South Africa's Valterra Platinum profit nearly doubles on higher metal prices (updated)

Valterra Platinum

25/02/2026 07:31

Zimbabwe exchanges 30% of export dollars for local currency

Government not keeping up with payments, cites cashflow constraints

Valterra 2025 profit doubles on higher platinum prices

Updates throughout with CFO comments on unpaid export receipts

By Nelson Banya

Feb 25 (Reuters) - South Africa's Valterra Platinum VALJ.J said on Wednesday it is owed $100 million in 2025 export proceeds by Zimbabwe's government, which has started making some payments to clear the arrears.

Zimbabwe requires all exporters to retain only 70% of their proceeds in foreign currency, with the balance being converted to local currency.

Valterra and its platinum industry peers have faced delayed payments from the government under the retention rule, according to Zimbabwe's mining chamber. The government has cited cash flow constraints for the delays.

Zimbabwe's Ministry of Finance and Reserve Bank did not immediately respond to a request for comment.

ZIMBABWE MINE PRODUCES ABOUT 7% OF CONCENTRATE OUTPUT

"It's about $100 million that hasn't been able to be accessed by us," CFO Sayurie Naidoo told analysts during a results call.

"We have been engaging with (Zimbabwe's) Reserve Bank as well as the Ministry of Finance, and we are receiving some funds in 2026 so far, and we do expect to receive that over the next couple of months," Naidoo added.

Valterra's Unki mine in Zimbabwe produced 219,700 ounces of PGM concentrates in 2025, about 7% of the group's total contentrate output last year.

EARNINGS DOUBLED IN 2025

Valterra on Wednesday said its full-year headline earnings doubled to 16.7 billion rand ($1.05 billion) in 2025, driven by higher platinum prices and operational cost reductions, sending its shares up more than 10%.

The earnings for the period were boosted by a 26% price increase for the platinum group metals basket, as well as 5 billion rand worth of operational cost savings.

The company, which was demerged from the Anglo American AAL.L group last year, declared a final dividend of 43 rand per share, bringing its total payouts for 2025 to 12 billion rand.

Spot platinum XPT= prices more than doubled in 2025 and hit a record $2,757.69 an ounce on January 26, driven by tight supply and rising investment demand for precious metals.

The price of platinum, which is used to make catalytic converters that curb vehicle emissions, is also being driven up by the European Union's U-turn on a 2035 combustion-engine ban.

($1 = 15.9238 rand)

 (Reporting by Nelson Banya, Editing by Jane Merriman, Philippa Fletcher and Jan Harvey)

 ((Nelson.Banya@thomsonreuters.com;))