JOHANNESBURG (miningweekly.com) – JSE- and LSE-listed platinum group metals (PGMs) miner Tharisa Minerals on Thursday posted record results for the year ended September 30, with earnings before interest, taxes, depreciation and amortisation up 168.7% to $115.6-million.
This was paired with a 266.7% rise in its headline earnings a share, to $0.22 apiece, up from the prior year’s $0.06 apiece, while operating profit also soared 198.4% to $95.5-million.
During a results presentation held in Johannesburg on Thursday, Tharisa CFO Michael Jones outlined that, despite a muted PGM basket price and volatility of spot chrome concentrate prices, the key drivers for the financial performance could be attributed to the increase in volumes sold, paired with a slight increase in commodity prices.
However, he noted that these gains were offset by a 9.5% strengthening in the rand.
The miner further reported an 8.3% increase in its PGM production to 143 600 oz, while its chrome concentrate production increased 7% to 1.3-million tonnes.
On the back of these record results, the company has now upped its full-year production guidance to 150 000 oz of PGMs and 1.3-million tonnes of chrome concentrates for the 2018 financial year.
Looking ahead, CEO Phoevos Pouroulis noted that the maturation of the business beyond the development stage has positioned the group for its next phase of growth. “Not only is the focus on continuous improvements in feed grade and recoveries, but on expanding the business through the operation of third-party plants and the marketing of these commodities.”
Speaking to Mining Weekly Online, he highlighted that external factors, such as the proposed 20% tariff increase from power utility Eskom, would not adversely affect the company’s operations, as Tharisa’s operation is openpit and its equipment is mostly diesel-powered.