Valterra Platinum Limited has listed on the Johannesburg Stock Exchange on 28 May (share code VAL) and taken a secondary listing on the London Stock Exchange (ticker: VALT) on 2 June, where it joined the International Secondary Listing segment of the Main Market.
The listings come as a result of Anglo American plc demerger on 31 May of some 51% of its interest in the platinum group metals business. Valterra was formerly named Anglo American Platinum Limited (“Amplats”). There was an associated share consolidation of Anglo American on 1 June and the new shares were admitted to the Official List of the UK’s Financial Conduct Authority and to trading on the London Stock Exchange’s Main Market from 2 June. Here is the press release.
According to the LSE announcement, Craig Miller, CEO, speaking at the listing: “Valterra Platinum Limited is one of the world’s leading integrated producers of platinum group metals (PGMs).
“With a portfolio of outstanding long-life mines and proven processing assets, we responsibly and safely mine precious metals and associated co-products from our rich mineral resource endowment and process the PGMs and co-products at our smelting and refining operations located in South Africa and Zimbabwe. Our fully integrated value chain is supported by marketing hubs in London, Singapore and Shanghai to deliver tailored solutions for our customers.
“The Company will continue to be disciplined in its capital allocation, integrating sustainability into everything it does, to support the company’s investment in its mining and processing capabilities, market development activities to grow and commercialise new demand segments, and continue to make a meaningful difference to the development of the communities around our operations and return consistent and superior returns to shareholders.
Zero harm
“Valterra Platinum is committed to zero harm, capital allocation discipline and delivering on our value-accretive strategic priorities as a standalone, leading integrated PGM producer, guided by our purpose of unearthing value to better our world.
Duncan Wanblad, Chief Executive of Anglo American, said: “For Anglo American, this is a major step in our plan to unlock the inherent value in our portfolio as a whole, with enhanced focus on our world-class positions in copper, premium iron ore and crop nutrients.” Anglo-American continues to hold some 19.9% of the shares and will hold this for at least 90 days after the demerger. The plan to is achieve a full separation over time.
According to this article on Mining Indaba website: “As part of this restructuring, Anglo American has also announced plans to divest from other assets, including its coking coal operations in Australia and nickel mines in Brazil. Additionally, the company is evaluating options for its De Beers diamond unit. Despite the spin-off, Anglo American retains a 19% stake in Valterra Platinum, indicating continued interest in the PGM sector.
“On its first day of trading, Valterra Platinum experienced a volatile session. The shares opened lower but managed to recover as the day progressed.”
Reuters quoted analysts as saying the restructure aimed to rerate the value of Anglo-American shares, to ward off a future takeover attempt. The report cites a research note on 21 May from UBS Group: “The (spin-off) of Valterra removes the key hurdle and increases the probability of another M&A approach.. The potential for M&A increases further as or when Anglo exits De Beers.”