JSE- and LSE-listed mining, metals and innovation company Tharisa remains on track to meet its full-year production guidance, while development of its Tharisa underground project, in South Africa, and its joint venture Karo Platinum project, in Zimbabwe, is progressing.

Tharisa produced 39 600 oz of platinum group metals (PGMs) at its Tharisa mine, in South Africa’s North West province, in the quarter ended June 30 – the third quarter of the company’s 2026 financial year. That compares with the 34 300 oz of PGMs produced in the second quarter of the financial year.

Chrome production at the mine declined to 393 800 t, from 404 000 t in the quarter ended March 31.

Development of the Tharisa underground project, however, remains on schedule and within budget, with first run-of-mine (RoM) ore expected in the fourth quarter.

Tharisa has also continued to invest in strategic infrastructure at its Karo Platinum project, where a Phase 1 mining contractor has been mobilised and openpit waste stripping is progressing.

The company also highlights that increased spending on the Karo Platinum and Tharisa underground projects has reduced the group's net cash position to $10.7-million at end of the second quarter.

Meanwhile, for the quarter ended June 30, Tharisa’s average PGM basket price declined to $2 681/oz, while the average metallurgical-grade chrome concentrate price increased to $306/t.

Notably, the company recorded a lost-time injury frequency rate of 0.03 per 200 000 hours worked, while Karo Platinum reported no lost-time injuries.

“The third quarter demonstrated normalised operations and in line with budget. PGM production increased by 15.5%, supported by a marked improvement in recoveries to 83.8%, while chrome production remained steady despite lower milled tonnes.

“Reef mined increased by 41.6% as we recovered from weather-related mining interruptions in the previous quarter. The recovery in mining performance supported improved PGM feed grade and chrome RoM grade, helping offset the impact of slightly lower milled tonnes,” CEO Phoevos Pouroulis highlights.

Tharisa states that the latest market developments point to a pull-back in PGM prices after an extended rally, as a stronger dollar, higher real yields and renewed US Federal Reserve ‘hawkishness’ surpassed encouraging fundamentals.

Pouroulis also explains that the medium-term PGM and chrome outlook remains constructive, underpinned by platinum’s expected fourth consecutive deficit, constrained South African supply and demand from the automotive, AI, electronics, hydrogen and jewellery sectors.

He adds that chrome prices remained strong during the reporting period ended June 30 but have since been muted, as softer stainless steel demand and cautious mill procurement limited pricing, compounded by prolonged conflict in the Middle East, a region accounting for about 15% of stainless steel consumption.

“Although PGM prices moderated from recent highs, with the basket price lower quarter on quarter, prices remained materially ahead of the prior-year comparative period and medium-term fundamentals remain supportive. Chrome prices were constructive during the reporting period, supported by strong customer demand.

“We continued to invest through the cycle, advancing the Karo Platinum development and the Tharisa underground project on a planned and disciplined basis. While this investment increased debt during the quarter, the group maintained close to $200-million of cash on hand and a positive net cash position of $10.7-million.

“With year-to-date production levels, we remain positioned to deliver against our [full-year] production guidance, supporting the company’s sustainable multigenerational growth strategy,” Pouroulis comments.

The company’s production guidance for the full year to September 30 sets out targeted output of 145 000 oz to 165 000 oz of PGMs and between 1.5-million and 1.65-million tonnes of chrome.