Valterra CEO has ‘positive’ outlook on PGM market despite volatility

[Redator]

Weeks after its high-profile spinout from Anglo American, newly listed Valterra Platinum (JSE: VAL) is charting its independent course in the platinum group metals (PGM) sector.

With a valuation of £8.5 billion ($11.5bn) and assets spanning operations in South Africa and Zimbabwe, CEO Craig Miller says the company is positioned for sustainable growth and disciplined returns despite a volatile market.

In an interview with MINING.com host Devan Murugan, Miller emphasized that the demerger gave Valterra a platform to showcase the quality of its long-life, high-reserve assets and its talented team.

“It’s been a real privilege to demonstrate that on the global stage,” he said.

Discipline amid market turbulence

Central to Valterra’s strategy is a commitment to return 40% of headline earnings to shareholders—a bold move in a depressed price environment.

“We’re focused on value, not volume,” Miller said. “Our capital discipline and well-capitalized assets allow us to balance reinvestment with consistent shareholder returns.”

He added that any excess cash beyond sustaining capital needs could fund additional dividends or share buybacks, depending on market conditions.

Demand defies expectations

Despite persistent price weakness in 2023 and 2024, Miller remains optimistic. He argued that bearish sentiment—driven by overestimated adoption of battery electric vehicles (BEVs), which contain no PGMs—has masked the true state of the market.

“In 2023 and into 2024, BEVs were only about 10% of total vehicle sales. That means 90% of the market still uses internal combustion engines or hybrids, which rely on PGMs,” Miller said, adding that this slower-than-expected transition has kept demand strong while new supply remains constrained, supporting the long-term outlook.

While industrial uses and automotive catalysts continue to anchor current platinum demand, Miller sees potential upside in green hydrogen and fuel cell technology.

“If just 10% of future vehicle sales use fuel cell electric technology, that could translate to demand for six million ounces of platinum annually,” he said. Though still years away, he believes PGMs will play a vital role in future mobility solutions.

Future plans

As speculation swirls about consolidation in the PGM space, Miller was clear: Valterra is not eyeing mergers or acquisitions. “Our focus is on maximizing value from our current assets—Mokala Kwena, Amandelbult, Mototolo, and Unki—and on staying in the lower half of the cost curve.”

Valterra also aims to maintain the strong sustainability standards inherited from Anglo American, including a 30% CO₂ reduction target by 2030 and a goal of net-zero emissions by 2040. The company is also prioritizing local community development in its host regions.

Miller noted that investor engagement has been strong, particularly in London, where Valterra holds a secondary listing alongside its primary Johannesburg listing. While there are no immediate plans for a Toronto Stock Exchange debut, Miller said the current listings provide a solid base to attract ESG-focused and international funds.

Valterra Platinum’s debut may come amid market uncertainty, but Miller is confident in the fundamentals.

“We’re disciplined, well-capitalized, and built for the long term,” he said. “Our job now is to deliver.”