Deep diveIndustry & services
Tharisa PLC

Tharisa confident of delivery on 'Vision 2020' project as Vulcan plant gets go ahead


"A tough half but setting the platform to deliver into our second half guidance."


Quick facts: Tharisa PLC

Price: £1.16

Market: LSE
Market Cap: £306.27 m


  • Tharisa is a South Africa-based chrome and platinum miner

  • Guidance for 2019 is 150,000 oz of PGMs and 1.4mt chrome concentrates

  • 'Vision 2020’ strategy aims to deliver 200,000 ounces PGMs and 2mln tonnes of chrome

  • Vulcan plant was given green light in August


How is it doing

Tharisa’s (LON:THS) first half of 2019 saw a 9.3% reduction in mining.

Correspondingly, there was a 12% drop in production volumes for platinum group metals (PGMs) to 67,600 ounces while chrome output was down 16% to 614,100 tonnes.

Revenue for the first half amounted to US$166.5mln, down 16% from US$199.2mln a year earlier.

Pre-tax profit came in at US$10.2mln, or a  73% reduction on the first half of 2018.

Tharisa said it will pay a dividend of 0.5 US cents per share in line with its target of 15% of net earnings.

Vulcan expansion

In August, Tharisa confirmed it would press ahead with the construction of a proprietary Vulcan Plant.

The new kit will lead to a 47% reduction in chrome tailings, boost chrome recovery rates to 82% from 65% and add additional capacity of up to 400,000 tonnes per year at lower costs.

Tharisa’s ‘Vision 2020’ is a target for production of 200,000 ounces of platinum group metals and 2mt of chrome concentrate annually..

Capital costs of the new plant will be US$54.2mln with hot commissioning projected for the end of the year.

“First chrome production from the Vulcan plant is expected within 15 months."


What the boss says, Phoevos Pouroulis, chief executive

"Lower production was expected but we still managed to generate cash and profits before tax.
"A tough half but setting the platform to deliver into our second half guidance."


Inflexion points

  • PGM prices have improved as palladium and rhodium picked up, chrome though has softened
  • Vision 2020 targets - 5.6mln tonnes of reef mined to produce 200,000oz pgms and 2mln tonnes of chrome concentrate
  • Vulcan plant is last part of 2020 milestones
  • Exploration at Karo in Zimbabwe continues with 25,000m drilled
  • Intersected main sulphide zone with assay results being assayed
  • At 114p, Tharisa is worth £300mln. 


Blue sky 

In a note to clients, analysts at ‘house’ broker Peel Hunt said the Vulcan plant and the phase 2 of the PGM recovery improvements coming through this financial year will give the miner a big lift.

“We expect this to underpin an EBITDA increase from US$83m this financial year to over US$200m at steady state.”

Peel Hunt reiterated a ‘buy’ rating and 200p price target on Tharisa shares.

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Tharisa PLC named herein, including the promotion by the Company of Tharisa PLC in any Content on the Site, the Company receives from said...


3 min read