Tharisa ponders “generous dividend” after record output

Phoevos Pouroulis, CEO, Tharisa

SOUTH African chrome and platinum group metal (PGM) producer, Tharisa, said it was “looking favorably” on a “generous” dividend when it unveils its year-end numbers later this year.

“We have discussed a new dividend policy,” said Phoevos Pouroulis, CEO of Tharisa which today announced record chrome production for the year of 1.3 million tonnes (Mt). PGM output was 143,600 ounces, an 8.3% year-on-year increase. Coupled with a strong average chrome price of $200/t (R2,667/t), the company was likely to generate improved cash.

The company announced a 1 US cent per share dividend in November last year on the back of 1.24 million tonnes (Mt) in chrome production. The average price for the 2016 financial year was $120/t for chrome (R1,776/t).

Tharisa has guided to chrome production of 1.4Mt for the current financial year of which 350,000 tonnes would be speciality grade material (2017: 323,000 tonnes) and PGMs of 150,000 oz. As for pricing, Pouroulis said a chrome price of some $200/t was sustainable, at least for the fourth quarter of the calendar year.

“I don’t think at $200/t there is an incentive price to bring fresh, new production on stream, but it is a price that will provide a healthy margin for existing producers,” he said.

During the year under review, sought to capitalize on both third party toll-treating – it believes it can add 200,000 tonnes in additional volume – and to lock-in prices for a portion of production following an agreement with long-standing customer, Tisco, a Chinese company. The third party processing was after buying use of Lonmin’s chrome facilities.

Pouroulis said, generally-speaking, the company preferred to keep optionality on the price by not forward selling too much of its chrome material.


  1. With NO liquidity in the stock they should buy something, de-list or be bought by someone! No fun or point watching a stock move up and down with NO volume.

  2. Yes, Glen, I agree. It is a pity the free float isn’t bigger. Not too many mining stocks around with high quality assets and good management on a P/E of less than 5x that pump cash. And have a life of mine of 40 years. HELLO?! Is there anybody out there? I would say this share may be a buy?