- Strong Financial Performance: Revenue reached $602.9M, EBITDA $187.3M, and net profit $80.8M, with a 31.7% gross profit margin ($191.3M gross profit).
- Robust Cash Position: $175.1M in cash equivalents and $94M net cash from operations, alongside $118.5M capital expenditure (including $33.5M in Karo Platinum).
- Dividend and Share Repurchase Commitment: Total dividend of $0.03/share and 87% completion of a $5M share repurchase program, reflecting shareholder returns.
- Operational Safety Excellence: Lost time injury rate of 0.03 at Tharisa and 0 at Karo Platinum, alongside awards at MineSAFE and NSSA Health Worker events.
- Expansion Projects and Innovation: $547M allocated for underground mining transition over 10 years, $193M invested in Karo Platinum, and Redox Flow energy storage deployment planned for 2026.
Operational Highlights
The company's chrome production was 1.4 million tonnes at an average price of $266 per tonne, and PGMs contributed 40% to revenue, with 137,500 ounces sold at an average PGM basket price of $1,615 per ounce. The company's all-in cost per platinum ounce sold was negative $445 per platinum ounce, and the all-in cost per PGM ounce sold was $571 per ounce. The strong increase in reef mined was driven by mining a backlog of waste stripping and introducing contracted mining on site.
Growth Projects and Capital Expenditure
Tharisa is making significant progress on its growth projects, including the transition to underground mining at Tharisa Minerals, with a planned capital expenditure of $363 million for the Apollo complex and $184 million for the Orion complex. The Karo Platinum project has also made significant progress, with $193 million invested to date. The company expects to achieve steady-state production of 2 million tonnes of chrome concentrate and 200,000 ounces of PGMs per year from 2033 onwards. The capital expenditure for the year was $118.5 million, with $33.5 million invested in Karo Platinum.
Valuation and Dividend
The company's valuation metrics are attractive, with a P/E Ratio of 7.28 and a P/S Ratio of 0.58. The dividend yield is 3.88%, and the company has declared a final dividend of $0.015 per share, making a total dividend of $0.03 for the year. Analysts estimate next year's revenue growth at 16.4%, which suggests that the company's growth prospects are positive.
Outlook and Conclusion
Tharisa's management has guided that the company's cost structure is exposed to PGM and chrome metal prices, but the company focuses on managing costs and reducing them through efficiencies. The company is excited about its future projects, including the Tharisa underground mine, Karo Platinum mine, and various PGM and chrome initiatives. With a strong balance sheet and a manageable leverage position, Tharisa is well-positioned to execute on its growth plans.