Valterra Platinum (VAL) H1 2025 earnings summary

Executive summary

• Completed demerger from Anglo American, established a new board and brand, and achieved a secondary London listing.

• Maintained resilient operations and safety focus despite severe flooding at Amandelbult, with recovery underway and some sites fatality-free for extended periods.

• Achieved IRMA/ERMA certification at all mines, a global first in precious metals mining.

• Delivered R2.1 billion in H1 cost savings, on track for R4 billion full-year target, and declared an interim dividend of R2.00/share (40% payout).

• Operational excellence and growth projects advanced, including Sandsloot UG4 prefeasibility.

Financial highlights

• Revenue for H1 2025 was R42.3 billion, down 19% year-on-year due to a 25% decline in PGM sales volumes.

• Adjusted EBITDA was R6.6 billion (16% margin), down 46% year-on-year; headline earnings fell 81% to R1.2 billion.

• Net debt at period end was R4.9–5 billion; net debt/EBITDA at 0.3x, well below target; liquidity headroom of R27 billion.

• Interim dividend of R2.00/share (R0.5 billion), maintaining a 40% payout policy.

• Cash operating unit cost (ex-flood) was R17,952/PGM oz; AISC (ex-flood) at US$962/3E oz.

Outlook and guidance

• H2 2025 expected to benefit from higher PGM prices, production recovery at Amandelbult, and full-year cost savings.

• Full-year M&C PGM production guidance reaffirmed at 3.0–3.2 Moz, with refined production at 3.0–3.4 Moz.

• Unit cost guidance revised to R19,000–19,500/PGM oz; AISC guidance for 2025 at US$970–1,000/3E oz; capex guidance reduced to R17.0–17.5 billion.

• Insurance claim for Amandelbult flood ongoing, with total claim expected at R4–5 billion.

• Medium-term AISC target set at <$950/3E oz and EBITDA margin of at least 25%.