(Alliance News) - Tharisa PLC on Friday said its performance in the first quarter was broadly better than a year ago but worse than the final quarter of financial 2019.
The Cyprus-headquartered resource company said reef tonnes mined totalled 1.1 million tonnes in the first quarter ended December 31, which was up 4.8% year-on-year but 8.4% lower than 1.3 million tonnes in the previous quarter ended September 30, as inclement weather hurt the open pit operation.
Tharisa explained that rainfall during December was higher than the previously recorded highest rainfall in the five prior years.
Chrome concentrate production was 342,500 tonnes, up 0.2% quarter-on-quarter and up 12% year-on-year.
Third party chrome production was 62,300 tonnes, down 10% on the prior quarter, as the K3 plant was closed during December. On the year-on-year basis, third party chrome production improved by 19%.
Turning to platinum group metals, Tharisa reported production in the first quarter of 34,400 ounces, down 9.5% quarter-on-quarter but up 2.4% year-on-year.
Tharisa noted that it has benefitted from record PGM prices, with the average PGM contained metal basket price for the quarter at USD1,406 per ounce, with palladium and rhodium continuing to be the main drivers of the increased basket price.
The average chrome price received for the quarter was USD145 per tonne, which the company said is "unsustainable" in the long-term. Tharisa said it expects chrome price to improve in the third quarter.
Looking ahead, Tharisa is guiding for production of between 155,000 ounces and 165,000 ounces of PGM and 1.5 million to 1.6 million tonnes of chrome concentrates for its financial 2020, which ends in September.
"We continue to enjoy the benefits of record PGM basket prices as we ramp up production in both PGM and chrome concentrates," the company said in its statement Friday.
Tharisa shares were trading 1.80% lower in London in morning trading at 82.00 pence a share, but in Johannesburg, the stock was untraded, last closing at ZAR15.75 a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Tharisa (THS)