The Tharisa open pit mine produces PGM and chromite concentrate. By the end of gthe thrid quarter to June 30, 2026, the mining group said its Tharisa underground development project was proceeding on schedule and budget, as was its Karo Platinum project in Zimbabwe.
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Tharisa’s cash position fell to $10,7 million by the end of the quarter to June 30 from $54,7m at the end of the second quarter, as spending on Karo Platinum and the Tharisa underground development increased during the quarter, in line with budgeted project plans.
The mining, metals, and innovation company dual-listed on the Johannesburg and London stock exchanges said in a third quarter production update that quarterly PGM production came to 39,6 koz (kilogram per ounce) from 34,3 koz in the second quarter.
Quarterly chrome production was 393,8 kt (kilotons) versus 404,0 kt in the second quarter. Year-to-date production had positioned the group to deliver against its management’s guidance for the full 2026 financial year.
"The third quarter demonstrated normalised operations and was in line with budget. PGM production increased by 15,5%, supported by a marked improvement in recoveries to 83,8%, while chrome production remained steady despite lower milled tons,” said the CEO Phoevos Pouroulis.
The average PGM contained metal basket price was $2,681/oz versus $3,038/oz in the third quarter.
The average metallurgical grade chrome concentrate price was $306/t versus $290/t in the second quarter.
Tharisa’s underground project was on time and in line with budget, and the portal development is on track to deliver the first ROM (run-of-mine) within the fourth quarter.
Karo Platinum investment continues with a focus on infrastructure projects. Mining contractor mobilisation for Phase 1 has been completed, and open pit waste stripping is well underway.
Group cash on hand came to $198,8 million versus $184,3m at the end of the second quarter, and debt came to $188,1m versus $129,6m at the end of March.
Pouroulis said reef mined increased by 41,6% as the group recovered from weather-related mining interruptions in the previous quarter.
The recovery in mining performance supported improved PGM feed grade and chrome ROM grade, helping offset the impact of slightly lower milled tons.
“Our safety performance remained strong across both Tharisa Minerals and Karo Platinum. Although PGM prices moderated from recent highs, with the basket price lower quarter on quarter, prices remained materially ahead of the prior-year comparative period, and medium-term fundamentals remain supportive,” he said.
Chrome prices were constructive during the period, supported by strong customer demand.
“We continued to invest through the cycle, advancing the Karo Platinum development and the Tharisa underground project on a planned and disciplined basis. While this investment increased debt during the quarter, the group maintained close to $200m of cash on hand and a positive net cash position of $10,7m,” he said.
PGM prices pulled back during the quarter after an extended rally due to a stronger US dollar, higher real yields, and renewed Fed hawkishness, which outweighed supportive fundamentals. The medium-term outlook remains underpinned by platinum’s expected fourth consecutive deficit, constrained South African supply, and demand from auto, AI, electronics, hydrogen, and jewellery.
Chrome prices remained strong during the period but had since softened, as softer stainless-steel demand and cautious mill procurement limited pricing, compounded by prolonged Middle East tensions in a region accounting for approximately 15% of stainless-steel consumption.
The strong recovery in reef mined, up 41,6% quarter on quarter, reflects the normalisation of mining conditions following the weather-related impact in the previous quarter, while lower reef milled reflects the annual maintenance shutdown in the quarter.
Chrome production was marginally lower quarter on quarter as lower milled tons and slightly lower recoveries offset the benefit of improved ROM grade and yield.
Production guidance for the 2026 financial year was set at between 145 koz and 165 koz PGMs (6E basis) and 1,50 Mt to 1,65 Mt of chrome concentrates.
Tharisa’s share price was untraded at R24,99 on Tuesday morning on the JSE, slightly up from R21,25 a year previously.
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