VERNA NYAMUCHENGWE
THARISA Plc, a South African mining, metals and innovation company, has reported a 10.1% increase in half-year revenue from chrome and Platinum Group Metals (PGM) of US$369.1 million for the period ending 31 March 2024.
This is a significant increase compared to the 0.4% (US$335.3 million) achieved in the same period in 2023.
“US$369.1 million revenue increase of 10.1%, benefits of co-production model PGM sales of 70.6 koz at an average PGM basket price of US$1 344/oz and metallurgical grade chrome sales of 801.8 kt at an average chrome price of US$288/t,” reads part of the report.
Tharisa is a major player in the global chrome industry, supplying approximately 10% to 12% of China’s annual demand for the metal. In the period under review, there was an increase of 5% in demand for stainless due to a surge in Chinese production by 12.6%.
As South Africa supplies 80% of China’s chrome needs, Tharisa supplied the 10% of China and Indonesia’s chrome demand during the period.
The company’s net profit plummeted by 29.1% to US$38.8 million, down from US$54.7 million in the previous period.
This significant decline in profitability follows a 2.0% drop in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to US$79.6 million.
According to the report, a dividend interim of US1.5 cents was distributed to shareholders which represented 24.5% of the company’s NPAT.
Tharisa has a policy of paying a minimum of 15% of its NPAT as dividends to shareholders.
The report says that it is currently buying back its own shares from shareholders, in addition to paying the interim dividend. Tharisa reported project expenditure of US$110.5 million to date for the Karo Platinum Project in Zimbabwe, which aims to develop a new mine.
The company has an outPlatinum miner Tharisa records uptick in revenue delivery. standing commitment of US$70 million for the project, which commenced in December 2022. \
“Project expenditure to date of US$110.5m with outstanding commitment by Tharisa of US$70m,” reads the report.
The report states that current market conditions in Zimbabwe are impacting funding for the project, workstreams and timeline for delivery.
Tharisa has budgeted to spend US$38 million in the next six months to keep the Karo Platinum Project moving forward.
However, total project costs might increase by an estimated US$39.1 million (10%) from the initial estimates of US$391 million if the project time line is extended.
Tharisa Plc is a Cyprus-based mining company which produces Platinum Group Metals (PGMs) and chrome concentrate as well as offers chemical, foundry, and metallurgical grade chrome concentrate products.
It operates the Tharisa Mine, a co-producing open pit PGM and chrome mine located in the Bushveld Complex of South Africa.
Tharisa Plc holds 75% of Karo Mining Holdings as a result of having provided significant capital for the development of the project.
Karo Mining Holdings controls an indirect 85% of the shareholding of Karo Platinum with Zimbabwe (through Generation Minerals Private Limited) holding the remaining 15% on a free funded carry basis.
Tharisa will have an effective 68% in the Karo Platinum Project following the full capital commitments.
