Tharisa’s profit dented as output declines


Tharisa’s profit dented as output declines

Published Date: 2019-11-29 | Source: Stephen Gunnion | Author: Stephen Gunnion

Tharisa’s profit dented as output declines

Production was curtailed as the group redesigned the mining operation as chrome concentrate prices declined.

Tharisa plc has reported a sharp fall in full-year earnings after it missed production targets and it fetched a lower price for its chrome concentrate.

The platinum and chrome producer said volumes were affected due to a pit redesign aimed at improving access to the East Pit at the Tharisa Mine, which is aimed at providing a better product mix and grade control for its processing plants.

Production of platinum group metals (PGMs) declined by 8.2% in the year to end-September, while production of chrome concentrate reduced by 11% from a year earlier. At the same time, due to a weakening in the price of metallurgical grade chrome concentrate, it received an average $162 per tonne, down 12.9% from last year.

While operational improvements were recorded in the second half of the year following the redesign of its main pit, it missed its guidance for the year, producing 139,700 ounces of contained PGMs and 1.29 million tonnes of chrome concentrates. It was aiming for 150,000 ounces of PGMs and 1.4 million tonnes of chrome concentrates.

Revenue fell 16% to $343 million and operating profit declined 66% to $24.2 million. Earnings and headline earnings per share dropped by 79% to 4c and 5c respectively. Its proposed a total dividend of 0.75c per share, down from 4c last year.

Under its Vision 2020 strategy, the group aims to produce 2 million tonnes of chrome concentrate and 200,000 ounces of PGMs on an annualised basis.

Its shares fell 4.4% to R14.33 yesterday.

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