Valterra Platinum (JSE: VAL), formerly Anglo American Platinum (Amplats), began trading as a standalone entity on the Johannesburg Stock Exchange on Wednesday, marking the official demerger from parent company Anglo American.The miner, the world’s biggest producer of the precious metal by value, will also have a secondary listing on the London Stock Exchange from next Monday.The move is part of Anglo American’s (LON: ALL) broader restructuring strategy, announced last year to counter a $49 billion takeover bid from BHP (ASX: BHP). Anglo America is now focused on iron ore and copper, after receiving a substantial dividend from its platinum subsidiary before the split.Valterra’s debut on the JSE was marked by volatility, with shares opening lower before reversing course. The stock opened at 712.58 Rand ($37.8) and was last trading at 738.54 Rand ($39.2) as of 2 PM local time.The spinoff closes a chapter spanning over two decades in which platinum-group metals (PGMs)—including palladium, rhodium and iridium—powered both Anglo American’s growth and South Africa’s mining economy, overtaking gold as the country’s primary mineral export.Growing painsValterra steps into independence amid serious headwinds. Prices for key PGMs have slumped since early 2023, with palladium down 43% and rhodium plunging by 56%. That’s a sharp reversal from the record profits South African PGM miners posted just a few years ago.“I fundamentally believe PGM prices should be higher than where they are today, just given the deficits we see within the market and a positive outlook for PGMs given the changes in the nature of the energy transition,” Valterra chief executive officer Craig Miller s said in a television interview Wednesday.A recent UBS report warned Valterra is expected to enter net debt of R8.4 billion by the end of June due to demerger costs and lost output following severe floods in February. Production at Tumela mine in Limpopo province was suspended that month after heavy rains disabled the site’s pumping systems. Miller said Tumela is expected to resume operations by mid-year.Despite the setbacks, Miller remains optimistic. “We’ll have a really good second half. We’ve had a reasonable first half, but it’s had its challenges,” he said on the sidelines of the JSE. Chief executive officer Craig Miller. (Image courtesy of Valterra Platinum.) Analysts are also cautiously optimistic, citing signs of a recovery in platinum prices and solid demand from the jewellery and automotive sectors following recent industry events in London.To ease investor concerns about post-spinoff instability (or “flowback”), Anglo will retain a 19.9% stake in Valterra for now. The London listing is also intended to broaden the company’s investor base and maintain liquidity.Valterra is now the world’s fourth-largest platinum miner. Its launch adds momentum to Anglo’s wider asset reshuffle, which includes selling its coking coal operations in Australia, offloading nickel mines in Brazil, and evaluating options for its struggling De Beers diamond division.Still, uncertainty lingers. Some investors believe if Anglo’s valuation doesn’t significantly improve, the company could face renewed takeover interest. “The spin-off of Valterra removes the key hurdle and increases the probability of another M&A approach,” UBS analysts said in a research note on May 21. “The potential for M&A increases further as or when Anglo exits De Beers.”
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