CHROME and platinum group metals (PGM) miner Tharisa expects a drop in headline earnings for the first half of its 2022 year, despite benefiting from higher commodities prices in part because of sanctions against Russia, said BusinessLive.
The miner said in a trading statement on Friday that it expects its headline earnings per share to drop 26.90%-31.5% to $0.15-$0.16 for the six months to end-March without elaborating on the reason, the publication added.
Shares in the company ended 6% higher following the announcement reversing a downward trend underway since mid-April. On a year-to-date basis, the stock is largely unchanged, but it has performed better than PGM peers.
Anglo American Platinum shares are 14% lower year-to-date while Impala Platinum and Northam Platinum are 11% and 15% lower respectively. Compared to another chrome firm Merafe Resources, Tharisa has underperformed as Merafe’s shares are 33% higher.
Tharisa is undertaking expansion currently. In addition to increasing processing capacity at its chrome and PGM plant in South Africa, the firm is now producing chrome in Zimbabwe and in March pressed the button today on its Karo Platinum Project.
Karo, in which Tharisa has an 85% stake, has a 20-year first phase life of mine. It will cost $250m to build. At some 150,000 ounces a year in PGM concentrate production, it would double Tharisa’s PGM footprint when completed some 24 months after construction begins.
Tharisa expects to release its final results on Thursday.
