Chrome and platinum group metal (PGM) miner Tharisa expects a slump in earnings for the six months to end-March as unprecedented weather-related challenges and weaker chrome prices dealt a blow to its interim operating performance.
Headline earnings per share (HEPS) are expected to be between $0.02 and $0.03, a year-on-year decline of 77.2%-84.8%.
In a previous announcement, the mine reported a decline in PGM and chrome output volumes from the previous first half, citing operational challenges in the second quarter.
Tharisa CEO Phoevos Pouroulis said the three months to end-March 2025, its second quarter, were “dampened by unprecedented rainfall and weather interruptions, which necessitated higher-than-budgeted in-pit evacuations in line with safety protocols and thus affected mining mix and volumes”.
According to Pouroulis, there were a record number of lightning disruptions during the period.
The miner was hopeful it would avoid similar disruptions in the drier winter months that lie ahead, resulting in more normal production in the second half.
However, restrictions on global carmakers, including US President Donald Trump’s 25% tariff on automotive imports, have resulted in lower and more volatile near-term demand for PGMs, which are used in the production of catalytic converters for internal-combustion engines.
Pouroulis had warned previously that the uncertain and volatile environment may hurt demand for the group’s commodities because, “while both PGMs and chrome are not subject to US tariffs, the intermediate and final products containing these commodities will be”.
At 10.30am on the JSE, the group’s share price was down 6.76% at R13.66.
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.