Valterra Platinum, a miner of platinum by value, marked its entry on the Johannesburg Stock Exchange (JSE) as an independent entity on Wednesday, according to a Reuters report.
This move finalised the spin-off from its former parent company, Anglo American.
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The demerger of the Johannesburg-based platinum group metals (PGM) producer, previously known as Anglo American Platinum, aligns with Anglo’s strategy to concentrate on the copper and iron ore sectors.
Valterra’s CEO, Craig Miller, emphasised that the company will focus on value creation and maintaining the high standards set during its tenure within the Anglo group.
“Part of our DNA is upholding those high standards and exemplifying who we are as a PGM producer,” Miller was quoted as saying, post-listing.
Valterra’s chief financial officer, Sayurie Naidoo, confirmed the company’s intention to adhere to its capital allocation framework, with plans to distribute 40% of headline earnings.
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By GlobalDataNaidoo also mentioned the potential for share buybacks should metal prices increase and generate surplus cash.
Additionally, Valterra is preparing for a secondary listing in London on 2 June, the report said.
Meanwhile, Anglo American is in the process of divesting from its platinum mining operations as part of a broader restructuring.
This comes after the company successfully fended off a $49bn (A$76.08bn) takeover bid from BHP Group a year ago.
Anglo has retained a 19% stake in the South African platinum miner and is also considering the sale or listing of its loss-making De Beers diamond unit, along with disposing of other assets.
Anglo’s CEO, Duncan Wanblad, has expressed that focusing on copper assets should enhance the company’s value.
However, there is speculation among analysts and investors that if Anglo’s shares do not revalue as expected, it could become a target for another takeover bid.
In related news, US-based Peabody Energy is reassessing its options concerning the acquisition of Anglo American’s Tier 1 Australian steelmaking coal assets, valued at $3.78bn (£2.93bn), following a fire at the Moranbah North coal mine, which is included in the transaction.
