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(Alliance News) - Tharisa PLC said on Tuesday it expects a strong full-year financial performance on the back of an increase in platinum and chrome production.
The Southern Africa-focused miner said platinum group metals production rose by 14% to 179,200 ounces for the financial year that ended September 30 from 157,800 ounces in the prior year, but prices were low.
Annual PGM basket price of was at USD2,564 an ounce, down 17% from USD3,074 an ounce, driven by economic slowdown.
Palladium and rhodium remained in deficit - meaning there is a shortage of these metals globally - while platinum is projected to be in a deficit within the next 18 months, according to market consensus cited by Tharisa.
On an annual basis, chrome production increased by 5.1% to 1.58 million tonnes from 1.51 tonnes.
Over this period, metallurgical grade chrome price climbed by 36% to USD209 per tonne from USD154 per tonne, Tharisa said. Chrome prices were volatile and had retreated in the fourth quarter, mostly due to stainless steel and ferrochrome production curtailments in China.
Tharisa said the Karo platinum project is on schedule with "ground-breaking" due in December. This PGM asset moves into the construction phase, with inaugural production planned for within the next 24 months.
"Operationally, this has been a rewarding year that will translate to a strong set of financial results, despite the macro challenges that have impacted global supply chains, inflation, and the mining sector," said Tharisa Chief Executive Phoevos Pouroulis.
"Central to our success has been the continued efficiency at our flagship Tharisa Mine, where production increased across the board, with the Vulcan Plant contributing to increased production resulting in improved recoveries," the company said.
Tharisa's PGM production guidance for the financial year 2023 is set between 175,000and 185,000 ounces. Annual chrome concentrates is guided for 1.75 million to 1.85 million tonnes.
Tharisa shares were up 2.8% at 104.80 pence in London early Tuesday. In Johannesburg, they were up 0.2% at ZAR21.00.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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