What is the story about?
What's Happening?
Tharisa, a company listed on both the Johannesburg Stock Exchange and the London Stock Exchange, has announced its production guidance for the 2026 financial year. The company aims to produce between 145,000 oz and 165,000 oz of platinum group metals (PGMs) and between 1.5 million and 1.65 million tonnes of chrome concentrates. This marks an increase from the 138,300 oz of PGMs and 1.56 million tonnes of chrome concentrate produced in the 2025 financial year. The final quarter of 2025 saw a significant increase in production, with PGM output rising by 19.7% quarter-on-quarter to 41,300 oz, and chrome production increasing by 2.9% to 407,200 tonnes. Tharisa's CEO, Phoevos Pouroulis, attributes this strong performance to strategic investments and operational resilience. The company has committed $547 million to underground mining at its flagship Tharisa mine, aiming to extend the mine's life beyond 2034.
Why It's Important?
Tharisa's increased production targets reflect strong market fundamentals for PGMs and chrome, driven by global demand and constrained supply. The company's strategic investments in underground mining are crucial for enhancing productivity and securing long-term value. The PGM market, particularly platinum, has shown robust price performance in 2025, supported by deficits and tightening stocks. This positions Tharisa to benefit from favorable market conditions, potentially leading to increased revenue and shareholder returns. The stability in chrome prices further supports the company's outlook, with sustained demand from the stainless steel segment expected to maintain pricing levels.
What's Next?
Tharisa plans to deliver the first ore from its new underground operation at the Tharisa mine in the second quarter of 2026. This development is expected to extend the mine's operational life and enhance production capabilities. The company is also investing in the Karo PGM project in Zimbabwe, indicating potential growth opportunities. Tharisa's disciplined capital allocation policy aims to prioritize long-term value creation and sustainable returns, suggesting continued strategic investments in its operations.
Beyond the Headlines
Tharisa's commitment to safety and operational efficiency highlights the ethical dimensions of its business strategy. The company's focus on sustainable operations and long-term investments reflects a broader industry trend towards responsible mining practices. As global demand for PGMs and chrome continues to rise, Tharisa's strategic positioning may influence market dynamics and contribute to the industry's evolution.
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