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Stronger rand and lower chrome to affect Tharisa's first half

The company said its basic earnings per share (EPS) and headline earnings per share (HEPS) for the half year ended 31 March 2018 are expected to be between 9 US cents per share and 11 US cents per share
Average contracted metallurgical grade chrome prices have dropped sharply

Tharisa PLC (LON:THS) has become the latest South African miner to warn of the impact of the rand's rally against the US Dollar.

Interim earnings per share will be between 9 US cents per share and 11 US cents per share compared to 16 cents a year ago.

READ: Tharisa on track to hit production targets as platinum and chrome recovery beat expectations

A slide in the price of chrome to US$193/t in the first half from US$278/t has also affected the results as has the transition to owner-mining at the Tharisa mine.

Phoevos Pouroulis, Tharisa's chief executive, said: “Higher volume sales for both PGMs and chrome concentrate were offset by lower spot chrome prices and an increase in costs associated with the transition to owner mining.”

He added: “The benefits of the owner mining model and the central focus on improving recoveries are expected to reflect in the second half.”

In late afternoon trading, company’s shares fell 15.7% to 99.5p.

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