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.
The miner said in a trading statement on Friday that it expects its headline earnings per share (HEPS) to drop 26.90%-31.5% to $0.15-$0.16 for the six months to end-March without elaborating on the reason.
Tharisa, which is listed on the JSE and in London, operates a mine near Brits in North West and has two plants — Voyager and Genesis — to recover chrome and PGMs.
It said in April that it remains optimistic about prices for both PGMs and chrome, with demand supported by increased economic activity and sanctions against Russia, a major producer.
Tharisa, valued R7.754bn on the JSE, also added then that it was looking to double its PGM output over the next two years, announcing in late March that it would issue $27m (R426.9m) worth of new shares to take a controlling stake in Zimbabwe’s Karo Mining. The group is looking to fast-track development of Karo’s open-pit mine, located on Zimbabwe’s Great Dyke, which is the largest deposit of PGMs and chrome outside SA.
The move would increase the group’s exposure to the PGM market and, even before Russia’s invasion of Ukraine, Tharisa had been bullish about the long-term outlook for the metals, which are used for reducing vehicle-emissions, and in chemical processes and jewellery.
Tharisa expects to release its final results on Thursday.
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