Wrap Text
Interim Results Short Form Announcement for the six months ended 30 June 2025
Valterra Platinum Limited
(previously Anglo American Platinum Limited)
(Incorporated in the Republic of South Africa)
(Registration number: 1946/022452/06)
JSE Share Code: VAL
LSE Share Code: VALT
ISIN: ZAE000013181
("The Company" or "Valterra Platinum")
28 July 2025
Valterra Platinum - Interim Results Short Form Announcement for the six months ended 30 June 2025
Salient Features
Safety
- Regrettably, there was one fatality at Unki on 20 April and another fatality at Amandelbult's Dishaba mine on 22 July,
despite our continued focus on improving safety across all operations. We have taken all necessary steps to learn
from these events and address the contributing factors.
- At Mogalakwena and Mototolo, we achieved 13 years fatality free and Tumela mine at Amandelbult is nine years
fatality free at the end of H1 2025, all - hallmark achievements.
Strategy
- Established our new identity as Valterra Platinum Limited, with outstanding independent prospects and an
investment case supported by our leading integrated portfolio of world class assets.
- Successfully completed the demerger from Anglo American plc, including a secondary listing on the London Stock
Exchange.
- Completed the Sandsloot underground project pre-feasibility study and commenced the feasibility study which we
plan to complete, together with an investment decision, in H1 2027.
Market
- The realised PGM dollar and ZAR basket price increased by 5% and 3% to $1,517 and R27,631 per PGM ounce,
respectively.
Production and sales
- Own-mined PGM production (expressed as 5E+Au metal-in-concentrate (M&C)) declined by 12% to 926,100
ounces, primarily due to the flooding at Amandelbult in February 2025 following heavy rains. All mining sections
have recommenced production, with Amandelbult's Tumela Mine Lower section, the most severely impacted.
Production from this mine restarted in June with the ramp-up to full production expected in Q3 2025.
- Own-mined M&C production, excluding Amandelbult was in line with the prior period at 770,000 ounces.
- Purchased concentrate (POC) volumes declined by 23% to 539,200 ounces primarily due to Kroondal's transition to
a 4E tolling arrangement from September 2024. Adjusting the comparable period for Kroondal volumes, POC
declined 5%, also reflecting the weather-related impact on third parties.
- Refined PGM production (excluding tolling) declined by 22% to 1.39 million ounces due to lower total M&C
production and the once in every three year stock count at the Precious Metals Refinery. The prior period's volumes
included the release of built-up work-in-progress (WIP) inventories. Excluding Kroondal volumes from the
comparable period, refined production declined 18%.
- PGM sales volumes, decreased by 25% to 1.48 million ounces, in line with lower refined production.
Costs
- Cost savings of R2.1 billion achieved in the first half of the year, and we are on track to achieve cost savings of R4
billion for 2025 through operational excellence. Our cost saving initiatives have enabled us to offset inflation over the
last 2 consecutive years.
- Cash operating costs were R17,952 per PGM ounce (down 2% on H1 2024), excluding the impact of the
Amandelbult flooding – and R20,580 per PGM ounce, including the flooding impact.
- All-in sustaining costs (AISC) were $962 per 3E ounce (up 1% on H1 2024), excluding the Amandelbult flooding
impact or $1,213 per 3E ounce including the flooding impact.
Earnings
- R6.6 billion EBITDA, down 46% on the prior period primarily due to a 25% decline in PGM sales volumes as well as
R1.4 billion in one-off demerger related costs.
- Headline earnings per share decreased by 81% to R4.73 per share, primarily owing to the R5.7 billion lower EBITDA.
- Basic earnings were down 91% to R 2.23 per share having been further impacted by R0.9bn scrapping of assets.
Balance sheet
- Net debt at 30 June of R4.9 billion, representing 0.3 times net debt to EBITDA ratio including the customer
prepayment. The ratio is well within our self-imposed target gearing ratio of less than 1 times net debt to EBITDA.
- Liquidity headroom of R27 billion is consistent with our ongoing commitment to maintaining flexibility and a strong
balance sheet.
Dividend
- Interim dividend of R0.5 billion, or R2.00 per share, aligned with our dividend policy of 40% of headline earnings.
