South Africa’s Valterra Platinum said on Friday it expects its annual profit to rise by as much as 106%, on the back of a record rally in platinum prices and operational cost reductions.
Valterra said that, under its updated outlook, it expects headline earnings between 15.6 billion rand and 17.3 billion rand ($965.71 million and $1.07 billion) in the year ended December 31, up from 8.4 billion rand the previous year.
The earnings for the period were boosted by a 26% increase in prices for the platinum group metals (PGM) basket as well as 5 billion rand worth of operational cost reductions, which more than offset the impact of inflation and 1.7 billion rand in one-off demerger-related costs, it said in a trading statement.
Valterra, the world’s top platinum producer by value, was demerged from its restructuring former parent company Anglo American last May.
Spot platinum prices hit a record $2,684.43 an ounce earlier on Friday, up 27% year-to-date.
The price of platinum, which is used to make catalytic converters that curb vehicle emissions, is being driven up by the European Union’s U-turn on a 2035 combustion-engine ban, tight supply and rising investment demand for precious metals.
Valterra will publish its results for the 2025 financial year on February 25.
($1 = 16.1540 rand)
(By Nelson Banya; Editing by Joe Bavier)