Integrated resource group Tharisa has reported a softer start to the 2026 financial year, with production for the first quarter, ended December 31, having been affected by seasonal conditions.

The company reported, however, that operational indicators were improving, underground development was progressing as planned and strong platinum group metals (PGMs) prices were supporting confidence in the months ahead.

Tharisa CEO Phoevos Pouroulis said the quarter was completed safely and broadly in line with planned mining volumes, despite lower output at the start of the year.

“The first quarter of the financial year was another safe quarter operationally, with production reflecting planned mine volumes and the seasonal operating environment.

“While output was softer at the start of the year, leading indicators across the business are trending positively, particularly in mining, where recoveries have begun to improve following weather and sequencing-related impacts experienced during the quarter,” he said.

He said underground development continued to advance in line with the company’s longer-term strategy.

“Underground development continues to progress in line with our strategic plans, supporting the next phase of operational flexibility and sustainability. At Karo, development remains aligned with capital availability, with Tharisa providing additional funding support to maintain momentum on the project timeline,” Pouroulis said.

During the quarter, Tharisa mined more than 1.2-million tonnes of reef, down from more than 1.4-million tonnes in the fourth quarter of the 2025 financial year, while reef milled amounted to more than 1.3-million tonnes compared with more than 1.4-million tonnes previously.

Quarterly PGM production totalled 38 800 oz, compared with 41 300 oz in the prior quarter. The rougher feed grade was 1.41 g/t, marginally lower than 1.42 g/t, while recovery declined to 78.8% from 80.7%.

Chrome production for the quarter was 349 400 t, compared with 407 200 t in the previous quarter. The chrome grade averaged 14.9% chromium oxide, down from 15.7%, while recovery was 70.3% compared with 74%.

Tharisa said the lost-time injury frequency rate per 200 000 man hours worked was 0.02 at Tharisa Minerals and 0.00 at Karo Platinum, in Zimbabwe.

Market conditions during the quarter were supportive for PGMs, with Tharisa noting that platinum fundamentals remained in deficit for a third consecutive year. The company said legislative changes in the EU, including the planned 2035 ban on combustion-engine vehicles, alongside tariff uncertainty and rising investment demand for precious metals, contributed to sharply higher PGM prices during the quarter, with prices continuing to hold firm.

“PGM prices were robust during the quarter, underpinned by supportive market fundamentals, and we were able to deliver production into this pricing environment. We remain constructive on the PGM price outlook and expect current price levels, and potentially higher levels, to persist in the months ahead,” Pouroulis said.

Chrome prices remained stable during the period and were expected to remain range bound until after the Chinese New Year. Tharisa said Chinese stainless steel production increased during 2025, compared with 2024, and was forecast to rise by about 3% into 2026, supporting demand for chrome.

At the end of the quarter, the group reported cash on hand of $122.2-million, compared with $173-million at September 30, 2025. Total debt stood at $75.2-million, down from $104.4-million at September 30, 2025, resulting in a net cash position of $47-million, compared with $68.6-million previously.

Tharisa maintained its production guidance for the 2026 financial year at between 145 000 oz and 165 000 oz of PGMs on a six-element basis and between 1.50-million and 1.65-million tonnes of chrome concentrates.