Valterra Platinum PGM production dips on Amandelbult repairs

Valterra Platinum

Valterra Platinum PGM production fell in the second quarter after flooding forced repairs at Amandelbult. The company produced 464koz of metal in concentrate, down 2% year on year. Operations at Amandelbult were suspended after heavy rains in the first quarter. As a result, first-half production declined by 5%.

Amandelbult drag, other mines steady

Amandelbult’s output dropped 55% to 70.2koz, with most of the quarter spent on repairs. Excluding Amandelbult, own-mine production edged up 1%. Mogalakwena, Mototolo and Modikwa delivered higher volumes, partly offsetting Amandelbult’s shortfall. Therefore, Valterra Platinum PGM production outside Amandelbult showed resilience.

Pricing improves as sales shrink

Sales volumes, excluding trading, fell 22% to 981.5koz, reflecting lower refined production. However, realized prices strengthened. The average basket price rose 6% to $1,509/oz, led by rhodium up 16%. Platinum and palladium realizations also increased by 2%. By contrast, base-metal by-products weakened. Nickel production declined 13% to 6,408t, while copper fell 23% to 3,573t. Meanwhile, Valterra Platinum PGM production faces near-term constraints as Amandelbult restarts.

Valterra completed its demerger from Anglo American during the quarter and now operates independently. The separation followed Anglo’s decision to spin off PGM assets after BHP’s 2024 approach. Consequently, management attention remains on operational stability and refined output recovery.

The Metalnomist Commentary

The production setback is location-specific rather than systemic. If Amandelbult ramps smoothly, mix and pricing can cushion revenues. Watch rhodium strength and South African power reliability for the next leg in margins.