Valters Platinum reported three work related fatalities in the six months to June 30, 2026.
Image: File
Valterra Platinum reported a standout financial performance in the six months to June 30, but there were three work-related fatalities over the period.
The group declared a R15.1 billion dividend after it increased earnings before interest, tax, depreciation, and amortisation (EBITDA) fourfold.
However, during the period, three lives were lost in work-related incidents: Michael Ramodike, Thato Makuwa, and Mongezi Mbusi. “We are devastated by these losses,” said CEO Craig Miller.
A base interim dividend of R32.50 per share, or R8.6bn, was declared, in line with the 40% of headline earnings dividend policy, and an additional dividend of R6.5bn or R24.50 per share would be paid out.
The total R57 per share payout equates to a payout of 70% of headline earnings. It marks the 18th consecutive dividend declaration since reinstatement in 2017.
Miller said company-wide safety stoppages were implemented to refocus teams on safety behaviours following the fatalities. Leadership accountability, engagement, and visibility on operational risks across the operations were also subsequently strengthened.
He said the strong financial results were a consequence of solid metal-in-concentrate (M&C) production increasing by 4% to 1.5 million PGM ounces, and sales volumes rising by 18% to 1.7 million PGM ounces, in line with higher refined production.
In addition, the PGM basket price increased by 85% to $2,801 per PGM ounce and by 66% to R45,993 per PGM ounce, marking its strongest six-month average level since the first half of 2021.
The average realised platinum price was 106% higher than in the first half of 2023, with rhodium and ruthenium 94% and 167% higher, respectively.
The four-fold increase in EBITDA to R33.4bn represented the third highest interim profits in the group’s history. Headline earnings per share was 1633% higher at R82.02 per share.
The unit cost of R20,677 per PGM ounce was flat on the prior year. All-in sustaining costs (AISC) of $996 per 3E oz sold was down by 21% over the prior period. Net cash stood at R24bn, and the balance sheet was strong with liquidity headroom of R55bn.
“We continue to advance our world-class growth projects, while our renewed operating philosophy is driving strong operational efficiencies across the portfolio,” said Miller.
He said they made good progress with the Sandsloot Underground project at Mogalakwena, where the feasibility study was on track to reach an investment decision during the first half of 2027.
“Our focus on operational optimisation, cost discipline, and value creation has led to an 18% increase in chrome yields at Amandelbult, and a 15% year-on-year improvement in mass pull and improved concentrator recoveries at the Mogalakwena North Concentrator.”
“We have reaffirmed our 2026 M&C and refined production guidance. The business is well positioned to continue this positive delivery momentum through the second half of the year,” said Miller.
He said they are focused on ensuring the assets operate sustainably in the lower half of the industry cost curve.
M&C operational performance in the first half of 2023 improved over the prior period, as the first half of 2025 was characterised by inclement weather-related impacts across the portfolio, the most severe being the flooding event at Amandelbult.
Own-mined production increased by 9% or 85,700 ounces to 1,011,800 ounces, mainly due to Amandelbult whose operational performance significantly improved.
This was partially offset by weaker performances at Mogalakwena, Mototolo, and Unki. POC volumes declined by 6% primarily due to reduced ounces from third-party producers.
Refined PGM production (excluding tolling) increased by 25% to 1,741,900 ounces, due to higher M&C production, inventory optimisation, and the proactive re-phasing of processing maintenance and annual stock counts into the third quarter, which allows cost savings and a more evenly distributed refined production throughout the year.
The group spent R6.3bn in the first half to maintain the integrity of its assets while advancing value-accretive projects, said Miller.
BUSINESS REPORT