(Alliance News) - Tharisa PLC reported on Thursday its annual profit nearly halved as a result of depressed platinum group metal prices, as well as sluggish production.
The Cyprus-headquartered platinum and chrome producer said its pretax profit slumped 48% to USD114.3 million for the financial year that ended September 30, from USD220.2 million a year earlier.
Revenue over this period fell 5.2% to USD649.9 million from USD686.0 million, with earnings before interest, taxes, depreciation and amortisation declined 42% to USD136.8 million from USD237.3 million, mainly owing to inflationary and operational cost increases.
Tharisa cuts its total dividend to 5.0 US cents, down 29% from 7.0 cents.
PGM production declined 19% to 144,7000 ounces from 179,2000 ounces.
Tharisa said the decline in reef mined primarily emanates from access restrictions to the open pit due to limitations on mining activities in close proximity to the nearby community, adverse weather conditions experienced, as well as the processing of suboptimal reef horizons.
Average PGM basket price slid 26% to USD1,893 an ounce from USD2,564 an ounce.
Tharisa has previously warned that it will delay commissioning its Karo platinum project in Zimbabwe to June 2025, citing weaker PGM prices and uncertain global economic outlook. This project was scheduled to commence production next year, with first ore milled in July 2024.
Chrome production fell slightly to 1.580 million tonnes from 1.582 million tonnes, but prices surged by just over a quarter.
Average metallurgical grade chrome concentrate prices rose 26% to USD263 per tonne from USD209 tonnes.
Looking ahead, Tharisa guides for PGM production to a range of between 145,000 ounces and 155,000 ounces, and chrome concentrates to between 1.7 million tonnes and 1.8 million tonnes.
Shares in Tharisa rose 2.8% to ZAR14.70 on Thursday at around midday in Johannesburg. But they fell 1.1% to 60.35 pence in London in morning session.
By Artwell Dlamini, Alliance News reporter
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Tharisa (THS)