Production of Tharisa 2Q is affected by plant outages; Supports Fiscal Year 2022 Guidance – Commodity Commentary

Tharisa PLC on Tuesday reported lower output in the fiscal second quarter compared to the first due to secondary plant outages, but backed its full-year forecast. Here’s what the London and Johannesburg-listed miner had to say:


On production, prices:


“PGM [platinum group metal] production of 44.1 koz, down 7.5% (Q1: 47.7 koz) at improved average MGP basket price up 17% at $2,806/oz (1Q: $2,394/oz) »


“Chromium production of 374.9 kt, down 6.7% (1Q: 401.8 kt), on an improved average metallurgical grade chrome price up 9.9% to $177/t (161 $/t).”


“Gradual ramp-up of Vulcan plant production with plant commissioning.”


At orientation:


“Fiscal 2022 production guidance of between 165 koz and 175 koz of PGM (base 6E) and 1.75 Mt to 1.85 Mt of chromium concentrates is maintained.”


On the balance sheet:


“Constant production in the face of rising commodity prices further strengthened the company’s balance sheet. A cash balance of $101.5 million and positive net cash of $25.9 million.”


In the platinum group metals market:


“The PGM market was driven by two forces, one structural, where demand for all metals remained strong, pushing prices higher as the market absorbed potential excess inventory from the past 12 months, as the pipeline world of automobiles and computer chips increased, while economic activity was lifted.”


“The second force, unfortunately, was driven by geopolitical events, which saw buyers secure access to metal supply due to supply uncertainty from Russia.”


On the outlook:


“Tharisa’s transformation into a multi-asset, multi-product, multi-jurisdictional business, combined with strong PGM and chromium prices, as well as the further upside in production from initiatives such as the the Vulcan plant at the Tharisa mine, provide very healthy prospects for the company’s prospects in the second half and beyond.”


Shares in London at 0759 GMT were down 7.50 pence, or 4.4%, at 163.50 pence.


Write to Ian Walker at [email protected]