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So the current MCAP is £190m and we hold around £100m in cash? So the effective valuation the market is placing on us is £90m. I find that quite unbelievable.
Many thanks. Another good year. Worth saying net cash has increased from $78.6m at end of Q4 2022, an increase of $48m. This is excellent after paying dividends and Karo costs last year IMO
Personally, I'm content with these results, the guidance, and slowdown of the Karo project while PGM market uncertainties persist.
Quarter highlights
‒ Lost Time Injury Frequency Rate (‘LTIFR’) of 0.11 per 200 000-man hours worked
‒ Annual output
‒ Chrome production for the year at 1 580.1 kt (FY2022: 1 582.7 kt) with Q4 at 413.4 kt (Q3 FY2023 378.8 kt)
‒ PGM production for the year at 144.7 koz (FY2022: 179.2) with Q4 at 30.7 koz (Q3 FY2023: 37.0 koz)
‒ Strong increase in reef mining volumes quarter on quarter, up 27.5% to 1 158.9 kt (Q3 FY2023: 908.8 kt)
‒ Average annual metallurgical grade chrome concentrate prices up 26.3% at US$263/t (FY2022: US$209/t)
‒ Significant quarter-on-quarter PGM price decrease of 21.5% to US$ 1 331/oz (Q3 FY2023: US$ 1 695/oz) (6E basis) accelerated the annual price retreat of 26.2% with average prices received at US$1 893/oz (FY2022: US$2 564/oz)
‒ The continued weakening of PGM prices and macro economics has resulted in a prudent and strategic decision to extend the Karo Platinum Project timeline for commissioning by 12 months to June 2025, with the opportunity to accelerate the timeline as markets become more favourable
‒ The Karo Platinum Project has progressed well, and the revised timeline is aligned to funding availability and provides flexibility
‒ Group cash on hand increased to US$268.8 million (30 June 2023: US$242.6 million), and debt of US$142.2 million (30 June 2023: US$101.1 million), resulting in a net cash position of US$126.6 million (30 June 2023: US$141.5 million)
‒ Production guidance for FY2024 is set between 145 koz and 155 koz PGMs (6E basis) and 1.7 Mt to 1.8 Mt of chrome concentrates
https://www.overend.co.za/download/sens-rns-tharisa-q4-fy2023-production-report-final-with-logo-17oct23.pdf
If the price of any commodity falls significantly for a prolonged period the natural market reaction is for the higher cost producers to stop producing as they're making a loss, and for producers as a whole to cease investing in new projects as the metrics are no longer attractive.
Then eventually a shortage of the commodity, driven by lower availability will force up prices, and those who weathered the storm and are still in the game do very well out of it.
So my thoughts are where does THS rank compared with its peers in its costs? Certainly it ranks well in terms of debt, or lack of it. I've always thought of it as a low cost producer?
Https://www.miningweekly.com/article/r1bn-solar-energy-project-on-track-to-supply-tharisa-mine-by-end-2024-2023-10-13
I note Ilja had a word with Mining Weekly. (There is also a solar array to the west of the mine.)
It follows an earlier announcement about the agreement for the existing installation on the roof of Constantia's Pick 'n Pay supermarket.
SA now has solar panels everywhere: Enren is being slow.
Well jmat rh is now up over 20% this week at $4900 so basket back over $1400 if they are right..
The S African 40-42% chrome concentrate price CIF China is $295-305/tonne this week compared to 300-305 last week.
Chromium ticked up again today on Investor.com now up 5% this week, I know not the same as what we sell ours for but usually ultimately go up in tandem and had been stuck a while like rh albeit at much higher prices. I pay for my new ev today. Wltp range 460 miles, wow, except wpa range which is more realistic is 360 and going at 80 on autobahn in winter probably nearer 240 and then should charge between 20 and 80% or degrade battery so only 60% useable, so 140 miles, so a lot of people re going to hear this from friends and neighbours and need hybrids for journeys if like me hate idea of queuing in a service station every 150miles and then waiting another half hour while charges (and degrades battery by speed charge). I hate service station junk food. So maybe hybrid demand will keep up?
There has been a flicker of improvement in Rh price this week which bodes well although we still have a lot of catching up to do. But it's not not just pgms we rely on Chrome is doing well to support our commitments at Karo.
Johnson Matthey released a series of videos a couple of months back looking at pgms well worth your time this is just one there are several.
https://youtu.be/n7BjuMqTADg?si=pKrogcjtbse9sHJZ
Jansonb - I'm in a similar boat ... got an average north of £1 ... but I'm sticking to my conviction that this is worth 125p !
Even with the gloom of lower production and prices for PMG's I have to look at the fact we're trading on a p/e
Jmat seems to presage cif china, their rh price is up again this morning, phew will it last?
.....is actually the same as last weekend and with the holiday in China last week and rising arrivals I would not be surprised if the next price is down around $5/tonne. Still) looks good long term!
Sotolo,the SAfrican chrome proce CIF China
According to the Tharisa website the Q4 Production Report expected today will now be 17th October and the FY2023 Accounts have been delayed to 4th December.
Chromium also up 3.5% yesterday and today after being stuck a while on investing.com. I bought a few more today.
Rhodium finally moves after nearly three months stuck at $4100 on Jmat, to $4250
For those with patience and a stout heart, they should be rewarded :-) Berenberg cuts Tharisa price target to 190 (270) pence - 'buy' Berenburg is still relatively positive
By my estimation the company will still be churning out good profits, particularly on chrome. Whilst Zimbabwe looks ill timed the company shouldn't be too financially stressed building it so I don't see anything too sinister. The dividend should also be secure albeit for the moment being paid out of increased debts
All small companies not least minors have been caned recently. Mr Market is not interested. However, I'm happy to take the dividend and wait for Mr Market to change her mind.
Hi jansonb, I understand your sentiment and honesty and wish you well.
Bought and topped up in 2021 around £1.25 to £1.45. Held on for far too long and finally gave up today. Price continually falling and company silence is deafening so I have swallowed the loss. With my timing it will probably sky rocket so all who are holding on all the very best. Can't see any silver cloud at the moment and any forecast is guesswork
You condescending idiot. You don't have a clue.
Do you know what a cost curve is? You're another one of these retail morons lurking on LSE with nothing useful to contribute. Go back to your day job.
Hope Karo is on budget -shareprice keeps falling despite constantly high chrome price.
Hope there is no nasty news on Wednesday -
At these prices surely it makes sense to buy some shares back -
Have any cost savings been identified in relation Karo?