Tharisa PLC (LSE:THS, JSE:THA, OTC:TIHRF) CEO Phoevos Pouroulis takes Proactive's Stephen Gunnion through the company's recent interim results, highlighting the resilience of the company's co-production model of platinum group metals (PGMs) and chrome concentrates.
Despite a 40% drop in PGM prices to $1,344 per tonne, chrome prices increased by 16% to $288 per tonne, with current spot prices around $315 per tonne. Tharisa's chrome concentrate volumes rose by 10% to 870,000 tonnes for the first six months. The company continued to invest in growth and maintained its share buyback program, repurchasing $5 million worth of shares. Additionally, Tharisa declared an interim dividend of 1.5 cents per share, in line with its policy of returning 15% of net profit to shareholders.
Pouroulis noted a positive market response to the share buyback, with Tharisa's shares rising by 61%. He mentioned slight upticks in platinum prices and stable conditions for rhodium and palladium, albeit with potential overhang from recyclable inventories. Market conditions for PGMs are influenced by global interest rates and vehicle replacement patterns.
Tharisa is also progressing with its Redox battery project, deploying three 200-kilowatt demonstration units in Germany and South Africa. Commercialisation is expected next year. Production guidance remains consistent, targeting 1.7 to 1.8 million tonnes of chrome concentrate and 145,000 to 155,000 ounces of PGMs.
Despite challenges in South Africa, including utility and logistics constraints, Pouroulis said Tharisa's production remains stable.