JSE-listed platinum group metals (PGMs) and chrome miner Tharisa achieved strong production in the quarter ended December 31, 2020 − the first quarter of the company's 2021 financial year − with PGMs production up 14.2% year-on-year on a six element basis to 39 300 oz.

PGMs production was in line with the 40 500 oz of 6E produced in the fourth quarter of the 2020 financial year.

Chrome concentrate production (excluding third party) increased by 8.7% year-on-year to 372 300 t, which is higher than the 342 500 t produced in the first quarter of the 2020 financial year, as well as marginally stronger than the 370 800 t produced in the fourth quarter of the 2020 financial year.

Speciality grade chrome production was up 15% year-on-year to 93 800 t, compared with the 81 500 t produced in the first quarter of the 2020 financial year and the 93 200 t produced in the fourth quarter of the 2020 financial year.

Guidance for the 2021 full-year remains on track to reach between 155 000 oz and 165 000 oz of PGMs and between 1.45-million tonnes and 1.55-million tonnes of chrome concentrates.

However, the miner reports that Covid-19 remains a risk to its operations, with its forecasts and guidance being premised on the current level of economic activity being permitted by government regulations.

In terms of metal pricing, Tharisa reports that the average PGMs basket price had increased to $2 399/oz during the quarter under review.

The current spot price basket price for Tharisa’s prill split is $2 995/oz.

Tharisa CEO Phoevos Pouroulis says the first quarter provided a solid platform for Tharisa to meet its production guidance for the financial year, with all key metrics delivering strong growth versus the same period in the prior financial year.

“The consistent performance has been delivered in a strong spot market for PGMs in particular and stable chrome prices.”

He adds that construction of the Vulcan processing plant remains on schedule and on budget for commissioning at the end of the current financial year, which will further boost Tharisa’s chrome concentrate production from the 2022 financial year onwards.

“The significant progress made in enhancing our mining operations during the course of 2019 and 2020 has been demonstrated by the consistent performance and availability of our operations over the last several quarters.”

Pouroulis notes that Tharisa will continue to invest in its assets and in its market-leading research and development, which will contribute to further production growth from its long-life Tharisa mine.