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.

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 February 25.

Net cash at financial year-end was R11.5-billion, a substantial recovery from the R4.9-billion net debt position at June 30, 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 the high-grade underground PGM project beneath the Sandsloot openpit 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.

“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,” Miller explained at the Johannesburg Stock Exchange-listed PGM company’s 2025 results presentation, covered by Engineering News & Mining Weekly.

“Unlike other Bushveld Complex reefs, its height is between 40 m and 120 m, with a 45º 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 pointed out.

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 was directed to Sandsloot underground development and drilling, as well as surface infrastructure and development at De Brochen.

“We’ve invested about R1.4-billion in capex to advance Sandsloot and I really hope that you’re as excited about this as we are, given the potential of this opportunity for Valterra,” Miller enthused.

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

With the scale of the opportunity in mind, significant progress has been made to bring Sandsloot closer to reality.

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

Underground development has advanced a further 3.2 km and the pass for the ventilation shaft 1 has been completed.

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

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.