Tharisa PLC’s healthy production numbers boosted by strong platinum group metals

() produced 35,000 ounces of platinum group elements during the second quarter to 31 March 2021, an increase of 11.5% year-on-year.

Chrome concentrate production was up 15.5% to 358,400 tonnes year-on-year, and specialty chrome production was up 11.8% to 85,600 tonnes.

Quarter-on-quarter results were lower, as mining volume was impacted by exceptionally high seasonal rainfall, with severe lightning storms impacting in-pit operation time.

During the period the price of the average platinum group metal basket increased by 37.1% to US$3,290 per ounce. The price is up by 80.5% when set against the comparable quarter in 2020.

At the end of the quarter Tharisa had a cash balance of US$73.1mln and debt of US$41.7mln, resulting in a positive net cash position of US$31.4mln.

The company expects to produce between 155,000 and 165,000 ounces of PGMs and 1.45mln tonnes of chrome concentrates for the full year.

“Tharisa’s second quarter performance saw an exceptional safety performance underpinned by solid production in what is traditionally our weakest quarter of the year,” said chief executive Phoevos Pouroulis.  

“With the much higher commodity prices, Tharisa was able to convert production into cashflow, shown in our increased net cash balance, this while we are entering the major capital phase for the Vulcan plant which remains on track for construction to be completed this financial year.”