THARISA, the JSE-listed platinum group metals (PGM) and chrome concentrates miner, declared a $10.8 million (R153m) interim dividend after the group benefited from record platinum group metal prices and a robust operational performance during its third quarter ended June 2021.
Tharisa, South Africa’s fourth largest chrome concentrate producer, said on Friday that operationally, the third quarter was one of the strongest in the company’s history, bolstered by strong PGM and chrome pricing.
Chief executive Phoevos Pouroulis said revenues and margins continued to be healthy on the record PGM basket prices and a steady increase in the pricing of chrome concentrates.
Tharisa reported a 15.6 percent jump in the PGM basket price it received quarter on quarter and said the pricing remained above $3 000 an ounce at the time of writing, despite the recent decline in the rhodium price, highlighting the unique prill split benefits.
“These price increases are a direct result of the increase in demand for our critical metals as economies focus on rebuilding post the global pandemic. Moreover, given the rapid adoption of decarbonisation initiatives, we see these prices being sustainable for the foreseeable future,” said Pouroulis.
Tharisa also benefited from higher chrome ore prices in the quarter despite subdued demand owing to a reduction of ferrochrome production in China, caused by electricity control measures.
The group said stainless steel producers were operating at historic high levels, creating robust demand for ferrochrome and increasing the price of ferrochrome at the end of the quarter, which was a boost for the current and future chrome ore price.
“The company was successful in meeting its delivery obligations, despite continued inland logistical challenges in South Africa and limited shipping availability,” said the group. Tharisa, in April, reportedly flagged that it had to rely on road transport following constraints at Transnet Freight Rail.
Highlights for the third quarter included the $80.5m cash balance, up from $72.8m in the previous quarter. Tharisa slashed debt to $38.7m from $43m, resulting in a healthy net cash position of $41.8m.
The group processed 1.4 million tons, up 5 percent quarter on quarter and 15.8 percent year on year, while chrome concentrates production touched the record level of 379 700 tons, up 5.9 percent quarter on quarter and 18.1 percent year on year. However, there were more Covid-19 employees during the third wave of the pandemic.
Pouroulis said Tharisa’s growth projects remained on track, with the construction of the Vulcan fine chrome recovery plant on schedule for commissioning by year-end, adding an additional 20 percent chrome to its current production levels and these at very low operating costs.
“Our new development project in Zimbabwe, Salene Chrome, is progressing well and is planned to be in production start-up before the end of the calendar year,” said Pouroulis.
Tharisa closed 1.76 percent higher at R25.44 a share on the JSE on Friday.
BUSINESS REPORT