JOHANNESBURG (miningweekly.com) – A 36% year-on-year increase in resource group Tharisa’s platinum-group metals (PGMs) production has prompted an 11.7% spike in the company’s revenue, pushing total earnings to $240.7-million for the year ended September 30, the company said this week.
Noting that the growth was achieved despite a flat PGM basket price and lower chrome commodity prices, the junior miner said revenues were further boosted by the first-time introduction of higher-value chemical and foundry-grade products as a result of “optimisation initiatives”.
Tharisa’s PGMs output increased, from 57 421 oz in the 2013 financial year, to 78 226 oz in the 12 months under review, while metallurgical-grade chrome concentrate production hit 1.08-million tons.
The company also produced 148 000 t of foundry and chemical-grade chrome concentrates over the year.
“High-energy flotation cells have been successfully commissioned and recoveries [are now] greater than 65%,” the group outlined, adding that high-intensity magnetic separation test units had been installed at its North West-based mine and were currently undergoing production testing.
The company generated net cash from operations of $22.3-million for the year ended September 30, realising operating profit of $5.9-million.
Meanwhile, the group said in a statement that finance costs incurred during the period related to the senior debt facility secured for the construction of the Voyager plant and a nonrecurring charge of $32.4-million owing to changes in fair value of financial liabilities.
“As a result, the group incurred a pre-tax loss of $40.3-million. This is significantly reduced from the prior year’s loss of $63-million,” it stated.
Tharisa posted a headline loss a share of $0.20 for the 12 months.
Commenting on the results, CEO Phoevos Pouroulis said that, while the company had experienced challenges over the year, these were “decisively and immediately” dealt with.
“Steps taken include significant operational changes, including a revision of the number and role of our contractors and these are already yielding major production gains.
“The implementation of optimisation initiatives is progressing well and we remain on track to attain steady-state production during the 2016 financial year. We also continue to look for opportunities, both within and outside of South Africa, to grow through accretive acquisitions and by developing large-scale and low-cost projects that are close to or in production,” he commented.
He noted that the group was currently in talks with State-owned freight group Transnet over the transportion of product to the Richards Bay port, adding that negotiations to build a proposed public–private partnership on-site railway siding at Tharisa Minerals were under way.
The siding was expected to improve efficiencies and safety, while reducing environmental impacts by reducing road freight haulage.