Skip to main content
The Markets by Proactive
Go to Proactive UK

Gold & silver

High PGM prices make Tharisa PLC a cash machine, says Peel Hunt

Tharisa has been building a track record of successful PGM and chrome production from its South African operations

Proactive

Broker Peel Hunt says strong platinum group metals prices are turning Tharisa PLC (LON:THS) into a cash machine.

“We update our estimates to reflect the ongoing strength of the platinum group metals,” said the broker.

“We increase FY21E EBITDA by 71% to US$303mln and despite the heavy capex spend on the Vulcan

project this year see the group closing FY21E with US$45mln net cash on hand. As Vulcan ramps-up in the December quarter, we expect Tharisa’s margins to take a sustained step higher. We increase our target price to 220p to reflect the higher near-term cash flows and reiterate our Buy recommendation.”