Valterra Platinum Limited Sponsored ADR

Hard numbers reported: revenue increased 7% year-on-year to ZAR 116 billion; EBITDA increased 68%; sustaining free cash flow was ZAR 20 billion; net cash ended at ZAR 11.5 billion. PGM dollar price was $1,852 per ounce, up 26%; input cost inflation was 5.4%; cash operating unit cost was ZAR 19,488 per PGM ounce; all-in sustaining cost was $987 per 3E ounce, or $1,039 per 3E ounce on the revised methodology. Refined production exceeded 3.4 million ounce guidance; total tonnes milled increased 1% year-on-year; Mogalakwena AISC was $835 per 3E ounce; total dividends for 2025 were about ZAR 12 billion, or ZAR 45 per share, including a final dividend of ZAR 43 per share. Forward guidance: 2026 cash operating unit cost is guided at ZAR 19,000 to ZAR 20,000 per PGM ounce. 2026 AISC is around $1,050 per 3E ounce, assuming ZAR 17/$; total 2026 capex is expected at ZAR 17 billion to ZAR 18 billion, with ZAR 12.5 billion sustaining and ZAR 4.5 billion to ZAR 5 billion discretionary. Management also said M&C volumes for next year are expected at 3 million to 3.4 million ounces, Mogalakwena production at 900,000 to 1 million ounces, Amandelbult at 580,000 to 650,000 ounces, and refined volumes in 2027 at 3 million to 3.4 million ounces.

Craig Miller framed 2025 as an exceptional year despite a difficult external backdrop, stressing the successful demerger, simplification of the organization and completion of Anglo American’s divestment. He repeatedly emphasized a value-over-volume approach at Mogalakwena, disciplined capital allocation, and a strategy centered on cost reduction, cash generation and shareholder returns. His tone was confident and upbeat, especially around Sandsloot underground and the company’s ability to sustain industry-leading returns.

Sayurie Naidoo highlighted that revenue rose 7% to ZAR 116 billion, EBITDA increased 68%, sustaining free cash flow was ZAR 20 billion, and the year ended with ZAR 11.5 billion of net cash. She said the company delivered ZAR 5 billion of operational and corporate savings in 2025, bringing controllable cost down 18% since 2023, while cash operating unit cost came in at ZAR 19,488 per PGM ounce and AISC at $987 per 3E ounce under the old methodology. She also noted 2026 capex of ZAR 17 billion to ZAR 18 billion, 2026 AISC around $1,050 per 3E ounce, a ZAR 43 per share final dividend, ZAR 2.5 billion of insurance proceeds received so far, and liquidity headroom of ZAR 43 billion.

Analysts pressed management on Mogalakwena grades, the cut to own-mine production guidance for 2027, and whether the Baobab plant lease should be extended; management said the strategy is to preserve Mogalakwena’s cost position through lower-volume, value-over-volume mining and blending low-grade stockpiles, and said North/South concentrators can absorb the flow. Questions also focused on capital allocation, debt, and the larger dividend; management said net debt-to-EBITDA is guided at less than 1x through the cycle and that the current payout leaves the balance sheet cash-neutral, which they view as prudent. Other notable topics were Sandsloot capex, customer prepayment renewal, inventory liquidation, Modikwa’s weaker cost position, and the Unki cash lock-up in Zimbabwe, with management saying inventories are now broadly normalized and that some Unki funds are expected in 2026.