JSE and London-listed miner Tharisa has reported higher annual production and remains optimistic about the fundamentals of the platinum group metal (PGM) market.
The group produced 145,100oz of PGMs in the year to end-September from 144,700oz in 2023. Chrome production was a record 1.7-million tonnes from 1.58-million tonnes the year before.
The average annual PGM price declined 28% to $1,362/oz, averaging at $1,370/oz for the fourth quarter.
Average annual metallurgical grade chrome concentrate prices were up 13.7% at $299 a tonne and averaged $314 a tonne for the fourth quarter, up from $309 a tonne in the prior quarter.
Production guidance for the 2025 financial year has been set at 140,000oz-160,000oz of PGMs and 1.65-1.8 million tonnes of chrome concentrates.
The group said the latency of destocking of pipelines kept PGM prices constrained, but it expected the supply-demand balance to shift, given project cutbacks, production output shortcomings and the need for new PGM metal by various industries.
“We maintain that the PGM price over the next 12-24 months will be stronger, fuelled by the continued evidence that the internal combustion engine will remain relevant for a much longer time to come, and our firm view that hybrid drivetrains are an integral part of the transportation mix.”
Chrome prices remain strong due to the fundamentals of the market, with real growth in stainless steel, driven by demand from China.
"[We had a] scene-setting operational year underpinned by an excellent safety performance. With safety a core value, we have seen the success of record chrome output supported by guidance meeting PGM production,” said CEO Phoevos Pouroulis.
“For the coming year we are setting a similar target, with chrome dominating the operational forecast as we see real demand in China and beyond,” he said.
The group has made “great strides” in furthering its technical study work on the underground development at the Tharisa Mine and this would be a welcome addition to the group’s mining flexibility with the open pit operations being supported by the on-reef underground mine development.
“Our continuing drive to beneficiate our product saw us successfully produce chrome alloy from a unique and proprietary process developed by our research and development business Arxo Metals and are selling this final alloy to commercial customers,” he said.
Tharisa has entered into a 15-year agreement with Etana Energy, who will be providing up to 44% of the Tharisa Mine’s electricity demand via wheeled renewable energy.
In addition, Redox One has upgraded its facilities for longer duration testing by commissioning three new larger scale batteries in line with the development plan.
“We remain optimistic on the fundamentals of the PGM market and have thus continued to optimise our Karo Platinum project and have progressed with the plant construction, in line with capital availability, and we see this strategy continuing until we finalise the funding for the project,” he said.
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