Tharisa shares surge 5.5% as PGM prices and production recoveries improve

Tharisa's share price surged 5.5% after reporting first quarter production as planned, while platinum group metal (PGM) prices averaged 13% higher.

The JSE and London-listed chrome and platinum producer said Tuesday in a production report for its first quarter to December 31, 2022, that PGM recoveries improved at 78.8% from 61.7% in the first quarter of 2022, while chrome recoveries improved to 70.3% from 65.7%.

The share price traded at R28.40 on the JSE in the afternoon, representing a sharp 88% increase in the price over 12 months.

Planned risk mitigation was successful at the group in the quarter with double the rainfall and lightening events year on year. PGM prices averaged $2 208 per ounce versus $1615 for the 2025 financial year. The average chrome concentrate price was $276/t versus $266/t in 2025.

"The first quarter was another safe quarter operationally, with production reflecting planned mine volumes and the seasonal operating environment. While output was softer at the start of the year, leading indicators across the business are trending positively, particularly in mining, where recoveries have begun to improve following weather and sequencing-related impacts experienced during the quarter," said Tharisa CEO Phoevos Pouroulis.

Cash on hand of $122.2 million compared with $173m on September 30, 2025, and debt stood at $75.2m versus $104.4m at the last year end. The net cash position stood at $47m versus $68.6m at September 30.

Underground development was progressing in line with plans. At Karo, Tharisa's flagship PGM development in Zimbabwe, designed to double long-term PGM output, development remained aligned with capital availability, with Tharisa providing additional funding to maintain momentum on the project timeline.

"PGM prices were robust during the quarter, underpinned by supportive market fundamentals, and we were able to deliver production into this pricing environment. We remain constructive on the PGM price outlook and expect current price levels, and potentially higher levels, to persist in the months ahead," said Pouroulis.

He said platinum fundamentals remain in deficit for the third consecutive year. Legislative changes in the EU regarding the 2035 ban on combustion engine vehicles coupled with tariff uncertainty and rising investment appetite for the precious metals cluster meant PGM prices rose sharply over the past quarter and continue to hold firm.

Chrome prices remained stable and would likely remain range bound until after the Chinese New Year. Chinese stainless-steel production increased and was expected to increase by approximately 3% into 2026.

Quarterly PGM production came to 38.8koz versus 41.3koz at the same time last year. Quarterly chrome production was 349.4kt over 407.2kt last year. The production guidance for 2026 was set at between 145koz and 165koz PGMs and 1.50Mt to 1.65Mt of chrome concentrates.

BUSINESS REPORT