Tharisa Plc’s Interim Results Show 10.1% Revenue Increase but 29.1% Decline in Net Profit

Tharisa Plc, a Cyprus-based integrated resource group, recently unveiled its interim results for the six months ending March 31, 2024. These results provide a comprehensive insight into the company’s financial performance and strategic direction amid evolving economic trends.

Financial Performance Overview

Tharisa reported a revenue of US$369.1 million, marking a 10.1% increase from the previous period. Despite a slight decline in EBITDA to US$79.6 million, the company maintained a strong operational footing. However, net profit after tax saw a notable decrease of 29.1%, standing at US$38.8 million. This decline reflects challenges in the operating environment that impacted bottom-line profitability.

Financial MetricsAmount (US$)Change
Revenue$369.1 millionUp 10.1%
EBITDA$79.6 millionDown 2.0%
Net Profit After Tax$38.8 millionDown 29.1%
Net Cash from Operations$86.2 millionDown 11.2%
Capital Expenditure$114.1 millionUp, includes Karo Platinum

Key Operational Initiatives

Tharisa’s strategic focus includes reducing carbon emissions and embracing renewable energy solutions. The company aims to cut carbon emissions by 30% by 2030 and achieve net carbon neutrality by 2050. Notably, Tharisa is advancing a 40MW solar project adjacent to its mine, showcasing its commitment to sustainability and energy transition.

Dividend Declaration

Despite the challenging economic landscape, Tharisa declared an interim dividend of US 1.5 cents per ordinary share, representing 24.5% of Net Profit After Tax. This decision underscores the company’s confidence in its financial position and commitment to delivering value to shareholders.

Currency Conversion and Tax Implications

The dividend payment process involves currency conversions based on shareholders’ locations and how their shares are held. Shareholders in Cyprus will receive dividends in US dollars, while those on the JSE will be paid in South African rand. UK-based Depositary Interest holders will receive their dividends in Sterling.

Shareholder LocationDividend CurrencyTax Implications
CyprusUS DollarsLocal dividend
JSESouth African RandForeign dividend, tax applies
LSE (Depositary Int.)SterlingForeign dividend, consult tax advisor

Investor Insights and Market Response

Investors keen on Tharisa’s performance may analyse key metrics such as EPS and HEPS. The company’s EPS decreased by 26.4% to US 12.8 cents, while HEPS declined by 25.0% to US 13.2 cents. These figures reflect market dynamics and Tharisa’s efforts to navigate challenges while pursuing sustainable growth.

Strategic Outlook and Roadmap

Tharisa remains focused on operational excellence, innovation, and sustainability. The development of Karo Platinum, a low-cost PGM asset in Zimbabwe, underscores the company’s growth ambitions. Moreover, Tharisa’s commitment to reducing carbon emissions aligns with global environmental goals and enhances its long-term competitiveness.

Conclusion

Tharisa Plc’s interim results and dividend declaration offer valuable insights into its financial resilience, strategic initiatives, and commitment to sustainable growth. Despite facing challenges, the company’s performance highlights its adaptability and strategic foresight in navigating dynamic market conditions. As Tharisa continues to innovate and drive sustainability, investors and stakeholders can anticipate continued value creation and responsible business practices.