2025 guidance
- We remain on track to deliver M&C production within guidance, albeit at the lower end, after factoring in the
Amandelbult flooding impact. M&C production from our own operations is expected to be ~2.0 million PGM ounces
and POC volumes are expected to be ~1.0 - 1.2 million ounces.
- Refined production guidance of 3.0 – 3.4 million PGM ounces remains unchanged.
- Cash operating unit cost guidance has been revised to R19,000 - R19,500 per PGM ounce to take into account the
flooding impact.
- Capital expenditure is expected to be between R17.0 - R17.5 billion which is ~R1.0 billion below previous 2025
guidance.
- AISC expected to be within the guidance range of $970 - $1,000 per 3E ounce.
Craig Miller, CEO of Valterra Platinum, said:
"Safety remains our foremost priority, so it is with deep regret that we experienced a fatality at Unki on 20 April where Mr. Felix
Kore lost his life in a mobile machinery-related incident. We have thoroughly investigated the cause of the incident, and we
have implemented measures to prevent a similar occurrence. It is also with deep sadness that on 22 July, we experienced a
fatality at Amandelbult's Dishaba Mine, where Mr William Nkenke lost his life. A full investigation is currently underway. On
behalf of the entire Valterra Platinum family, we convey our sincerest condolences to Mr. Kore's and Mr. Nkenke's families,
friends and colleagues.
"While we mourn these losses, we also recognise the achievement of significant safety milestones across our operations,
which reflect our team's dedication to our journey to zero harm. These include 13 years fatality free at Mogalakwena and
Mototolo; 9 years fatality free at Amandelbult's Tumela Mine and more than 2.5 years lost-time injury-free at the Polokwane
Smelter. We have also seen a 12% improvement in our total recordable injury frequency rate (TRIFR) to 1.46.
"This year marked a pivotal milestone in our corporate journey, with the successful completion of our demerger from Anglo
American plc, the launch of our new identity as Valterra Platinum and our secondary listing on the London Stock Exchange. We
have reconstituted an independent and diverse board of directors and have made significant progress in transitioning from
Anglo American's centralised services. Transitional Service Agreements are in place for some services, while other expertise
and skills have been recruited into the company as part of our target operating model.
"In March, we articulated our strategic priorities and investment case at our inaugural Capital Markets Day, receiving strong
support from both existing and prospective investors. I want to thank every member of our team for their tireless dedication
over the past year to bringing this transformative moment to life. Valterra Platinum is charting its own path, and we are doing so
with purpose, strength and unity.
"The extreme flooding event at Amandelbult demonstrated our ability to rapidly respond to major setbacks. All underground
personnel were safely evacuated, and the team swiftly secured critical infrastructure and accelerated the dewatering process.
As a result, the Tumela Mine Lower section was recommissioned ahead of schedule in June, with full ramp-up expected in Q3
2025. We are targeting 450,000 - 480,000 ounces in M&C PGM production from Amandelbult for the full year and back to
normalised M&C production levels in 2026.
"We have completed the pre-feasibility study for the Sandsloot underground project, which has affirmed that the technical and
economic parameters used in the study are consistent with what we presented at our Capital Markets Day. We have
commenced the feasibility study with a targeted completion in H1 2027 together with an investment decision, provided that it
is in accordance with our capital allocation framework. The investment case for Sandsloot is compelling and our approach
remains "value over volume" with the potential to introduce higher underground grades at between 4 – 6 g/t to blend in with
open cast ore, this is the first step towards achieving our targeted 10 – 50% overall increase in Mogalakwena M&C production
and a 10 – 20% reduction in AISC. Our progress during the reporting period includes a bulk ore sample of 31,000 tonnes of reef
stockpiled, 12.8km of exploration drilling and advancing the decline development by a further 1.6km during H1 2025, bringing
total exploration drilling since inception to 43km and the cumulative decline development to 8.0km. Post the prefeasibility
study completion, our medium-term capital guidance for Sandsloot Underground has been reduced to ~R1.5 - R2.5 billion per
annum to advance the project (previously R2.0 - R3.3 bn).
