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Tharisa shares in big leap as it posts best-ever quarterly production

THARISA Minerals jumped 7.53 p.c on the JSE yesterday as it posted the best-ever quarterly production in South Africa through the fourth quarter and three months ended September 2021.

Tharisa, the world’s solely co-producer of each platinum group metals (PGMs) and chrome concentrates, stated quarterly PGM production was 12 p.c increased at 43 700 ounces on the finish of September, resulting in an annual output of 157 800 ounces, inside steerage.

The group’s quarterly chrome output elevated by 4 p.c to a report 395 700 tons resulting in a year-on-year improve of 12 p.c in chrome output to 1.506 million tons, additionally inside steerage.

Chief government Phoevos Pouroulis stated the fourth quarter of the group’s monetary year delivered the very best production of PGM and chrome concentrates in the historical past of the Tharisa Mine.

“This performance follows several strategic initiatives to optimise the operation, these have built a sustainable platform for Tharisa to deliver further significant growth over the long life of our open pit operations,” Pouroulis stated.

In phrases of the market efficiency, Tharisa stated chrome costs improved by 4 p.c in comparison with the June 2021 quarter and the company additionally noticed a ten p.c improve on an annual foundation, with spot buying and selling at $165 (R2 472) a ton.

“Prices will need to remain at these levels for most producers to remain profitable and continue to invest, as shipping rates have dented margins, with the global logistic industries continuing to be impacted by the pandemic and challenges with supply chain management,” stated Tharisa.

The group stated regardless of some output cuts at chrome steel crops in China, output was nonetheless anticipated to extend near double-digit share progress in comparison with 2020 as each home demand and export demand drives increased output ranges in China.

“South African inland logistics issues have led to longer supply chains and thus increased pricing for products, while stockpiles of chrome at port level in China remain constant,” stated Tharisa.

According to the PricewaterhouseCoopers 2021 Mine Survey launched final week, persistent difficulties, significantly on Transnet’s coal rail line from Limpopo and Mpumalanga operations to Richards Bay Coal Terminal, have crippled exports of coal and different commodities at a time when world commodity costs are booming. Tharisa stated whereas the PGM basket worth elevated by greater than 80 p.c on an annual foundation this was considerably dampened by the softer PGM basket worth in the final quarter, which noticed the common basket worth scale back by 25 p.c quarter-on-quarter.

It stated whereas substitution would happen between palladium and platinum in catalytic converters over time, it believed that the lack to substitute the minor metals, the biggest of which is rhodium, ensured that the PGM basket worth would stay strong for at the very least the following 5-year interval.

The group had a money steadiness of $83.4 million, up from $80.5m on the finish of the June quarter, and debt was slashed to $35.5m from $38.7m in June, ensuing in a constructive internet money position of $47.9m, a good portion of capital spent on the development of the Vulcan plant being internally funded. The group expects to ship on its objectives of reaching 30 p.c discount in emissions by 2030 and carbon neutrality by 2050 via the adoption of main applied sciences.

Tharisa PLC’s share worth closed 9.59 p.c increased at R26.50 on the JSE yesterday.

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