Chrome and platinum miner Tharisa has reported lower production for the first quarter as operations were affected by drilling equipment availability.
The group reported platinum group metals (PGM) production of 29,900oz in the quarter ended December compared with 35,700oz in the corresponding quarter of 2023, and 19.4% lower than the previous quarter.
Quarterly chrome production of 374,400 tonnes was 12.3% lower than the September quarter and was down from the 462,800 tonnes produced in the December 2023 quarter.
“Undoubtedly a tough start to the new year affected by drilling equipment availability, as a consequence thereof we mined sub optimal oxidised reef horizons,” said CEO Phoevos Pouroulis.
“This yielded lower ROM grades and therefore lower recoveries. We have subsequently improved the drilling rates and equipment availability. The focus this quarter will be on optimising the feed grade and improving our recoveries to previous levels,” he added.
PGM prices remain subdued despite continued forecasts for deficits in the various metals.
“The price weakness is compounded by a visible lack of investor interest, despite the supply demand evidence. The low pricing environment will lead to growing deficits as output continues to decline, particularly in marginal deep level mines, with capital spend constrained,” he said.
Chrome prices retreated in the quarter as uncertainty over stainless steel demand drove a price reduction. Physical demand remains at normal levels with port stocks approximating one month supply to ferrochrome demand.
Disruptions at the Mozambique border with lockdowns affected road transport to the port of Maputo, affecting the delivery of cargoes to end use customers, the group noted.
“While we have seen a drop in the chrome price due to slowing stainless steel demand, we remain of the view that these price levels are unsustainable and will need to correct to meet expected demand. The PGM pricing environment remains stubbornly weak notwithstanding sound demand fundamentals,” said Pouroulis.
The group has set production guidance for the 2025 financial year at 140,000oz-160,000oz of PGMs and 1.65-million tonnes to 1.8-million tonnes of chrome concentrates.
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