Valterra Platinum remains ‘highly confident’ in ‘robust outlook’ for PGM demand

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.
Johannesburg Stock Exchange-listed platinum group metals (PGM) mining and marketing company Valterra Platinum is actively supporting long-term PGM demand growth through strategic industry partnerships.
Following its collaboration with Johnson & Matthey and Sibanye-Stillwater earlier this year, two separate partnerships have been initiated, one with Umicore in Germany and Pujing Chemicals in China, to expand the use of PGMs in industrial applications. (Also watch attached Creamer Media video.)
"We remain highly confident in the robust outlook for PGM demand," Valterra CEO Craig Miller reported during the company's presentation of stunning 1 633% headline earnings in the half-year to June 30.
"Consensus forecasts are largely built around today's known applications, and in our view, continue to underestimate the potential impact of innovation, substitution, and supportive policy developments.
"As economies become wealthier, demand naturally increases for technologies that enhance efficiency, productivity, and sustainability, creating new opportunities for PGMs," Miller explained during the presentation covered by Mining Weekly.
At Valterra's Capital Markets Day last year, details of ten-million ounces of additional PGM demand by 2035 were outlined.
"Based on the evidence that we see today, we continue to hold that view. Importantly, these opportunities are becoming increasingly tangible.
"Over the past 15 months, we've seen several developments that give us confidence that at least two-million ounces of this potential upside is progressing towards high conviction demand.
"We are working hard to shift more ounces from the known potential category into the high conviction bucket," Miller reported.
Three areas which stand out for Valterra are:
First, hydrogen. China's inclusion of hydrogen in its long-term strategic development plans, together with increasing deployment of fuel cell trucks and higher platinum loadings, points to demand that could materially exceed current assumptions.Second, AI-driven industrial demand. "We're already seeing PGMs used across data infrastructure applications, including hard disk drives, silicone, specialised crucibles, and power systems. As AI infrastructure scales globally, this demand should continue to grow," said Miller.Third, substitution opportunities. Elevated gold prices are improving the economics of replacing gold with platinum and palladium in industrial applications, while platinum jewellery continues to gain share from white gold in key Western markets.
"These opportunities are not theoretical. We're actively working to accelerate them through collaborations with Johnson Matthey, Sibanye-Stillwater, Umicore and Pujing Chemicals, creating pathways to commercial adoption across multiple demand sectors.
"So, in short, we see a market that is already in deficit today, underpinned by compelling medium-term fundamentals and supported by multiple credible sources of long-term demand growth.
"As a result, we remain confident that consensus demand forecasts will need to move higher over time," Miller added.
RENEWABLE ENERGY
Sustainability remains embedded into everything done by Valterra, which is continuing to support the company's long-term value creation.
A key milestone during the period was the commissioning of 520 MW of renewable energy capacity through Envusa, with Valterra the largest offtaker.
This is already contributing to lowering Valterra's emissions as well as reducing its energy costs.
Valterra contributed R46-billion to the South African economy in the half-year through employment, procurement, investment, taxes, royalties, as well as community development initiatives.
The company also completed water resilience projects, including a new wastewate...