Tharisa’s platinum group metals (PGM) production was flat in the quarter to end-March while chrome production was lower than the previous quarter’s record production, it said.
The chrome and PGM producer’s PGM output was consistent at 35,300oz compared with 35,700oz in the first quarter, while chrome output declined to 402,700 tonnes from 462,800 tonnes in the previous quarter.
Chrome is an essential ingredient in the manufacturing of stainless steel.
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 Holdings, a development-stage, low-cost, open-pit PGM project, and Salene Chrome, a chrome asset, both in Zimbabwe.
“Operationally, we performed well, building on a record first quarter and are on track to meet guidance,” said CEO Phoevos Pouroulis.
Tharisa drove improvement in recoveries and efficiencies, which were highly sensitive to the variability and oxidisation of the feed into the processing plants, he said.
“The Karo Platinum Project development continues with smaller work packages aligned to capital availability, focusing on civil and infrastructure development, as we progress on the road to procure the necessary third-party financing to deliver the first phase into production,” he said.
A milestone in the group’s innovation strategy was the official launch of Redox One, which was at the forefront of developing long-term energy storage solutions, using proprietary proven technology, to deliver a “mine to megawatt” solution at a competitive storage cost compared with existing technologies, he said.
During the quarter, the company began a $5m share repurchase programme.
The group said PGM prices had stabilised after a pricing correction driven mainly by negative sentiment around long- term demand drivers.
The chrome market remained robust with continued tight supply-demand fundamentals. Chrome output by the major producers has further tightened.
“We see continued strong demand by ferrochrome and downstream stainless-steel producers in China and, while port stocks have risen marginally this calendar year, most of these stocks are already accounted for and the market remains tight,” Pouroulis said.
The group maintained its guidance for the 2024 financial year at between 145,000oz and 155,000oz of PGMs and between 1.5-million and 1.8-million tonnes of chrome concentrates.
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