Tharisa PLC Share News (THS)

(Alliance News) - Tharisa PLC on Thursday reported "exceptional" annual operating performance that benefitted in the main from buoyant commodity prices.

The southern Africa-focused platinum miner, headquartered in Cyprus, said its pretax profit soared to USD185.3 million for the financial year ended September 30 from USD75.8 million in the prior year.

Revenue rose by 47% to USD596.3 million to USD406.0 million previously, helping earnings before interest, taxes, depreciation, and amortisation to nearly double to USD224.3 million from USD113.4 million.

The platinum producer said it had benefitted from a strong operating performance, allowing it to leverage the favourable commodity prices and boosting significant cash generation.

"These are exceptional numbers, especially in light of the pandemic. The strong operational performance translated into healthy cash flow generation, enabling the company to invest in its sustainable growth and deliver a record dividend to shareholders," Tharisa said.

The group declared a final dividend of USD0.5, bringing the total payout for the year to USD0.9, up sharply from USD0.35 last year.

Platinum group metals production expanded by 11% to 157,800 ounces for the 2021 financial year from 142,100 ounces, at an average price of USD3,074 an ounce or ZAR45,336 an ounce, up 80% from USD1,704 or ZAR27,691.

Chrome production increased by 12% to 1.5 million tonnes from 1.3 million tonnes, at an average price of USD154 per tonne or ZAR2,284 a tonne, compared to USD140 or ZAR2,231.

In its guidance, Tharisa said it expected PGM production to range from 165,000 ounces to 175,000 ounces in 2022, up from 157,800 ounces in 2021. Chrome output is projected to increase to around 1.7 million tonnes and 1.8 million tonnes, from 1.5 million tonnes.

"Covid-19 remains a risk to the Company and guidance is premised on the current level of economic activity being maintained," it cautioned.

By Artwell Dlamini; artwelldlamini@alliancenews.com

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