Valterra Platinum (VAL) CMD 2025 summary

Strategic direction and business transformation

• Transitioning to an independent, dual-listed company with a new board and corporate identity, aiming to complete the demerger and secondary LSE listing by early June 2025, rebranding as Valterra Platinum.

• Focused on operational excellence, cost discipline, and maintaining a leading cost curve position across all assets, leveraging a world-class PGM resource endowment for long-term value creation.

• No current plans for M&A; capital will be allocated to internal growth, optimization of existing assets, and value-accretive projects.

• Enhanced governance, streamlined executive structure, and strengthened technical capabilities to support agility and accountability.

• Sustainability is central, with integrated targets for decarbonization, community development, and ethical value chains.

Financial guidance and capital allocation

• Achieved ZAR 12 billion in cost savings in 2024, targeting an additional ZAR 4 billion in 2025.

• All-in sustaining cost achieved at $986/3E oz in 2024, with a 2025–2027 target of $970–$1,000/3E oz and a medium-term goal of $950/3E oz.

• CapEx guidance stable, with ZAR 17.8–18.5bn in 2025, rising to ZAR 19.0–20.1bn by 2027, focused on value-accretive projects and asset integrity.

• Committed to a base dividend payout of 40% of headline earnings, with a base dividend of R3/share and an additional R59/share cash dividend in April 2025; net debt/EBITDA targeted below 1x.

• ZAR 16.5 billion cash dividend declared, with ZAR 1.1 billion net cash retained post-dividend; pro-forma net debt post-demerger expected at ~ZAR 10.8bn.

Asset portfolio and operational initiatives

• Mogalakwena remains the flagship asset, with over 80 years of reserves and phased underground development to enhance long-term value; feasibility study for underground phase one to complete by 2027.

• Operational excellence initiatives at Mogalakwena and other assets are driving cost reductions and improved margins.

• Mototolo’s Der Brochen project is ramping up to replace declining shafts, with chrome plant now fully contributing to revenue.

• Amandelbult’s life extension studies underway, focusing on sustaining high-margin production and leveraging its unique prill split.

• Processing division is fully integrated, with industry-leading smelting and refining capacity, and a mass pull strategy to improve recoveries and sustainability.