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Mining

Another quarter of solid production for Tharisa

The production level remained well above the combined plant processing capacity, while it was another quarter with an unblemished safety record

Platinum and chrome miner Tharisa PLC (LON:THS) remains on course to meet production guidance for the current financial year, which runs to end- September.

The South Africa-focused miner revealed reef mined from the open pit in the final three months of 2016 Totalled 1,229.9 kt (thousands of tonnes), down 1.1% on the preceding quarter.

The production level remained well above the combined plant processing capacity of 400 kt per month. Furthermore, reef mined continues to exceed the targeted run rate of 4.8mln tonnes per annum on an annualised basis.

The focus remained on grade control and the optimal blend of material ahead of the operation's two plants, the company said.

During the quarter 1,206.4 kt were milled.

Platinum group metals (PGM) recoveries at 80.5% remained well above the targeted recovery of 70%, resulting in PGM production of 34,800 ounces (oz).

Total chrome concentrate production was 322.2 kt at a recovery rate of 64.3%, edging closer to the targeted recovery of 65% for chrome, Tharisa said.

Of that, 77.1 kt was higher-value specialty grade material, which typically fetches a premium to metallurgical grade chrome.

PGM prices dipped in the quarter, with the average PGM basket price sliding to US$740 an ounce from the US$804 achieved in the preceding quarter.

Contracted metallurgical chrome prices, however, were up 59.2% quarter-on-quarter.

"We are positive about the prospects for the year ahead and believe that, with the support of buoyant chrome prices, 2017 will be a definitive year with reduced unit costs and increased operating margins," said Tharisa’s chief executive officer, Phoevos Pouroulis.

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