Tharisa's 4Q Production Drops Amid Operational Hurdles and Market Pressures

Tharisa's

PGM and Chrome Output Declines; Pricing Remains Weak

Tharisa's PGM and chrome production fell in the fourth quarter of 2024. Operational challenges contributed to the decline. The company produced 29,900oz 6E PGMs. This reflects a 16% year-on-year decrease. Drilling equipment availability issues impacted production. The average PGM basket price was $1,381/oz. Prices remain depressed despite a slight increase. "The PGM pricing environment remains stubbornly weak," stated Tharisa CEO Phoevos Pouroulis. Limited investor interest exacerbated low PGM prices. Tharisa anticipates increasing supply-demand deficits. Capital spending on PGM production is declining.

Chrome Concentrate Output Also Sees Significant Reduction

Chrome production also decreased in the fourth quarter. Tharisa produced 374,400t chrome concentrates. This represents a 19% year-on-year decrease. The average metallurgical grade chrome concentrate price was $271/t. This is a 14% drop from the third quarter. "We have seen a drop in the chrome price," Pouroulis said. Slowing stainless steel demand contributed to the price decline. Tharisa believes these price levels are unsustainable. They expect prices to correct. Ongoing disruptions at the Mozambique border impacted transportation. This negatively affected cargo deliveries to customers. Tharisa reported progress on the underground definitive feasibility study. Early works capital is being deployed.