"Looking ahead to the second half of the year, we have reaffirmed our 2025 M&C and refined production guidance. Through
our operational excellence programs, we remain on track to deliver R4 billion in full-year operating cost savings. These efforts
are focused on ensuring that over the medium term, our assets operate sustainably in the lower half of the industry cost curve.
Coupled with our disciplined approach to capital allocation, we continue to be well positioned to sustain our track record of
industry leading shareholder returns through the cycle. This is demonstrated in an interim dividend declaration by the board of
R2.00 per share which is in-line with our dividend policy of 40% of headline earnings".
H1 2025 overview
Key metrics H1 2025 H1 2024 %
Fatalities^^ 1 2
Total recordable injury frequency rate (TRIFR) 1.46 1.66 (12)
Metal-in-concentrate (M&C) PGM production ('000 oz) 1,465 1,755 (17)
oz)
Refined PGM production ('000 oz) 1,391 1,782 (22)
Sales PGM volumes (excluding trading) ('000 oz) 1,475 1,974 (25)
Metal-in-concentrate (M&C) PGM production ('000 oz)
1,465 1,620 (10)
oz) ^
Refined PGM production ('000 oz) ^ 1,391 1,695 (18)
Sales PGM volumes (excluding trading) ('000 oz) ^ 1,475 1,842 (20)
Dollar basket price per PGM ounce sold 1,517 1,442 5
Rand basket price per PGM ounce sold 27,631 26,802 3
Unit costs (R/PGM oz) * 17,952 18,280 (2)
All-in sustaining costs ($/3E oz) ^ 962 957 1
Revenue (R billion) 42.3 52.2 (19)
Adjusted EBITDA (R billion) 6.6 12.3 (46)
Mining EBITDA margin (%) 22 31 (9pp)
Basic earnings (R billion) 0.6 6.3 (91)
Basic earnings per share (R/share) 2.23 24.02 (91)
Headline earnings (R billion) 1.2 6.5 (81)
Headline earnings per share (R/share) 4.73 24.56 (81)
Net (debt)/cash (R billion) -4.9 14.5 (134)
Dividend per share (R/share) 2.00 9.75 (79)
Note: * - Unit costs adjusted for the Amandelbult lost ounces due to the flooding. Including the AMB impact unit cost is R20,580/PGM oz and AISC is
$1,213/3E oz.
^- Production, refined and sales volumes with comparative period adjusted to exclude Kroondal POC volumes.
^^-We experienced one fatality at Amandebult's Dishaba Mine, in July 2025, post the period end.
The realised dollar basket price increased by 5% compared to the prior period to $1,517 per PGM ounce – marking its strongest
level since H1 2023. The average realised platinum price was 5% higher than in H1 2024, with rhodium and ruthenium 11%
and 56% higher, respectively, all making major contributions to the increase in our realised basket price.
Operational performance in the first half of 2025 was characterised by inclement weather-related impacts across the portfolio,
the most severe being the flooding event at Amandelbult in February. This materially impacted operational performance at
Amandelbult, resulting in M&C production at this operation declining by 45% or 128,700 ounces.
As a result, own-mined production declined by 12% or 125,400 ounces to 926,100 ounces. Excluding Amandelbult, own
mined production of 770,000 ounces was in line with H1 2024. Increased production at Mogalakwena and Mototolo, through
benefits of our operational excellence, was offset by weaker volumes at Unki related to anticipated lower ore grades. POC
volumes declined by 23% primarily owing to Kroondal's transition from a POC to a toll arrangement in September 2024. As a
result, total M&C production of 1.47 million ounces is 17% lower compared to the prior period. Normalising the comparative
period to exclude Kroondal implies a 5% reduction in POC volumes and 10% lower overall M&C production volumes.
Refined PGM production (excluding tolling) declined 22% to 1.39 million ounces due to lower total M&C production and the
once in every three year stock count at the Precious Metals Refinery. The prior period's volumes included the release of built-
up WIP inventories. The performance in the second quarter of 2025 was 118% higher than the first quarter due to the improved
availability of the processing infrastructure post the Q1 2025 stock count, which should further support our ability to deliver
on our guidance through a step up in M&C production in H2 2025. Normalising for Kroondal volumes in the prior period, result
in an 18% decline in refined production.
