Tharisa reports 27% increase in third quarter reef mining volumes despite lower guidance

Tharisa, the platinum and chrome mining company, on Wednesday reported a positive improvement in reef mining volumes by 27.7% to 1.45 million tons in the third quarter to June 30, but full-year production guidance was lowered.

"An improving quarter as our reef mining volumes trended higher after good progress in the east pit with remediation post the heavy rainfall in the first half of the year. Work on the phased underground transition is on track with the scheduled development timeline,” CEO Phoevos Pouroulis said.

However, “in line with the nine months' performance to date, production is trending towards the lower end of guidance, and we consider it prudent to lower guidance by about 5% from the lower end of guidance, which was set at 140 koz PGMs and 1.65 mt of chrome concentrates,” he said in a production update on Wednesday.

The Johannesburg and London listed company said that third-quarter PGM production increased to 34.5 koz, compared with 32.5 koz by the end of the second quarter.

Chrome production increased to 395.7 kt from 381 kt in the second quarter. Average PGM prices increased by 10.8% to $1 574/oz for the quarter.

Average metallurgical grade chrome concentrate prices increased by 24.7% to $293/t for the quarter.

Group cash on hand stood at $150.9 million, slightly lower than $186m at March 31, 2025. Debt was $121.5m, up from $106.7m at the end of the second quarter, resulting in net cash of $29.4m, versus $79.3m at March 31. The difference was the result of the outflow of project and working capital timing.

Pouroulis said the quarter reflected recovery improvements in both the chrome and PGM circuits, and this was trending towards targeted performance metrics for the integrated processing plants.

“Our head grade blend remains a challenge, while overall output increased due to improved recoveries. The focus for the remainder of the year is to provide improved mined grades into our plants. With improved flexibility in our open pits and increased mining volume, we are forecasting improving head grades,” he said.

Karo Platinum had made “significant progress” in derisking the project, and the team was working at concluding funding solutions to accelerate the final development of the asset.

“With commodity prices improving, our balance sheet continues to remain robust," said Pouroulis.

PGM prices had continued their upward trend driven by physical demand for refined platinum and industrial buying, while supply cutbacks and pipeline destocking underpinned the widening gap in the supply-demand fundamentals.

“While prices are now more supportive of industry profitability, long-term sustainability of higher prices is necessary to induce wide-scale project development,” Pouroulis said.

Chrome prices recovered due to pipeline inventory restocking. Prices retreated towards the end of the quarter; however, "we are of the view that the supply-demand fundamentals remain in balance with the current spot price at $265,” he said.

Tharisa Minerals' underground feasibility study was completed. Karo Platinum infrastructure work was continuing in line with capital availability.

Tharisa’s principal operating asset is the multi-generational Tharisa Mine, located in the south-western limb of the Bushveld Complex, South Africa.

Tharisa is also developing the Karo Platinum Project, a PGM asset located on the Great Dyke in Zimbabwe, while simultaneously focusing on beneficiation in the form of chrome and PGM alloys.

Redox On, which has a strategic partnership with Tharisa, is developing an iron chromium redox flow long-duration battery utilising the commodities from the group mines.

Tharisa’s share price slipped 2.9% to R20.06 on the JSE Wednesday afternoon. A year ago on the same day, the share was trading at R19.20.

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