay. Thanks.

Tiffany Sydow: Thank you, Adrian. We’ll talk to you also a little bit more extensively later today. I’m going to wrap up with one final question.

Simon Baloyi: No, no. Thank you, Adrian. The coal brigading has already been factored in post the 2030. I mean all that it does is that it’s a carbon source. So if you didn’t have brigading, you’ll have to mine more. So we’ve already factored that in. My assessment is post-2030, we got space in gasification, we got space in the boiler plant, we got space in the refining plant and the management team is going to work very hard, like Fleetwood has said, to see if we can fill up that space and recover the volumes.

Tiffany Sydow: Okay. Final question for Fleetwood from [indiscernible]. Any update on succession planning?

Fleetwood Grobler: Yes. Thank you, Sia. So we have reported earlier this year that succession is a key focus area for the Board. The Board is still on track to go through the process to finalize that. And as indicated last – in the last time that we talked around this subject, it is going to be announced early in the new year, if not even at the end of this year. So there’s a slight push for that outcome as well. So I know that this will come to a fruition. And the Board is fully committed to make that decision by early next year or earlier.

Tiffany Sydow: Thank you very much, Fleetwood. I’m going to close the session for today. Thank you very much to the Sasol management team for their participation and to all participants online and on Chorus Call. We look forward to further engagement with you over the next few weeks. With that, I’ll close the call. Thank you.

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