Tharisa maintains production guidance at between 175 koz and 185 koz PGMs

Tharisa, the platinum group metals (PGMs) and chrome co-producer announces its production and cash balance results for Q1 FY2023.

Quarter highlights

• Lost Time Injury Frequency Rate (‘LTIFR’) of 0.3 per 200 000-man hours worked
• Mining volumes impacted by unprecedented rainfall not seen in the history of the Tharisa Mine
• Processing efficiencies impacted by increased processing of oxidised ore and variable ROM stockpiles
• PGM output marginally lower versus prior quarter at 42.7 koz (Q4 FY2022: 45.3 koz)
• Chrome output fell as a direct result of feed and ore mix variability at 383.1 kt (Q4 FY2022: 416.2 kt) with grades remaining consistent at 17%
• Vulcan Plant optimisation continuing with increased output on track for H2 FY2023
• Production guidance maintained at between 175 koz and 185 koz PGMs (6E basis) and 1.75 Mt to 1.85 Mt of chrome concentrates
• Elevated PGM prices driven by PGM demand for the automotive industry and lower production from major suppliers; Chrome prices remain buoyant currently at US$260/t due to eroding Chinese stockpiles
• Successful ground breaking at Karo Platinum Mine in Zimbabwe; project construction ongoing
• Raised US$31.8m from bond issue for Karo Mining Holdings on the Victoria Falls Stock Exchange
• Cash on hand US$213.9 million, with a net cash position of US$101.1 million
• Growth strategy firmly on track for FY2023

Phoevos Pouroulis, CEO of Tharisa, commented: “Despite operational headwinds at the Tharisa Mine, the Company delivered a solid quarter of PGM and chrome production, underpinning our commitment in delivering guidance of between 175 koz and 185 koz PGM and 1.75 Mt and 1.85 Mt chrome concentrates. The quarter also saw significant progress in the development of Karo Platinum, which will be our second Tier 1 PGM asset, with ground breaking and the commencement of the development of the necessary infrastructure and mine construction, supported by the first bond issue on the Victoria Falls Exchange in Zimbabwe.

Our growth strategy remains intact, underpinned by further free cash flow generation in the quarter, as well as progressing with our ambitions to become a multi-asset and multi-jurisdiction group with the rapid progress of the Karo Platinum Project.”