Johannesburg- and London-listed Tharisa’s operational performance for the third quarter of its 2024 financial year was aligned to expectations, CEO Phoevos Pouroulis says, with improved mining and plant recoveries resulting in overall platinum group metals (PGM) and chrome concentrate production increases for the three months ended June 30.

Tharisa’s principal operating asset is the Tharisa mine in the Bushveld Complex, in South Africa. The company is also developing the Karo platinum project on the Great Dyke, in Zimbabwe.

PGM production increased to 36 900 oz for the three months under review, compared with the 35 300 oz produced in the second quarter, while chrome production increased to 410 200 t, from 402 700 t in the second quarter.

The PGM basket price was steady at $1 391/oz, on a platinum, palladium, rhodium, iridium, ruthenium and gold (6E) basis.

Tharisa avers that PGM prices for the quarter were at slightly higher levels than in the previous quarter, supporting the market view that the bottom of the market has passed.

Prices, however, continue to be influenced and rangebound by inventory de-stocking, the pace of which is dependent on economic activity, which has not reached previous heights yet, it points out.

“The narrative for PGMs is changing, with the realisation that the internal combustion engine will remain around much longer, with hybrid drivetrains the natural progression in the longer term,” the company posits.

Tharisa further highlights that chrome prices have continued to trend upwards on strong fundamental demand, coupled with port inventories being at the lower end. Logistics are said to remain complex but manageable.

Average metallurgical-grade chrome concentrate prices were up 8% quarter-on-quarter to $309/t in the third quarter.

Group cash on hand was $189.9-million.

Debt reduced to $97.7-million from $114-million as at March 31, resulting in an increased net cash position of $92.2-million, compared with $70.6-million in the prior quarter.

Tharisa says the $5-million share repurchase is well on track with 1.6-million shares repurchased as at June 30.

“The focus on sustainable mining and the structural improvements achieved in this year-to-date positions us for a strong last quarter, with further improvements in the mining performance, providing the sustainable foundation for the medium- to long-term plans for the mine,” Pouroulis highlights.

He adds that positive progress has been made with plans for transitioning to underground development in the west pit in parallel with the continued optimisation of openpit mining at the Tharisa mine.

“The Karo platinum project is progressing safely and well, with construction aligned with capital availability and the various funding solutions progressing according to plan.

“Our vision for Tharisa remains firmly intact, with sustainable mining complemented by maximising the output from our orebodies, coupled through our various beneficiation initiatives for both chrome and PGMs together with the continued progress we are making in the renewable-energy field with Redox One, and the 40 MW solar project,” Pouroulis outlines.

Production guidance for the full financial year remains at between 145 000 oz and 155 000 oz PGMs (6E basis) and 1.7-million to 1.8-million tonnes of chrome concentrates.