Valterra Platinum: Shares rise on London debut after Anglo American demerger
Shares in Valterra Platinum rose on Monday morning in a positive start to the mining company’s London debut following its $11bn demerger from Anglo American.
The secondary London listing, in which shares rose 4.6 per cent to 2,960 after the first hour of trading, follows a primary listing in Johannesburg on Friday. Valterra’s London-listed shares have been distributed to Anglo American shareholders as part of the float.
The stock’s performance had been tipped for an uncertain start due to the fact that the spun-off entity will sit outside the FTSE 100, unlike parent Anglo, sparking a selloff from passive index tracker funds. Around one in twelve Valterra shares are thought to belong to index funds.
“The risk of volatility is high, given the quantum of trading that has to be done in the first couple of days,” RBC analyst Ben Davis said.
The company, formerly known as Anglo American Platinum, is the world’s most valuable platinum producer. Anglo’s move to spin off Valterra comes as part of a restructuring in a bid to fend off a hostile £39bn takeover from mining rival BHP. Anglo is also divesting its nickel, coal and diamond businesses as it focuses on its core markets of copper and iron ore.
Craig Miller, CEO of Valterra Platinum, said: “As an independent company with a new name – Valterra Platinum – we offer an exciting investment proposition based on our industry-leading resource endowment and integrated processing capacity.
“With global Platinum Group Metals (PGMs) supply in deficit, minimal industry investment in new production capacity, and a strong case for enduring demand, we are confident about the medium and long-term outlook for PGMs.”
Miller said Valterra dual listing in London and Johannesburg would “benefit our geographically diverse shareholder base and will assist in building the Group’s profile and providing a larger market for trading in our shares.”
