Valterra Platinum (VAL) H2 2024 earnings summary

Executive summary

• Achieved resilient 2024 results with robust operational and financial performance despite weaker PGM prices and challenging macro conditions.

• Completed major restructuring, reducing workforce and offboarding contractors, supporting lower costs and exceeding cost savings targets.

• Advanced demerger from Anglo American, establishing a new independent capital structure and leadership team, with listings on JSE and LSE planned.

• Maintained focus on safety, with a tragic loss at Amandelbult but reinforced commitment to zero harm.

Financial highlights

• Revenue of ZAR 109 billion, down from ZAR 125 billion in 2023 due to lower PGM prices.

• EBITDA of ZAR 20 billion, with a mining margin of 27%.

• Net cash position of ZAR 18 billion at year-end, including customer prepayment.

• All-in sustaining cost of $986/3E oz, 13% lower than 2023 and below target.

• Total 2024 dividend of ZAR 19 billion, including ZAR 16.5 billion in dividends and a 40% payout ratio.

Outlook and guidance

• 2025 priorities: safe production, operational excellence, and cost savings of ZAR 4 billion.

• PGM metal-in-concentrate guidance: 3.0–3.4 Moz; own-mined 2.1–2.3 Moz.

• Cash operating unit cost expected between ZAR 17,500–18,500/PGM oz; all-in sustaining cost $970–$1,000/3E oz.

• Capital expenditure for 2025 to remain in line with 2024 at ZAR 17.8–18.5 billion.

• Leverage ratio expected to remain below 1x through the cycle.