Valterra Platinum (VAL) H1 2025 earnings summary

Executive summary

• Completed demerger from Anglo American, established a new brand and board, and achieved a secondary London listing, transitioning most services in-house.

• Maintained resilient operational and financial performance despite severe flooding at Amandelbult, which led to a 45% drop in its production; recovery underway with full ramp-up expected in H2/Q3 2025.

• Achieved R2.1 billion in cost savings in H1, on track for R4 billion full-year target; operational excellence and cost-saving programs continue.

• Interim dividend of R2.00/share (R500 million) declared, maintaining a 40% payout of headline earnings.

• Safety remains a top priority, with one or two fatalities reported and TRIFR improved by 12% to 1.46.

Financial highlights

• Revenue for H1 2025 was R42–42.3 billion, down 19% year-on-year due to a 25% decline in PGM sales volumes.

• Adjusted EBITDA was R6.6–7 billion (16–22% margin), down 46% year-on-year; headline earnings dropped 81% to R1.2 billion (R4.73/share).

• Net debt at period end was R4.9–5 billion; net debt to EBITDA at 0.3x, well below the 1x target.

• Interim dividend of R2/share (R500 million), 40% payout of headline earnings.

• R2.1 billion in cost savings delivered in H1; on track for R4 billion full-year target.

Outlook and guidance

• H2 earnings expected to benefit from higher PGM prices, increased production, and insurance proceeds; Amandelbult recovery underway.

• Full-year M&C PGM production guidance reaffirmed at ~2.0 Moz own-mine and 1.0–1.2 Moz POC, at the lower end due to flooding; refined production guidance unchanged at 3.0–3.4 Moz.

• Cash operating unit cost guidance revised to R19,000–19,500/PGM oz; AISC expected at US$970–1,000/3E oz for 2025; medium-term target below $950.

• CapEx guidance reduced to R17–17.5 billion for 2025, about R1 billion lower than previous guidance.

• Insurance claim for Amandelbult flood ongoing; interim payment of R1.4 billion received, total claim expected at R4–5 billion.