• Adjusted EBITDA surged 68% to R33.4 billion, headline earnings per share nearly doubled (+98%), and the company achieved a R11.5 billion net cash position
• Metal-in-concentrate production fell 10% to 3.2 million PGM ounces due to Amandelbult flooding and Kroondal tolling transition, but H2 volumes rose 18% sequentially
• Total dividends reached R12 billion (R45 per share, 71% payout ratio, including a R20 special dividend), marking the 17th consecutive payout

Harare- Valterra Platinum has delivered a compelling vindication of its demerger from Anglo American as the adjusted EBITDA soared 68% to R33.4 billion, headline earnings per share nearly doubled to R63.48 (up 98%), and the company swung to a R11.5 billion net cash position while declaring a generous R45 per share dividend, representing a 71% payout ratio far exceeding its 40% policy.

This performance, amid a 22% rise in the rand PGM basket price and R5 billion in cost savings that outpaced targets, highlights how independence has enabled sharper focus, accelerated project execution, and rapid deleveraging, transforming potential risks into tangible shareholder value.

The demerger, completed May 31, 2025, following shareholder approval in April emerged as the year's defining catalyst. Valterra gained full autonomy over its premier PGM assets, including Mogalakwena (a low-cost open-pit leader) and Mototolo, while Anglo American fully divested its residual stake in September for R44.1 billion ($2.5 billion) via an accelerated bookbuild.

This separation aligned with Anglo's portfolio streamlining amid 2024 takeover pressures from BHP, allowing Valterra to operate as a pure-play PGM miner without conglomerate distractions.

Early post-demerger metrics affirm the move's success. Valterra absorbed R2.1 billion in one-off separation costs but still achieved headline earnings growth of 98% to R16.7 billion, demonstrating resilience and strategic agility.

Anglo benefited from monetizing its holding at a premium, while Valterra's shareholders gained direct exposure to a focused entity with industry-leading cost positioning and growth potential.

Operationally, Valterra navigated headwinds to deliver solid results. Metal-in-concentrate production fell 10% to 3.2 million PGM ounces, impacted by February flooding at Amandelbult (which disrupted H1 output) and the Kroondal transition from purchase-of-concentrate to tolling.

Refined production declined 13% to 3.41 million ounces, and sales volumes dropped 15% to 3.45 million ounces. Yet, H2 recovery was robust, production rose 18% sequentially as Amandelbult returned to full capacity and inventory releases capitalized on stronger prices.

Key efficiencies shone through: Mogalakwena's strip ratio fell 22%, Jameson Cells at its North Concentrator reduced mass pull by 21% (saving R123 million and cutting CO2 emissions 5%), and Mototolo saw 107% more development meters and 9% higher immediately available ore reserves.

These gains, plus R5 billion in cost savings (cumulative R12.3 billion over two years), offset inflation and held all-in sustaining costs flat at $987 per 3E ounce. 

Financially, the results reflect disciplined execution in a recovering PGM market. Revenue grew 7% to R116.3 billion, buoyed by a 26% dollar basket price increase to $1,852 per ounce (platinum up 40%, rhodium 35%, ruthenium 88%).

EBITDA's 68% jump stemmed from higher prices, cost reductions, and R2.3 billion in net insurance proceeds from Amandelbult flooding, partially offset by lower volumes and demerger expenses.

Free cash flow strengthened the balance sheet, enabling a R11.5 billion final dividend (R43 per share), including a R20 special payout, for a total R12 billion (R45 per share) in 2025 distributions.

This reflects Valterra's shareholder-return commitment, marking its 17th consecutive payout since 2017 reinstatement. 

Sustainability and governance enhancements further validate the demerger's strategic fit. Valterra became the only PGM miner with all operations IRMA-certified, achieving Mogalakwena's IRMA 50 accreditation in Q1 2025.

Safety improved with an 11% drop in TRIFR to a record 1.48 (top ICMM quartile), despite two tragic fatalities. The board's reconstitution, now 11 independent non-executives and two executives bolsters oversight, supporting the LSE secondary listing and long-term independence. 

While production shortfalls and a 37% dividend reduction from 2024's R71.75 reflect caution, these were mitigated by price tailwinds and cost discipline.

The demerger's value unlock is clear. Valterra's agility has positioned it to capture PGM supply tightening and demand from automotive, hydrogen, and jewelry sectors. 2026 guidance, 3.0-3.4 million ounces production, R19,000-R20,000 unit costs, and reduced capex of R17-18 billion (down R1-2 billion) signals continued momentum.

In retrospect, the demerger was unequivocally a good deal. It freed Valterra to prioritize PGM excellence, delivered rapid financial strengthening, and enabled Anglo to realize premium value from its stake.

As CEO Craig Miller stated, 2025 marked a "defining year" of independence, operational delivery, and value creation proving separation has not only succeeded but propelled Valterra toward sustained leadership in a volatile yet fundamentally supportive PGM landscape.

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