Valterra Platinum's share price rises sharply despite forecasted earnings plunge
Mining
Workers at Valterra Platinum’s Dishaba mine in Rustenburg. The group has forecasted signifcantly lower earnings for the six months to June 30, due in part to demerger costs and production at Amandelbult that was impacted by flooding in February.
Image: Supplied
Valterra Platinum, formerly Anglo American Platinum, directors said lower platinum group metal (PGM) production and demerger costs were the reasons for their expectation that headline earnings a share (HEPS) will decrease between 76% and 88% for the six months to June 30.
Despite the sharply lower earnings forecast, Valterra’s share price surged 7.24% to R898.20 on Friday afternoon, bringing its gain in 12 months to over 47%. The increase was in line with a sharp 4.28% increase in the JSE Precious Metals & Mining Index at the same time. The share’s gain might also be reflecting the basket price increase of over 30% for PGMs, year-to-date.
The group, which completed its demerger from Anglo American only this month, said in its first independent trading statement that HEPS would likely be between 305 cents and 590 cents a share, when compared with 2 456 cents a share in the prior period.
"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 recommissioned in June 2025 and remains on track to be at steady state in the third quarter,” said Valterra Platinum CEO Craig Miller.
The full interim results, which are expected to be released on July 28, 2025, will likely report headline earnings at between R0.8 billion and R1.6bn, compared with R6.5 bn in the prior period.
Basic earnings and earnings per share (EPS) are expected to decrease between 86% and 98% compared to the prior period.
The directors said the decrease in earnings was mainly due to a 25% decline in PGM sales volumes - excluding sales from trading - as well as R1.4 billion in one-off demerger-related costs.
“We have successfully completed the demerger from Anglo American and officially started on our new independent journey as Valterra Platinum," said Miller.
Amandelbult is expected to deliver between 450 000 and 480 000 ounces in 2025, down from 580 000 ounces in 2024. Factoring in the Amandelbult impact, total M&C (metal-in-concentrate) production guidance for the year is unchanged, albeit at the lower end. Refined production guidance of 3 - 3.4 million PGM ounces remains unchanged,” he said.
The lower sales volumes reflected less refined 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.
Own mines production for the first half, excluding Amandelbult, was in line with the prior period.
The earnings decline was partially offset by R2.1bn of cost savings in the period.
Basic earnings would be further impacted by a R0.9bn asset scrapping, mainly relating to the design and engineering work for the SO2 abatement plant at Mortimer Smelter, following the decision to place Mortimer Smelter on care and maintenance. Taxation and royalties would fall in line with lower profits.
An operational update showed that own-managed mines PGM production during the six months decreased by 15% to 464 100 ounces, primarily due to lower production from Amandelbult, following the floods in February 2025.
However, all mining operations at Amandelbult had resumed and full-year production was expected to be between 450 000 and 480 000 ounces, compared with 580 000 ounces in 2024.
Purchase of PGM concentrate increased by 2% to 304 900 ounces, due to higher third-party receipts, as well as higher production from the Modikwa joint operation.
The report showed that PGM sales volumes (from production, excluding sales from trading) decreased by 22% to 981 500 ounces, in line with lower refined production. In the prior period, sales were further supported by a higher drawdown of finished goods inventory. On a like-for-like basis, PGM sales decreased by 17%.
Excluding the impact at Amandelbult, production rose by 1% due to higher production from Mogalakwena, Mototolo and Modikwa. This performance underscored the effectiveness of the group’s operational stability and improvement activities and the robustness of its asset base, the directors said.
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