American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Platinum miners recover but new production requires price surge, Valterra CEO says

by admin July 28, 2025
July 28, 2025
Platinum miners recover but new production requires price surge, Valterra CEO says

Most mines have recovered from loss-making positions due to the platinum price rally in the first half of 2025, but the industry is still a long way from adding new production, Valterra Platinum CEO Craig Miller said on Monday.

“About 90% of the industry is now making money or just breaking even, versus 40% at the end of last year,” Miller told Reuters in an interview.

Drastic measures

The global platinum market has been significantly impacted by the strategic decisions of South African miners, who collectively contribute over 70% of the world’s supply. 

In response to a dramatic collapse in metal prices over the past two years, these miners were compelled to undertake drastic measures, including cutting down on unprofitable production. 

This period was marked by dire warnings from industry experts and analysts, who cautioned that the platinum industry was facing a “terminal decline.” 

The price slump, driven by a combination of factors such as decreased demand from the automotive sector (a major consumer of platinum in catalytic converters) and an oversupply in the market, rendered many mining operations economically unviable. 

This forced reduction in output, while painful in the short term, was a necessary step for the survival of the industry, aiming to rebalance supply and demand and ultimately stabilise prices. 

The implications of these production cuts extend beyond South Africa, affecting the global supply chain and potentially influencing the future trajectory of platinum prices and investment.

Platinum prices

During the second quarter of this year, the price of the metal, a key component in catalytic converters for vehicle emissions, saw a 36% increase. 

This surge was driven by several factors: a rise in Chinese imports, significant flows into NYMEX exchange stocks due to potential US import tariffs, and a concurrent decline in South African output.

At the time of writing, the platinum price on COMEX was at $1,446.50 an ounce, up 1.7% from the previous close.

Commerzbank AG expects platinum prices to average $1,350 an ounce by the end of 2025 compared to $1,250 an ounce projected earlier.

Prices are not high enough

However, Miller further stated that platinum prices remain too low for the industry to contemplate increasing production.

Miller said:

You need to see another 50% increase in prices in order to incentivise that new production to come to market. So we still think there’s some way to go.

Valterra, previously known as Anglo American Platinum, announced an 81% decline in half-year profit.

This slump was attributed to decreased output and expenses related to its demerger from the Anglo American group.

Headline earnings for the six months ending June 30 fell to 1.2 billion rand ($67.62 million) from 6.5 billion rand the previous year.

Valterra announced an interim dividend of 2 rand per share, which represents a 79% decrease from the previous year’s payout.

The world’s largest PGM producer, which demerged in June, is now separately listed in Johannesburg and London.

This move comes as global mining giant Anglo restructures its business to prioritise copper.

The post Platinum miners recover but new production requires price surge, Valterra CEO says appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Victoria Greene dubs Tesla stock a ‘dumpster fire’: find out more
next post
Alibaba enters AI wearables race with smart glasses powered by Quark

Related Posts

Here’s why the China A50 and Hang Seng...

September 27, 2024

NFL-backed group lines up ‘Sunday Ticket’ streaming for...

July 4, 2024

Amazon’s ‘Saver’ grocery brand threatens low-end retailers: here’s...

September 11, 2024

Are DIIs becoming the new owners of Indian...

October 30, 2024

Americans are flocking to Texas: 9 of the...

July 25, 2024

Brief breather? Asian markets trade mixed despite US...

April 24, 2025

Warby Parker stock price analysis as its website...

January 19, 2025

Adobe stock price is cheap: is it a...

June 1, 2025

Vietjet secures $300M funding, eyes Boeing expansion amid...

April 10, 2025

Europe markets open: Stoxx 600 rallies over 1%...

May 12, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Saudi Arabia poised to raise September crude prices to five-month highs

      July 28, 2025
    • From $824 to over $1,300: how soaring rents are consuming American paychecks

      July 27, 2025
    • India-UK sign historic free trade deal: here’s all you need to know

      July 24, 2025
    • Talen Energy surges 25% to ATH after strategic natural gas power plant acquisition

      July 20, 2025
    • US visa bans on Brazilian judges spark diplomatic rift, cloud economic ties

      July 20, 2025

    Categories

    • Business (3,530)
    • Investing (2,677)
    • Latest News (2,024)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved