By: OrePulse

Tharisa plc, the platinum group metals and chrome producer listed in Johannesburg and London, reported higher fourth-quarter output of both commodities as it closed out its 2026 financial year, while confirming that construction of its Karo platinum project in Zimbabwe remains on schedule.

Production of platinum group metals (PGMs) in the three months to the end of September rose 3.5% quarter-on-quarter to 41,000 ounces, the company said. Chrome concentrate output climbed 5.8% over the same period to 416,700 tons.

For the full year, PGM production increased 11% to 153,700 ounces, while chrome concentrate output reached 1.56 million tons. Both figures came in within the company's own guidance ranges.

Chief Executive Officer Phoevos Pouroulis said the year represented the point at which the company's growth strategy moved "from planning into construction," a reference to progress at the Karo project.

At Karo, in Zimbabwe, construction has advanced from earthworks into fabrication and the erection of structural steel. Tharisa has invested $240 million of an estimated $516 million in total capital expenditure for the project. The company still expects to deliver first ore to the mill in the fourth quarter of 2027, with commissioning planned for the middle to latter part of that year. Steady-state output of between 220,000 and 230,000 ounces of PGMs a year is expected to follow roughly six months after first ore.

Brokerage Peel Hunt said Tharisa's quarterly production was broadly in line with its own forecasts, with PGM output about 1% below its estimate and chrome output about 1% above it. The broker noted that recoveries and pricing had outperformed its expectations and retained a buy rating on the stock, with a price target of 185 pence.

Commodity prices supported the year's results even as they eased toward the close. The average PGM basket price rose 61% over the full year to $2,607 an ounce, while chrome averaged $290 a ton, up 9%. Both benchmarks softened in the fourth quarter, with the PGM basket price down 5.4% and chrome down 6.9% quarter-on-quarter.

At its South African mining operations, reef mined increased 8.5% to 1.34 million tons in the quarter, while reef milled rose 7.3% to 1.43 million tons. Underground development work continued, with 450 meters advanced during the period.

Tharisa's balance sheet moved to a net debt position of $51 million at the end of September, compared with net cash of $10.7 million at the end of June, reflecting continued capital spending on Karo and other growth projects.

Looking ahead, Tharisa guided for its South African operation to produce between 150,000 and 170,000 ounces of PGMs and between 1.5 million and 1.65 million tons of chrome concentrate in the 2027 financial year. If achieved, both ranges would mark a further increase on the 153,700 ounces of PGMs and 1.56 million tons of chrome concentrate produced in the year just ended.