THARISA

(THS) 100p

Shares - - GREAT IDEAS UPDATES -

Loss to date: 0.5% Orig­i­nal en­try point: Buy at 100.5p, 7 De­cem­ber 2017

SOUTH AFRICAN CHROME and plat­inum miner Tharisa (THS) was caught up in the sum­mer sell­off in com­mod­ity pro­duc­ers amid weaker me­tal prices and volatile cur­rency rates. How­ever, the shares have more re­cently started to claw back lost ter­ri­tory.

The fourth quar­ter pro­duc­tion fig­ures on 8 Oc­to­ber were slightly be­low ex­pec­ta­tions yet full-year tar­gets were met thanks to bet­ter than ex­pected re­cov­ery rates.

A deal to buy 90% of Zim­babwe-based chrome miner Sa­lene has been re­struc­tured to an op­tion agree­ment to buy the busi­ness only if ini­tial ex­plo­ration is sat­is­fac­tory.

Tharisa’s in­vest­ment case re­mains the same as when we said to buy the shares nearly a year ago. This is a low-cost pro­ducer trad­ing on a cheap rat­ing with the po­ten­tial to churn out masses of cash. A lot of time is spent on im­prov­ing op­er­a­tional ef­fi­ciency which should pro­vide a fur­ther boost to earn­ings over the longer-term.

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