PGM basket price increase spurs Tharisa’s HY 2020 revenue growth

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  • Revenue for the period under review stood at US$194.6 million
  • Gross profit margin was impacted by the significant increase in the stripping ratio
  • PGM recovery was up by 1.8%

Harare – Mining company, Tharisa plc’s revenue in the six months ended 31 March 2020 (HY 2020) grew by 16% compared to the prior comparable period.

Revenue for the period under review stood at US$194.6 million of which US$99.4 million was derived from the sale of PGM concentrate and US$77.6 million was derived from the sale of chrome concentrates while the agency and trading segment contributed US$16 million and the new manufacturing segment contributed US$1.6 million.

The movement in revenue relative to the comparable period of 2019 has been attributed to the increase in the PGM basket price of 58.5% from US$1 017/oz to US$1 612/oz, a reduction in the unit sales of higher value specialty grade chrome concentrates of 19.7% from 157 kt to 126 kt and the metallurgical grade chrome concentrate price decreasing by 15.3% to US$138/t.

Gross profit for the period amounted to US$43.6 million with a gross profit margin of 22.4% which was impacted by the significant increase in the stripping ratio.

For the six months under review reef tonnes mined were 2 274.1 kt with 2 414.1 kt milled, being an increase of 2.3% and 3.3% respectively.

The quarter saw an increase in PGM recovery, up by 1.8% to 83.7% and averaged 82.9% for the six months, resulting in the production of 66.5 koz on a 6E basis.

In addition, chrome concentrate production was for the six months, split into 494.6 kt of metallurgical grade chrome and 158.0 kt of specialty grades.

Salene Chrome Zimbabwe, a mining company in which Tharisa has an option to acquire a 90% shareholding commenced its first chrome production from site on the 20th of April 2020 and the operations are ramping up to achieve commercial production of lumpy chrome material.

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