Tharisa records solid results in difficult interim period

21st May 2020

By: Tasneem Bulbulia

Senior Contributing Editor Online


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JSE-listed integrated resources group Tharisa mined 2.27-million tonnes of reef in the six months ended March 31, a 2.3% year-on-year increase.

Tharisa, which is led by CEO Phoevos Pouroulis, owns and operates the large-scale openpit Tharisa Minerals platinum group metals (PGMs) and chrome mine in North West province.

For the period under review, PGMs production was 1.6% lower year-on-year to 66 500 oz; while chrome concentrate production increased by 6.3% to 652 600 t.

Revenue for the period increased by 16.9% to $194.6-million, while operating profit increased by 55.9% to $22.3-million.

Earnings before interest, taxes, depreciation and amortisation increased by 20.3% to $36.2-million, while basic earnings a share were $3.60.

In a presentation of the company’s results on May 21, the company indicated that it remains committed to pursuing its ultimate objective of zero harm.

Owing to the Covid-19 pandemic, the South African government implemented a countywide lockdown from the end of March, and Tharisa, through an essential services dispensation, reduced production at the Tharisa mine to 50% capacity starting during the week of April 6.

Force majeure was declared on metallurgical chromes contracts.

Tharisa also received force majeure notifications from its PGM concentrate offtakes.

Ongoing capital projects were suspended in compliance with lockdown regulations and to maintain the company’s balance sheet strength.

Since the move to Level 4 lockdown restrictions, opencast mining operations have resumed and ramped up to full capacity. At the time of the presentation, the company was operating at 100% capacity in terms of inputs and outputs at site.

Chrome concentrate shipments have restarted and PGMs concentrate deliveries to both offtakers have resumed.

The company noted that the economies in which Tharisa operates have faced a difficult period, with reduced growth rates, increasing unemployment and weakening government and corporate balance sheets.

The Covid-19 pandemic is expect to exacerbate challenges not only with its trading partners, but in Cyprus, South Africa and Zimbabwe.

The company commended these respective governments for their efforts to combat the spread of the pandemic.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online


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