Tharisa Quarterly Production Mixed, Reduces Activity Under Lockdown

(Alliance News) - Tharisa PLC said Thursday that production for the second quarter was mixed, ...

Alliance News 9 April, 2020 | 6:47AM
Email Form

(Alliance News) - Tharisa PLC said Thursday that production for the second quarter was mixed, with platinum production declining year-on-year, but chrome output increasing.

For the three months to the end of March, production of 6E platinum group metals - platinum, ruthenium, rhodium, palladium, osmium and iridium - dropped by 6.7% to 32,100 ounces from 34,400 ounces in the immediately previous quarter, and 5.8% from 34,000 ounces the same period a year before.

Chrome concentrate output declined by 9.5% quarter-on-quarter to 310,100 tonnes from 342,000 tonnes, but rose by 0.5% to 308,700 tonnes year-on-year.

As a result of South Africa's government-imposed lockdown in late March, Tharisa has reduced its mining activities to those considered essential. This includes run-of-mine material being fed into the Voyager plant, which has a nameplate capacity of 300,000 tonnes per annum.

However force majeure has been declared on metallurgical chrome contracts, and Tharisa also has received force majeure notification from its PGM concentrate off-takers.

A force majeure refers to an unforeseen circumstance which prevents one party from fulfilling its contract obligations to the other.

In addition, ongoing capital projects have been suspended, and stockpile financing is in progress.

"The quarter under review showed a strong performance with Tharisa operating at consistent mining and stripping rates, with solid performances from ore processing. As such, we are pleased with the stable performance over this past quarter which was in line with reaching our Vision 2020 targets for the end of calendar 2020," said Chief Executive Officer Phoevos Pouroulis.

"The impact of Covid-19 remains a significant and unquantifiable threat to South Africa's economy. Tharisa fully supports the government's initiatives to combat this global pandemic. Since the commencement of the lockdown, Tharisa has fully complied with the DMRE to ensure that the Tharisa mine is able to continue reduced operations during the lockdown period. Tharisa is a significant producer of chemical and foundry grade chrome concentrates which are used in a number of essential industries," Pouroulis added.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

Email Form

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Tharisa PLC 65.00 GBX 0.00 -
Tharisa PLC 1,350.00 ZAC 0.00 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Member User Agreement        Cookies