Latest news with #Valterra
Daily Maverick
3 days ago
- Business
- Daily Maverick
The Finance Ghost: Why mining is a tough industry
Mining is hard because even if you get the minerals out of the ground safely and efficiently, your fortunes are primarily tied to global commodity prices. This week, we saw several updates from the mining sector. This included some of the industry giants, as well as junior miners – companies that are much earlier in their journeys. Before we go any further, it's useful context that Valterra Platinum (previously Anglo American Platinum) has enjoyed an increase of 44% in its share price over 12 months, while BHP is down 10% over the same period. Based on that, you would think that BHP is struggling in its operations, while Valterra is shooting the lights out, right? advertisement Don't want to see this? Remove ads GOOGLE GRAPH HERE Mining isn't hard just because of how difficult it is to get the stuff out of the ground, both safely and efficiently. No, it's hard because even if you do that perfectly, your fortunes are primarily tied to global commodity prices for whatever commodity you happen to be extracting from Mother Nature. And if your operations hit a rough patch, those prices can save you (if you get lucky). It's like training your heart out for a 400-metre race and then waiting to find out if someone has added a greyhound to the mix that day, with a result that is out of your control no matter how hard you try. You see, BHP has just reported record production in both copper and iron ore for the year ended June 2025. Thanks to this excellent outcome, it also expects to hit its unit cost guidance across almost all its operations, as a period of efficient production is always great news for unit costs. But it hardly matters, as the average realised price for iron ore was down 19% for the period, while steelmaking coal fell 27% and energy coal was down 11%. Copper was the only positive story, with a 7% increase in the average realised price. Copper, much like Hansel all those years ago in Zoolander, is so hot right now. advertisement Don't want to see this? Remove ads Alas, if the market had positive feelings about the trajectory for iron ore prices, then the BHP share price would've already started turning higher. Instead, there are worries about global demand in an environment of tariff uncertainty and substantial risks to global trade and consumption. The domestic Chinese market remains a serious headache as well. For a commodity such as iron ore to be doing well, the engine rooms of the global economy need to be in overdrive. Instead, they are spluttering. Conversely, Valterra Platinum (and the rest of the PGM sector) is having a grand old time thanks to an upswing in PGM prices. Every dog has its day in the mining sector, with this dog now basking in the sunshine and being fed organic biltong from Woolies after a long night in the cold. If you look at the share price, you would never believe that Valterra released a trading statement this week that headline earnings per share (HEPS) will plummet by between 76% and 88% for the first half of the year. What on earth happened? And how is the share price still doing so well? The main reason for this collapse in profitability is that there was flooding at the Tumela Mine at Amandelbult in February. Sure, there were some other issues as well (such as substantial once-off demerger costs related to the separation from Anglo American), but the bulk of the problem is thanks to factors way beyond management's control. If you exclude Amandelbult, then own-mine production was up 1%. That's little comfort when PGM sales volumes fell 25% thanks to this issue. advertisement Don't want to see this? Remove ads We've now answered the first question about the reason for the drop in earnings, but what about the second one? Why is the share price still doing so well? To begin with, 'so well' is a relative term. Over the same period that Valterra experienced a 44% upswing in the share price, Northam Platinum is up 72%, Impala Platinum is up 98% and Sibanye Stillwater is up more than 102%. So, in reality, Valterra is actually significantly underperforming the peer group. advertisement Don't want to see this? Remove ads Then, it's important to keep in mind that PGM sector sentiment is generally positive at the moment. With Valterra promising the market that it can reach the lower end of full-year production guidance, there's a chance that it has a decent year overall – and the market is very willing to forgive tough periods at the moment. The demerger costs are also behind it, while recent cost saving initiatives should continue. These factors are supportive of a much stronger second half of the financial year, with the market inclined to believe in that outcome, thanks to strength in the PGM basket price. We finish off with another rampant success story: AngloGold Ashanti. The share price is up 65% in the past year on the JSE, with the market continuing to back the yellow metal. The dollar gold price is up almost 40% in the past year, driven by worries about inflation and weakness in the dollar. It's incredible to be able to write about a weaker dollar and stronger PGMs in the same piece – what year are we in anyway? AngloGold certainly isn't looking this gift horse in the mouth. In fact, it is using the strength in gold to take advantage of opportunities to grow, with the latest example being the acquisition of Augusta Gold. This company is listed in Toronto, but the underlying assets are in the Beatty District in Nevada – and they just so happen to be alongside AngloGold's existing assets in that district. This is a regional consolidation play, with the market not even batting an eyelid at AngloGold paying a 37% premium to the 20-day Volume-Weighted Average Price of Augusta Gold. advertisement Don't want to see this? Remove ads advertisement Don't want to see this? Remove ads Gold looks easy right now, but it hasn't always been that way. PGMs are doing much better, but that comes after a terrible period. And although iron ore looks tough right now, BHP was trading at a vastly higher share price just a couple of years ago. Mining is about cycles. And that's what makes it hard. DM
