Tharisa Reports 19.7% Quarterly PGM Production Increase for 2025

Tharisa's Strategic Expansion Drives Ambitious PGM Production Growth

Tharisa is setting an aggressive course for platinum group metals (PGM) production growth in financial year 2026, with targets that demonstrate the company's commitment to establishing itself as a major player in the global PGM market. Through strategic investments and operational enhancements, Tharisa is positioning for substantial growth despite fluctuating mining industry trends.

Q4 2025 Performance Signals Strong Momentum

The final quarter of 2025 showed remarkable progress for Tharisa, with PGM production reaching 41,300 ounces—a substantial 19.7% increase quarter-on-quarter. This impressive performance was accompanied by a 2.9% growth in chrome production, which reached 407,200 tonnes.

These production gains weren't accidental but resulted from systematic improvements across multiple operational aspects. The company implemented enhanced mining methodologies, optimized milling processes, improved grade management, and achieved higher recovery rates—all contributing to the strong quarterly performance.

FY26 Production Targets Reflect Ambitious Growth Strategy

For the upcoming financial year 2026, Tharisa has established robust production targets that reflect its growth ambitions:

This targeted increase of up to 19% in PGM production demonstrates the company's confidence in its operational capabilities and market outlook. The growth strategy balances ambitious targets with realistic operational expectations, creating a roadmap for sustainable expansion.

Strategic Capital Investments Securing Long-Term Production Growth

At the heart of Tharisa's production growth strategy lies a substantial $547 million investment program focused on developing underground mining operations at its flagship Tharisa Mine. This significant capital commitment aims to extend the mine's operational life beyond 2034, transforming it into a multi-generational asset.

Underground Mining Development Timeline

The transition to underground mining represents a pivotal shift in Tharisa's operational approach. The development follows a carefully structured timeline:

• Initial development focused on the west pit area
• First ore extraction from underground operations expected in Q2 2026
• Steady-state underground production targeted by 2029
• Progressive expansion of underground operations over the next decade

This phased approach allows Tharisa to manage capital expenditure efficiently while maintaining production levels throughout the transition period. By 2029, the company expects to achieve steady-state production from its underground operations, creating a stable platform for long-term output.

Infrastructure and Technology Investments

Beyond the development of underground mining capabilities, Tharisa is investing in advanced mining technologies and infrastructure to support its production expansion:

• Modern mining equipment suited for underground operations
• Enhanced processing facilities to maintain high recovery rates
• Improved transport and logistics infrastructure
• Advanced safety systems designed specifically for underground environments

These investments reflect a comprehensive approach to production growth that addresses all aspects of the mining value chain, from extraction through processing to final product delivery.

Market Dynamics Shaping Tharisa's Production Strategy

The global PGM market presents a complex but generally favorable environment for Tharisa's expansion plans, with pricing trends supporting the company's investment decisions.

PGM Market Conditions Strengthening

The PGM market showed remarkable strength throughout 2025, with prices reaching levels that strongly support Tharisa's expansion plans:

• Average PGM price increased by 18.6% to $1,615/oz in FY25 (from $1,362/oz in FY24)
• Q4 2025 saw PGM prices surge to $1,953/oz, representing a 24.1% quarter-on-quarter increase
• Platinum markets continue experiencing supply deficits, supporting prices
• Minor PGM metals showing particularly strong fundamentals and price support

These favorable pricing conditions provide Tharisa with both the financial resources and market incentive to expand production capacity. The continued supply constraints in global platinum markets particularly benefit producers like Tharisa who can efficiently increase output.

Chrome Market Facing Challenges

While PGM markets remain robust, the chrome segment has experienced more challenging conditions:

• Average price of metallurgical-grade chrome concentrate fell 11% year-on-year to $266/t in FY25
• Q4 prices declined to $276/t from $293/t in Q3
• Global chrome market experiencing increased competition and supply pressure

Despite these challenges, chrome production remains an important component of Tharisa's operations, providing valuable diversification and revenue streams that complement the PGM business.

Long-Term Production Strategy: Building a Multi-Generational Asset

Tharisa's long-term production strategy extends far beyond the immediate FY26 targets, focusing on transforming its flagship mine into a multi-generational asset with sustainable production capacity.

Underground Mining: The Key to Extended Production Life

The $547 million investment in underground mining operations represents the cornerstone of Tharisa's long-term strategy:

• Extends mine life significantly beyond 2034
• Allows access to deeper, high-grade PGM resources
• Provides more consistent grade control and production planning
• Creates a more sustainable and environmentally efficient production model

The underground development will progressively replace open-pit operations, ensuring continuous production through the transition period and establishing a foundation for decades of future output.

Resource Development and Exploration

Beyond the immediate underground expansion, Tharisa is investing in resource development and exploration activities to further extend production capacity:

• Ongoing drilling programs insights to expand resource definition
• Advanced geological modeling to optimize extraction methods
• Exploration of adjacent areas for potential resource additions
• Development of comprehensive long-term mining plans

These activities are designed to continuously replenish reserves and resources, supporting sustained production growth beyond the current planning horizon.

Industry Context: How Tharisa's Growth Compares to Sector Trends

Tharisa's production growth strategy aligns with broader industry dynamics but also differentiates the company within the competitive landscape.

