Tharisa PLC (LSE:THS, JSE:THA, OTC:TIHRF), the platinum group metals (PGMs) and chrome co-producer, has announced its production and cash balance results for quarter one 2023 and reiterated that its growth strategy is firmly on track for the full year.
In the statement, Phoevos Pouroulis, CEO of Tharisa, commented: "Despite operational headwinds at the Tharisa Mine, the company delivered a solid quarter of PGM and chrome production, underpinning our commitment in delivering guidance of between 175 koz and 185 koz PGM and 1.75 Mt and 1.85 Mt chrome concentrates. The quarter also saw significant progress in the development of Karo Platinum, which will be our second Tier 1 PGM asset, with groundbreaking and the commencement of the development of the necessary infrastructure and mine construction, supported by the first bond issue on the Victoria Falls Exchange in Zimbabwe."
He added: "The fatality in October 2022 overshadowed the quarter where output was hampered by unprecedented rainfall, which registered an annualised increase in rainfall of 27%. While the changes we have made to the pit layout provided significantly better drainage, access to the pit was nevertheless hampered due to the high-water level, directly resulting in pit flexibility being compromised. Our stockpile management strategy implemented over the past 24 months resulted in minimising the impact to our normal output."
"Our growth strategy remains intact, underpinned by further free cash flow generation in the quarter, as well as progressing with our ambitions to become a multi-asset and multi-jurisdiction group with the rapid progress of the Karo Platinum Project," Pouroulis concluded.
At the end of its first quarter, Tharisa said it had cash on hand of US$213.9mln and a net cash position of US$101.1mln. It raised US$31.8mln from the bond issue for Karo Mining Holdings on the Victoria Falls Stock Exchange during the period.
The company said its first-quarter PGM output was marginally lower versus the prior quarter at 42.7 koz (Q4 FY2022: 45.3 koz), while chrome output fell as a direct result of feed and ore mix variability at 383.1 kt (Q4 FY2022: 416.2 kt) with grades remaining consistent at 17%.
Tharisa said it is maintaining its full-year 2023 production guidance at between 175 koz and 185 koz PGMs (6E basis) and 1.75mln tonnes (Mt) to 1.85 Mt of chrome concentrates.
It noted elevated PGM prices driven by demand for the automotive industry and lower production from major suppliers, and said chrome prices remain buoyant currently at US$260/t due to eroding Chinese stockpiles.