Valterra Platinum posted a strong performance in its first full-year production report since splitting from Anglo American, setting the stage for a stellar debut when it releases maiden financial results later this month.
A strong fourth quarter saw the firm, South Africa’s biggest producer of platinum group metals (PGM), narrowly beating production forecasts for 2025.
In an environment of soaring PGM prices, investors are expecting bumper profits in its upcoming annual report on February 25.
Spurred by sector-wide optimism, Valterra has flourished since breaking away from Anglo in June as part of the latter’s strategic shift into copper, iron and potash.
Last week, the platinum heavyweight said it expects headline earnings to have doubled in the year to end-December. The Anglo split allowed it to cut costs by R5bn, while the PGM dollar basket price strengthened 26% during the year.
The price of platinum has risen nearly 60% in the past six months on tariff uncertainty and a gradual decline in South Africa’s exports, which make up the majority of global supply.
Even after a sharp correction this month, the metal’s price still sits more than 115% higher than it did a year ago.
“A broad-based price rally that began in May, driven by a mix of bullish macroeconomic, fundamental and structural factors, gained further momentum during the final quarter on rising investor interest in physical assets, the launch of new futures contracts in China and ongoing market tightness,” said Valterra.
Amandelbult improvement
CEO Craig Miller said the group’s fourth-quarter results reflected its “clear momentum in achieving operational stability”.
Production from the group’s operations rose 10% on a quarterly basis in the three months to end-December to 880,200oz, up 1% year on year.
Most of the improvement came from Amandelbult, which returned to steady state for the first time since heavy flooding in Limpopo forced it to pause operations last February.
Valterra’s full-year production, which includes ounces bought from other miners but smelted and refined at the group’s facilities, declined 5% year on year to 3.2-million ounces.
Overall PGM sales for the year amounted to 3,454,300oz, down 15% from the previous 12 months.
Business Day
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