Higher sales volumes, prices contribute to significant earnings increases for Valterra

In a trading statement, the company reports that headline earnings are expected to be between R18.5-billion and R22.2-billion, compared with the R1.2-billon reported for the six months to June 30, 2025. HEPS are expected to be between R70.47 and R84.56, compared with the HEPS of R4.73 reported for the first half of the 2025 financial year.

Basic earnings and earnings per share (EPS) for the period are expected to increase by more than 3 076%.

Basic earnings are expected to be between R18.6-billion and R22.3-billion, compared with R600-million in the prior comparable period, while EPS are expected to be between R70.85 and R84.94, compared with R2.23 in the prior period.

Valterra adds that earnings increased during the period, supported by a combination of an 18% increase in PGM sales volumes and significantly stronger PGM prices.

The company notes that the PGM dollar basket price increased by 85% to $2 801/oz, which translated into a 66% increase in the PGM rand basket price to R45 993/oz.

The uplift in volumes was driven by higher metal-in-concentrate output following the flooding-related disruptions at Amandelbult in the first half of 2025.

In addition, the proactive rescheduling of planned maintenance activities and annual stock counts to the third quarter of this year facilitated a more even distribution of refined production throughout the year, further supporting sales volumes.

PRODUCTION

Meanwhile, in its production report for the second quarter ended June 30, Valterra reports that total PGM production increased by 1% to 775 400 oz compared to the second quarter of 2025, primarily driven by a 13% increase in own-mined production, offset by a 18% decrease in purchase-of-concentrate (PoC) volumes.

Own-mined production increased by 13% to 525 700 oz compared with the prior period, mainly owing to higher output from the Amandelbult mine, in Limpopo, partially offset by lower production at Mogalakwena, Mototolo and Unki.

Mogalakwena’s PGM production decreased by 2% to 228 900 oz, mainly owing to lower milling throughput following the expiry of the Baobab concentrator lease at the end of 2025.

Ore tonnes mined increased in line with the pit sequence, supporting an improvement in built-up head grade.

Consistent with its value-over-volume approach, Valterra says it continued to optimise feed grades through the strategic blending of low-grade ore stockpiles.

Amandelbult PGM production increased by 116% to 151 300 oz, reflecting the recovery from the significant flooding experienced in 2025.

As the operation only returned to steady-state production during the third quarter of 2025, the company explains that the prior period remained significantly impacted by the 2025 flooding.

Since then, Valterra says improvements in both mining and concentrator performance, together with higher grades have supported the increase in production.

Mototolo’s PGM production decreased by 13% to 58 700 oz, reflecting the impact of a safety stoppage of about 14 days following the fatal incident at Borwa shaft in March and a gradual ramp-up after the lifting of the regulatory stoppage.

Valterra says the operation has since returned to steady-state production, with operational performance normalising, and a step-up in output expected in the second half of the year.

Additionally, Unki’s PGM production declined by 4% to 51 800 oz, driven by the anticipated transition into lower-grade areas of the orebody, while Modikwa’s PGM production (50% own-mined) decreased by 9% to 35 000 oz, primarily owing to lower milling volumes and a decline in built-up head grade.

PoC volumes decreased by 18% to 249 700 oz, reflecting reduced volumes from various third-party producers.

Valterra adds that refined PGM production (excluding tolling) increased by 1% to 963 500 oz, in line with the increase in metal-in-concentrate production.

The company says refined production continued to exceed metal-in-concentrate production, reflecting the ongoing optimisation of work-in-progress inventory across the processing value chain.

Valterra also reports that nickel production was broadly in line with the prior period at 6 425 t.

Copper production increased by 18% to 4 209 t, driven by a timing difference for copper tonnes returned from tolling arrangements in the prior period.

Total chrome production for the quarter increased by 78% to 294 000 t, primarily driven by the return of Amandelbult to stable operating levels following the 2025 flooding and improved chrome yields, partially offset by lower chrome production at Mototolo.

PGM sales volumes decreased by 4% to 945 600 oz, primarily reflecting timing differences between production and sales during the period.

The average realised basket price increased strongly to R44 708/oz, or $2 710/oz, representing a year-on-year increase of 63% in rand terms and 80% in dollar terms.

While prices moderated quarter-on-quarter as investor demand for precious metals eased amid changing interest rate expectations, all PGM prices remained substantially above prior-year levels, supported by favourable underlying supply and demand fundamentals.

SAFETY

Valterra notes that it recorded two work-related fatalities during the second quarter, adding that these incidents are a “stark reminder” that safety must remain the company’s highest priority.

In response, the company says it has reinforced its safety interventions and intensified its focus on achieving a step change in safety performance across the business.

Valterra says it has aligned leadership on key safety priorities, implemented operation-wide safety stoppages for all employees and business partners, accelerated its behavioural safety programme to strengthen the company’s zero-harm culture and enhanced controls around critical risks.

While investigations remain ongoing, Valterra says it is embedding the initial lessons learned across the business to strengthen risk management, improve safety behaviours and leadership accountability and ensure that everyone returns home safely every day.

The company’s total recordable injury frequency rate at own operations increased by 10% to 1.41 per million hours worked, reflecting a higher number of recorded injuries and increased working shifts as Amandelbult returned to more normalised operating levels compared with the second quarter of 2025.

“The safety of everyone at Valterra Platinum remains our highest priority and it is therefore with deep regret that we lost two colleagues in separate work-related incidents during the quarter,” says CEO Craig Miller.

“On behalf of the entire Valterra Platinum team, we convey our deepest condolences to their families, friends and colleagues,” he adds.

GUIDANCE

Valterra says production guidance for the full year remains unchanged, with metal-in-concentrate and refined production expected to be between 3-million and 3.4-million ounces.

Cash operating unit cost guidance remains intact at R19 000/oz to R20 000/oz, although costs are anticipated to be at the upper end of the guidance range. The targeted all-in sustaining cost of about $1 050/oz of platinum, palladium and rhodium is also unchanged.

The company says it continues to closely monitor the potential inflationary impact of the Middle East conflict on input costs.

“Looking ahead to the remainder of the year, our priorities are clear. We remain focused on embedding a culture of zero harm, while continuing to advance operational excellence as we unlock further efficiencies across the portfolio.

“We are well positioned for a strong second half, supported by improving operational performance and increased production flexibility. We remain committed to delivering within our 2026 guidance,” says Miller.