(Alliance News) - Tharisa PLC warned on Wednesday it expects is annual earnings to nearly halve as a result mainly of a slump in platinum group metals prices.
The Cyprus-headquartered platinum miner guides for a sharp decline in earnings per share to a range of between 27 US cents and 28 cents for the financial year that ended September 30, from 53.8 cents a year earlier. This represents a dip of between 48% and 50%.
Headline earnings per share is expected to plummet to between 27.5 cents and 28.5 cents from 41.1 cents.
These poor earnings are due to lower PGM prices, though chrome concentrate prices rose.
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.
In October, Tharisa said in a trading update PGM production fell by 19% to 144,700 ounces for the financial year that ended September 30 from 179,200 a year earlier. In the fourth quarter alone, output declined by 17% to 30,700 ounces from 37,000.
The PGM price decreased by 22% to USD1,331 an ounce in the fourth quarter from USD1,695 three months before. Annually, prices slumped 26% on average to USD1,893 an ounce from USD2,564.
But chrome production was flat at 1.58 million tonnes for the financial year that ended September 30. Output for the fourth quarter rose by 9.1% to 413,400 tonnes from 378,800 in the third quarter.
The company expects to release its full-year financial results on or about Thursday next week.
By Artwell Dlamini, Alliance News reporter
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Tharisa (THS)