Tharisa PLC (LON:THS) reported a stronger balance sheet after a third-quarter that saw record mining rates and tonnes processed.
Cash on the balance sheet rose to US$80.5mln at the end of June from US$72.8mln at the start, even with a US$10.8mln interim dividend payment made during the period. Net cash stood at US$41.8mln, after allowing for debt.
A record level of chrome concentrate output of 379.7 kilotons (kt) was produced in the three months to 30 June, versus 358.4kt in the preceding quarter and 321.4kt a year earlier.
Output of platinum group metals (PGMs) rose 8.9% in the quarter to 39.0 kilo-ounces (koz) and up 11.4% on last year.
Full-year guidance was maintained at 155koz to 165koz of PGMs and 1.45Mt to 1.55Mt of chrome concentrates.
Tharisa's PGM basket price was 15.6% higher on the previous quarter and remains above US$3,000/oz today with higher chrome ore prices also achieved.
Chief executive Phoevos Pouroulis said: “Operationally, the third quarter was one of the strongest in the company's history, with record mining and processing rates, supported by strong PGM and chrome pricing.
“Combined with reaching five million fatality-free shifts and another excellent LTFIR (lost time injury frequency rate), Tharisa remains on track to deliver safe and sustainable returns for all of our stakeholders.”
He said revenues and margins continued to be healthy, reflecting the combination of a favourable PGM basket and record prices, alongside a steady increase in the pricing of chrome concentrates.
“These price increases are a direct result of the increase in demand for our critical metals as economies focus on rebuilding post the global pandemic. Moreover, given the rapid adoption of decarbonisation initiatives, we see these prices being sustainable for the foreseeable future,” he added.
While the South African government has set a Coronavirus Alert Level 4, Pouroulis said Tharisa’s operational performance continued to benefit from ongoing optimisation programmes and a mine with 14 years of open pit and 40 years underground mine life.
“Our growth projects remain on track, with the construction of the proprietary Vulcan fine chrome recovery plant on schedule for commissioning by year end, adding an additional 20% chrome to our current production levels and these at very low operating costs. Our new development project in Zimbabwe, Salene Chrome, is progressing well and is planned to be in production start-up before the end of the calendar year.”