(Bloomberg) — Valterra Platinum Ltd. mentioned first-half revenue fell 91%, after flooding at a key mine lower manufacturing and the corporate incurred prices throughout its latest spinoff from Anglo American Plc.
The Johannesburg-based miner slashed its interim dividend to 2 rand per share, a drop of 79% from a yr earlier, in line with outcomes launched on Monday. Valterra accomplished its separation from Anglo in the beginning of June when it additionally added a secondary itemizing in London.
Whereas the flooding curbed first-half output at its Amandelbult operation by 45%, Valterra nonetheless expects to satisfy its annual goal for refined manufacturing of three million to three.4 million ounces of platinum-group metals. The impacted mine is the second largest within the South African firm’s portfolio, after Mogalakwena.
The part of Amandelbult that was most impacted by heavy rains in February resumed operations in June and is predicted to achieve regular manufacturing within the present quarter, Valterra mentioned.
The corporate mentioned manufacturing of refined platinum-group metals was down 22% to 1.4 million ounces through the first six months of the yr, because of decrease availability of concentrates and a inventory depend that takes place each three years.
Whereas Valterra and its friends in South Africa – which is by far the world’s largest platinum producer – have been tackling a chronic stoop in PGM costs, there have been latest indicators of enchancment. Platinum and palladium have risen 56% and 37%, respectively, this yr – with most of these will increase occurring for the reason that starting of Could.
Platinum’s good points within the first half of the yr “have been underpinned by a extra favorable macro-backdrop,” whereas “sturdy Chinese language shopping for, attributed to renewed curiosity from native jewellery producers and buyers, met underwhelming provide given comparatively low South African manufacturing earlier within the yr,” Valterra mentioned.
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