Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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It would be helpful if tomorrows Jan-March production numbers are supportive of the current rising share price. Its got a fair way to go before I break even!
I assume there was no weekly chrome price yesterday as China had a public holiday last Friday?
Jan-March production numbers out tomorrow ,I am expecting 1.37m tonnes ROM milled (the average of the last 2 Jan-March quarters) which should generate PPGM's about 34,500 oz and chrome 434,000 tonnes. Hopefully ROM milled shows signs of improving and net cash is holding up.
Pick your PGM prices but this is the daiy morning number as of today, so aligned
Tharisa Basket Price
Platinum $941.50
Palladium $1 025.00
Rhodium $4 725.00
Gold $2 328.58
Ruth $440.00
Iridium $4 900.00
Karo USD $1 279.56
Tharisa USD $1 408.55
Tharisa ZAR R26 238.07
Having bought more at 48 and 52 as posted here, I have done a bed and isa this morning. I make the basket now 1450 Tharisa and 1300 Karo, which is now 16% of potential profit from gold.
New to this share and reading some mixed messages about Karo. Can someone please summarise the situation there, or point me in the direction of a good summary. In particular, capex to date, capex outstanding, ownership situation (if not 100% THS), production numbers, projections etc. THS looks cheap on many metrics.
Looks like i can buy up-to 2k now.
Impossible to added anything over 1k, I’m sure we will be closer to 90p - £1 if we get going.
Crazy low PE.
With AJ bell I cant buy shares in amounts of £1K or more. They will let me sell no problem!
Given the tiny buy back announced this morning looks like Tharisa is having a similar problem!
Sotolo, to be fair the current share price is still up 5.45% since the share buyback was announced. And as Pedobull mentions below, a total buyback of $5m is currently just 2.3% of the total share value. Peel Hunt have until 21st Feb 2025 to complete this so if they spread it out over April 24-Feb 25 (11 months) then it is $455,000/month.
But overall fantastic news and a clear signal by the Company.
Interesting that the CFO below mentions "capital discipline" a couple of times so we are not going to have the minimum 15% NPAT dividend policy change dramatically and he mentions we are still working on the "necessary third-party financing" for the first phase of Karo.
Today is the last working day of HI so the final part of the PGM Fair Value calculation will be based on todays PGM basket. Fingers crossed for a good Q2 production report in April!
Have there really only been 2 share trades in THS in London market today, both over 5 hours go nd before 9am, talk about thinly traded, the buyback should have quite an impact!
Would be good if dividend payout could be doubled to approx one third of profit after tax -but need to consider capital commitments -especially in relation to Karo (although looking at loan finance)
Agree very good move and will go part of the way to correct chronic undervaluation. With the restructuring last year of BEE portion and simplification of ownership, with this continued undervaluation in comparison to Net Profit After Tax (NPAT) and Free Cashflow (FCF), they really need to look further at the Dividend Policy.
I know they routinely pay 17-18% of NPAT, but a 15% NPAT dividend policy should be updated to be more attractive to investors. CAML and ATYM both have 30-50% FCF dividends. BHP has 50% payout of Underlying attributable profit at every reporting period. Without deep diving CAML and ATYM's respective definitions of "FCF", this is bit more flexible than NPAT, so THS could always have a say 20-30% NPAT or 30-50% of FCF, caveating that this is subject to M&A, capex opportunities etc.
Good move -should help the shareprice as market free float is not all that large -hope no change in minimum dividend payout
Good news although at a market cap of £166.51m a $5m (£4m) buyback is approx 2.5%
At the annual general meeting (‘AGM’) of Tharisa held on 21 February 2024, shareholders approved a special resolution authorising the Company to undertake a general repurchase of ordinary shares up to 10% of the 302 596 743 ordinary shares in issue at the date of the AGM.
Tharisa is dual listed on the Johannesburg and London stock exchanges. The Board believes that the Company’s shares are trading at a significant discount, having been negatively impacted by the PGM commodity price environment while not reflecting the strong co-product contribution from its chrome sales.
The Company has appointed Peel Hunt LLP (‘Peel Hunt’) to manage and carry out on-market purchases of ordinary shares as principal on both the Johannesburg and London stock exchanges, up to a maximum amount of US$5 million (the “Repurchase Programme”) (excluding associated expenses).
Tharisa is committed to capital discipline and believes that a share repurchase at its current valuation supports this.
Michael Jones, CFO of Tharisa, commented:
“We have maintained our strict capital discipline throughout the commodity cycles and believe it is opportune to allocate capital to a share repurchase programme to the benefit of our shareholders and reflecting our firm belief in the prospects for our company. While the PGM commodity pricing environment is challenging, chrome prices have remained firm reinforcing the strength of our co-product business model. The Karo Platinum Project is a multi-generational resource and, while maintaining capital discipline, we continue on the road to delivering the necessary third-party financing to deliver the first phase into production.”
https://www.sharenet.co.za/v3/sens_display.php?tdate=20240326073000&seq=5
Appears to have turned a corner, and back on the rise
Chrome is back above $300/tonne ,the highest for 6 months and now contributing about 70% of revenue.
BPat so far our purchases at 48 (and me reinvesting divi at 52 along with others) are going well, my first in a long time, as looked just too cheap given chromium holding up and even including Karo worries
A good rise today 😲
Has it finally bottomed 🤔
BetterLuckSoon, good to have your first post.
Totally agree, It would be nice for the non-execs to invest more in Tharisa!
Hopefully it can only go one way from here.
Sadly non execs hold less than me and probably a lot of other PIs.
Thanks Ilja, I see that the non-exec directors own a combined 104,500 shares.
And thanks for the latest chrome/The improvement in the Tharisa PGM basket price will give us a positive Fair Value adjustment in the H1 results of several millions.
Whole PGM complex on JSE taking a breather after a hard run last week
Thank you, around the highest basket (esp Karo) in quite a while and chromium, strange shares opened so down but should quickly bounce back
Chrome prices remain strong, stocks slightly down, not surprising given the normalisation post new year, PGM basket price also ticking up, suspect markets will be dominated by global data and CB reporting globally.
Spot chrome sitting at US$300/t as of this morning.
Port stocks at 2.8Mt spot this morning.
Tharisa Basket Price
Platinum $941.50
Palladium $1 086.50
Rhodium $4 550.00
Gold $2 166.90
Ruth $440.00
Iridium $4 950.00
Karo USD $1 285.77
Tharisa USD $1 436.99
Tharisa ZAR R26 944.04