Release Date: May 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tharisa PLC (TIHRF, Financial) reported industry-leading safety statistics with a lost time injury frequency rate of 0.02 at the Tharisa mine and 0.08 at Karo Platinum.
- The company maintained a strong cash position, ending the half-year with $193.6 million in cash and cash equivalents.
- Tharisa PLC (TIHRF) announced a second share repurchase program of USD5 million, following a successful first program.
- The company is advancing its Redox One long-duration energy storage battery to megawatt scale, indicating progress in energy storage solutions.
- Tharisa PLC (TIHRF) declared an interim dividend of USD0.015, maintaining a high payout ratio of 54.3% of net profit after tax, reflecting confidence in its business outlook.
Negative Points
- Revenue for the half-year decreased by 24% to $280.8 million, impacted by lower output and reduced PGM and chrome prices.
- EBITDA fell by 45% year-on-year to $43.8 million, reflecting operational challenges and lower commodity prices.
- The company faced severe weather disruptions, including thunderstorms and lightning, which affected operations in the first half.
- Tharisa PLC (TIHRF) experienced a decrease in net cash flow from operations, down to $36 million from $86 million in the prior period.
- The metallurgical chrome concentrate price dropped by 12.2%, contributing to the overall decline in revenue.
Q & A Highlights
Q: What is the outlook for chrome production in the next half of the year?
A: Phoevos Pouroulis, CEO, stated that Tharisa has not revised its guidance and remains cautiously optimistic about meeting the lower end of its annual guidance for PGMs and chrome production. The company expects an improved second half due to a drier season and successful waste stripping to access reef horizons.
Q: How is Tharisa addressing potential industrial action affecting logistics, particularly with Transnet?
A: Phoevos Pouroulis, CEO, explained that Tharisa utilizes three ports—Richards Bay, Durban, and Maputo—providing flexibility to redirect cargoes if needed. This multi-port strategy has proven effective in mitigating disruptions.
Q: What are the implications of chrome being classified as a critical mineral in South Africa?
A: Phoevos Pouroulis, CEO, welcomed the classification, noting that it aligns with Tharisa's strategy of beneficiation and product diversification. The company expects potential government support to enhance local value and accelerate projects like redox flow electrolyte production.
Q: When will Tharisa's surface mine volumes start declining as underground mining ramps up?
A: Phoevos Pouroulis, CEO, indicated that steady-state production from the underground mine is expected by 2029, allowing for continued open-pit mining until 2034. The transition provides flexibility and the potential to increase production capacity.
Q: How is Tharisa mitigating weather-related disruptions, particularly from rainfall and lightning?
A: Phoevos Pouroulis, CEO, highlighted the implementation of a comprehensive water management strategy, including dewatering boreholes and upgraded pumping capacity. For lightning, the company is considering reducing the storm scope radius to minimize operational disruptions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
