Tharisa Adjusts Full-Year Production Guidance Despite Quarterly PGM and Chrome Output Growth
Tharisa, the Johannesburg- and London-listed mining and metals company, has reported increased production in both platinum group metals (PGMs) and chrome concentrate during the third quarter of its 2025 financial year, despite ongoing operational challenges that have prompted a downward revision of its full-year targets.
The company's ability to increase output while navigating complex mining conditions highlights both the resilience and challenges inherent in South Africa beneficiation analysis and chrome mining sectors.
How Did Tharisa's Production Perform in the Third Quarter?
Tharisa achieved notable production growth during the third quarter ended June 30, 2025. PGM production increased by 6.2% quarter-on-quarter to 34,500 ounces, while chrome concentrate production rose by 3.9% to 395,700 tonnes compared to the previous quarter.
The production improvements were underpinned by a substantial 27.7% quarterly increase in reef mining volumes, which reached 1.44 million tonnes during the period. Reef milling also showed positive momentum, with a 2.3% increase to 1.39 million tonnes.
According to CEO Phoevos Pouroulis, "We experienced an improving quarter as our reef mining volumes trended higher, enabling better blending options despite continued head grade challenges. We made good progress in the east pit with remediation following the heavy rainfall experienced earlier in the financial year."
Key Production Metrics for Q3 2025
| Metric | Q3 2025 | Change (QoQ) |
|---|---|---|
| PGM Production | 34,500 oz | +6.2% |
| Chrome Production | 395,700 t | +3.9% |
| Reef Mined | 1.44 million t | +27.7% |
| Reef Milled | 1.39 million t | +2.3% |
The production growth is particularly significant given the operational challenges Tharisa has faced throughout the financial year, including weather disruptions and complex ore blending requirements that affect mineral recovery rates.
Why Has Tharisa Reduced Its Full-Year Guidance?
Despite the quarterly improvements, Tharisa has adjusted its full-year production guidance downward by approximately 5% from the lower end of its previous targets after analyzing nine months of operational data.
The company's production for the first three quarters of its financial year totaled 96,900 ounces of PGMs and 1.15 million tonnes of chrome concentrate, representing approximately 69% of the original lower-end guidance for PGMs and 70% for chrome.
Tharisa had previously set guidance at 140,000 ounces of PGMs and 1.65 million tonnes of chrome concentrate at the lower end of its range. The revised guidance of approximately 133,000 ounces for PGMs and 1.57 million tonnes for chrome reflects several persistent operational challenges.
Factors Behind the Guidance Revision
- Ore Blending Complexities: Persistent head grade challenges have affected mineral recovery efficiency throughout the year
- Weather Impact: Remediation work in the east pit following heavy rainfall during the first half of the financial year has affected mining sequencing
- Recovery Optimization: While showing improvement, recovery rates in both PGM and chrome circuits haven't yet reached optimal levels
- Mining Sequence Adjustments: Changes to mine planning to address east pit remediation have temporarily affected overall grade profiles
Industry analysts note that the Bushveld Complex, while rich in PGMs and chrome, presents unique mining challenges due to its variable reef characteristics. The UG2 and Merensky reefs require precise blending to maintain optimal processing performance.
What Operational Improvements Is Tharisa Implementing?
The company is actively addressing its operational challenges through a multi-faceted approach focused on mining optimization and processing enhancements.
"We are making progress toward our targeted performance metrics for our integrated processing plants," stated Pouroulis. "The third quarter saw improvements in recoveries in both the chrome and PGM circuits, contributing to overall output increases despite continued head grade challenges."
For the remainder of the financial year, Tharisa is implementing several key operational strategies:
- Grade Management: Improving mined grades delivered to processing plants through more selective mining techniques
- Open Pit Flexibility: Enhancing operational flexibility to access higher-grade sections of the ore body
- Volume Strategy: Increasing mining volumes to support better head grade blending options
- Recovery Optimization: Continuing technical improvements in processing circuits to maximize mineral recovery
"With improved flexibility in our open pits and increased mining volume, we are forecasting improving head grades," Pouroulis noted, signaling confidence in the company's ability to address current challenges.
Technical Focus Areas
- Ore Sorting Technology: Implementation of sensor-based pre-concentration to improve feed grade quality
- Circuit Optimization: Fine-tuning of flotation parameters for enhanced PGM recovery
- Blending Management: Advanced ore tracking and blending protocols to manage variability
- Water Management: Enhanced systems to mitigate future weather-related disruptions
How Are PGM and Chrome Markets Performing?
PGM Market Dynamics
The PGM market has demonstrated strength during the third quarter, with prices maintaining an upward trajectory. This positive price movement has been driven by multiple factors:
- Increasing physical demand for refined platinum from industrial users
- Strategic supply cutbacks across major PGM producers
- Pipeline destocking that has highlighted underlying supply-demand imbalances
- Growing industrial applications beyond traditional automotive catalysts
While current prices provide better support for industry profitability, Tharisa cautions that "long-term sustainability of higher prices is necessary to induce wide-scale project development." This reflects the industry's need for price stability to justify capital-intensive mine expansions and new project developments.
