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.
"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. (Also watch attached Creamer Media video.)
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 Wednesday, February 25.
Net cash at financial year-end was R11.5-billion, a substantial recovery from the R4.9-billion net debt position at 30 June 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 a high-grade underground PGM project beneath the Sandsloot pit 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.
Returning to the Sandsloot project, Miller went on: "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.
"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 emphasised at the Johannesburg Stock Exchange-listed PGM company's dividend-rich presentation, covered by Mining Weekly.
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 rand was directed to Sandsloot underground development and drilling, as well as surface infrastructure and development at De Brochen.
The conclusion of the prefeasibility study has reinforced our confidence in the 10% to 50% uplift in Mogalakwena PGM volumes and a 10% to 20% reduction in costs, numbers that it believes will truly move that needle.
"With the scale of the opportunity in mind, over the past year, we've made great progress in bringing this closer to reality.
The team has completed a further 30 km of exploration drilling, which has informed the total upgrade of 13-million ounces to measured and indicated mineral resources, which is available for future conversion to ore reserve.
The underground development has advanced a further 3.2 km, while the team also successfully completed the pass for the ventilation shaft 1.
Trial processing of the bulk ore stockpile is underway, which had accumulated to about 80 000 t by year-end.
"We've invested about R1.4-billion rand in capex to advance the project.
"I really hope that you're as excited about this as we a...

Sandsloot project has potential to ‘truly move needle’, excited Valterra Platinum reports

MiningWeekly.com Audio Articles