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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!
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.