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

Published: 15:44 04 May 2018 BST

Tharisa
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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