Ryan Mee, CEO at Fulcrum Metals, discusses next steps toward Ontario tailings hub. Watch the video here.
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10-Apr-24 Berenberg Bank Buy reccomendation - 130.00 Reiteration
JWBellamy "Back into the 50s today"
Only an hour to go 🙄
Palladium getting battered today
Reef milled and PGM production were marginally up on my expectation which are all the better given that the stripping ratio deteriorated to 14.0m3:3m . The chrome number is a little disappointing but I take the comment from Ilja at face value if Vulcan has been down for maintenance/repair and I see the Cr2o3 ROM grade this quarter is only 18.1% compared to 19.1% the previous quarter which is 5.2% lower which just reflects the grade we are digging out of the ground this quarter just happens to have a lower chrome content plus we are still having to buy- in about 25% of the ROM we are milling and I suppose that is variable depending on where you buy it in from. The Company has said that it aims to stop having to buy-in ROM by the end of this year which suggests reef mined should get back to the levels of 18-24 months ago. As Stemis has mentioned below, the Company is still on target to achieve the guidance numbers for the FY. So just a minor blip.
Yes, the cash is lower than expected but let us wait for the full H1 numbers to see where it has gone.
No - people never look at the numbers or as I noted this morning on another stock - actually read the RNS.
Do people even look at the numbers? Q2 is normally a lower quarter for production numbers. Chrome production of 402.7kt is almost the same as 2023 - 404.8kt. However, in the first half of 2024 as a total, chrome production was significantly higher than the same period last year; 865.6kt v 787.9kt. Company has re-iterated guidance for full year of 1,700-1,800kt, which compares to 1,580kt last year. So NO drop in chrome production.
Nice to get feedback from the co(ths) . Seldom get that from other companies.
Appreciate that they want to be involved with PI`s
Planetsaligned, as explained this is just the second quarter figures . A period when plant is maintained which is necessary but causes downtime and results in lower production.
Cash is down but still very healthy at $70mil given they pay a divi, and are using cash to finance karo and now spending to buy back £5mil of shares. Tharisa wouldnt undertake that without a healthy balance sheet.
As is grade due to feedstock, Vulcan is doing well but maintenance has an impact on overall recoveries
Vulcan was supposed to increase Chrome recoveries to ~82% but the recoveries for the current quarter are far below that at 66.4%
Those details will be in the financial report on 24/5, needless to say we continue to spend our portion on Karo, net cash remains strong with Karo holding good cash that will allow them to continue development as per our revised timeline, remember this is q2 where we do major maintenance in the plants with downtime for some days during that period in the planst never mind a short February
Wish Ths would give details of capital expenditure to explain large fall in cash
Buyback likely to kick in if that happens
Back into the 50s today
Quarter highlights
‒ Lost Time Injury Frequency Rate (‘LTIFR’) of
‒ 0.05 per 200 000-man hours worked at Tharisa Minerals
‒ 0.11 per 200 000-man hours worked at Karo Platinum
‒ PGM output consistent at 35.3 koz (Q1 FY2024: 35.7 koz)
‒ PGM basket price at US$1 343/oz (6E basis) (Q1 FY2024: US$1 344/oz)
‒ Chrome output lower than previous quarter record production at 402.7 kt (Q1 FY2024: 462.8 kt)
‒ Average metallurgical grade chrome concentrate price held steady at US$286/t (Q1 FY2024: US$291/t)
‒ Cash of US$184.6 million (31 December 2023: US$221.5 million), and debt of US$114.0 million (31 December 2023: US$126.6 million), resulting in a net cash position of US$70.6 million (31 December 2024: US$94.9 million)
‒ Announced US$5 million share repurchase on 26 March 2024
‒ Official launch of Redox One at the Africa Energy Indaba
‒ Production guidance for FY2024 remains between 145 koz and 155 koz PGMs (6E basis) and 1.7 Mt to 1.8 Mt of chrome concentrates
Phoevos Pouroulis, CEO of Tharisa, commented:
“Operationally we performed well, building on a record first quarter and on track to meet guidance. Most pleasing is the continued trend in our improved safety record. We continue to drive improvement in recoveries and efficiencies which is highly sensitive to the variability and oxidisation of the feed into our processing plants.
The Karo Platinum Project development continues with smaller work packages aligned to capital availability, focusing on civil and infrastructure development, as we progress on the road to procure the necessary third-party financing to deliver the first phase into production.
A milestone in our innovation strategy was the official launch of Redox One, which is at the forefront of developing long-term energy storage solutions, using proprietary proven technology, to deliver a ‘Mine-to-Megawatt’ solution at a competitive storage cost compared to existing technologies.
We also commenced with a US$5 million share repurchase programme to the benefit of our shareholders and reflecting our firm belief in the current and future prospects of our company.
As we celebrate ten years of our JSE listing today, I reflect on the original vision of our Chairman, which has been brought to fruition, a sustainable co-producer of PGMs and chrome from the MG reef horizon. We have delivered deep value for our stakeholders, and building off our multi-generational resources we look to unlock latent value in process optimisation and novel downstream technologies.”
https://www.sharenet.co.za/v3/sens_display.php?tdate=20240410070500&seq=1
Thanks, did them from jmat which is showing $985 and $1073, whatever isn’t it lovely
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!