Tharisa PLC (LSE:THS, JSE:THA, OTC:TIHRF) has reported an uptick in its net cash position as its vision of reaching optimal and sustainable production from its flagship mine remains intact.
Its net cash position as of 31 March 2023 was US$106.8mln, up from US$101.1mln on 31 December 2022, the company said in a statement.
Cash on hand at the end of the company's second quarter was US$205.8mln, down slightly from US$213.9mln three months earlier.
The platinum metals group and chrome co-producer said it successfully concluded a US$130mln debt facility with Société Générale and Absa Bank Limited in the period.
An additional US$5mln subscription in the Karo Mining Holdings Bond was also received, taking total proceeds to US$36.8mln.
"Tharisa continued to generate healthy free cash flow in the second quarter of our financial year,” said the company's chief executive Phoevos Pouroulis in the statement.
The company noted that mining volume recovery was slower than expected in its second quarter due to adverse weather negatively impacting flexibility in open pit. Reef mined fell by 4.9% compared to the previous quarter to 1,028kt, while 6E Platinum Group Metals (PGMs) produced also fell by 19.7% to 34.3koz. Chrome concentrates produced, however, grew by 5.7% to 404.8kt.
Pouroulis added: “Due to the challenges posed in December through to February specifically, management took the prudent step of lowering full-year guidance by 10%.
"The unique and unparalleled properties of our orebody, however, were once again shown to reap rewards as the chrome price reached levels as high as US$300/ tonne and, while the PGM prices have pulled back recently, even at these levels we continue to generate healthy margins.”