Valterra Platinum (VAL) H2 2024 earnings summary

Executive summary

• Achieved refined PGM production of 3.9 million ounces, a 3% increase year-over-year, despite a 7% decline in total PGM production to 3.6 million ounces due to operational changes and safety stoppages.

• Delivered robust operational and financial performance in 2024 despite lower PGM prices and challenging macro conditions.

• Revenue declined 13% to ZAR 109 billion, mainly due to a 13% drop in the rand PGM basket price, partially offset by a 4% increase in sales volumes.

• Declared cumulative final and additional cash dividends totaling ZAR 19 billion, translating to a total shareholder return of ZAR 19 billion.

• Completed Section 189A restructuring, reducing approximately 3,700 roles and over 600 contracting companies.

Financial highlights

• All-in sustaining cost decreased 13% to $986 per 3E ounce, well below the $1,050 target.

• EBITDA reached ZAR 20 billion, with a robust mining margin of 27%.

• Net cash position at year-end was ZAR 18 billion, including customer prepayment.

• Cash from operations was ZAR 30 billion; sustaining capital expenditure was ZAR 15 billion, resulting in ZAR 15 billion of sustaining free cash flow.

• Capital expenditure totaled ZAR 18.5 billion, down 9% from 2023.

Outlook and guidance

• 2025 operational priorities focus on safe production, operational excellence, and progressing projects like Mogalakwena Underground and Der Brochen ramp-up.

• Planned 2025 cash operating unit cost between ZAR 17,500 and ZAR 18,500 per PGM ounce; all-in sustaining cost between $970 and $1,000 per 3E ounce.

• Refined PGM production guidance for 2025: 3.0–3.4 million ounces.

• Total capital expenditure in 2025 expected to remain in line with 2024 at ZAR 17.8–18.5 billion.

• Demerger from Anglo American on track for completion by June 2025, with listings on JSE and LSE.