Tharisa promises investors a better deal

CHROME and platinum group metals (PGM) producer, Tharisa Minerals, yesterday announced it would reward shareholders generously, beef-up its dividend policy and introduce the payment of an interim dividend following a record performance in 2017.

Tharisa, which operates the Tharisa Mine in the North West, said based on improved earnings, directors had recommended a final dividend of 5 US cents a share, five times higher than its maiden dividend of 1c a share declared in 2016.

“Tharisa has had yet another strong year operationally,” said Tharisa chief executive Phoevos Pouroulis.

Shareholders are expected to approve the dividend at the annual general meeting scheduled next January.

The company told shareholders earlier this month that it expected basic earnings a share and headline earnings a share for the year ended 30 September 2017 to be between 21c and 23c a share as compared to earnings a share of 5c and headline per share of 6c a share in 2016.

The results for the year to September are scheduled to be released next Thursday.

Tharisa also notified shareholders that the dividend policy for the 2018 financial year would be changed to provide for a payout of at least 15 percent of consolidated net profit after tax, an increase from the previous stated dividend policy of at least 10 percent of consolidated net profit.

The company’s dividend policy considered, among others, overall market and economic conditions, the group’s financial position and capital investment plans, as well as earnings growth.

In October Tharisa indicated production for 2018 would be 150 000 ounces of PGMs and 1.4 million tons chrome concentrates, of which 350 000 tons would be specialty grade chrome concentrates.

Tharisa said its near-term focus would be on operational improvement and in-pit optimisation following the transition to the owner mining model.

The company said in the three months to September it had benefited from average PGM contained metal basket price which was $825 (R10 866) per ounce, which is $33 an ounce higher than the $792 (ZAR10 443) per ounce achieved in the quarter ended June 2017 and $50 an ounce higher for the 2017 financial year compared to 2016.

The higher basket prices reflect, in particular, the increase in spot palladium prices, which surpassed the platinum price during the quarter.