28th Jul 2025 08:09
(Alliance News) - Valterra Platinum Ltd on Monday reported a drop in interim profit due in part to one-off costs of its demerger from parent Anglo American PLC, but also due sharply lower production.
The Rosebank, Johannesburg-based company, formerly called Anglo American Platinum Ltd, was spun off from Anglo American in May.
"This year marked a pivotal milestone in our corporate journey," Chief Executive Officer Craig Miller said.
For the first half of 2025, pretax profit plunged 87% to ZAR1.08 billion from ZAR8.35 billion a year earlier.
Gross revenue was ZAR42.35 billion, down 19% from ZAR52.22 billion, as a slump in production more than offset a rise in platinum group metal prices.
Own-mined PGM production declined 12% to 926,100 ounces, primarily due to the flooding at Amandelbult in Limpopo in February, following heavy rains.
Total PGM production dropped 17% to 1.46 million ounces from 1.75 million.
Refined PGM production, excluding tolling, fell 22% to 1.39 million ounces from 1.78 million, as a result of lower total production.
PGM sales volume declined by a quarter to 1.48 million ounces from 1.97 million.
Adjusted earnings before interest, tax, depreciation and amortisation nearly halved, falling 46% to ZAR6.6 billion from ZAR12.3 billion, owing to the 25% decline in PGM sales volume, as well as ZAR1.4 billion in one-off demerger costs.
The realised dollar PGM basket price rose 5% on year to an average of USD1,517 per ounce, marking its strongest level since first half of 2023.
Valterra declared an interim dividend of ZAR2.00 each, down 79% from ZAR9.75.
Basic earnings per share plummeted 91% to 223 rand cents from 2,402 cents a year before, while headline EPS was 81% lower at 473 cents from 2,456 cents.
Looking ahead, Valterra said it remains on track to deliver production within guidance.
Annual PGM production from own mines is projected at around 2.0 million ounces for 2025, down from 2.19 million ounces in 2024.
Refined production is estimated at between 3.0 million ounces and 3.4 million ounces in 2025, down from 3.92 million ounces in 2024.
Valterra shares were up 2.2% to 3,730.00 pence in London early Monday.
By Artwell Dlamini, Alliance News senior reporter South Africa
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