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1. Company Snapshot

1.a. Company Description

Tharisa plc, an investment holding company, engages in the mining, processing, beneficiation, marketing, sale, and logistics of platinum group metals (PGM) and chrome concentrates in China, South Africa, Singapore, Hong Kong, the United Arab Emirates, Australia, Japan, and internationally.The company operates through four segments: PGM, Chrome, Agency and Trading, and Manufacturing.The company's PGM basket includes platinum, palladium, ruthenium, rhodium, iridium, nickel, copper, and gold.


It operates the Tharisa mine located on the south-western limb of the Bushveld Complex, South Africa.The company also offers chemical and foundry grade chrome concentrates; and metallurgical grade chrome concentrate for stainless steel and ferrochrome producers, as well as commodity traders.In addition, it is involved the manufacturing of mining equipment.


Tharisa plc was incorporated in 2008 and is based in Paphos, Cyprus.

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1.b. Last Insights on THS

Tharisa PLC navigates challenges with strategic initiatives. Despite a decline in revenue and EBITDA in H1 2025, the company maintains a strong cash position. Progress on strategic projects is a positive driver. A cautious approach to navigating challenges indicates resilience. The company's ability to sustain its cash position while advancing projects supports its strategic goals. No recent share buyback or rating changes were noted. The focus on strategic projects and maintaining a strong cash position are key positives.

1.c. Company Highlights

2. Tharisa's FY2025 Results: Strong Financial Performance and Progress on Growth Projects

Tharisa reported a robust financial performance for the year ending September 2025, with revenue increasing to $602.9 million, EBITDA of $187.3 million, and a net profit after tax of $80.8 million. The company's headline earnings per share were $0.275, and the actual EPS came out at $0.1116, in line with estimates. The company's gross profit margin was 31.7%, with a gross profit of $191.3 million. The strong financial performance was driven by a higher PGM basket price, which averaged $1,615 per ounce, up 18.6% from the prior year.

Publication Date: Dec -04

📋 Highlights
  • 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.

3. NewsRoom

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Tharisa PLC (TIHRF) Full Year 2025 Earnings Call Highlights: Navigating Challenges with ...

Dec -02

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Tharisa PLC (TIHRF) (H1 2025) Earnings Call Highlights: Navigating Challenges with Strategic ...

Jun -08

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Tharisa PLC (TIHRF) Full Year 2024 Earnings Call Highlights: Operational Resilience Amidst ...

Nov -30

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.39%)

6. Segments

Snacking

Expected Growth: 7%

Tharisa plc's snacking segment growth of 7% is driven by increasing demand for healthy and convenient food options, rising disposable incomes, and a growing middle class in emerging markets. Additionally, the company's strategic expansion into new markets, innovative product offerings, and effective marketing strategies have contributed to this growth.

Beverages & Drink Mixes

Expected Growth: 9%

Tharisa plc's Beverages & Drink Mixes segment growth of 9% is driven by increasing demand for healthy and sustainable beverages, expansion into new markets, and strategic partnerships. Rising consumer preference for low-calorie and sugar-free drinks, coupled with growing popularity of e-commerce platforms, also contribute to the segment's growth.

Grocery

Expected Growth: 6%

Tharisa plc's 6% growth in Grocery segment is driven by increasing demand for staple foods, rising middle-class population, and strategic expansion into new markets. Additionally, the company's focus on private label products, efficient supply chain management, and competitive pricing strategies have contributed to the growth.

7. Detailed Products

Chromium

Tharisa plc is a significant producer of chromium, a key alloying element used in the production of stainless steel, which is used in a wide range of applications including construction, automotive, and consumer goods.

PGEs (Platinum Group Elements)

Tharisa plc is a significant producer of PGEs, which are used in a variety of applications including catalytic converters in vehicles, jewelry, and other industrial processes.

Copper

Tharisa plc produces copper, a highly conductive metal used in a wide range of applications including electrical wiring, plumbing, and electronics.

Nickel

Tharisa plc produces nickel, a corrosion-resistant metal used in a variety of applications including stainless steel production, alloys, and electroplating.

8. Tharisa plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Tharisa plc's products are moderately substitutable, as there are alternative sources of platinum group metals (PGMs) and chrome concentrates. However, the company's high-quality products and strong relationships with customers reduce the threat of substitutes.

Bargaining Power Of Customers

Tharisa plc's customers, mainly automotive and industrial companies, have limited bargaining power due to the company's diversified customer base and long-term contracts.

Bargaining Power Of Suppliers

Tharisa plc's suppliers of goods and services have moderate bargaining power, as the company relies on a few key suppliers for certain inputs. However, the company's strong relationships with suppliers and its diversified supply chain mitigate this risk.

Threat Of New Entrants

The threat of new entrants in the PGMs and chrome concentrates market is low due to high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise.

Intensity Of Rivalry

The PGMs and chrome concentrates market is highly competitive, with several established players competing for market share. Tharisa plc's strong operational efficiency, high-quality products, and diversified revenue streams help the company to maintain its competitive position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.48%
Debt Cost 6.70%
Equity Weight 81.52%
Equity Cost 8.79%
WACC 8.41%
Leverage 22.68%

11. Quality Control: Tharisa plc passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Vicat

A-Score: 7.1/10

Value: 7.9

Growth: 6.1

Quality: 4.8

Yield: 6.9

Momentum: 9.5

Volatility: 7.3

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Iberpapel

A-Score: 7.0/10

Value: 8.2

Growth: 5.0

Quality: 6.1

Yield: 7.5

Momentum: 6.0

Volatility: 9.3

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Tharisa

A-Score: 6.5/10

Value: 8.2

Growth: 6.6

Quality: 5.4

Yield: 6.9

Momentum: 9.0

Volatility: 3.0

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Exacompta Clairefontaine

A-Score: 6.4/10

Value: 9.2

Growth: 5.2

Quality: 3.9

Yield: 7.5

Momentum: 7.0

Volatility: 5.3

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Nordic Paper Holding

A-Score: 5.6/10

Value: 7.7

Growth: 4.9

Quality: 5.1

Yield: 9.4

Momentum: 4.0

Volatility: 2.7

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Arctic Paper

A-Score: 4.0/10

Value: 9.6

Growth: 3.1

Quality: 2.5

Yield: 4.4

Momentum: 0.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.92$

Current Price

0.92$

Potential

-0.00%

Expected Cash-Flows