Tharisa’s Record Chrome Output Buoys South African Metals Sector Amid PGM Price Slump

Tharisa’s

Strong Chrome Production Drives Record Output

Tharisa reported 1.7 million tons of chrome output for the fiscal year ending September 30, an 8% increase from 2023. This marks the highest chrome production in the company’s history, a feat largely attributed to strong demand from China and favorable pricing trends. The average annual price for Tharisa’s chrome concentrate rose 13.7% to $299 per ton, underscoring a robust demand environment that company executives expect to continue into 2025.

“With chrome commanding a strong operational outlook, we anticipate real demand growth both in China and globally,” said Tharisa’s CEO Phoevos Pouroulis. The company’s 2025 production guidance reflects this optimism, setting targets between 1.65 million and 1.8 million tons of chrome.

Platinum Group Metals Face Price Pressures

In contrast to chrome’s positive trajectory, PGM production remained relatively flat, reaching 145,100 ounces, a slight 0.3% increase from last year. However, PGM prices fell sharply as demand lagged, dropping 28% year-on-year to $1,362 per ounce. Tharisa attributes this to post-pandemic inventory surpluses, which continue to impact the market.

The price downturn has prompted Tharisa to re-evaluate its PGM investments. Earlier this year, Tharisa slowed the development of its Karo platinum project in Zimbabwe, a move intended to conserve capital amid unfavorable pricing conditions. Despite this, the company reported progress in the Karo project’s construction, aligning it with capital availability as they monitor market conditions.

Looking ahead, Tharisa has set its 2025 guidance for PGM production between 140,000 and 160,000 ounces. The company remains cautiously optimistic, emphasizing the importance of balancing chrome and PGM outputs in light of ongoing price volatility.