Tharisa Production report Q1 FY2025
Q1 FY2025 production fell 19% for PGM and 12% for chrome due to drilling equipment constraints and lower ore grades.
- PGM production 29.9 koz (prior 37.1 koz)
- Chrome production 374.4 kt (prior 426.8 kt)
- PGM average price US$1,381/oz (prior US$1,370/oz)
- Chrome average price US$271/t (prior US$314/t)
- Net cash position US$89.0 million (prior US$108.9 million)
- PGM recovery rate 61.7% (prior 70.6%)
Select text to share a quote on X · sign in to keep highlights & notes in your THS notes
JSE share code: THA
LSE share code: THS
A2X share code: THA
('Tharisa' or the 'Company')
PRODUCTION REPORT FOR THE FIRST QUARTER FY2025 ENDED 31 DECEMBER 2024
Tharisa, the mining, metals, and innovation company dual-listed on the Johannesburg and London stock exchanges, announces its production results for Q1 FY2025[1] and cash balance as at 31 December 2024.
Highlights
‒ Lost Time Injury Frequency Rate ('LTIFR') per 200 000 man hours worked of
‒ 0.02 at Tharisa Minerals
‒ 0.08 at Karo Platinum
‒ PGM production of 29.9 koz (Q4 FY2024: 37.1 koz)
‒ Chrome production of 374.4 kt (Q4 FY2024: 426.8 kt)
‒ PGM prices averaging at US$1 381/oz for the quarter (Q4 FY2024: US$1 370/oz)
‒ Average metallurgical grade chrome concentrate prices at US$271/t for the quarter (Q4 FY2024: US$314/t)
‒ Group cash on hand of US$175.1 million (30 September 2024: US$217.7 million), and debt of US$86.1 million (30 September 2024: US$108.8 million), resulting in a net cash position of US$89.0 million (30 September 2024: US$108.9 million)
| Quarter ended 31 Dec 2024 | Quarter ended 30 Sep 2024 | Quarter on quarter movement % | Quarter ended 31 Dec 2023 | Year ended 30 Sep 2024 | ||
|---|---|---|---|---|---|---|
| Reef mined | kt | 1 291.0 | 1 286.5 | 0.3 | 1 058.6 | 4 641.9 |
| Reef milled | kt | 1 377.6 | 1 394.9 | (1.2) | 1 424.4 | 5 593.8 |
| 6E PGMs produced | koz | 29.9 | 37.1 | (19.4) | 35.7 | 145.1 |
| Chrome concentrates produced | kt | 374.4 | 426.8 | (12.3) | 462.8 | 1 702.6 |
| Average PGM contained metal basket price | US$/oz | 1 381 | 1 370 | 0.8 | 1 344 | 1 362 |
| Average metallurgical grade chrome concentrate price - 42% basis | US$/t | 271 | 314 | (13.7) | 291 | 299 |
Phoevos Pouroulis, CEO of Tharisa, commented:
"Undoubtedly a tough start to the new year impacted by drilling equipment availability, as a consequence thereof we mined sub optimal oxidised reef horizons. This yielded lower ROM grades and therefore lower recoveries. We have subsequently improved the drilling rates and equipment availability. The focus this quarter will be on optimising the feed grade and improving our recoveries to previous levels.
While we have seen a drop in the chrome price due to slowing stainless steel demand, we remain of the view that these price levels are unsustainable and will need to correct to meet expected demand. The PGM pricing environment remains stubbornly weak notwithstanding sound demand fundamentals.
The cybersecurity incident we experienced during the quarter did not directly impact physical operations, but rather the administrative, accounting and support services with work-around solutions being implemented to minimise any disruptions. Good progress has been made in bringing the affected systems back online. "
Health & Safety
‒ LTIFR per 200 000 man hours worked of
‒ 0.02 at Tharisa Minerals
‒ 0.08 at Karo Platinum
Market Update
‒ PGM prices remain subdued despite continued forecasts for deficits in the various PGMs. The price weakness is compounded by a visible lack of investor interest, despite the supply demand evidence. The low pricing environment will lead to growing deficits as output continues to decline, particularly in marginal deep level mines, with capital spend constrained.
‒ Chrome prices retreated in the quarter as uncertainty over stainless steel demand drove a price reduction. Physical demand remains at normal levels with port stocks approximating one month supply to ferrochrome demand. Disruptions at the Mozambique border with lockdowns impacted road transport to the port of Maputo, impacting the delivery of cargoes to end use customers.
