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Closed period till 24 May, so can't really add anything to the strategy outlined, Chrome parcels selling for 305 depsite stainless steel weakening, the PGM mkt was disected in the media follwing the PGM Industry day here in JHB on Wednesday, so all the latest is there
Those details will be in the financial report on 24/5, needless to say we continue to spend our portion on Karo, net cash remains strong with Karo holding good cash that will allow them to continue development as per our revised timeline, remember this is q2 where we do major maintenance in the plants with downtime for some days during that period in the planst never mind a short February
Quarter highlights
‒ Lost Time Injury Frequency Rate (‘LTIFR’) of
‒ 0.05 per 200 000-man hours worked at Tharisa Minerals
‒ 0.11 per 200 000-man hours worked at Karo Platinum
‒ PGM output consistent at 35.3 koz (Q1 FY2024: 35.7 koz)
‒ PGM basket price at US$1 343/oz (6E basis) (Q1 FY2024: US$1 344/oz)
‒ Chrome output lower than previous quarter record production at 402.7 kt (Q1 FY2024: 462.8 kt)
‒ Average metallurgical grade chrome concentrate price held steady at US$286/t (Q1 FY2024: US$291/t)
‒ Cash of US$184.6 million (31 December 2023: US$221.5 million), and debt of US$114.0 million (31 December 2023: US$126.6 million), resulting in a net cash position of US$70.6 million (31 December 2024: US$94.9 million)
‒ Announced US$5 million share repurchase on 26 March 2024
‒ Official launch of Redox One at the Africa Energy Indaba
‒ Production guidance for FY2024 remains between 145 koz and 155 koz PGMs (6E basis) and 1.7 Mt to 1.8 Mt of chrome concentrates
Phoevos Pouroulis, CEO of Tharisa, commented:
“Operationally we performed well, building on a record first quarter and on track to meet guidance. Most pleasing is the continued trend in our improved safety record. We continue to drive improvement in recoveries and efficiencies which is highly sensitive to the variability and oxidisation of the feed into our processing plants.
The Karo Platinum Project development continues with smaller work packages aligned to capital availability, focusing on civil and infrastructure development, as we progress on the road to procure the necessary third-party financing to deliver the first phase into production.
A milestone in our innovation strategy was the official launch of Redox One, which is at the forefront of developing long-term energy storage solutions, using proprietary proven technology, to deliver a ‘Mine-to-Megawatt’ solution at a competitive storage cost compared to existing technologies.
We also commenced with a US$5 million share repurchase programme to the benefit of our shareholders and reflecting our firm belief in the current and future prospects of our company.
As we celebrate ten years of our JSE listing today, I reflect on the original vision of our Chairman, which has been brought to fruition, a sustainable co-producer of PGMs and chrome from the MG reef horizon. We have delivered deep value for our stakeholders, and building off our multi-generational resources we look to unlock latent value in process optimisation and novel downstream technologies.”
https://www.sharenet.co.za/v3/sens_display.php?tdate=20240410070500&seq=1
Pick your PGM prices but this is the daiy morning number as of today, so aligned
Tharisa Basket Price
Platinum $941.50
Palladium $1 025.00
Rhodium $4 725.00
Gold $2 328.58
Ruth $440.00
Iridium $4 900.00
Karo USD $1 279.56
Tharisa USD $1 408.55
Tharisa ZAR R26 238.07
At the annual general meeting (‘AGM’) of Tharisa held on 21 February 2024, shareholders approved a special resolution authorising the Company to undertake a general repurchase of ordinary shares up to 10% of the 302 596 743 ordinary shares in issue at the date of the AGM.
Tharisa is dual listed on the Johannesburg and London stock exchanges. The Board believes that the Company’s shares are trading at a significant discount, having been negatively impacted by the PGM commodity price environment while not reflecting the strong co-product contribution from its chrome sales.
The Company has appointed Peel Hunt LLP (‘Peel Hunt’) to manage and carry out on-market purchases of ordinary shares as principal on both the Johannesburg and London stock exchanges, up to a maximum amount of US$5 million (the “Repurchase Programme”) (excluding associated expenses).
Tharisa is committed to capital discipline and believes that a share repurchase at its current valuation supports this.
Michael Jones, CFO of Tharisa, commented:
“We have maintained our strict capital discipline throughout the commodity cycles and believe it is opportune to allocate capital to a share repurchase programme to the benefit of our shareholders and reflecting our firm belief in the prospects for our company. While the PGM commodity pricing environment is challenging, chrome prices have remained firm reinforcing the strength of our co-product business model. The Karo Platinum Project is a multi-generational resource and, while maintaining capital discipline, we continue on the road to delivering the necessary third-party financing to deliver the first phase into production.”
https://www.sharenet.co.za/v3/sens_display.php?tdate=20240326073000&seq=5
Chrome prices remain strong, stocks slightly down, not surprising given the normalisation post new year, PGM basket price also ticking up, suspect markets will be dominated by global data and CB reporting globally.
