Tharisa PLC (LSE:THS, JSE:THA, OTC:TIHRF) reduced its full-year chrome production guidance by 10% due to lower chrome feed grade and a slower ramp-up at the Vulcan plant.
It expects to produce between 1.55 million tonnes (Mt) and 1.65 Mt for the year to end-September 2022.
The group maintained its full-year guidance for platinum group metals (PGMs) at 165,000-175,000 ounces.
PGM production dipped 4.5% to 42,100 ounces in the quarter to end-June 2022 – the company’s third quarter - from the second quarter.
The PGM basket price was also 4.6% lower at US$2 677 an ounce, but the company had a positive outlook for prices.
“Slowing economic growth will influence the demand side, however, slowdown in supply and no major new projects coming online within the next 24 months means any demand increase is expected to lead to price increases,” it said.
Chrome production for its third quarter was up 3.9% from the preceding quarter at 389,000 tonnes, with prices for its chrome jumping almost 40% to US$247 a tonne.
The group’s cash balance at the end of the quarter was US$112.6mln and it had a positive net cash position of US$48.0mln.
"The team at Tharisa has completed a commendable quarter, maintaining strong production output which, supported by the favourable commodity markets, ensures a healthy balance sheet that will allow us to continue implementing our strategy,” said chief executive Phoevos Pouroulis.
“The global macrotrends are challenging but Tharisa Mine's life of more than sixty years gives us a strong foundation and the necessary financial resources to weather the headwinds of a tough economic climate, slowing growth, rising inflation, and weaker commodity markets.”