Karo aims to process about 2.5 million tons per annum of ore, achieving a production of 190 000 ounces per annum of PGM (6E basis). Picture: Supplied
Despite average annual platinum group metals (PGM) prices decreasing by of 28% to $1 362 per ounce over the year period to end September, Tharisa is continuing with a plant construction at its Karo Platinum Project in Zimbabwe, with CEO Phoevos Pouroulis taking an optimistic view of the outlook for prices of the precious metal.
Construction at the Karo Platinum Project commenced on 7 December 2022. In June 2023, an open pit pilot mining operation started to enhance mining methods and test metallurgical processing further. Karo aims to process about 2.5 million tons per annum of ore, achieving a production of 190 000 ounces per annum of PGM (6E basis).
“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,” said Pouroulis yesterday.
For the year to September 2024, Tharisa’s PGM production amounted to slightly above 145 000 ounces compared to144 700 ounces in 2023.
In the fourth quarter to September, the company produced 37 100 ounces of PGM.
Tharisa’s chrome production for the period at 1.7 million tons was higher compared to 1.5m tons a year ago, with the quarter to September delivering 426 800 tons.
While prices it received for PGM were 28% lower, Tharisa received chrome concentrate prices that were 13.7% stronger at $299 per ton, while averaging at $314 per tonne in the quarter to emd September.
During the period under review, Tharisa said group cash on hand of $217.5 million (R378 million) and debt of $108.8m resulted in an increased net cash position of $108.7m compared $92.2m at the end of June.
During the period under review, Tharisa completed a $5m share repurchase program and also delivered on its beneficiation strategy, with production of chrome alloy and testing of upscaled batteries at Redox One.
Tharisa already produces PGM alloys and now with the commencement of the production of chrome alloys, the company is positive positive of the newer processes’ value addition, cost savings and job creation.
Arxo developed a new proprietary process for Tharisa to produce speciality chrome with the possibility of fine chrome recovery at the Vulcan plant, which is already in commercial production at the Tharisa Mine.
Over the full year to September next year, the company has set a production guidance of Between 140 000 ounces and 160 000 ounces of PGMs. In terms of chrome concentrates, Tharisa has set a target of between 1.65m tons and 1.8m tons.
Pouroulis said the company’s efforts to reduce carbon emissions and secure energy independence had been boosted during the year after it entered into a 15-year agreement with Etana Energy, which will be provide 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,” he said.
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