Valterra Platinum reported a weaker third quarter on volumes and a stronger one on price. PGM sales volumes decreased 27 percent to 683,300 ounces, driven by lower refined production during the quarter and partially offset by a drawdown of refined inventory, while the average realised basket price rose to 38,815 rand per PGM ounce, or 2,383 dollars, up 15 percent in rand terms and 24 percent in dollar terms year on year. Year to date sales volumes remained in line with the prior year.
Mined production told a steadier story than refined output. Own managed PGM production was 511,900 ounces in the quarter, down 5 percent year on year, with Amandelbult production down 10 percent after a fatal incident at Tumela in July triggered regulatory and self imposed safety stoppages. The company said operations returned to steady state by quarter end, supporting an expected step up in the fourth quarter. Nickel production fell 39 percent and copper production fell 22 percent, driven by rephased processing maintenance.
The basket is rotating. Major PGM prices moderated quarter on quarter amid weaker automotive sales, but minor PGMs, particularly iridium and ruthenium, continued to outperform on demand from emerging technology applications. Chrome is the other offset: dry chrome concentrate production rose 7 percent to 277,000 tonnes, and year to date chrome sales were up 42 percent to 814,000 tonnes.
Guidance for 2026 is unchanged, with metal in concentrate and refined production expected between 3.0 million and 3.4 million ounces. Cash operating unit costs are expected at or around the upper end of the guided range of 19,000 to 20,000 rand per PGM ounce, with cost pressure from fuel, drill steel, chemicals and explosives, and the targeted all in sustaining cost remains about 1,050 dollars per 3E ounce. Valterra also confirmed it will buy 50 percent of Tharisa Mine’s PGM concentrate from January 1 under a multiyear agreement, replacing Sibanye Stillwater as offtake partner.