en.Wedoany.com Reported - Tharisa, a mining company listed on the Johannesburg Stock Exchange (JSE) and the London Stock Exchange (LSE), has maintained its full-year production target unchanged, with development of its Tharisa underground project in South Africa and the Karo Platinum project, a joint venture in Zimbabwe, progressing as planned.
In the quarter ended June 30 (the third quarter of the company's 2026 fiscal year), Tharisa's mine in South Africa's North West province produced 39,600 ounces of platinum group metals (PGMs), up from 34,300 ounces in the previous fiscal quarter (ended March 31). Chrome production at the mine fell to 393,800 tonnes from 404,000 tonnes in the prior quarter.
Development of the Tharisa underground project remains on schedule and within budget, with first run-of-mine (RoM) ore expected in the fourth quarter. At the Karo Platinum project, the first-phase mining contractor has been mobilized, open-pit stripping is progressing, and the company continues to make strategic infrastructure investments in the project.
Increased spending on Karo and the Tharisa underground project reduced the group's net cash position to $10.7 million by the end of the second quarter. During the same period, Tharisa's average PGM basket price fell to $2,681 per ounce, while the average price of metallurgical-grade chrome concentrate rose to $306 per tonne. The company recorded a lost-time injury frequency rate of 0.03 per 200,000 hours worked, with the Karo project reporting no lost-time injuries.
CEO Phoevos Pouroulis said operations normalized in the third quarter and were in line with budget, with PGM production up 15.5% quarter-on-quarter, driven by an improved recovery rate of 83.8%. Chrome production remained stable despite lower grinding volumes. Mined reef volumes increased by 41.6% as the company recovered from weather-related mining disruptions in the prior quarter, which helped improve PGM feed grades and chrome run-of-mine grades, offsetting the impact of slightly lower grinding volumes.
Tharisa noted that the latest market dynamics show a pullback in PGM prices after a prolonged rally, as a stronger US dollar, rising real yields, and a renewed hawkish stance from the Federal Reserve outweighed encouraging fundamentals. Pouroulis explained that the medium-term outlook for PGMs and chrome remains constructive, supported by an expected fourth consecutive year of platinum deficit, constrained South African supply, and demand from the automotive, artificial intelligence, electronics, hydrogen, and jewelry sectors. Chrome prices remained strong during the reporting period but have since softened, mainly due to weak stainless steel demand, cautious mill purchasing, and prolonged conflicts in the Middle East, which accounts for about 15% of stainless steel consumption.
Although PGM prices have retreated from recent highs, the basket price remains significantly higher than the same period last year, and medium-term fundamentals remain favorable. Pouroulis said the company continues to invest through the cycle, advancing the Karo and Tharisa underground projects as planned. Despite increased debt in the quarter due to investments, the group maintains nearly $200 million in cash and a positive net cash position of $10.7 million. With year-to-date production levels, the company remains on track to achieve its full-year production targets for the period ending September 30: 145,000 to 165,000 ounces of PGMs and 1.5 million to 1.65 million tonnes of chrome.