Spot chrome sitting at US$300/t as of this morning.
Port stocks at 2.8Mt spot this morning.
Tharisa Basket Price
Platinum $941.50
Palladium $1 086.50
Rhodium $4 550.00
Gold $2 166.90
Ruth $440.00
Iridium $4 950.00
Karo USD $1 285.77
Tharisa USD $1 436.99
Tharisa ZAR R26 944.04
Can't post graphs here but here is a link
https://www.linkedin.com/feed/update/urn:li:activity:7171785180968304640
New year just finshed, suspect it will bounce around a bit until we have norlaity, the ICDA s/steel update was of interets I thought, remember, any stock at port will also have been bought at high prices, so they will want to get rid of it in time, given working cap considerations of it sitting at port
Apologies, that shoudl read 2.885
In December 2023, India totally exported
a r o u n d 1 8 . 4 6 k t o n s h i g h c a r b o n
ferrochrome to China, accounted for 38.8% of
total exports; the country also exported around
9.22k tons to South Korea and 4.64k tons to
Japan.
According to customs data, India exported
about 47,600 tons of high- carbon
ferrochrome in December 2023, down 25.74%
sequentially and 42.16% year-on-year.
Among them :
• about 18,500 tons were exported to China,
accounting for 38.87% of the total export
volume;
• about 0.92 million tons were exported to
South Korea, accounting for 19.33% of the
total export volume;
• about 0.46 million tons were exported to
Japan, accounting for 9.66% of the total
export volume.
India exported a total volume of about 0.80
million tons of high-carbon ferrochrome in
January-December 2023, an increase of 16.04%
year-on-year (January-December 2022: 689,400
tons). Of this, 347,000 tons were exported to
China, up 35.0% year-on-year; 156,000 tons to
South Korea; and 67,000 tons to Indonesia.
February southern (Jiangsu, Zhejiang,
Fujian, Sichuan, Hunan) LC ferrochrome
work rate of 44.44% (statistics 18 factories, 8
in production), down 27.78%; capacity to release
9.44%, down 18.16%; expected production of 0.39
million tons, down 0.75 million tons.
In February, the start rate and production of
low carbon ferrochrome in the south dropped
sharply, mainly due to the following reasons:
1. Low carbon ferrochrome transactions are
weak and the production enthusiasm of
factories is declining;
2. Cost of ore and the price of electricity is
persistently high, and the factories in the
south are under greater cost pressure;
3. During the Chinese New Year period the
production was generally suspended for 15
days or more.
China's stainless steel crude steel
production, import and export, apparent
consumption statistics in 2023 is released by
China Iron and Steel Industry Association
Stainless Steel Council as follows:
In 2023, China's stainless steel crude steel
production 36.6759 million tons, an increase of
4.106 million tons, an increase of 12.59%.
Moneyman, we were in a closed period till last Wednesday AGM, plus share buy backs from a regulatory point can be tricky given the three jurisdictiosn we operate in, but the board and executive look at this opportunity regularly, togetehr with our brokers
Stemis, the board given the family holding, owns some 42% of the stock, I doubt anyone is less happier about the SP than the founders and major shareholder
Tharisa’s investment in the Karo Platinum Project
The total investment by the Company in acquiring its current 75% shareholding in Karo Mining Holdings is US$135.3 million, imputing an entry valuation of US$180.4 million. Karo Mining Holdings has an indirect shareholding of 85% in Karo Platinum and therefore the entry valuation for Karo Platinum is US$212.3 million. Karo Platinum is a multi- generational asset and the valuation is for phase one of the project only. In valuing a long-life asset, the longer-term sustainable commodity prices are used and not the spot commodity prices, and it was at the higher longer term analyst price forecasts that were used in valuing the project.
The recent rights offer undertaken by Karo Mining Holdings raised US$65.0 million. The Company’s shareholding in Karo Mining Holdings was 70%. To follow its rights and maintain its shareholding required the Company to invest US$45.5 million. The minority shareholder did not follow its rights and renounced its rights to the Company. The Company followed these rights and, in so doing, increased its shareholding in Karo Mining Holdings by a further 5% to 75%, at a cost of US$19.5 million. Applying the rights offer subscription for the additional 5% shareholding imputes a value of US$390.0 million to Karo Mining Holdings and thus US$457.8 million for Karo Platinum.
There are 96 million inferred PGM ounces (on a 6E basis) deriving a value of US$4.8/oz, which compares favourably to comparable transactions.
https://www.overend.co.za/download/sens-rns-results-of-agm-and-dividend-conversion-rates-22feb24-final-updated.pdf