Sundaymail Editor
Business Reporter
South African firm Tharisa Plc has reinforced investor confidence in its Zimbabwean operation, the Karo Platinum project presently under development, after releasing an Independent Competent Persons’ Report (CPR) affirming the project’s viability.
The CPR also confirms legal compliance of the project, located 85 kilometres southwest of Harare and is being developed for four open-pit mines and a 220 000-tonne-per-month processing plant.
This development comes amid Tharisa’s positive outlook on platinum group metals (PGM) prices, which it expects to recover over the next 12 to 24 months.
For the year ended September 2024, Tharisa reported an 11 percent rise in revenue to US$721,4 million, despite a 28,1 percent drop in average PGM prices.
The group’s performance was buoyed by strong chrome sales and pricing, which helped drive a 29,8 percent increase in earnings before interest, taxation, depreciation and amortisation (EBITDA) to US$177,6 million.
Operating expenses rose by 15,9 percent, largely due to employee costs, while finance costs surged following a term loan drawdown.
Nevertheless, Tharisa sees future growth potential, citing a looming PGM supply deficit and increasing demand from the hydrogen economy.
The progress at Karo, combined with market fundamentals, signals a promising outlook for the company’s dual-resource strategy in Southern Africa.
Online Reporter