Valterra Platinum expects to report lower half-year earnings due to a 25% decline in platinum group metals (PGM) sales volumes and R1.4bn in one-off demerger related costs.
Anglo American spun out its platinum business as part of its radical restructuring announced in May 2024 in response to a failed takeover bid by Australian miner BHP. Anglo American Platinum then changed its name to Valterra Platinum and was listed on the London Stock Exchange in June.
Valterra said headline earnings, and headline earnings per share (HEPS) for the six months ended June were expected to have decreased by between 76% and 88% compared with a year ago.
Headline earnings are likely to be between R0.8bn and R1.6bn compared with R6.5bn in the prior period and HEPS are expected to be between 305c and 590c from 2,456c before.
The decline in sales volumes reflected lower refined production as a consequence of lower M&C (metal in concentrate) production due to significant rainfall and flooding in February that disrupted operations at Tumela mine at Amandelbult, the drawdown of excess work-in-progress in the prior period and the three-yearly stock count at the precious metals refinery, the group said.
Own mines production for the first half, excluding Amandelbult, was in line with the prior period.
“We remain on track to deliver M&C production within guidance after factoring in the Amandelbult flooding impact, albeit at the lower end. Refined production guidance of 3.0-million to 3.4-million PGM ounces remains unchanged,” it said.
The decline in earnings was partially offset by cost savings of R2.1bn achieved in the period.
In a separate announcement the group said its own-managed mines PGM production decreased by 15% to 464,100oz in the quarter ended June primarily due to lower production from Amandelbult.
“The repair and recovery work at Amandelbult has progressed well and in line with our expectations. Dishaba Mine and Tumela Upper restarted in April and Tumela lower was successfully recommissioned in June 2025 and remains on track to be at steady-state in the third quarter,” said CEO Craig Miller.
All mining operations at Amandelbult have resumed and the full-year production is expected to be between 450,000-480,000oz compared with 580,000oz a year ago.
Refined PGM production (owned production, excluding tolling) decreased 12% to 954,000oz as a consequence of lower M&C and a larger drawdown of excess work-in-progress inventory in the prior period.
PGM sales volumes decreased by 22% to 981,500oz in line with lower refined production.
“We have successfully completed the demerger from Anglo American and officially started on our new independent journey as Valterra Platinum,” he said.
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