Chrome and platinum group metals (PGM) miner Tharisa has reported a 5% year-on-year increase in its operating profit to $125-million for the financial year ended September 30, despite lower PGM and chrome concentrate production.

The company produced 1.56-million tonnes of chrome concentrate in the year, marking an 8.2% decrease year-on-year, and 138 300 oz of 6E PGM (platinum, palladium, rhodium, iridium, ruthenium and gold), which decreased by 4.7% year-on-year.

The group’s earnings before interest, taxes, depreciation and amortisation increased by 5.5% year-on-year to $187-million, while earnings a share decreased by 3.6% year-on-year to $0.26.

Tharisa’s headline earnings a share of $0.27 in the year under review compared with $0.28 in the prior year, marking a 2.1% decrease.

The company resolved to declare a lower total dividend of $0.03, which is 33% lower than the prior year’s total dividend of $0.045 apiece.

Tharisa’s multi-generational Tharisa mine is located on the south-western limb of South Africa’s Bushveld Complex.

The company is also developing the Karo platinum project, in Zimbabwe, with planned investments in downstream beneficiation (for chrome and alloy production) that will add significant value when commercialised.

Tharisa is also advancing proprietary iron chromium redox flow battery technology, using the commodities it mines to support long-duration energy storage – which the company deems a key component in the transition to renewable energy.

The group has cash on hand of $175-million and a net cash position of $69-million.

The group has set its production guidance for the 2026 financial year at between 1.5-million and 1.65-million tonnes of chrome concentrates and between 145 000 oz and 165 000 oz of PGMs.

MARKET VIEW
Tharisa says in its financial statements for the year under review that the PGM sector is experiencing an evolving demand landscape.

“Platinum and palladium markets remain central to autocatalyst applications, as global emissions standards tighten and hybrid vehicle production persists alongside the slowing but gradual transition to battery-electric vehicles,” the company explains.

Additionally, industrial demand for PGMs is proving resilient, supported by the chemical, petroleum and electronics sectors, while emerging technologies, particularly hydrogen fuel cells, provide a strong strategic outlook for platinum in the medium to long term.

In contrast, market volatility intensified in the year under review owing to softer automotive output in Western economies, thrifting in catalyst formulations, and fluctuating sentiment around the pace of electrification.

PGM prices averaged 18.6% higher year-on-year at $1 615/oz in the year under review.

In turn, Tharisa says chrome production remains vital in supporting stainless steel manufacturing, particularly in China, where stainless steel output maintains a stable growth trajectory aligned with urbanisation and infrastructure investment.

South Africa’s high-grade metallurgical chrome ore remains in strong demand globally; however, Tharisa says systemic infrastructure issues need addressing for producers to remain competitive.

Additionally, the company says the chrome and PGM industry’s ability to dynamically adapt to market transitions, including shareholder expectations on responsible mining and technological advancements, will remain a defining feature of its contribution to national economic development and global supply security.

Chrome concentrate prices averaged 11% lower year-on-year at $266/t in the year under review.

Tharisa remains a significant player in the global chrome and speciality chrome industry, supplying about 10% of China and Indonesia’s yearly demand for chrome.

With the stainless steel market in the Far East needing close to two-million tonnes of chrome concentrate a month and the industry projected to grow at about 3%, the fundamentals for chrome remain strong, Tharisa states.