Valterra Platinum JSE: VAL Rockets 55% in September Despite Profit Slump, After Anglo American Divorce
Valterra Platinum’s stock defied its weak half-year results with a breakout September rally, fueled by surging platinum prices and...
Quick overview
- Valterra Platinum's stock surged 55% in September, driven by rising platinum prices and the completion of its demerger from Anglo American.
- Despite the rally, the company reported an 81% drop in headline earnings per share and a 91% decline in overall profit for the first half of the year.
- The final sale of Anglo American's stake in Valterra marked a significant milestone, enhancing investor sentiment despite the company's operational challenges.
- Valterra's future performance will hinge on stabilizing production and maintaining strong global demand for platinum.
Valterra Platinum’s stock defied its weak half-year results with a breakout September rally, fueled by surging platinum prices and the final chapter of its demerger from Anglo American.
Valterra Platinum’s Stunning September Rally Faces Fundamental Headwinds
After a turbulent first half marked by profit weakness and operational hurdles, Valterra Platinum defied expectations with a powerful September surge. The stock has now climbed roughly 55% for the month, forming one of its largest bullish monthly candlesticks to date, boosted by soaring platinum prices and the final stages of its demerger with Anglo American.
Platinum Surge Drives Breakout Momentum
Valterra Platinum (JSE: VAL, LSE: VALT) has been one of 2025’s standout performers, soaring over 115% year-to-date as platinum prices hit multi-year highs. The stock broke above stubborn resistance between R800–R1,050 to clear its 50-month simple moving average (SMA), opening the path toward the 2022 peak near R1,800.
AMSJ Chart Monthly – The 50 SMA Is Now Broken
The rally gained further traction in late September as platinum rallied past $1,615/oz, its highest in more than a decade, amid robust Chinese demand and tighter global supply. Valterra credited “a more favorable macro-backdrop” and renewed Chinese buying from jewelry makers for bolstering platinum’s climb.
Demerger Milestone Adds to Positive Sentiment
September also marked a structural turning point: Anglo American International Limited sold its remaining 15.51% stake in Valterra Platinum, fully exiting the company after a two-phase demerger.
This final sale — concluded on September 9 — symbolized Valterra’s independence and helped boost investor sentiment. The company simultaneously completed a rebranding initiative and secured a secondary London listing to expand global visibility, though these steps came at a significant near-term cost to earnings.
Profit Collapse Highlights Fragile Fundamentals
Despite the stock’s meteoric rise, underlying performance painted a less rosy picture. For the half-year ended June 30, Valterra reported an 81% drop in headline earnings per share to R4.73, while overall profit slumped 91% to R1.2 billion from R6.5 billion a year earlier.
Flooding at the Amandelbult mine severely disrupted operations, slashing platinum group metal (PGM) sales by 25% to 1.48 million oz. Refined PGM production also fell 22% to 1.4 million oz, compounded by reduced concentrate supply and a triennial stock count.
Dividend Cut Reflects Financial Strain
The earnings slide forced a sharp reduction in shareholder payouts. Valterra’s interim dividend was slashed 79% to R2 per share, underscoring the pressure on cash flows during this period of operational and strategic transition.
Outlook: Can Momentum Outlast the Headwinds?
Valterra’s September surge — supported by higher platinum prices, structural independence, and upbeat market sentiment — has impressed investors, but the sharp earnings decline and operational setbacks remain key risks. Sustaining these gains will likely depend on stabilizing production, delivering cost discipline after the demerger, and the persistence of strong global platinum demand.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save