Operational Update
‒ Steady quarter on quarter reef mining at 1 291.0 kt (Q4 FY2024: 1 286.5 kt)
‒ Quarter on quarter reef milled at 1 377.6 kt (Q4 FY2024: 1 394.9 kt) supplemented by reduced ROM purchases
‒ Quarterly PGM production at 29.9 koz (Q4 FY2024: 37.1 koz)
‒ Rougher feed grade of 1.39 g/t (Q4 FY2024: 1.56 g/t)
‒ Recovery of 61.7% (Q4 FY2024: 70.6%)
‒ Quarterly chrome production of 374.4 kt (Q4 FY2024: 426.8 kt)
‒ Grade of 16.9% Cr2O3 (Q4 FY2024: 18.2%)
‒ Recovery at 65.7% (Q4 FY2024: 68.8%)
‒ Underground definitive feasibility study progressing well with early works capital being deployed
‒ Karo Platinum continues to evaluate value engineering opportunities in a difficult PGM pricing environment. Work packages are progressing in line with existing funding.
Cash Balance and Debt Position
‒ Group cash on hand of US$175.1 million (30 September 2024: US$217.7 million), and debt of US$86.1 million (30 September 2024: US$108.8 million), resulting in a net cash position of US$89.0 million (30 September 2024: US$108.9 million)
Guidance
‒ Production guidance for FY2025 is set at between 140 koz and 160 koz PGMs (6E basis) and 1.65 Mt to 1.8 Mt of chrome concentrates
| Quarter ended 31 Dec 2024 | Quarter ended 30 Sep 2024 | Quarter on quarter movement % | Quarter ended 31 Dec 2023 | Year ended 30 Sep 2024 | ||
|---|---|---|---|---|---|---|
| Reef mined | kt | 1 291.0 | 1 286.5 | 0.3 | 1 058.6 | 4 641.9 |
| Stripping ratio | m 3 : m 3 | 12.4 | 11.3 | 9.7 | 12.0 | 12.5 |
| Reef milled | kt | 1 377.6 | 1 394.9 | (1.2) | 1 424.4 | 5 593.8 |
| PGM flotation feed | kt | 1 082.7 | 1 049.6 | 3.2 | 1 048.0 | 4 218.0 |
| PGM rougher feed grade | g/t | 1.39 | 1.56 | (10.9) | 1.60 | 1.60 |
| PGM recovery | % | 61.7 | 70.6 | (12.6) | 66.1 | 67.0 |
| 6E PGMs produced | koz | 29.9 | 37.1 | (19.4) | 35.7 | 145.1 |
| Platinum produced | koz | 16.2 | 22.3 | (27.4) | 20.5 | 81.6 |
| Palladium produced | koz | 5.1 | 6.0 | (15.0) | 5.2 | 23.4 |
| Rhodium produced | koz | 2.8 | 3.9 | (28.2) | 3.3 | 13.8 |
| Average PGM contained metal basket price | US$/oz | 1 381 | 1 370 | 0.8 | 1 344 | 1 362 |
| Platinum price | US$/oz | 966 | 963 | 0.3 | 914 | 942 |
| Palladium price | US$/oz | 1 011 | 970 | 4.2 | 1 090 | 1 002 |
| Rhodium price | US$/oz | 4 577 | 4 616 | (0.8) | 4 216 | 4 467 |
| Cr 2 O 3 ROM grade | % | 16.9 | 18.2 | (7.1) | 19.1 | 18.4 |
| Chrome recovery | % | 65.7 | 68.8 | (4.5) | 70.3 | 68.3 |
| Chrome yield | % | 27.2 | 30.6 | (11.1) | 32.5 | 30.4 |
| Chrome concentrates produced | kt | 374.4 | 426.8 | (12.3) | 462.8 | 1 702.6 |
| Metallurgical grade | kt | 317.7 | 355.8 | (10.7) | 389.9 | 1 421.2 |
| Specialty grades | kt | 56.7 | 71.0 | (20.1) | 72.9 | 281.4 |
| Average metallurgical grade chrome concentrate contract price - 42% basis | US$/t CIF China | 271 | 314 | (13.7) | 291 | 299 |
| Average exchange rate | ZAR:US$ | 17.9 | 18.0 | (0.6) | 18.7 | 18.2 |
Paphos, Cyprus
JSE Sponsor
Investec Bank Limited
Connect with us on LinkedIn to get further news and updates about our business.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.