Tharisa’s decision to delay its Karo project in Zimbabwe should ultimately mean a better outcome, according to broker Peel Hunt.
“With work packages broken into smaller chunks and run in series rather than in parallel, it should also be far easier for the owners' team to maintain effective oversight on-site works.”
Tharisa’s very strong net cash position is a function of this delay, as the heavy capex spending expected through the second half of this year has yet to occur.
“Slowing down the pace of works should also make the project spend easier to manage, particularly given chrome concentrate prices persist at high levels.”
Closing net cash was US$127m, well in excess of the broker’s US$40m net debt estimate.