Chrome and platinum group metals (PGM) miner Tharisa has announced a second share buyback scheme in an effort to return value to shareholders after a challenging first half.
In an announcement on Thursday, the group provided no further details on the plan, but said it saw “incredible value in this initiative”.
In March last year, the group unveiled a plan to buy up 10% of its shares in issue for up to $5m, a move which was welcomed by investors.
Another buyback may offer some relief to the miner’s share price, which has given up 10.48% since the start of this year.
The dip in Tharisa’s share price follows a slump in earnings for the six months ended March, primarily driven by poor weather conditions and weaker chrome prices.
Headline earnings per share (HEPS) were down 78% at 2.9c as revenue slipped 23.9% to $280.8m.
Against the headwinds of global tariffs and policy uncertainty, Tharisa CEO Phoevos Pouroulis praised the miner’s ability to “continue to invest in the sustainability and growth of its operations while maintaining the discipline of returning profits to shareholders”.
“We have often spoken of the benefits of our co-product model and this unique approach to optimising our ore body which has again proven its resilience despite unprecedented global macro uncertainty,” Pouroulis said.
The miner was hopeful it would avoid further disruptions in the drier winter months that lie ahead, resulting in more normal production in the second half.
“The impact on our operations’ drilling equipment availability has been largely resolved. The subsequent unprecedented weather interruptions in the second quarter had a knock-on effect on output and we are working to make up this shortfall in the drier months,” said Pouroulis.
The group said it planned to invest $52.5m in capital expenditure this year, with $12.8m going towards its Karo Platinum operation in Zimbabwe.
Tharisa has pumped significant capital into developing the Karo project and helped raise $36.8m through a structured debt instrument listed on the Victoria Falls Stock Exchange.
As a result of the low PGM price environment, construction, which began in 2022, has been slower than initially hoped. However, the group still views Karo as a flagship asset, particularly since Chariot agreed to equip the site with a 30MW solar power plant.
“While we have slowed development at the Karo Platinum Project in line with capital availability, we have nevertheless continued work on infrastructure, water dams and further optimisations,” said Pouroulis.
He said the group continued to present the opportunity to “non-traditional financiers who, like [Tharisa], see the long-term benefits of the uniqueness not only of this Tier 1 project but of the applications PGMs will play for decades to come.”
On top of Karo, capital had been allocated for early development works aimed at consolidating the long-term future of the Tharisa mines through an underground phased transition.
The group declared an interim dividend of $0.015 per share.
“Our vision of creating the resources company of the future remains intact and as the co-product model takes us from mine to megawatt we are ensuring we share value for generations to come,” concluded Pouroulis.
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.