Market Insight: The PGM basket price improvement has been most pronounced in platinum and palladium, while rhodium has shown more volatility. These price dynamics directly impact Tharisa's revenue mix and overall profitability.
Chrome Market Conditions
Chrome prices demonstrated recovery during the third quarter, reaching $295 per tonne for metallurgical grade material as pipeline inventories required replenishment. However, prices retreated toward the end of the quarter.
The current spot price for chrome stands at approximately $265 per tonne. According to Tharisa, "supply-demand fundamentals remain in balance" at this price level, suggesting relative stability in the commodity trading trends looking forward.
Chinese stainless steel production, which drives approximately 80% of global chrome demand, has shown signs of stabilization after a period of volatility, providing a more predictable demand outlook for chrome producers.
What Is the Tharisa Mine?
The Tharisa mine represents one of South Africa's significant integrated PGM and chrome operations, strategically positioned on the western limb of the mineral-rich Bushveld Complex.
This geological formation is globally renowned, hosting approximately 80% of the world's known platinum resources and significant chrome deposits. The Bushveld Complex's unique layered structure allows companies like Tharisa to extract multiple valuable minerals from the same ore body.
Tharisa's Integrated Business Model
Tharisa employs a distinctive integrated approach to mining and processing:
- Resource Base: Mining of PGM and chrome-rich UG2 and Merensky reef formations
- Open-Pit Operations: Large-scale open-pit mining with a life of mine extending beyond 50 years
- Integrated Processing: Specialized beneficiation plants designed to extract both PGM concentrate and various chrome products
- Market Diversification: Production of metallurgical grade chrome, chemical grade chrome, and PGM concentrates
This integrated approach enables Tharisa to maximize value extraction from its resource base while maintaining operational flexibility across multiple commodity cycles.
Geological Advantages and Challenges
The Bushveld Complex presents both opportunities and challenges for mining operations:
-
Advantages:
- Consistent reef structure with good lateral continuity
- Multi-mineral resource allowing diversified revenue streams
- Relatively shallow reef positioning enabling cost-effective open-pit mining
-
Challenges:
- Variable PGM and chrome grades requiring careful blending
- Complex mineralogy affecting recovery rates
- Weather vulnerability in open-pit operations
What Are the Implications for Tharisa's Future Performance?
While the reduced guidance indicates short-term operational challenges, several factors suggest potential improvement in Tharisa's performance trajectory:
- Production Volume Growth: The significant 27.7% increase in reef mining during Q3 demonstrates that production capacity is expanding, providing a foundation for future output growth
- Recovery Rate Improvements: Ongoing technical enhancements in both PGM and chrome processing circuits are yielding incremental gains
- Market Support: Strengthening PGM prices provide revenue support that partially offsets production challenges
- Operational Solutions: Progress in addressing weather-related disruptions creates a more stable operating environment
Critical Success Factors
For Tharisa to meet even its revised production targets and establish a stronger foundation for the 2026 financial year, several factors will be crucial:
- Grade Management: Successfully improving head grades through better blending practices
- Mining Flexibility: Maintaining operational flexibility to respond to changing conditions
- Processing Efficiency: Continuing to optimize recovery rates in both PGM and chrome circuits
- Market Positioning: Effectively navigating price volatility in both PGM and chrome markets
Operational Context: Mining companies in South Africa continue to face broader challenges including electricity supply constraints, logistical bottlenecks, and regulatory complexities. Tharisa's ability to navigate these industry-wide issues will influence its comparative performance.
Conclusion
Tharisa's third-quarter production results present a nuanced picture of operational progress amid persistent challenges. The quarterly improvements in both PGM and chrome output demonstrate the company's ability to implement effective operational adjustments, while the downward revision of full-year guidance highlights the ongoing complexities of mining in the Bushveld Complex.
The company's focus on improving head grades and recovery rates for the remainder of the year will be critical in determining whether it can meet even the revised production targets. Meanwhile, relatively supportive market conditions, particularly in the PGM sector, provide some financial buffer against operational challenges.
As Tharisa notes, sustained higher commodity prices will be necessary to drive significant industry-wide development and investment. For investors and industry observers, the company's ability to balance short-term operational improvements with long-term strategic positioning will remain key evaluation criteria.
Further Exploration
For readers interested in deepening their understanding of PGM and chrome mining operations, several resources provide valuable context:
- Technical publications from the Geological Society of South Africa regarding Bushveld Complex mining challenges
- World Platinum Investment Council reports on supply-demand dynamics in PGM markets
- South African Chamber of Mines analyses of productivity trends in the mining innovation trends sector
- Metal Bulletin's price assessments and market analyses for chrome and ferrochrome
These resources can provide additional perspective on the operational and market context within which Tharisa and other PGM and chrome producers operate. Furthermore, understanding the mining permitting insights remains crucial for companies looking to expand operations in South Africa's complex regulatory environment.
For the latest updates on Tharisa's production performance, interested readers can consult recent reporting by Mining Weekly as well as Tharisa's direct investor communications for comprehensive analysis of the company's operational trajectory.
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