Newly independent Valterra Platinum has seen its earnings fall 91% for the first half of 2025.\u00a0<\/p>\n\n\n\n
Valterra Platinum was previously known as Anglo American Platinum and was spun out of its parent company earlier this year.\u00a0<\/p>\n\n\n\n
This spin-off is part a major restructuring at Anglo American as part of its plan to stop a takeover from rival BHP.\u00a0<\/p>\n\n\n\n
Anglo American\u2019s restructuring saw the group unbundle key assets, of which the platinum business is one, to free up capital and management time. <\/p>\n\n\n\n
There are question marks over the future of platinum. The metal, which South Africa produces most globally, is mainly used for catalytic converters in cars.\u00a0<\/p>\n\n\n\n
Despite helping reduce emissions in cars, markets are pushing towards electric vehicles\u2014which do not produce emissions\u2014limiting the need for this resource.\u00a0<\/p>\n\n\n\n
Looking at its performance for the six months ended 30 June 2025, the company saw its headline basic earnings drop from R6.3 billion to R600 million. <\/p>\n\n\n\n
The group\u2019s interim dividend per share was also severely cut from R9.75 to R2.00 per share. <\/p>\n\n\n\n
The group said it was negatively affected by flooding at the Amandelbult mine, which was the main culprit for a 12% cut in output.\u00a0<\/p>\n\n\n\n
The company also incurred costs from its spinoff from Anglo American. After the demerger, Anglo American retained a 19.9% shareholding but plans to exit fully over time.<\/p>\n\n\n\n Despite the weak results, Valterra Platinum CEO Craig Miller said the group should benefit from several operational tailwinds in the year’s second half.<\/p>\n\n\n\n This includes a production recovery at Amandelbult and higher ore head grades at its Mogalakwena mine due to the mining sequence.<\/p>\n\n\n\n Processing infrastructure availability should also be improved following the completion of the scheduled maintenance. <\/p>\n\n\n\n \u201cWe remain on track to deliver metal-in-concentrate production within guidance after factoring in the Amandelbult flooding impact, albeit at the lower end,\u201d said Miller. <\/p>\n\n\n\n That said, the group\u2019s capital expenditure guidance has been reduced to R17.0 billion \u2013 R17.5 billion, which is ~R1.0 billion lower than the previous 2025 guidance.\u00a0<\/p>\n\n\n\n \u201cOur strong production profile in the second half should allow us to realise the benefit of higher volumes sold into buoyant markets,\u201d said Miller. <\/p>\n\n\n\n \u201cOur focus on sustaining capital investment, prudent cost control and operational consistency from our leading integrated value chain allows us to capture the upside from a continued recovery of PGM prices.\u201d <\/p>\n\n\n\n Platinum prices have increased by 55% since the start of the year amid strong industrial demand.<\/p>\n","protected":false},"excerpt":{"rendered":" Valterra Platinum has seen a massive drop in earnings after it went was spun out of its parent company Anglo American. <\/p>\n","protected":false},"author":95,"featured_media":817883,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[2318,22100],"class_list":["post-833180","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-anglo-american","tag-valterra-platinum"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/833180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=833180"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/833180\/revisions"}],"predecessor-version":[{"id":833188,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/833180\/revisions\/833188"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/817883"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=833180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=833180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=833180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Key metrics<\/td> H1 2025<\/strong><\/td> H1 2024<\/strong><\/td> %<\/td><\/tr><\/thead> Rand basket price per PGM ounce sold<\/td> R27,631<\/td> R26,802<\/td> 3%<\/td><\/tr> Revenue<\/td> 42.3 billion<\/td> 52.2 billion<\/td> (19%)<\/td><\/tr> Basic earnings <\/td> R0.6 billion<\/td> R6.3 billion<\/td> (91%)<\/td><\/tr> Basic earnings per share (R\/share)<\/td> R2.23<\/td> R24.02<\/td> (91%)<\/td><\/tr> Headline earnings (R billion)<\/td> R1.2 billion<\/td> R6.5 billion<\/td> (81%)<\/td><\/tr> Headline earnings per share (R\/share)<\/td> R4.73<\/td> R24.56<\/td> (81%)<\/td><\/tr> Dividend per share (R\/share)<\/td> R2.00<\/td> R9.75<\/td> (79%)<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n Still optimistic <\/h2>\n\n\n\n