13th Apr 2023 08:01
(Alliance News) - Tharisa PLC said on Thursday its platinum group metal production fell in the first half due to operational challenges, forcing the group to trim its annual guidance.
The Cyprus-headquartered platinum miner reported that PGM production declined by 13% to 67,000 ounces for the six months that ended March 31 from 77,400 ounces a year earlier.
This disappointing performance was a result of reduced recoveries due to sub-optimal ore mix.
For the second quarter, PGM production lower at 34,300 ounces, down 22% from 44,100 ounces.
"Tharisa continued to generate healthy free cash flow in the second quarter of our financial year despite the significant impact of severe weather conditions to our open pit mining operations," Tharisa Chief Executive Phoevos Pouroulis said.
"While chrome production was up, the ore mix saw PGM output in January and February fall below expectations for the quarter," Pouroulis said.
In the first half, chrome output rose marginally by 1.4% to 787,900 tonnes from 776,700 tonnes. In the second quarter, chrome production increased to 404,800 tonnes from 374,900 tonnes.
Tharisa said Karo platinum project was on track and on budget with ground clearance and civil contractors having commenced work on site.
It also said it had appointed contractor on a short-term basis to assist with waste mining, starting May 1.
Due to the challenges posed in December through to February specifically, the group lowered its full-year guidance by 10%.
For the financial year ending September 30, PGM production is expected to range from 175,000 ounces to 185,000 ounces. In the prior year, it was at 179,200 ounces.
Annual chrome production is expected to range between 1.75 million tonnes and 1.85 million tonnes, from 1.58 million tonnes previously.
By Artwell Dlamini, Alliance News reporter
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