Tharisa admits that it operates in a complex global environment where economic volatility, inflation, interest rates and commodity price fluctuations directly impact its performance.
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Tawanda Karombo
Tharisa plc has secured additional financing facilities from HSBC and Absa Corporate and Investment Banking (CIB), with the new capital advances expected to shore up the South African miner’s trade finance activities.
The Hongkong and Shanghai Banking Corporation (HSBC) has availed $30 million for the mining, metals, and innovation company dual-listed on the Johannesburg and London stock exchange while South African banking group Absa advanced $15m with an accordion of a similar amount.
HSBC and Absa CIB are existing financiers for Tharisa, and the new trade finance facilities are expected to provide greater flexibility, improve working capital efficiency, and enhance Tharisa’s trading capabilities.
“Securing these enhanced trade finance facilities strengthens our balance sheet resilience and optimises our working capital flows. The additional flexibility allows us to unlock further value in our global marketing and sales activities while supporting our disciplined growth strategy,” said Michael Jones, CFO for Tharisa.
The new funding has been earmarked for Arxo Resources, the trading company under Tharisa.
Over the year to end September 2025, Arxo Resources traded 1.5 million tons of chrome concentrates. Such volumes have been helpful for the company in negotiating “improved unsecured, revolving trade finance” facilities.
The capital advances by HSBC and Absa CIB will cater for both pre- and post-shipment finance.
“The facilities replace existing, more onerous and traditional trade finance facilities. Tharisa’s trade facilities are used to optimise trade finance cash flows and position the company to take advantage of trading opportunities that arise, with a focus on the chrome market,” said the company in a statement.
It further stated that the new funding facilities align with Tharisa’s capital allocation priorities, including maintaining a robust liquidity position, supporting the ramp-up of growth initiatives, and continuing to deliver shareholder returns.
Tharisa admits that it operates in a complex global environment where economic volatility, inflation, interest rates and commodity price fluctuations directly impact its performance.
Commodity traders have warmed up to US President Donald Trump’s five day suspension of attacks on Iran. The US and Israel's war in Iran has posed uncertainties for commodity traders with oil climbing up and gold price falling from its elevated levels earlier in the year.
Disruptions to global shipping routes have also disturbed commodity shipments.
“Global prices and exchange rates influence our revenue and cost structures. We also monitor socio-political factors such as regulatory changes, labour dynamics and geopolitical risks, which can affect operations and stakeholder relations,” Tharisa said earlier.
For its 2025 year, Tharisa recorded an operating profit of $125.6m after generating $94m from operations.
Direct and indirect currency inflows into South Africa for Tharisa amounted to $430m against the backdrop of tax and royalty payments of $31.7m for the period. Tharisa subsequently paid a total dividend of 3 cents (USD) per share for 2025.
The company is advancing its portfolio diversification through the Karo PGM project in Zimbabwe. The Karo Platinum project “provides long-term PGM optionality and strengthens the Group’s growth pipeline,” said Tharisa.
This comes as the board of the company is maintaining a “disciplined approach to capital sequencing, with clear hurdle rates that reflect country, execution and convertibility” risks.
“Our balance sheet remains robust and we continue to prioritise cash generation, operational flexibility and returns,” it noted.
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