Tharisa plc, the dual-listed platinum group metals (PGMs) and chrome co-producer, has released its production report for the third quarter ended June 30, 2023. The company showcased robust performance with increased PGM output, steady chrome production, and a strengthened cash balance.
Key Highlights:
- Safety Achievement: Tharisa maintained its commitment to health and safety, achieving a Lost Time Injury Frequency Rate (LTIFR) of 0.06 per 200,000-man hours worked.
- PGM and Chrome Production:
- PGM output increased to 37.0 thousand ounces (koz) compared to 34.3 koz in the previous quarter, with maintained yield and improving recoveries.
- Chrome production marginally decreased to 378.8 thousand metric tons (kt) from 404.8 kt in the previous quarter, driven by steady grades, yield, and recoveries.
- Mining Volumes: Tharisa faced constrained mining volumes during the quarter, which impacted overall production.
- Chrome Concentrate Prices: Metallurgical grade chrome concentrate prices experienced a quarter-on-quarter increase of 7.8%, averaging US$290 per ton (t) (approx. ZAR 5,510/t) compared to US$269/t in the previous quarter.
- Karo Platinum Project: Tharisa made significant progress with its Karo Platinum Project, achieving major milestones such as the first concrete pour and commencing pilot mining.
- Cash Balance: Tharisa’s cash on hand grew by US$36.8 million to US$242.6 million (approx. ZAR 4,607.4 million) compared to US$205.8 million in the previous quarter, resulting in a net cash position of US$141.5 million (approx. ZAR 2,687.1 million).
- Strong Balance Sheet and Growth: Tharisa’s solid financial position enables it to support business growth while providing returns to shareholders.
Tharisa’s Q3 FY2023 Production Numbers:
|———————————————————————–|
| Q3 FY2023 | Q2 FY2023 | QoQ Movement (%) | |
|---|---|---|---|
| PGMs produced (koz) | 37.0 | 34.3 | 7.9 |
| Chrome concentrates | |||
| produced (kt) | 378.8 | 404.8 | -6.4 |
| Average PGM contained | |||
| metal basket price | US$1,695 | US$2,032 | -16.6 |
| Metallurgical grade | |||
| chrome concentrate | |||
| contract price (US$/t) | 290 | 269 | 7.8 |
Tharisa CEO Phoevos Pouroulis commented on the report, stating, “
“The unique co-product model was again highlighted with the Company benefitting from continued favourable
chrome pricing while dealing with PGM pricing pressures, resulting in strong free cash generation – ending the
period with a further strengthened balance sheet with net cash of over US$140m.”
He also highlighted the progress made with the Karo Platinum Project and expressed confidence in Tharisa’s ability to weather the current market environment and deliver shareholder returns while sustainably growing the business.
