Tharisa targets remain intact

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Tharisa targets remain intact

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Published Date: 2021-04-14 | Source: Stephen Gunnion | Author: Stephen Gunnion

Tharisa targets remain intact

The platinum and chrome miner says production has been resilient despite extreme weather conditions and the ongoing impact of Covid-19 restrictions.

Tharisa Plc says it is on track to meet its full-year guidance after a resilient production performance fed into a strong pricing environment in the second quarter of its financial year. It said production held up, in what is traditionally its weakest period of the year.

In a production report, the mining company said output of platinum group metals (PGMs) rose 11.5% to 35,800 ounces in the three months to end-March compared with the same quarter last year. However, it was down 8.9% from the previous quarter. Chrome concentrate production was up 15.5% year-on-year to 358,400 tonnes and was marginally below December's level.

Tharisa operates an open cast mine in SA's Bushveld Complex, one of the few to co-produce both PGMs and chrome. It said it benefitted from an average PGM basket price for the March quarter that was 37% higher than the prior three months at $3,290 an ounce. The company said PGM markets remained tightly balanced, with a bias towards supply deficits, particularly given production constraints at some of the larger producers.

Demand for chrome ore also remained healthy. Despite logistical bottlenecks experienced in the country, it said it had been able to deliver its products. Prices were expected to remain elevated, in part to compensate for the increase in freight costs.

As a result of the much higher commodity prices, the company said it was able to convert production into cash flow, resulting in a positive net cash position of $31.4-million at the end of the period.

Tharisa has maintained full-year guidance at 155,000 to 165,000 ounces of PGMs and 1.45 million to 1.55 million tonnes of chrome concentrates.

Its shares declined by 0.9% to R29.09 in thin trade yesterday.





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