Mail & Guardian
5 days ago
- Business
- Mail & Guardian
Energy apartheid: Mining companies transition without justice
The term 'just transition' was originally used by the labour movement to refer to a transformative vision of infusing social justice into the transition to clean energy. Unfortunately, much like the phrases 'good governance' and 'social responsibility', it has come to be an aspiration the government and the private sector only profess commitment to. The Delving deeper, the study found that the explosion of household solar energy was only benefiting a white minority: the solar panel area per household was a staggering 73 times higher in white rather than in black areas. Despite the central role played by the mining sector in the dispossession, exploitation and discrimination of communities under colonialism and apartheid, mining houses such as As has been documented According to its Integrated Development Plan, the local Fetakgomo Tubatse municipality hosts an estimated 41 mining operations. Yet, the Recently Anglo American Platinum joined the increasing numbers of It does not have to be this way. Anglo American Platinum's successor, like all mining companies, is legally required to invest in the development of host communities under the Mineral and Petroleum Resources Development Act through social and labour plan (SLP) projects. An ever-growing pile of reports by the Valterra and other mining houses have an opportunity to develop SLP infrastructure and income generating projects of a suitable scale, ambition and rigour to rectify this. In this effort to reimagine the SLP, they could draw upon the ideas of local community organisations such as Sekhukhune Combined Mining Affected Communities (SCMAC). The SCMAC has, for several years, called on Anglo Platinum to equip communities to be able to generate electricity to sell to Twickenham and other mines. The SCMAC has been proactive to the extent of enlisting partners such as 350 Africa, CALS and Ahinasa to research the needs of villages and produce a Anglo American Platinum has, however, repeatedly failed to offer any concrete support even in the form of pilot projects and feasibility studies. Both company representatives and mine management were conspicuously absent at two events connected to a newly published research report making the case for Anglo's support notwithstanding invitations and prior engagements by the SCMAC. Valtera might respond that there is limited funding available because Twickenham generates no revenue being in care and maintenance. This does not hold water as Valterra is a vast revenue-generating group of companies and its decision to keep Twickenham non-operational for more than 10 years necessitates more social expenditure to be making a meaningful contribution to economic development of the area. They might also argue that as just one company they cannot solely be responsible for addressing systemic problems and can only play a supplementary role to the government. But this assumes that they have done everything they can possibly do. Have they? In 2024, Anglo American Platinum generated nearly Anglo American Platinum (in its new guise as Valterra Platinum) and other mining companies therefore have a choice: perpetuate energy apartheid or make good on their commitment to contribute towards a just transition worthy of its name. Robert Krause is the acting head of Environmental Justice at the Centre for Applied Legal Studies, Wits University
Int'l Business Times
02-07-2025
- Business
- Int'l Business Times
Anthony Blumberg's Behind-the-Scenes Platinum Power Play in Anglo American's Valterra Formation
Anglo American's recent restructuring of its platinum operations through the launch of Valterra Platinum marks a significant pivot in the global miner's approach to its South African portfolio — and, industry insiders say, signals the deepening influence of private capital interests, particularly those aligned with the Blumberg Family Office. The formation of Valterra, unveiled earlier this year as part of Anglo's broader portfolio review, has been officially framed as an effort to unlock long-term value, streamline operational focus, and create a platform better positioned to weather both regulatory and market volatility. Yet behind the polished investor messaging lies a more intricate story — one shaped in part by the discreet but highly influential family office of Anthony "Tony" Blumberg, a veteran commodities investor and heir to one of South Africa's most tightly held mining fortunes. Multiple sources familiar with the matter describe the Blumberg Family Office as "instrumental" in early discussions surrounding Valterra's strategic composition and governance, including its future-facing alignment with green metals demand and domestic beneficiation policies. While the family office does not currently hold a disclosed equity stake in Valterra, it is understood to be a key player in related financing and advisory circles, often working through intermediary investment vehicles and long-standing industry networks. "They don't need to be on the board to be in the room," said one senior mining executive who spoke on condition of anonymity. "Tony Blumberg has spent decades cultivating influence across Anglo's supplier base, local partners, and political stakeholders. When a restructuring of this scale takes place, you can be sure his fingerprints are somewhere in the background." Anthony (Tony) Blumberg , known within elite circles for his low public profile and high-leverage deal-making, has in recent years emerged