JSE-listed Tharisa has recorded a 45% year-on-year decrease in earnings before interest, taxes, depreciation and amortisation to $43.8-million and a 78.9% year-on-year decrease in net profit to $8.2-million for the six months ended March 31.

Revenue was down 23.9% year-on-year, at $280.8-million; earnings a share 80.5% lower year-on-year at $0.13; and headline earnings a share 78% lower year-on-year at $0.13.

Net cash from operating activities was $36-million, down 58.2% year-on-year. Tharisa had cash and cash equivalents of $193.6-million as at March 31.

Capital expenditure for the period was $52.5-million, which includes $12.8-million invested on Karo Platinum, in Zimbabwe.

An interim cash dividend of $0.015 an ordinary share was declared.

CEO Phoevos Pouroulis posits that the company’s co-product model and unique approach to optimising its orebody has proven its resilience again despite unprecedented global macroeconomic uncertainty, with Tharisa continuing its record of generating profits, albeit at a lower level.

He informs that the company, which produces platinum group metals (PGMs) and chrome in South Africa, is now in its tenth year of returning capital to shareholders.

It is also embarking on a second share buyback.

He says the impact on its operations of drilling equipment availability challenges have been largely resolved.

Further, subsequent unprecedented weather interruptions in the second quarter had a knock-on effect on output but the company is working to make up this shortfall in the drier months.

“We are well advanced in our plans to consolidate the long-term future of the Tharisa mine by finalising the detailed technical work on the underground phased transition.

“In the interim, to accelerate the development programme, capital has been allocated for early development works including on ensuring the portals are made safe for the decline shaft development,” Pouroulis highlights.

The company’s downstream beneficiation plans, for both PGMs and chrome, are progressing to commercialisation.

Redox One has again met its development timelines and is on track for building and testing larger long storage redox flow batteries using chrome-based electrolytes manufactured by the group, by the end of this calendar year, as it ramps up to develop and test megawatt-scale batteries.

“While we have slowed development at the Karo Platinum project in line with capital availability, we have nevertheless continued work on infrastructure, water dams and further optimisations including commencing with studies for the future underground mine development, while presenting the 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,” Pouroulis explains.