Chrome and platinum group metals (PGM) miner Tharisa says its investments in emergency power generation helped ensure the effects of load-shedding were negligible in its third quarter to end-June, when it grew its net cash 85% to $48m (R821m).
The miner, valued at R6.35bn on the JSE, said in an update on Tuesday that PGM output dipped 4.5% to 42,100oz to end-June relative to the previous three months, while average prices slipped 4.6% to $2,677/oz. However, chrome fared better, driven partly by robust alloy production in China, with production up 3.9% to 389,700oz and average prices up 39.5% to $247/tonne.
Tharisa, which is listed on the JSE and London Stock Exchange, operates a mine near Brits in the North West where it recovers chrome and PGMs. It also owns Karo Mining and Salene Chrome, a development-stage, low-cost, open-pit PGM and chrome asset, respectively, in Zimbabwe.
Group cash rose almost 11% to $112.6m, while debt fell 14.6% to $64.6m, despite the group paying out $8.8m for an interim dividend.
An investment in almost 10MW of emergency power generation meant the effects of load-shedding were negligible, CEO Phoevos Pouroulis said in a statement,
“Notwithstanding the rail and port infrastructure challenges, the logistics team have successfully exported our chrome products via various channels and modalities,” Pouroulis said.
Tharisa has said previously that it — like many other miners — was turning to trucking due to constraints on the rail network, which remains beset by issues including cable theft and maintenance backlogs.
“The team at Tharisa has completed a commendable quarter, maintaining strong production output which, supported by the favourable commodity markets, ensures a healthy balance sheet that will allow us to continue implementing our strategy,” he said.
Tharisa has registered a 40MW solar power project with environmental authorities, aimed at further reducing the risk of being dependent on Eskom, while it is eyeing carbon neutrality by 2050.
By the JSE’s close Tharisa’s shares were down 4.76% to R20, while the JSE’s precious metals index fell 3.31%.
Tharisa’s shares have fallen more than 23% so far in 2022, while the index has lost almost 19.3%.
Update: July 12 2022
This article has been updated with share price information.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.