Sales volumes were 25% lower, in line with the lower refined production, or 20% lower if Kroondal volumes are excluded from
the comparable period.
EBITDA of R6.6 billion was down 46% on the prior period, primarily due to a 25% decline in PGM sales volumes (excluding
sales from trading) as well as the R1.4 billion one-off demerger related costs. Headline earnings decreased by 81% to R1.2
billion or R4.73 per share, primarily owing to the R5.7 billion lower EBITDA. Basic earnings were further impacted by asset
scrappings of R0.9 billion in the period, therefore declining by 91% to R0.6 billion or R2.23 per share.
Our balance sheet remains strong, further supported by the positive cash generation from our portfolio of assets, excluding
Amandelbult. We ended the period in a net debt position of R4.9 billion, primarily due to the final 2024 dividend paid in April
2025 as part of the completion of our stand-alone capital structure; lower M&C and refined production; as well as the one-off
demerger related costs. Despite this, leverage remained well within our financial guardrails, with the net debt to EBITDA ratio
of 0.3 times, including the customer prepayment, comfortably below our target gearing ratio of less than 1.0 times through the
cycle.
The quantification of the insurance claims for the Amandelbult flooding are ongoing, with an interim payment request
submitted to insurers in June 2025 for property damage of ~R550 million and ~R1.0 billion for business interruption. After
period end, the insurer confirmed an interim payment of R1.4 billion. Preliminary indications, subject to change and
adjustment as the claim quantification process progresses, is that our total claim will range between R4 billion and R5 billion
before deductibles.
Consistent with our disciplined capital allocation framework, we continued to invest in our business spending ~R8.0 billion in
total capital in H1 2025 to maintain asset integrity and reliability as well as invest in our worldclass asset base. This positions
us well to deliver stable and sustainable production. The Board has declared an interim dividend of R2.00 per share. This is
aligned with our dividend policy of 40% of headline earnings and marks the 16th consecutive dividend payment since
reinstatement in 2017, a best-in-class track record across the PGM sector and underscores our commitment to industry
leading and consistent shareholder returns. Further detail regarding the dividend payable to shareholders can be found in
today's separate dividend announcement on the Johannesburg Stock Exchange News Services (SENS) and London Regulatory
News Services (RNS).
Operational excellence initiatives
Operational improvements were evident in several key areas. Mining improvements include enhanced productivity at Mototolo
reflecting the benefits of a seven-day mining shift cycle implemented in the second quarter of 2024, and at Mogalakwena, a
notable improvement as the pit optimisation initiatives and the value over volume approach gains momentum. At Mototolo
and Amandelbult, concentrator recoveries improved by 3 and 4 percentage points respectively compared to H1 2024, while
chrome yields at our owned operations rose by 2-3 percentage points. These gains were particularly value accretive given the
increase in average chrome prices during the first half of 2025. At Mogalakwena, early-stage optimisation of the newly
commissioned Jameson cells yielded a 9 % reduction in mass pull, which in turn contributed several benefits including the 9%
reduction in the number of trucks on the road since December 2024 and 5% reduction in energy utilisation. These
advancements demonstrate our focus on embedding operational excellence and extracting value through innovation.
Our cost saving initiatives are ongoing. We are on track to deliver our targeted R4 billion in cost savings in 2025, with R2.1 billion
achieved in the first half of 2025. This brings cumulative savings since the implementation of our strategy to reposition the
business for improved resilience in early 2024 to R9.4 billion in operating expenditure and R5.0 billion in capital expenditure.
These savings have enabled us to offset inflation for the past 2 years. In parallel, we remain relentless in our pursuit of further
efficiencies without compromising our commitment to zero harm, nor our operating activities and the stability and integrity of
our assets.
ESG
In Q1 2025 Mogalakwena achieved an Initiative of Responsible Mining Assurance (IRMA) accreditation with a 50 recognition
which means that all our owned mining operations are now IRMA accredited. This is a significant milestone, making us the only
mining company with all our operations IRMA certified.
