Unki Mines‘ parent company, Valterra Platinum, has revealed that it is owed $100 million in 2025 export proceeds by Zimbabwe’s government, even as the mining giant posted record earnings and dividend payouts for the year, Mining Zimbabwe can report.
By Rudairo Mapuranga
The company confirmed on Wednesday that the government has started making some payments to clear the arrears, though significant amounts remain outstanding.
Zimbabwe requires all exporters to retain only 70% of their proceeds in foreign currency, with the balance forcibly converted to local currency at official rates.
According to Zimbabwe’s mining chamber, Valterra and its platinum industry peers have faced persistent delayed payments under the retention rule, with the government citing cash flow constraints.
Valterra’s Zimbabwean asset, Unki Mine in Shurugwi, produced 219,700 ounces of PGM concentrates in 2025, representing approximately 7% of the group’s total concentrate output last year. The mine remains a significant contributor to both the company’s portfolio and Zimbabwe’s foreign currency earnings.
However, Unki has faced operational challenges in recent quarters. The mine recorded an 8% year-on-year decline in production during Q3 2025, producing 57,500 ounces compared to 62,500 ounces in the same period of 2024. The company attributed the decrease primarily to lower ore grades in the current mining area, a natural geological challenge in the mine’s lifecycle, alongside concentrator throughput disruptions.
Despite these headwinds, Unki’s position within the Valterra portfolio remains strategically important as the company navigates Zimbabwe’s complex foreign currency regime.
“It’s about $100 million that hasn’t been able to be accessed by us,” CFO Sayurie Naidoo told analysts during a results call. “We have been engaging with the Reserve Bank as well as the Ministry of Finance, and we are receiving some funds in 2026 so far, and we do expect to receive that over the next couple of months.”
The disclosure of Zimbabwe’s unpaid export proceeds came as Valterra announced a remarkable financial performance for 2025, with full-year headline earnings more than doubling to 16.7 billion rand ($1.05 billion), driven by surging platinum prices and aggressive operational cost reductions.
The company declared a final dividend of R43 per share, comprising a R23 base dividend in line with its policy of 40% of headline earnings, plus a R20 special dividend. This brought total dividends for 2025 to approximately R12 billion.
The interim dividend declared in July 2025 of R2.00 per share (200 cents per share) for the six-month period ended 30 June 2025 was paid in August 2025, reflecting the company’s commitment to shareholder returns even as it navigated the Zimbabwean cash lock-up.
The bumper earnings were boosted by a 26% price increase for the platinum group metals basket, as well as 5 billion rand worth of operational and corporate cost savings achieved during the year.
Spot platinum prices more than doubled in 2025 and hit a record $2,757.69 per ounce on January 26, driven by tight supply and rising investment demand for precious metals. The price rally gained additional momentum following the European Union’s policy reversal on its planned 2035 combustion-engine ban, bolstering long-term demand prospects for autocatalyst metals.
The company’s shares surged more than 10% following the results announcement, as investors cheered the combination of record earnings, substantial capital returns, and operational cost discipline.
While the Zimbabwean government’s unpaid export proceeds represent a significant cash flow constraint, Valterra maintains a strong net cash position of R11.5 billion and substantial liquidity headroom of R43 billion. The company generated free cash flow of R20 billion during 2025, underpinning its ability to reward shareholders while engaging with Zimbabwean authorities on the outstanding arrears.
The mining industry continues to advocate for a sustainable solution to Zimbabwe’s foreign currency retention regime, which industry players argue undermines investment certainty and working capital management. For Valterra, resolution of the $100 million arrears would provide additional financial flexibility as it pursues its value-accretive strategic priorities in both South Africa and Zimbabwe.
