Valterra Platinum Reports 81% Profit Drop on Sales, Demerger Costs

Valterra Platinum reported an 81% decline in half-year headline earnings to 1.2 billion rand ($67.6 million), primarily due to lower platinum group metals sales and costs related to its recent demerger from Anglo American. The sales volume dropped 25% to 1.48 million ounces, largely impacted by flooding at the Amandelbult mine in February, which also led to a 79% cut in the interim dividend to 2 rand per share. Despite these setbacks, the company completed its transition from Anglo American, establishing an independent board and recruiting necessary skills to replace centralized services. Production at Amandelbult is expected to normalize by 2026, with the Tumela Mine lower section recommissioned ahead of schedule. Valterra also completed a pre-feasibility study for the Sandsloot underground project, emphasizing a strategy focused on higher-grade production rather than volume. The company anticipates operational improvements in the second half of the year, alongside reduced capital expenditure guidance.