Valterra Platinum maintains full confidence in the integrity and safety of its Tailings Storage Facilities (TSFs), all of which are
conforming to the Global Industry Standard on Tailings Management (GISTM). These facilities are rigorously monitored through
regular inspections, third-party audits, and stability assessments by an independent Engineer of Record, with oversight from
the Independent Technical Review Body. In addition to robust infrastructure, Valterra prioritises emergency preparedness by
actively engaging neighbouring communities through safety drills, accredited training, and clear evacuation protocols. This
collaborative approach, supported by local and district municipalities together with various emergency services departments,
ensures that both technical and community safeguards are in place, reinforcing the resilience and responsible management
of our TSFs. In line with the GISTM requirements, the TSF disclosure document will be updated and re-issued in August 2025
(based on self-assessment) for 'extreme' or 'very high' potential consequences of failure facilities.
Board
In July 2025, we appointed Ms Deborah Gudgeon and Ms Thoko Mokgosi-Mwantembe as additional independent non-
executive directors. These appointments enhance the balance of knowledge, skills, experience and diversity on the board for
it to discharge its governance role and responsibilities objectively and effectively into the future, including in relation to the
company's secondary listing on the London Stock Exchange. This concludes the process of reconstituting our board of
directors, which consists of two executive directors and nine independent non-executive directors.
Outlook
We expect the second half of the year to benefit from several operational tailwinds. These include the production recovery at
Amandelbult and expected higher ore head grades at Mogalakwena due to the mining sequence – with 4E grades expected to
achieve the previously guided 2.7–2.9 g/t. There is also improved processing infrastructure availability following the completion
of scheduled maintenance and stock counts that will enable us to process the guided full-year production volumes as well as
optimise our processing pipelines.
We remain on track to deliver M&C production within guidance after factoring in the Amandelbult flooding impact,
albeit at the lower end. M&C production from our own operations is expected to be ~2.0 million PGM ounces and POC ~1.0 -
1.2 million PGM ounces. Refined production guidance of 3.0 - 3.4 million PGM ounces remains unchanged.
Cash operating unit cost guidance increased to between R19,000 - R19,500 per PGM ounce as a consequence of the
Amandelbult flooding. Capital expenditure guidance has been reduced to R17.0 - R17.5 billion which is ~R1.0 billion below
previous 2025 guidance. AISC is expected to be within guidance of $970 - $1000 per 3E ounce, reflecting confidence in
delivering our targeted cost savings and step up in production in the second half.
Our strong production profile in the second half should allow us to realise the benefit of higher volumes sold into buoyant
markets. We continue to believe that current price levels remain below the thresholds required to incentivise new production.
Our focus on sustaining capital investment, prudent cost control, and operational consistency from our leading integrated
value chain allows us to capture the upside from a continued recovery of PGM prices.
We have an extensive mineral resource endowment with an integrated asset base of industry leading processing facilities.
Through our pursuit of operational excellence, we seek to maintain our position in the first half of the PGM cost curve and
deliver strong margins and cash flow generation. Through our disciplined capital allocation, we will continue to invest across
our portfolio and market development to ensure superior shareholder returns.
Short-form announcement
This short-form announcement is the responsibility of the directors of the Company. It is only a summary of the information
contained in the Company's interim financial statements for the six months ended 30 June 2025 (Interim Financial Statements)
and does not contain full or complete details. Any investment decision should be based on the Interim Financial Statements
accessible from Monday, 28 July 2025, via the JSE or FCA's National Storage Mechanism links below or the Company's website
at www.valterraplatinum.com.
This short form announcement has not been audited or reviewed by the Company's auditors, however the financial information
included herein has been extracted from the Interim Financial Statements, which have been reviewed by the Group's auditors,
PricewaterhouseCoopers Inc., who expressed an unmodified opinion thereon. The Interim Financial Statements, containing
the interim review opinion, together with additional interim results commentary and performance data can be obtained on the
Company's website: www.valterraplatinum.com
Copies of the Interim Financial Statements may also be requested by contacting Valterra Platinum Investor Relations by email
at theto.maake@valterraplatinum.com and are available for inspection at the Company's registered office at no charge, by
appointment, subject to prevailing restrictions.
