Tharisa bemoans "tough" production performance in first quarter

Mon, 13th Jan 2025 06:55

(Alliance News) - Tharisa PLC admitted on Monday that the first three months of its financial year were "tough", with platinum group metal prices remaining subdued and chrome prices falling.

The Cyprus-headquartered platinum miner said PGM production was 29,900 ounces for the first quarter that ended December 31, down 19% from 37,100 ounes for for the fourth quarter to September 30, and was also down 16% from 35,700 ounces in the same quarter a year before.

Average PGM prices were USD1,381 an ounce quarter-on-quarter, up slightly 0.8% from USD1,370. Annually, PGM prices were up 2.8% on average from USD1,344 per ounce, however.

Tharisa said PGM prices remained subdued despite continued forecasts for deficits in the various PGMs.

"The price weakness is compounded by a visible lack of investor interest, despite the supply demand evidence," it said.

Chrome production declined 12% to 374,400 tonnes on-quarter from 426,800 tonnes. On-year, chrome output dropped 19% from 462,800 tonnes.

Average metallurgical grade chrome concentrate prices were at USD271 per tonne quarter-on-quarter, down 14% from USD314 and decreased 6.9% from USD291 on-year.

Chrome prices retreated in the first quarter due to uncertainty over stainless steel demand, Thaisa said.

Disruptions at the Mozambique border impacted the delivery of cargoes to end use customers, it said, noting that physical demand for chrome remained at normal levels.

"Undoubtedly a tough start to the new year impacted by drilling equipment availability, as a consequence thereof we mined sub optimal oxidised reef horizons," Tharisa Chief Executive Officer Phoevos Pouroulis said.

"This yielded lower ROM grades and therefore lower recoveries. We have subsequently improved the drilling rates and equipment availability. The focus this quarter will be on optimising the feed grade and improving our recoveries to previous levels," Pouroulis said.

The cybersecurity incident we experienced during the quarter did not directly impact physical operations, but rather the administrative, accounting and support services with work-around solutions being implemented to minimise any disruptions.

Tharisa said "good progress" has been made in bringing the affected systems back online following cyber attack in December.

PGM production guidance for 2025 financial year is set at between 140,000 ounces and 160,000 ounces versus 145,100 ounces. Chrome output it projected between 1.65 million tonnes and 1.8 million tonnes, compared to 1.70 million tonnes.

By Artwell Dlamini, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Tharisa PLC