Valterra Platinum (VAL) H1 2024 earnings summary

Executive summary

• Delivered resilient H1 2024 performance amid challenging PGM prices, with operational and cost-saving initiatives supporting results.

• Progressing with demerger from Anglo American, aiming for a successful, independent future by end of 2025.

• Safety remains a top priority, with fatalities at Dishaba and Amandelbult mines prompting renewed focus and retraining.

• Interim dividend of ZAR 2.6 billion (ZAR 9.75/share), representing 40% of headline earnings.

• Net cash position at period end was ZAR 14.5 billion, with liquidity headroom of ZAR 37.4 billion.

Financial highlights

• Revenue of ZAR 52.2 billion, down 19% year-over-year due to a 24% drop in PGM basket price, partially offset by higher sales volumes.

• EBITDA of ZAR 12.3 billion, mining margin at 28%, and headline earnings of ZAR 6.5 billion.

• All-in sustaining cost reduced to $957/3E oz (from $1,185/3E oz in H1 2023), well below the $1,050 target.

• Cash operating unit cost at ZAR 18,280 per PGM ounce, 1% higher year-over-year.

• Cost of sales decreased by 24% to ZAR 40.9 billion.

Outlook and guidance

• Full-year cost and capital savings program on track, with ZAR 4.7 billion realized in H1 and full implementation expected by year-end.

• 2024 cash operating unit cost guidance of ZAR 16,500–17,500 per PGM ounce, with expectations to maintain this level sustainably.

• Production guidance reaffirmed at 3.3–3.7 Moz despite operational incidents.

• Capital expenditure for 2024 expected to remain within guidance of up to ZAR 19.5 billion.

• Demerger from Anglo American targeted by end of 2025, aiming for a focused, independent PGM leader.