JSE link: https://senspdf.jse.co.za/documents/2025/jse/isse/vale/HY25.pdf
FCA National Storage Mechanism link: National Storage Mechanism | FCA
JSE Sponsor:
Merrill Lynch South Africa (Pty) Ltd t/a BofA Securities
For further information, please contact:
Investors:
Theto Maake
platinumIR@valterraplatinum.com
Leroy Mnguni
Leroy.mnguni@valterraplatinum.com
platinumIR@valterraplatinum.com
Marcela Grochowina
marcela.grochowina@valterraplatinum.com
platinumIR@valterraplatinum.com
Media:
Cindy Maneveld
cindy.maneveld.@valterraplatinum.com
Company Secretary:
Fiona Edmundson
Fiona.edmundson@valterraplatinum.com
About Valterra Platinum
Valterra Platinum Limited is one of the world's leading integrated producers of platinum group metals (PGMs) with a primary
listing on the Johannesburg Stock Exchange and a secondary listing on the London Stock Exchange. With a portfolio of world
class, long-life mines and the most efficient processing assets in the industry, the Company responsibly mines, smelts and
refines PGMs and associated co-products from its operations located in South Africa and Zimbabwe. With its integrated value
chain, supported by marketing hubs in London, Singapore and Shanghai, the Company delivers tailored solutions for its
customers. The Company continues to integrate sustainability into everything it does, supports investment in its mining and
processing capabilities and pursues market development activities to grow and commercialise new demand segments. It also
makes a meaningful impact to communities around its operations and will deliver consistent and superior returns to
shareholders. Valterra Platinum is committed to zero harm, capital allocation discipline and delivering on our value-accretive
strategic priorities as a standalone, leading integrated PGM producer, guided by our purpose of unearthing value to better our
world
Cautionary statements
The Company makes no representation or warranty as to the appropriateness, accuracy, completeness or reliability of the
information in this announcement.
This announcement includes forward-looking statements. These forward-looking statements involve known and unknown
risks and uncertainties, many of which are beyond the Company's control and all of which are based on the Company's
directors' (the "Directors") current beliefs and expectations about future events. These forward-looking statements can be
identified by the use of terminology such as "aims", "anticipates", "forecast", "assumes", "believes", "estimates", "expects" or
comparable terminology. They appear in a number of places throughout this announcement and include statements regarding
the intentions, beliefs or current expectations of the Directors or the Company concerning, among other things, the Company's
financial position and strategy.
These forward-looking statements and other statements contained in this announcement regarding matters that are not
historical facts involve predictions. No assurance can be given that such future results will be achieved; actual events or results
may differ materially as a result of risks and uncertainties the Company faces. Such risks, uncertainties and other important
factors include, but are not limited to, health and safety considerations, equipment degradation, regulatory framework, supply
and demand forecasts, price forecasts, business, economic and competitive uncertainties and contingencies as well as other
factors within and beyond the Company's control that may affect its planned strategies and operational initiatives, including
actions taken by counterparties.
By their nature, forward-looking statements are based upon a number of estimates and assumptions that, whilst considered
reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and
contingencies. Known and unknown factors could cause actual results to differ materially from those indicated, expressed or
implied in such forward-looking statements. The forward-looking statements contained in this announcement speak only as
at the date they are made. Subject to the requirements of the UK Listing Rules, the Listing Requirements of the Johannesburg
Stock Exchange, UK Prospectus Regulation, the UK Disclosure Guidance and Transparency Rules, the Market Abuse
Regulation or any other applicable UK, South African, or other laws (as appropriate), the Directors and the Company explicitly
disclaim any intention or obligation or undertaking to publicly release the result of any revisions to any forward-looking
statements made in this announcement that may occur due to any change in the Directors' or the Company's expectations or
to reflect events or circumstances after the date on which this announcement is made.
Nothing in this announcement should be interpreted to mean that future earnings per share of Valterra Platinum will
necessarily match or exceed its historical published earnings per share.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated
under the market abuse regulation (EU) no. 596/2014 as amended by the market abuse (amendment) (UK Mar) Regulations
2019. Upon the publication of this announcement via the regulatory information service, this inside information is now
considered to be in the public domain.
Date: 28-07-2025 08:00:00
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indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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