Tharisa shows solid performance amid strong PGM market
CYPRUS – Tharisa, the leading integrated platinum and chrome producer with operations in South Africa, has announced another strong quarter of production ended 31 December 2020. The consistent operational performance underpins the Company maintaining its annual guidance of platinum group metals (PGMs) and chrome concentrate production for FY2021.
Average PGM basket price for the year increased to US$2 399/oz (ZAR37 410/oz) in Q1 FY2021 vs Q1 FY2020 and up 22.9% vs Q4 FY2020.
The current spot price basket price for Tharisa’s prill split is US$2 995/oz with spot prices for the major PGMs as follows:
- Platinum US$1 108
- Palladium US$2 421
- Rhodium US$18 840
Average metallurgical grade chrome price for Q1 FY2021 of US$136/t (ZAR2 114/t), vs Q1 FY2020 of US$145/t (ZAR 2 120/t) and Q4 FY2020 of US$142/t (ZAR2 376/t). The current market price is US$145/t to US$150/t.
OPERATIONAL OVERVIEW
PGM production is up 14.2% year on year (‘YoY’) on a 6E basis to 39.3koz vs 34.4koz in Q1 FY2020 and in line with 40.5koz in Q4 FY2020
Chrome concentrate production (excluding third party) is up 8.7% YoY to 372.3kt vs 342.5kt in Q1 FY2020 and marginally stronger versus 370.8kt in Q4 FY2020
Speciality grade chrome production is up 15% YoY to 93.8kt vs 81.5kt in Q1 FY2020 and flat versus 93.2kt in Q4 FY2020 (25.2% of total chrome production vs 23.8% in Q1 FY2020 and 25.1% in Q4 FY 2020)
GUIDANCE FOR FY2021
The Company remains on track for FY2021 production guidance of 155 koz to 165 koz PGMs (6E basis) and 1.45 Mt to 1.55 Mt of chrome concentrates.
COVID-19 remains a risk to the Company and our forecasts and guidance are premised on the current level of economic activity being permitted by government regulations.
