THARISA posted disappointing interim numbers impacted by a decline in mining volumes and a retraction in the average chrome price from previously elevated highs.
For the six months ended March, the South African platinum and chrome miner reported 78% lower interim share earnings, coming in at 2.9 cents per share.
Despite this it announced a 1.5c/share interim dividend predicated on confidence better days were in store in the current six months to end September.
Problems with contractors resulted in not having sufficient drilling equipment available at the Tharisa open pit, situated in the North West province.
There was also major rainfall in the second quarter which impeded production, a problem reported widely by miners in the region, including other platinum group metal miners. Coal miners in Mpumalanga province have also be affected.
The chrome concentrate price excluding third party supply was $755.40/ton, a 12.7% year-on-year decline.
However, the average PGM price was 4.4% higher at $1,403 suggesting a stabilisation in the precious metals sector after more than two years of weakening prices. In terms of production, PGMs came in 12.2% lower at some 62,400 ounces.
At the Ebitda level the outcome was a near halving to $43.8m compared to $79.6m at an EBITDA margin of 15.6% (2024: 21.6%).
Phoevos Pouroulis, CEO of Tharisa, said the company was sticking to its full year guidance of abetween 140,000 and 160,000 oz in PGMs and 1.65 million and 1.8 million tons in chrome concentrate. “A challenging period that exhibited the resilience of our co-product business model,” he said.
Net cash generated from operating activities fell 58.2% year-on-year to $36m. However, a sharp reduction in capital spend – 54% to $52.5m – saw the group end the period with net cash of $87.6m, slightly higher than $86.3m at the previous financial close.
Tharisa said it focused capital on completing the underground development of Tharisa which should result in improved mining results. As for the group’s Zimbabwe-based Karo Platinum Project, Tharisa slowed spend, especially as finding funds for the $440m venture are proving difficult to find.
Intriguingly, Pouroulis said the group had presented the project “opportunity to non-traditional financiers, who like us, see the long-term benefits of the uniqueness not only of this Tier 1 project but of the applications PGMs will play for decades to come”.
Commenting on the markets, Pouroulis said trade tariffs initiated by US President Donald Trump had introduced fresh caution into the PGM price owing to its reliance on automotive sales. Chrome, however, was showing signs of renewed strength. Prices for the metal are back at $300/t after averaging about $299/t last year.