as a pivotal force in repositioning South African assets toward what one insider called the "post-carbon profitability curve." His office has quietly backed ventures in hydrogen-linked platinum applications, local refining infrastructure, and early-stage tech-metal recyclers, all of which align neatly with Valterra's prospective roadmap. The timing of Valterra's formation — as platinum group metals (PGMs) face renewed pressure from EV-driven demand shifts — also coincides with a broader push among South African mining houses to deepen domestic partnerships and prepare for regulatory recalibration. Analysts suggest this may make the involvement of family offices like Blumberg's increasingly critical, particularly where political capital and operational continuity are at stake. "Blumberg represents a form of continuity that institutional investors can't always offer," said a Cape Town–based mining analyst. "They understand the terrain, they move quickly, and they don't need quarterly guidance to make a decision. That kind of backing can be decisive in an environment like this." Though Anglo American has not formally acknowledged any role played by the Blumberg Family Office in the formation of Valterra, senior figures close to the deal say the relationship mirrors a broader industry trend: legacy family wealth — once concentrated in extraction — is repositioning itself as a strategic partner in transition. For Blumberg, the stakes go beyond capital returns. Associates say he views Valterra as a litmus test for whether South African mining can adapt to a world increasingly defined by ESG imperatives, geopolitical realignment, and supply chain nationalism — all while remaining commercially viable. "He's not just betting on platinum," one close associate noted. "He's betting on whether South Africa still knows how to lead the next chapter of industrial mining." As the dust settles on Valterra's launch and questions mount around future ownership structures, few expect the Blumberg name to appear in headlines — but few doubt that its influence will be deeply felt.
Telegraph
10-06-2025
- Business
- Telegraph
The best cure for low prices is low prices. This miner is set to benefit
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. Investors are still not quite sure what to make of the turnaround plan at miner Anglo American, with the shares no higher than they were in late 2021, but the demerger of Valterra Platinum offers the latest pause for thought. Valterra's shares trade in Johannesburg and London and the timing of the spin-off could be interesting since platinum prices stand at a three-year high and the CRB Commodities index is making a good go of testing its loftiest level since 2011. We remain interested in Anglo American on the basis that the proposed restructuring should reduce debt, simplify the group structure and leave the FTSE 100 constituent as a more focused play on copper, iron ore, nickel and phosphates. In addition, the valuation does not look demanding relative to the company's book, or net asset, value per share. Potential future catalysts to unlock that value could be the proposed sale or flotation of diamonds specialist De Beers, further debt reduction and any hint of further advances in commodity prices, a trend that could result from China's efforts to stimulate its economy, American determination to foster growth, or safe haven buying of real assets if inflation rears its head once more. Anglo American retains a near-20pc stake in Valterra after a deal which saw investors get 110 shares in the leading producer of platinum group metals (PGM) for every 1,075 they held in the parent.
Daily Mail
02-06-2025
- Business
- Daily Mail
Platinum miner shows its mettle: Anglo American's spin-off climbs on London debut in boost for the City
Shares in the platinum arm of Anglo American edged higher on their London debut in a boost for the City. The mining giant spun off its Amplats business – renamed Valterra Platinum – as part of a restructuring plan launched last year to defeat a takeover bid by rival BHP. Valterra yesterday launched its secondary listing on the London Stock Exchange about a week after making its market debut in Johannesburg. Shares started trading at 2,830p and closed up 2 per cent at 2,890p, valuing it at £7.8billion. The firm 'briefly' considered a US listing but 'discounted [that idea] quite early on', Valterra chief executive Craig Miller said. Instead, the firm chose London's stock market for its mining sector knowledge and experience. And the location will make it easier for Anglo American shareholders in the UK to buy in to the firm. Miller said: 'It's predominantly to enable Anglo American's existing shareholders offshore of South Africa to continue to hold shares in Valterra Platinum.' The spin-off came as a 'surprise' to Miller when the plan was unveiled by Anglo chief executive Duncan Wanblad last year. It was part of a huge overhaul of the FTSE 100 company, which is listed in London. Anglo has sold its steel making coal and nickel businesses and is planning to offload diamond firm De Beers – although a time frame has not been set. Anglo will continue to hold a near-20 per cent stake in Valterra. Wanblad said: 'For Anglo American, this is a major step in our plan to unlock the inherent value in our portfolio as a whole, with enhanced focus on our world-class positions in copper, iron ore and crop nutrients.' ...but Indivior quits LSE Indivior has become the latest firm to quit London's stock market for the US. The pharmaceutical group moved its primary listing to New York last year. And yesterday it revealed it will cancel its secondary listing in London in another blow to the City. The liquidity on Nasdaq 'far outweighed' that of London, an Indivior spokesman said. The London Stock Exchange last year saw 88 firms delist or transfer their primary listing – the most since 2009.
