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Valterra Platinum is expecting a sharp improvement in earnings for the financial year ending 31 December 2025, as higher platinum group metals (PGM) prices and sustained cost savings begin to reflect across the business.
By Ryan Chigoche
Against this backdrop, the miner, which operates in both South Africa and Zimbabwe, including the Unki Mine, has issued earnings guidance pointing to a significant year-on-year recovery following a subdued performance in 2024.
In headline terms, earnings for FY2025 are forecast to increase by between 85% and 105%, rising to between R15.6 billion and R17.3 billion (about US$975 million to US$1.08 billion), compared with R8.4 billion (about US$525 million) in the prior financial year. Headline earnings per share are expected to range from 5,941 cents to 6,588 cents, up from 3,205 cents previously.
Growth is even more pronounced on a basic earnings basis. Here, earnings are projected to rise by between 105% and 125%, reaching between R14.5 billion and R15.9 billion (about US$905 million to US$992 million), from R7.1 billion (about US$444 million) a year earlier. This translates to earnings per share of between 5,522 cents and 6,055 cents.
Underlying this improved outlook was a notably stronger pricing environment during FY2025.
In the reported period, the average PGM dollar basket price increased by 26% to US$1,852 per ounce, providing a meaningful uplift to revenue and partially offsetting lower sales volumes.
In parallel with the pricing recovery, Valterra continued to tighten operational discipline.
During the year, the company delivered approximately R5 billion in operational cost savings (about US$312 million), which helped counter inflationary pressures and absorb R1.7 billion (about US$106 million) in once-off costs linked to the group’s demerger.
Despite these positives, sales volumes declined year-on-year.
This was largely due to a higher drawdown of excess work-in-progress inventory in the previous financial period, compounded by operational disruptions caused by flooding at the Tumela section of the Amandelbult Mine in South Africa during the first half of FY2025.
Even so, the financial impact of the flooding was partially offset by insurance proceeds amounting to R2.5 billion (about US$156 million).
In addition, basic earnings were affected by non-recurring asset write-offs totalling R1.9 billion (about US$119 million).
These are related to abandoned design and engineering work at the Mortimer Smelter SO₂ abatement project and the Vaalkop Tailings Storage Facility.
Both projects have since been replaced by the Blinkwater Tailings Storage Facility, which now provides adequate long-term tailings capacity.
As profitability improved, taxation and royalty payments are expected to be higher for FY2025, reflecting increased earnings rather than changes in fiscal terms.
Taken together, the FY2025 trading guidance points to a more stable operating and pricing environment for Valterra Platinum.
With disciplined cost control and diversified assets across South Africa and Zimbabwe, the group appears better positioned as it moves toward releasing its full audited FY2025 results in due course.
