Tharisa to post up to 9% lift in headline share earnings for 2022 as rand offsets price decline

CHROME and platinum group metal (PGM) miner Tharisa said basic share earnings for the 12 months ended September 30 would be between 41% and 44% higher year-on-year as rand weakness offset lower mineral prices.

Commenting in a trading statement ahead of the publication of its year-end results presentation on December 5 Tharisa guided to basic share earnings of 53 US cents/share to 54c/share. The numbers account for the purchase of a controlling interest in Karo Mining Holdings

Headline share earnings for the year will be 41 US cents/share to 42 cents representing an increase of 7% to 9% year-on-year. Headline share earnings for the previous 12 month period totalled 38.3c/share.

Spot prices for PGMs have declined a quarter from their peak but despite this nearly the entire industry remains cash positive, according to a report by Citi last week.

The 2022 financial year has been transformative for Tharisa owing largely to advances in the development of its $440m Karo project in Zimbabwe and commissioning of its Vulcan processing facilities at the Tharisa mine in South Africa.

It announced in October the launch of a $50m, three-year bond on Zimbabwe’s Victoria Falls Stock Exchange as part financing for the first phase of Karo which is scoped to produce 194,000 ounces a year of PGMs.

Once built, in about two years from the start of construction, Karo Platinum would make Tharisa a near-400,000 oz/year PGM producer.

For the current financial year, Tharisa has forecast chrome output of 1.75 to 1.85 million tons (2022: 1.56Mt) and PGM output of 175,000 to 185,000 ounces (2022: 179,200 oz).