VALTERRA Platinum said production at its Amandelbult mine in South Africa’s Limpopo province had recovered during the third quarter following heavy flooding earlier this year.
Commenting in a third quarter update, the overall performance posted by Valterra was of strength. Platinum group metal (PGM) concentrate output was on beam for between three to 3.2 million oz for the year, while a bullish refined production forecast of some 3.4 million oz – a function of improvements in processing of metal-in-inventory – represented the upper end of Valterra’s guidance range.
These production and refining advances come amid a recovery in prices. At $1,916/oz, the average selling price of Valterra’s basket of metals for the third quarter is 30% higher year-on-year, with incremental improvements due to filter through in the fourth quarter.
Craig Miller, CEO of Valterra said recovery efforts at Amandelbult had “progressed well … with Tumela Lower achieving steady-state production volumes ahead of schedule”.
Tumela was hardest hit by torrential rain in the first quarter. The Dishaba Mine and Tumela Upper restarted in April and Tumela lower was recommissioned in June 2025.
The outcome for Amandelbult is concentrate production of between 450,000 to 480,000 PGM oz, as guided. At the current clip, the likelihood was for mid-range of this guidance by the year-end point, said UBS in a note.
Flagship mine Mogalakwena increased concentrate output 4% in the quarter but it processed lower grade material on average. This is expected to improve in the fourth quarter, the company said.
Shares in Valterra were just over a percent higher in midday trade in Johannesburg taking gains for the year to 73% – a consequence largely of higher prices.
By far the biggest contributor to Valterra’s average third quarter basket price was platinum, up 46% year-on-year. The price received for rhodium was 40% higher while ruthenium, a specialist metal increasingly driven by data centre demand, gained 132%.
Miller told Miningmx earlier this month PGM price gains were sustainable, although he warned of volatility. “You would expect that,” he said. “But if you come back to the fundamentals in terms of where PGMs are used, and the outlook for those metals, then it does support higher prices from where we were,” he added.
“What I don’t think you’re seeing is frothiness.
“I think there’s no doubt that there has been some sort of pull of PGM prices as a result of what you’ve seen in gold and the price of gold. But I don’t think it’s frothiness by any stretch of the imagination.”
Valterra said previously it expected to be net debt neutral by year-end after sliding into net debt of R4.9bn as of 30 June. In addition to higher prices, the lionshare of a R4bn to R5bn insurance claim related to the flooding at Amandelbult is due be paid out this year. Post deductibles, this will be R3.6bn to R4.2bn coming into earnings.