Valterra Platinum, formerly Anglo American Platinum, began trading as an independent company on the Johannesburg Stock Exchange on Wednesday, finalizing its separation from parent Anglo American. The debut marks the completion of a major restructuring move by Anglo, which is shifting its focus to copper and iron ore after fending off a $49 billion takeover attempt by BHP Group last year. Anglo retains a 19% stake in Valterra for now.
Valterra, now the world’s largest platinum miner by value and the fourth-largest by output, saw its shares open lower before reversing course during a volatile first session. The company is also set for a secondary listing on the London Stock Exchange next week.
The spin-off closes a chapter in which platinum group metals (PGMs) such as palladium, rhodium, and iridium powered Anglo American’s growth and South Africa’s mining economy, overtaking gold as the country’s primary mineral export. However, Valterra enters independence facing significant challenges. Prices for key PGMs have dropped sharply since early 2023, with palladium and rhodium falling by 43% and 56% respectively. The company also faces operational setbacks, including lost output from severe flooding at its Tumela mine in Limpopo province earlier this year. Production at Tumela is expected to resume by mid-year.
Valterra CEO Craig Miller said the company aims to maintain the high standards established during its time under Anglo American and sees upside potential for platinum prices due to expected market deficits and renewed demand from the jewellery and automotive sectors. The company plans to distribute 40% of headline earnings to shareholders and may consider share buybacks if metal prices recover and surplus cash is available.
Analysts remain cautiously optimistic about Valterra’s future, citing signs of a recovery in platinum prices and continued strategic importance of PGMs, particularly as the energy transition and tighter emissions standards could support demand. However, the long-term outlook for PGMs is clouded by the rise of electric vehicles, which use fewer of these metals.
Valterra’s launch is part of Anglo American’s broader asset reshuffle, which also includes the sale of coking coal operations in Australia, nickel mines in Brazil, and a review of options for its struggling De Beers diamond division. Some investors believe the spin-off increases the likelihood of renewed merger and acquisition interest in Anglo if its valuation does not improve.
