Valterra Platinum, a platinum group metals (PGM) miner spun out of Anglo American, announced an extraordinary surge in its half-year profit, soaring by almost 1,400% to an estimated R22.2 billion. This represents a significant increase from R1.2 billion in the comparative half of the previous year. The substantial profit growth was primarily attributed to an 18% rise in PGM sales volumes and significantly higher PGM prices. The PGM dollar basket price jumped 85% year-on-year to $2,801 per ounce, which translated to a 66% increase in the rand basket price to R45,993 per ounce.
Despite the impressive interim results, Valterra's share price saw a 2% decline on Friday morning, mirroring a sector-wide downturn that also affected Northam (-3%) and Implats (-2%). Year-to-date, Valterra's shares have fallen 27%, though they remain 26% higher than a year ago. Production guidance for 2026 remains unchanged at between 3 million and 3.4 million ounces, with cash operating unit cost guidance also intact at R19,000 to R20,000 per PGM ounce, though costs are expected at the upper end of this range due to potential inflationary impacts from the Middle East conflict.
CEO Craig Miller highlighted improving operational performance, particularly at Amandelbult, which had faced flooding disruptions in 2025, contributing to a 13% year-on-year increase in own-mined metal-in-concentrate output in the second quarter of 2026. Miller expressed confidence in the company's positioning for a strong second half of 2026. While PGM prices and equities have retreated since January, they still remain at levels not seen in over a decade. Some analysts view the recent PGM price pullback as a buying opportunity, emphasizing that the shift is in sentiment rather than long-term fundamentals, with PGM supply remaining tight despite softened demand.
Previously in February 2026, Valterra declared a gross final dividend of R6.2 billion or R23.00 per share for the year ended December 31, 2025. This dividend payout followed exceeding production and cost-saving guidance and was accompanied by a capital expenditure cut. The company's full-year 2025 results reported an EPS of R58.72, revenue of R116.3 billion (up 6.7%), and net income of R15.4 billion (up 118%).
