Valterra Platinum has released its gross profit forecast for the first six months ending June 30. According to the report, the expected gross profit will range from 18.5 billion to 22.2 billion Rand, which significantly exceeds the 1.2 billion Rand reported at the same stage last year.
The company also announced that headline earnings per share are expected to increase by more than 1388% over the specified period. This growth is driven by increased production volumes and a noticeable rise in prices. Headline earnings per share are projected to be between 7047 and 8456 cents per share, compared to 473 cents a year ago.
Preliminary data suggests that full interim results will be published on July 29. Basic earnings and earnings per share are expected to grow by more than 3076%. Basic earnings are forecasted to be between 18.6 billion and 22.3 billion Rand, whereas it was only 0.6 billion Rand in the previous period. Earnings per share are expected to be between 7085 and 8494 cents, compared to 223 cents at the end of the corresponding period last year.
The profit increase was supported by a combination of an 18% rise in platinum group metals (PGM) sales volumes and significantly higher PGM prices. The price of the PGM basket in USD rose by 85%, reaching $2801 per ounce of PGM, leading to a 66% increase in the PGM basket price in Rand to 459.93 Rand per ounce of PGM.
The volume increase was ensured by higher raw material (M&C) extraction following disruptions related to flooding at the Amandelbult mine in the first half of 2025. Furthermore, the advance rescheduling of planned maintenance and annual inventories to the third quarter of 2026 contributed to a more even distribution of processed products throughout the year, further supporting sales volumes.
Craig Miller, CEO of Valterra Platinum, noted in the second-quarter operational update that from a production standpoint, the three months reflected a steady recovery compared to last year. In-house metal extraction (M&C) increased by 13%, largely due to improved operations at Amandelbult after the 2025 flood.
Miller stated that priorities for the remainder of the year are clear: the company is focused on implementing a zero-harm culture and further enhancing operational excellence to unlock further portfolio efficiency. He added that the company is well-prepared for a strong second half due to improved operational performance and increased production flexibility, and remains committed to meeting the 2026 guidance.
Total PGM production in the second quarter grew by 1% to 775,400 ounces, supported by higher in-house production, partially offset by weaker concentrate procurement (POC) volumes. In-house PGM production increased by 13% to 525,700 ounces, mainly due to improved operations at Amandelbult, while production at Mototolo, Mogalakwena, and Unki decreased. Processed PGM production grew by 1% to 963,500 ounces, aligning with the M&C growth.
PGM sales volumes decreased by 4% to 945,600 ounces, primarily reflecting temporary mismatches between production and sales during the reporting period. The 2026 guidance remains unchanged: M&C and processed production are expected to be between 3.0 and 3.4 million ounces. The operating cost per ounce of PGM remained at 19,000 – 20,000 Rand, although actual costs were expected to be closer to the upper end of this range. The target all-in sustaining cost (AISC) of $1,050 per 3E ounce also remained unchanged.
Miller added that the company continues to closely monitor the potential inflationary impact of the Middle East conflict on raw material costs. Despite the strong results, the market did not react positively: the share price fell by 0.3% to 1076.35 Rand on the JSE on Friday morning, although this figure is 15.7% higher than a year ago.
Northam Platinum has completed the implementation of a major element of its expansion project in the west of the Zonderveld mine, opening the third shaft (No. 3 Shaft) on Friday. This project represents significant investment in the long-term future of one of South Africa's operating Platinum Group Metals (PGM) mining operations.
Shaft No. 3 has a vertical length of 1382 meters and is intended for transporting personnel, materials, and services to the western expansion area. It is the deepest PGM hoisting shaft in the world drilled by the hoisting method. Its construction aims to improve access to ore reserves and alleviate logistical difficulties associated with servicing the expansion from the existing Zonderveld mine complex, located 4 kilometers away.
Zonderveld is a traditional underground mine located on the northern part of the Bushveld Complex's western limb. The western expansion will add 3.6 km of mineable length west of current underground workings and is estimated to contain over 20 million ounces of PGM in the Merensky and UG2 seams.
Northam Platinum CEO Paul Dunn stated that this project is a defining investment for the long-term outlook of the Zonderveld mine. He noted that thanks to this project, the lifespan of the Zonderveld mine will increase by 40 years, securing the future of 12,000 employees and their descendants for many years to come. The successful completion of the vertical shaft construction also demonstrated the company's engineering capabilities and commitment to safety.
According to Dunn, drilling to this depth was carried out by a machine without risk to people, which is the first such case in South Africa. The total amount spent by Northam before commissioning amounted to 6.3 billion Rand. The next phase, involving the construction of a rock shaft, has already begun.
The planned Shaft No. 4 at a depth of 1500 meters will set another world record. Furthermore, the refrigeration plant designed to cool primary rocks at 70°C and power hydraulic equipment is the largest in the world. Dunn emphasized that these investments reflect Northam's long-term confidence in South Africa's mining industry and its country.
The expansion of the mining area is expected to support the creation of approximately 600 additional permanent jobs, as well as provide a long-term contribution of Zonderveld to employment, procurement, and economic activity in Limpopo. The project development began in 2020 after the acquisition of the western expansion resource block. Statistical data for the project includes: approximately 566 tons of structural steel used, 380 tons in the headgear structure, and 186 tons in the winding house structure, with a lining area of approximately 6055 m².
Northam operates three wholly-owned mines—Zonderveld, Buysendal, and Eland—located in the Bushveld Complex in South Africa. The company also owns a metallurgical complex in Zonderveld, including a smelting workshop and base metal recovery facilities.
For the year ending June 30, Northam achieved a record production volume of refined metals from its own operations—938,754 ounces of platinum, palladium, rhodium, and gold (4E), as well as a record 158,138 ounces of 4E equivalent refined metal from third parties. The total volume of chrome concentrate produced and sold also reached a record of 1.69 million tonnes, an increase of 17.4% compared to the previous year. This increase resulted from improved throughput in Upper Group 2 (UG2), raw material quality, and concentrator recovery, especially at the Eland mine, where product recovery more than doubled in the last year.
