Valterra on a tear on platinum rush

Anglo American (AAL) chose a good year to spin of its platinum mining subsidiary. A good year for shareholders, that is. Valterra Platinum (VALT), the renamed Anglo American Platinum, has reported a rebound in profits for 2025 thanks to surging platinum and palladium prices.

The South African company’s shares responded in kind, climbing from under 3,000p in June when it joined the London Stock Exchange, to over 8,000p on the day of the results. Anglo was also selling into the rising market, although offloaded its shares in September before the real run-up in the price.

For the year, Valterra reported a 68 per cent increase in earnings before interest, tax, depreciation and amortisation, to R33bn (£1.55bn or $2.1bn). This was also 8 per cent ahead of analyst forecasts.

The better than expected earnings were down to the average platinum group metal (PGM) basket price rising by a quarter to $1,852 (£1,372) an ounce (oz).

Platinum hit an all-time high of over $2,300 an oz earlier this month on higher investment demand, compared with under $1,000 an oz until May last year.

Production took some of the shine off Valterra’s results, with a 10 per cent drop following flooding at one Valterra mine in February, to 3.2mn oz. The dividend also came down from last year’s total of R71.75 per share, which included a special payout of R59.

The company can afford to be generous – it moved into a new cash position in the year, even after Anglo American took a chunk of its cash in the spin-off.

Chief executive Craig Miller said the company had also sold inventory “into a stronger PGM price environment”, boosting sales volumes beyond what was produced in 2025. Guidance this year is for a similar level of production, while costs will creep up from $987 to $1,050 an oz on an all-in, sustaining basis, allowing the miner to take full advantage of the price run. Buy.

Last IC view: Buy, 3,660p, 28 Jul 2025