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Tharisa's earnings double as chrome and platinum rebound

Last updated: 10:20 11 Nov 2016 EST, First published: 04:20 11 Nov 2016 EST

picture of platinum
Production has soared as have Tharisa's earnings

South Africa –based chrome and platinum miner Tharisa PLC (LON:THS) will post more than doubled earnings for the year just ended.

Basic earnings per share (EPS) to September will be at least US$5c per share while headline earnings (HEPS) will be US$6c, in both cases increases of more than 150% relative to US$2c earned last year. 

At least, 10% of the net profit after tax will be distributed as dividends, said the miner. 

"These are very encouraging results in a subdued commodity pricing environment," added Phoevos Pouroulis, chief executive.

“Going into FY2017, we are well geared to maximise returns from a marked recovery in chrome ore prices to above the US$350 per tonne level," 

The company is 47%-owned by the Pouroulis family, who are behind London-listed success story Petra Diamonds (LON:PDL).

House broker Peel Hunt added that the dividend will likely be 0.5c this year based on the comments in the statement.

Record Production

Tharisa owns 74% of the chrome and platinum project on South Africa’s prolific Bushveld complex.

Last month, it said the mine had seen record quarterly production of 39,100 ounces of platinum group metals.

The company also produced 332,000 tonnes of chrome concentrate.

As well as the recovery in chrome prices, platinum has been stable.

Total production for the year was 132,600 ounces of platinum group metals and 1.24 mln tonnes of chrome concentrate.

The company expects to produce 147,400 ounces of platinum group metals in financial 2017 and 1.3 mln tonnes of chrome concentrates.

Higher prices locked in 

Peel Hunt added that 2017 should show another period of strong progression with November/December cargos already price fixed at $295/t (from a $125/t average price in year to September).

“With spot pricing rising further to $350/t since the December pricing was agreed there is a very positive outlook for the January cargos.”

Shares soared 15% to 129p and have risen by 220% since they debuted in London in June.

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on 12/14/2023