Valterra Platinum Profit Falls 81% with R4.6bn Cash Outflow as PGM Prices Rally in June 2025

Valterra Platinum reported a sharp decline in first-half profits, with earnings falling between 81% and 91% due to flooding at a key mine that disrupted production and costs related to its recent spinoff from Anglo American. The company experienced a free cash outflow of R4.6 billion during this period. Despite these challenges, the CEO noted that about 90% of the platinum group metals (PGM) industry is now either profitable or breaking even, a significant improvement from 40% at the end of the previous year. However, current PGM prices remain insufficient to justify new production investments, requiring an additional 50% price increase to stimulate expansion. The platinum price rally, which only began in June 2025, has helped pull producers back from the brink, according to Valterra's CEO.