Valterra Platinum (VAL) H1 2026 earnings summary

Executive summary

• Achieved record interim results in H1 2026, with EBITDA quadrupling to R33.4bn and headline earnings of R21.5bn, driven by a 66% rise in PGM basket price, higher sales volumes, and operational recovery post-floods.

• Completed separation from Anglo American, establishing independent operations and advancing key growth projects, notably Sandsloot underground.

• Maintained industry-leading safety focus, though three to four fatalities occurred, prompting intensified safety interventions and third-party reviews.

• Advanced sustainability initiatives, commissioning major renewable energy projects and water resilience programs, contributing to lower emissions and costs.

Financial highlights

• Revenue rose 93% year-over-year to R82bn, with EBITDA up fourfold to R33.4bn and a 50% mining EBITDA margin.

• Headline earnings reached R21.5bn (R82/share), free cash flow R26bn, and net cash improved to R24bn at June-end.

• Interim dividend of R15bn (R57/share), representing 70% of headline earnings, was declared.

• All-in sustaining cost dropped 21% to US$996/3E oz sold; unit cost guidance maintained at R19,000–20,000/PGM oz.

• Insurance proceeds of R3.9bn received post-period for Amandelbult flood.

Outlook and guidance

• Full-year production and cost guidance reaffirmed: 3.0–3.4Moz M&C/refined PGMs, unit cost R19,000–20,000/PGM oz, AISC US$1,050/3E oz, and capex R17–18bn.

• H2 2026 expected to benefit from higher production, cost efficiencies, and catch-up in capex.

• Medium-term CapEx guidance for Sandsloot underground remains R1.5–2.5bn annually.

• Market outlook remains positive, with sustained PGM market deficits and robust demand from industrial and automotive sectors.

• Dividend policy remains at 40% of headline earnings, with excess cash returned as additional dividends.