JOHANNESBURG (miningweekly.com) – “No doubt, you're all keen for an update on the Sandsloot underground project, not only because it's genuinely exciting, but because it has the potential to truly move the needle, and here’s why this project has the potential to be a significant strategic catalyst for Valterra Platinum.”

That was how Valterra Platinum CEO Craig Miller introduced his update on the planned new underground platinum group metals (PGM) mine in South Africa’s Limpopo province. (Also watch attached Creamer Media video.)

The market capitalisation of South Africa’s Valterra Platinum has soared to R450-billion from R300-billion at year-end with a gross final 2025 dividend of R11.5-billion being declared.

Earnings before interest, taxes, depreciation and amortisation in 2025 increased by 68%, to R33.4-billion, supported by a 22% increase in the rand basket price and R5-billion of additional cost reductions, the Johannesburg Stock Exchange-listed PGMs miner reported on Wednesday, February 25.

Net cash at financial year-end was R11.5-billion, a substantial recovery from the R4.9-billion net debt position at 30 June 2025, reflecting strong free cash flow generation, boosted by a strong second-half operational performance and increased PGM prices.

Liquidity headroom of R43-billion is reflective of the strong  balance sheet.

Valterra is developing a high-grade underground PGM project beneath the Sandsloot pit at its Mogalakwena PGM flagship mine. This project aims to offset declining surface ore grades, with potential full production expected after 2030, pending a 2027 investment decision.

Returning to the Sandsloot project, Miller went on: “Our declines begin at the base of the Sandsloot openpit, providing close access to the reef.

“This substantially reduces project lead time and lowers capital intensity compared with other projects in the industry.

“Unlike other Bushveld Complex reefs, its height is between 40 m and 120 m, with a 45^o dip on average, characteristics well suited for bulk, underground mechanised mining.

“At 4 g/t to 6 g/t, the reef is materially richer than other mechanised mines in the PGM industry.

“Growth uplift is driven by higher grades, rather than increasing volumes, enabling us to leverage the existing concentrator and tailings facilities.

“This approach will save us billions in upfront capex and costs”, Miller emphasised at the Johannesburg Stock Exchange-listed PGM company’s dividend-rich presentation, covered by Mining Weekly.

Valterra plans to commence trial mining this year, which will provide critical input to its comprehensive feasibility study now under way.

Valterra CFO Sayurie Naidoo reported that discretionary capital of R4.5-billion rand was directed to Sandsloot underground development and drilling, as well as surface infrastructure and development at De Brochen.

The conclusion of the prefeasibility study has reinforced our confidence in the 10% to 50% uplift in Mogalakwena PGM volumes and a 10% to 20% reduction in costs, numbers that it believes will truly move that needle.

"With the scale of the opportunity in mind, over the past year, we've made great progress in bringing this closer to reality.

The team has completed a further 30 km of exploration drilling, which has informed the total upgrade of 13-million ounces to measured and indicated mineral resources, which is available for future conversion to ore reserve.

The underground development has advanced a further 3.2 km, while the team also successfully completed the pass for the ventilation shaft 1.

Trial processing of the bulk ore stockpile is underway, which had accumulated to about 80 000 t by year-end.

“We've invested about R1.4-billion rand in capex to advance the project.

“I really hope that you're as excited about this as we are given the potential of this opportunity for Valterra,” Miller enthused.

Moving on to Amandelbult, he added: “I’m incredibly proud of how our teams responded to the flooding.

“Not only did their decisive actions ensure safe and responsible evacuation of all of our employees, but they also accelerated the dewatering well ahead of plan and enabled a faster-than-expected ramp-up to normalise production.

“A huge thank you to everyone that was involved, and as I've mentioned, this has enabled Amandelbult to exceed its revised guidance in the second half of the year, with the accomplishment in the last six months of 2025 outperforming what we achieved in 2024, despite Tumela mine only reaching steady state by September,” Miller reported, adding that this performance highlighted the strong operating potential of this asset, with 2026 guidance indicating a 25% recovery.

Despite the severe flooding impacts, Amandelbult delivered positive free cash flow, further supported by the insurance proceeds.

The resilience of the quality of this orebody, with its favorable prill split – the percentage ratio of individual PGMs – as well as rich chrome products drove the highest basket price in the PGM sector, at around $3 000 per three-element (3E) ounce at current spot price levels.

Moving on to the Mototolo PGM mine in Mpumalanga, it was reported that the development of the Der Brochen project has progressed to a point of all development ends successfully intersecting the reef.

A 9% increase in immediately available ore reserves is improving near-term operational flexibility.

“At Mototolo, our operational excellence initiatives delivered a 12% productivity uplift. Despite the dilution from the development times, production remained consistent with that of the prior year.

“Looking ahead, the ramp-up of the new more efficient Der Brocken mine with the continued improvement in chrome recoveries and further optimisation of the three declines are expected to drive Mototolo’s costs further down the cost curve.

“Our processing operations have also seen improvements, beginning with our upstream performance.

“We achieved 1% to 2% improvement in concentrator recoveries at both Amandelbult and Mototolo, aligned with our strategic objective to enhance recoveries and improve margins.

“At Mogalakwena, recoveries remained flat, a notable achievement given the 13% reduction in our mass pull.

“At Amandelbult, 7% reduction in mass pull also contributed to the reduction across the business.

“Mogalakwena’s record mill tons we're supported by the ongoing improvements in plant availability and proactive investment into reliability,” Miller outlined.

JAMESON CELLS SAVING COSTS

Following the commission of the Jameson cells in the first half of 2025, the plant had been optimised to deliver further improvements and additional improvements are expected at the Mogalakwena concentrators, on top of an already achieved 13%.

"As optimisation continues and the plants annualised impact is realised, we're also encouraged by the almost one percentage point improvements in the adjusted North concentrator recoveries since the commissioning.

"While the recovery uplift was not the primary objective of the introduction of the Jameson cells, the team is optimistic that further improvements may follow.

"To put that impact into perspective, volumes at the Mogalakwena north concentrator declined 14% while concentrate grade increased 16%.

"Importantly, there are many wider benefits to the mass pull reduction.

In 2025, we saw a 21% reduction in trucks transporting concentrates, a 4% decrease in smelter electricity consumption, and a corresponding 5% reduction in CO₂ emissions, delivering an estimated cost saving of about R123-million, with additional savings expected in 2026 commensurate with further improvements in mass pull.

“Clearly, the Jameson cells have been really successful,” Miller said in response to David Roche Kelly of Phoenix Research, who asked during question time whether the 40% reduction in mass pull brought about by the Jameson cells at Mogalakwena’s North concentrator was transferable to the other concentrators.

“We will look to see whether we can install the Jameson cells at the South concentrator at Mogalakwena. We’re evaluating it.

“I think it's less impactful at Amandelbult, given its scale and installed capacity, but our primary focus is really driving that efficiency at Mogalakwena. That looks to be our biggest opportunity at the moment,” Miller reported.

Referring to Naidoo being explicit on cost savings being another R1-billion to R1.5-billion, SBG Securities’ Adrian Hammond asked if those numbers were not conservative given the additional benefits expected from Jameson cells, Naidoo explained that the R1-billion to R1.5-billion savings range was from corporate cost reduction and that there would be continued benefits from operational excellence such as the mass pull initiatives and renewable energy.