Valterra Platinum grapples with mounting costs in third quarter

Valterra Platinum Ltd reported on Friday that Middle East turmoil intensified cost pressures in the third quarter, as safety stoppages and planned maintenance also weighed on production.

The Rosebank, Johannesburg-based company, formerly called Anglo American Platinum Ltd, delivered PGM production of 2.32 million ounces for the nine months that ended September 30, up 5.2% from 2.32 million a year earlier.

PGM production for the third quarter fell 6% to 804,300 ounces from 855,100 in the same quarter a prior year, but rose 3.7% from 775,400 ounces in the second quarter to June 30. On-year production in the third quarter was hurt by the impact of safety stoppages at Amandelbult mine in Limpopo.

Refined PGM production for nine months declined 2.3% to 2.32 million ounces from 2.37 million, reflecting the planned re-phasing of processing maintenance and annual stock counts into the third quarter.

Refined PGM production slumped 41% to 576,900 ounces year-on-year in the third quarter from 981,500, while dropping 40% from 963,500 ounces in the second quarter.

Valterra reported that PGM sales volumes for nine months inched up 0.3% to 2.42 million ounces from 2.41 million. Third-quarter PGM sales volumes were down 27% to 683,300 ounces on-year from 936,800, and down 28% from 945,600 ounces on-quarter.

The average realised PGM basket price was up 24% to USD2,383 an ounce year-on-year, the company said.

Looking ahead, Valterra maintained its PGM production guidance. The PGM production target is between 3.0 million ounces and 3.4 million in 2026, from 3.2 million ounces in 2025.

The platinum producer expects cash operating unit costs to reach near upper end of the ZAR19,000 to ZAR20,000 range in 2026, compared to ZAR18,434 in 2025, driven by inflationary pressures on key consumables, including fuel, linked to the ongoing Middle East conflict, coupled with the impact of the safety-related stoppages on production volumes.

Shares in Valterra were down 4.1% to 5,076.01 pence in London Friday morning, and lost 2.7% at ZAR1,113.98 in Johannesburg.

Copyright 2026 Alliance News Ltd. All Rights Reserved.