Miner, processor and marketer of chrome and platinum group metals (PGMs) Tharisa reported a 49.1% year-on-year decrease in earnings a share to $0.27 for the financial year ended September 30.

Revenue decreased by 5.3% to $649.9-million from $686-million in the prior financial year, with the group saying it remained relatively resilient to the fall in platinum group metal (PGM) prices and sales volumes, while benefitting from the strength of robust chrome sales volumes and an uptick of 25.8% in the realised chrome prices.

Tharisa’s major investment is its wholly-owned subsidiary Tharisa Minerals, which owns and operates the Tharisa mine, an openpit PGM and chrome mine located in the Bushveld Complex of South Africa.

Tharisa also has a 75% shareholding in Karo Mining, which has an indirect 85% interest in a development stage PGM asset, located on the Great Dyke in Zimbabwe.

CEO Phoevos Pouroulis said on December 14 that domestic headwinds in the period included electricity challenges at the Tharisa mine, as well as logistics challenges necessitating a move from rail to road transport.

Macroeconomic challenges included uncertainty, geopolitics, inflation, a volatile commodity price environment and fiscal and regulatory uncertainty.

Pouroulis highlighted tailwinds as including a buoyant chrome commodity market, counter cyclical commodities in the group’s basket, and fundamental for both commodities being robust.

He informed that there was strong momentum in the hydrogen economy and that the group would be exploring this as it benefits PGMs.

The Chinese stainless steel outlook is also said to be positive, benefiting chrome demand.

Tharisa's earnings before interest, taxes, depreciation and amortisation (Ebitda) totalled $136.8-million, a 42.4% year-on-year decrease primarily owing to inflationary and operational cost increases exceeding revenue growth over the period along with commodity price volatility.

Chrome production was 1.58-million tonnes, while the average metallurgical grade chrome concentrate prices were up 25.8% at $263/t, compared to $209/t in 2022.

PGM production was 144 700 oz, compared with 179 200 oz in 2022.

The average PGM basket price retreated by 26.2%.

OUTLOOK
Tharisa noted that its co-product model proved its resilience once again, with the company having benefited from a 25.8% increase in chrome prices.

The earlier operational mining challenges and subsequent suboptimal ore mix from its own mined ore and purchased ore did have a negative impact on PGM recovery and thus production.

The group highlights that its margins remain strong owing to its mechanised low-cost operations, with a continued disciplined capital allocation strategy, ensuring investment in its existing businesses, providing sustainable growth and returns to shareholders.

Given the current PGM basket price weakness and uncertain global economic outlook, it has taken the measured decision to extend the Karo platinum project timeline out to commissioning by June 2025, with the opportunity to accelerate the timeline as markets become more favourable.

The project is said to have progressed well, and the revised timeline is aligned to funding availability and provides flexibility to navigate volatile market conditions.

Tharisa’s growth strategy remains intact, with continuous optimisation at the Tharisa mine, investment in downstream beneficiation, and it commitment to the development of the multi-generational Tier 1 Karo platinum project subject to funding and favourable market conditions.

Production guidance for full-year 2024 is set between 145 000 oz and 155 000 oz of PGMs and 1.7-milllion to 1.8-million tonnes of chrome concentrate.