Tharisa has laid the foundations for a step up in production from June onwards after successfully commissioning its new Vulcan plant, according to broker Peel Hunt.
Setting up the processor had an impact on throughput in the past three months, but high grades helped platinum group metal production though chrome was a little behind expectations.
Present chrome spot prices of US$260/t combined with the step-up in volumes as the Vulcan plant hits its stride plus ongoing PGM price strength point to a strong second half said the broker.
Buy with a 255p target price is its recommendation.