Shares in Tharisa PLC (LSE:THS, JSE:THA, OTC:TIHRF), a producer of platinum group metals (PGMs) and chrome, after it reported robust financial results for the fiscal year ending September 30,
The integrated mining group, which operates in South Africa and Zimbabwe, achieved double-digit revenue growth, increased production, and has made strategic progress in developing its long-term projects.
Financial performance
Tharisa's revenue for the year increased by 11% to $721.4 million, up from $649.9 million in 2023. This was driven by higher chrome concentrate production and favourable pricing.
Chrome output rose 7.6% to 1.7 million tonnes with an average realised price of $299 per tonne, up 13.7% year-on-year. PGMs production was 145,100 ounces compared with 144,700 ounces in 2023.
Operating profit rose 26.3% to $119.6 million, while earnings before interest, tax, depreciation, and amortisation (EBITDA) climbed nearly 30% to $177.6 million, reflecting operational efficiencies and higher commodity prices.
Operational highlights
Tharisa operates the Tharisa Mine on South Africa's Bushveld Complex, which is a significant source of PGMs and chrome.
Reef-mined ore increased by 9.5% to 4.6 million tonnes, supporting higher production volumes. The company maintained its focus on cost control and operational efficiency, with improvements in chrome recovery rates and consistent PGM recoveries.
Despite challenges in the broader market, including inflationary pressures and geopolitical uncertainties, Tharisa upheld its commitment to sustainability and innovation.
The company is on track to reduce its carbon footprint by 30% by 2030, supported by a 15-year power purchase agreement with Etana for renewable energy and the construction of a 40MW solar project.
Strategic developments
A key highlight for Tharisa is the advancement of the Karo Platinum Project in Zimbabwe, a low-cost, open-pit PGM mining operation located on the Great Dyke.
During the year, the company invested $84.1 million in the project, which is expected to produce an average of 190,000 ounces of PGMs annually once operational. Construction of key infrastructure, including power lines and processing facilities, is progressing well.
Tharisa also continued to invest in beneficiation and downstream opportunities. Its Redox One initiative is developing a proprietary iron-chromium redox flow battery, targeting long-duration energy storage solutions. This project leverages the company’s mining outputs to diversify its revenue streams and support the global energy transition.
Guidance
Looking ahead, Tharisa provided production guidance for the 2025 financial year, projecting PGM output between 140,000 and 160,000 ounces and chrome concentrate production of 1.65 to 1.8 million tonnes.
The company expects steady demand for its commodities, driven by industrial and technological applications, particularly in the automotive and renewable energy sectors.
Capital expenditure is expected to remain elevated as the company completes its commitments at Karo and continues investments in sustainability projects.
The stock was up 2.2% at 66.2p. Broker Peel Hunt reckons the shares are worth 195p.