Tharis CEO Phoevos Pouroulis
JOHANNESBURG (miningweekly.com) – After ending the 2016 financial year with record fourth-quarter output and meeting or exceeding all its year-end production targets, dual-listed Tharisa Minerals expects to reach its “full potential” in 2017.
The platinum group metals (PGMs) and chrome producer on Monday reported increased momentum during the final three months of the financial year to September 30, achieving record milling of 1.27-million tons, PGM production of 39 100 oz and PGM recoveries of 80.6%.
“It was an exceptional quarter for Tharisa with tons milled reaching an all-time high. Records were also achieved for PGM production and PGM recoveries . . . well above the target recovery of 70%,” said Tharisa CEO Phoevos Pouroulis in the company’s production report for the fourth quarter and 2016 full year.
Total chrome concentrate production for the fourth quarter increased 8.2% to 332 200 t at a recovery rate of 63.5%, with specialty grade material accounting for 82 100 t.
For the full year to September 30, PGM production increased 12.4% to 1.32-million ounces, exceeding its guidance, while chrome concentrate production was up 10.8% to 1.24-million tons.
Specialty grade chrome concentrate production more than doubled year-on-year to 269 400 t after a renewed drive by the company.
“Chrome recovery averaged 62.7% in the 2016 financial year. Optimisation initiatives planned should ensure that Tharisa achieves its targeted recovery of 65% for chrome concentrates,” assured Pouroulis.
The run-of-mine reef mined was up 15.6% year-on-year to a record 4.8-million tons, while a total of 4.65-million tons of reef was milled, representing a 5.8% year-on-year increase, during the year under review.
With PGM prices stable and chrome prices having rebounded during the year to above $165/t, it is believed that 2017 will mark an “even better” year for Tharisa.
The company is targeting 2017 production guidance of just under 147 400 oz of PGMs and 1.3-million tons of chrome concentrates, of which 300 000 t will be specialty grade chrome concentrates.
The average PGM basket price for the three months ended September 30, was $804/oz, an improvement on the $745/oz price achieved in the quarter ended June 30.
Metallurgical grade chrome prices increased some 50% during the fourth quarter with an average contracted selling price of $157/t.