Global PGM Supply Constraints Continue

The global PGM industry continues to face significant supply challenges:

• Major South African producers experiencing ongoing operational difficulties
• Russian supply facing increased scrutiny and potential disruptions
• Limited new project development across the industry
• Growing demand from automotive, industrial, and hydrogen sectors

These industry-wide constraints create a favorable environment for producers like Tharisa who can successfully expand production while many competitors struggle to maintain output levels. According to Mining Weekly's recent analysis, Tharisa's Tharisa PGM production increase represents one of the most significant growth trajectories in the sector.

Competitive Positioning Strengthened

Tharisa's production growth strengthens its competitive position within the PGM sector:

• Establishes the company as a growing mid-tier producer
• Demonstrates ability to execute complex capital projects
• Leverages existing infrastructure and operational expertise
• Positions the company to capitalize on favorable price environments

The underground expansion particularly differentiates Tharisa from competitors who lack either the financial resources or technical capabilities to undertake similar transformative projects.

Operational Challenges and Risk Factors

While Tharisa's production growth strategy appears well-founded, several challenges could impact the company's ability to achieve its targets.

Underground Mining Transition Complexities

The transition from open-pit to underground mining presents significant technical and operational challenges:

• Development of new mining skills and capabilities
• Potential delays in underground development timelines
• Technical challenges in maintaining recovery rates from underground ore
• Integration of underground and surface operations during transition

Managing these challenges will require careful planning and execution, with potential impacts on both production volumes and costs during the transition period.

Market and Macroeconomic Risks

Several external factors could influence Tharisa's production strategy:

• Potential PGM price volatility affecting investment returns
• Fluctuations in chrome concentrate prices impacting overall profitability
• Global economic conditions affecting demand for both PGMs and chrome
• Currency exchange rate fluctuations (particularly ZAR/USD)
• Energy costs and reliability in South Africa

These external factors create an uncertain operating environment that could necessitate adjustments to production plans and investment timelines.

Investment Implications: Evaluating Tharisa's Growth Trajectory

For investors, Tharisa's production growth strategy presents both opportunities and considerations that need careful evaluation.

Financial Outlook and Investment Requirements

The financial implications of Tharisa's growth strategy include:

• Substantial capital requirements for underground development ($547 million)
• Potential for increased revenue from higher production volumes
• Operational cost implications during the transition period
• Expected improvements in unit costs once steady-state underground production is achieved

The company's ability to fund this capital program while maintaining financial flexibility will be crucial for successful execution of the growth strategy.

Growth Trajectory Well-Supported

Several factors support Tharisa's growth trajectory:

• Strategic capital investments targeting long-term production capacity
• Favorable market fundamentals for PGMs
• Operational improvements driving efficiency gains
• Long-term resource security through underground expansion

These supporting elements create a foundation for sustainable growth, though execution risks remain significant given the scale and complexity of the underground development program.

Environmental and Sustainability Considerations

Tharisa's production growth strategy incorporates important environmental and sustainability elements that align with global trends toward more responsible mining practices.

Environmental Benefits of Underground Mining

The transition to underground mining offers several environmental advantages:

• Reduced surface disturbance compared to continued open-pit expansion
• Lower dust generation and visual impact
• Potential for reduced water usage through advanced mining techniques
• Smaller overall environmental footprint per ounce of production

These benefits help position Tharisa as a more environmentally responsible producer, potentially enhancing market access and stakeholder relationships. Furthermore, the company is implementing comprehensive mine reclamation benefits as part of its sustainability strategy.

Safety and Community Implications

The underground development program also addresses important safety and community considerations:

• Implementation of advanced safety systems for underground operations
• Skills development and training programs for the workforce
• Long-term employment stability for local communities
• Sustainable economic contributions through extended mine life

These elements support Tharisa's social license to operate and contribute to the overall sustainability of the operation. The mining transformation insights reveal how companies like Tharisa are leading the way in sustainable mining practices, as reported by IOL Business Report.

Conclusion: A Transformative Growth Strategy

Tharisa's PGM production growth strategy represents a transformative approach that balances ambitious growth targets with sustainable long-term development. The substantial investment in underground mining capabilities demonstrates a commitment to creating lasting value from the company's resource base.

While challenges remain in both execution and market environment, the fundamentals supporting the growth strategy appear robust. For investors, Tharisa offers exposure to a growing PGM producer with a clear vision and implementation path for sustainable production expansion.

The success of this strategy will ultimately depend on effective execution of the underground development program, favorable market conditions, and the company's ability to maintain operational excellence through a complex transition period. If successfully implemented, this strategy positions Tharisa as an increasingly significant player in the global PGM market for decades to come.

Frequently Asked Questions

When will Tharisa's underground mining operations begin producing?

The first ore from Tharisa's new underground operations is expected in Q2 2026, with steady-state production targeted by 2029.

How much is Tharisa investing in its underground mining project?

Tharisa is investing $547 million (R9.46 billion) in underground PGM mining over the next ten years.

What percentage increase in PGM production is Tharisa targeting for FY26?

Tharisa is targeting a 5-19% increase in PGM production for FY26 compared to FY25 levels.

How have PGM prices performed in 2025?

PGM prices have increased by 18.6% to an average of $1,615/oz in 2025, with Q4 prices reaching $1,953/oz.

Will Tharisa continue to produce chrome concentrate alongside PGMs?

Yes, Tharisa maintains a dual-commodity strategy and is targeting 1.5-1.65 million tonnes of chrome concentrate production in FY26.

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