Tharisa on track to meet PGM guidance

150 000 ounces for 2018

LISTED platinum and chrome miner Tharisa said yesterday it was on track to achieve its 2018 production guidance of 150 000 ounces of platinum group metals (PGMs) and 1.5 million tons of chrome.

In a report for the three months to the end of June, the Cyprus-based firm said the average PGM basket price for the period was $947 (R12 731) an ounce, which, on a quarter-to-quarter basis, was fractionally lower in dollar terms, but 4.9 percent higher in rand terms, due to a 5 percent weakening of the rand against the dollar.

On the other hand, the average metallurgical grade chrome concentrate price was $193 per ton, which translated into a 6.3 percent drop in dollar terms. The weaker rand, however, offset the drop in prices.

“Spot prices have since returned to above the $200-perton level. Strong stainless steel market fundamentals are expected to continue supporting metallurgical grade chrome concentrate demand. Specialty chrome concentrates, which comprise about 25 percent of Tharisa’s total chrome concentrate production, continue to attract a significant premium to metallurgical chrome concentrate prices,” the company said.

Tharisa wants to increase production in terms of its Vision 2020 programme. According to the company, the Vision 2020 growth projects will ensure that Tharisa delivered 5.9 million tons of run-of-mine material a year and 2 million tons of chrome concentrates a year by 2020.

The company said yesterday it was making progress in obtaining regulatory approvals in Zimbabwe. These included approvals for the “national project status” applications and environmental impact assessment reports and approvals. Upon obtaining the approvals, Tharisa said it would start with exploration programmes.

Special grants

Tharisa earlier this year announced it had bought a 90 percent stake in Salene Chrome Zimbabwe.

According to Tharisa, Salene has three special grants under the Zimbabwe Mines and Minerals Act covering an area of about 9 500 hectares on the eastern side of the Great Dyke in Zimbabwe.

Tharisa chief executive Phoevos Pouroulis said yesterday the company’s focus was on achieving a zero-harm working environment.

“Tharisa has illustrated maturity and depth by delivering another record quarter, while embarking on its growth strategy through development and exploration programmes. We look forward to delivering on our production guidance for the full financial year and on our growth plans outlined in Vision 2020, in conjunction with the projects in Zimbabwe,” said Pouroulis.

Tharisa shares shed 2.17 percent on the JSE yesterday to close at R18.