Valterra Platinum reported a doubling of its contribution to the fiscus in the year ended December 2025 as platinum prices more than doubled to end the year at $2,000 an ounce.
The group said it paid R4.1bn in taxes for 2025, up from R2bn, including:
- R2.2bn in corporate income tax, up from R1.1bn a year earlier;
- R1.5bn in mineral royalties, up from R400m in 2024; and
- other taxes of R400m, up from R200m in 2024.
“Our socio-economic contribution consisted of salaries and wages of R16.9bn, with local procurement of R27bn and community development spend of R1.0bn,” said CEO Craig Miller.
Valterra said it was set on delivering three jobs off-site for every one job on-site, and as of the end of 2025, the accumulated jobs created and supported through its livelihoods programmes stood at 78,529, exceeding the 3:1 ratio.
Platinum group metal peers are reporting higher profitability on the surge in prices, which means higher income tax for the public purse due to record prices on the back of trade wars and pushing the deadline of the phasing out of internal combustion vehicles.
Miller told journalists as he reported the group’s financial results that spot prices were likely to continue surging in the year ahead. He said based on the company’s strong financial performance, there was likely to be a 240% increase in cash flow generation in 2026.
Together with high prices, we are going to be disciplined in how we return capital to shareholders. In line with those 17 consecutive dividend payouts, you can expect us to maintain that discipline in the reminder of the year
— Craig Miller. Valterra Platinum CEO
Valterra, previously Anglo American Platinum, was unbundled from parent company Anglo American Plc at the end of May and listed as a standalone on the JSE and the London Stock Exchange.
The group reportedly paid shareholders R12bn in 2025 after declaring a final dividend of R11.5bn or R43, representing 71% of headline earnings, well ahead of its 40% of headline earnings dividend policy.
“Together with high prices, we are going to be disciplined in how we return capital to shareholders. In line with those 17 consecutive dividend payouts, you can expect us to maintain that discipline in the reminder of the year,” Miller said.
The group’s market capitalisation surged to R450bn in the year under review from R300bn a year earlier, making it one of the biggest companies on the JSE. It said the Sandsloot underground development in Limpopo would help bolster its resources.
Liam Hechter, fund manager at Anchor, said the company seems to be firing on all cylinders after a few years of operational disappointments. “While we were expecting a strong dividend this period, the size of the special dividend surprised us to the upside,” he said.
Hechter said the mining industry was and will remain cyclical, with the cycle currently in Valterra’s favour. “In terms of growth in production, there is very little growth; the production profile will likely decline over time as mines get older and no new major mines come on board.”
He said capital allocation of the platinum industry was prudent even in this bull market.
“With particular reference to the PGM industry and the lack of major greenfield expansionary projects over the past 15 years, it would appear that, as a whole, the industry has been sufficiently prudent. The bidding war for Royal Bafokeng Platinum a few years ago, however, would appear to be the one major blight on this record,” he said.
Valterra’s production was 10% lower than a year earlier, including own-mined PGM production, which fell 6% to 2,060,300 ounces, primarily due to flooding at Amandelbult in February 2025 following abnormally heavy rains
Impala Platinum acquired the majority stake in Royal Bafokeng Platinum in 2023 after a bidding war with rival Northam Platinum, making it one of the biggest deals in the local mining industry.
Bruce Williamson, a mining analyst at Integral Asset Management, said management’s approach to the flagship Mogalakwena mine, producing around 45% of Valterra’s own mine PGMs, had contributed to the group’s growth trajectory.
He said over several years at Mogalakwena, the communities grew and built houses closer and closer to the open pit operations. “This eventually became a significant problem, to the extent that management had to give up plans to expand the open pit and decided to rather go underground at Sandsloot. This required significant feasibility studies and trial mining, which are still ongoing.”
He said it also required a re-assessment of the concentrators at Mogalakwena. “And as Mogalakwena transitions to more higher-grade underground production, management will have to ensure that the staff are retrained, something that will need a lot of attention.”
Valterra’s production was 10% lower than a year earlier, including own-mined PGM production, which fell 6% to 2,060,300 ounces, primarily due to flooding at Amandelbult in February 2025 following abnormally heavy rains.
The group said in the second half of the year, Amandelbult was restored to full production, with the second half of 2025 production volumes increasing 10% in the comparable prior period.
The group said it had completed the Sandsloot underground prefeasibility study, progressed the ore reserve development, and started the feasibility study, which it plans to complete in the first half of 2027.
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