(Alliance News) - Tharisa PLC said on Wednesday platinum and chrome production dropped in its first quarter due in part to operational headwinds at its mine in South Africa.
The Cyprus-headquartered platinum miner focusing on southern Africa said platinum group metal output fell by 5.7% to 42,700 ounces for the first quarter that ended December 31, from 45,300 ounces in the fourth quarter.
Chrome production dropped by 8.0% to 383,100 tonnes from 416,200 tones.
The group said mining volumes impacted by unprecedented rainfall not seen in the history of the Tharisa Mine, which is located near Rustenburg in South Africa.
The first quarter saw "significant" progress in the development of Karo Platinum Mine in Zimbabwe, which will be its second tier PGM asset.
Karo mine construction started last month. The group last month raised USD31.8 million from a bond issue for Karo Mining Holdings on the Victoria Falls Stock Exchange.
PGM prices remained elevated over the quarter and are set to continue at these levels on the back of PGM demand from the automotive industry and lower production from the major suppliers, Tharisa said.
The average PGM contained metal basket eased slightly by 1.7% to USD2,360 an ounce in the first quarter from USD2,400 an ounce in the prior quarter.
The company also said chrome prices remained strong, with the spot price averaging USD223 per tonne from USD226 per tonne.
Tharisa Chief Executive Phoevos Pouroulis said the firm's growth strategy remained firmly on track for the full-year ending September 30.
Annual PGM production guidance was kept at between 175,000 ounces and 185,000 ounces. In 2022, annual PGM production was at 179,200 ounces.
Output guidance was maintained at between 1.75 million tonnes and 1.85 million tonnes of chrome concentrates. Annual chrome output stood at 1.58 million tonnes in 2022.
Shares in Tharisa closed 0.4% higher at 98.36 pence in London on Tuesday. They ended up 3.5% at ZAR20.70 in Johannesburg.
By Artwell Dlamini, Alliance News reporter
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Tharisa (THS)