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The country’s third-biggest platinum group metals (PGMs) producer, Unki Mine’s parent company, Valterra Platinum, has received a strong vote of confidence from S&P Global Ratings, which assigned the newly independent miner an investment-grade issuer credit rating of “BBB-/A-3” with a Stable Outlook, Mining Zimbabwe can report.
By Rudairo Mapuranga
The rating, announced on Friday, reflects Valterra’s position as a top-tier global PGM producer with moderate leverage, a competitive cost profile, and expectations of robust cash flow generation. While the bulk of Valterra’s operations are in South Africa, its Unki Mine in Zimbabwe contributes meaningfully to the portfolio.
According to the S&P report, Valterra’s Unki operation, located on Zimbabwe’s Great Dyke, accounts for approximately 5% of the group’s revenue and EBITDA, and 7% of its refined PGM production. With a mine life of about 18 years, Unki is noted as a stable contributor. The report acknowledges the operational challenges inherent in Zimbabwe, including foreign currency and regulatory risks, but states that “Valterra has been operating effectively in Zimbabwe for many years.”
S&P highlighted several key strengths supporting the rating:
Scale & Integration: Valterra is one of the world’s top two PGM producers and the leading platinum producer, with fully integrated smelting and refining facilities.
Strong Financial Metrics: The company is expected to maintain conservative leverage, with S&P Global Ratings-adjusted debt to EBITDA well below 1.5x and funds from operations (FFO) to debt above 60%. Notably, Valterra is projected to achieve a net cash position from 2026.
Cost Competitiveness: Operations are in the lower half of the industry cost curve, supported by the large, mechanised Mogalakwena Mine and ongoing efficiency programmes.
Resilient Outlook: A recent recovery in PGM prices, driven by sustained hybrid vehicle demand and tightening emissions standards, is expected to boost earnings through 2027.
Risks and the Stable Outlook
The rating incorporates risks such as exposure to volatile PGM prices and currencies, and the evolving regulatory landscape in South Africa. The Stable Outlook reflects S&P’s expectation that Valterra will maintain its disciplined financial policy and strong credit metrics over the next few years, even under varying price scenarios.
The rating is not constrained by South Africa’s sovereign rating (“BB/Positive/B”), as S&P assessed that Valterra, a foreign-currency-earning exporter, maintains sufficient liquidity to withstand a hypothetical sovereign stress scenario.
The assessment follows Valterra’s successful demerger from Anglo American PLC in May 2025 and the establishment of a new, standalone capital structure. The “BBB-” rating provides Valterra Platinum, and by extension its Unki Mine, with a solid foundation for future growth and access to capital markets.
