Tharisa sees 15% jump in full-year revenue

Tharisa Mining, a prominent PGM and Chrome miner, has recently made headlines with a remarkable 15% increase in full-year revenue. The company's shares surged by 15% on the JSE after the release of its annual results, reflecting a positive reception from the market. However, the share price has slightly retreated, currently up by 7.78%, but still outperforming the broader market. Tharisa Mining's success can be attributed to its strategic decision to offer a bumper dividend to shareholders, exceeding its payout ratio of 17.7% of adjusted net profit after tax. Despite facing challenges such as the cooling of commodity prices, the company achieved record PGM and Chrome production, with pricing levels surpassing those of 2020. To delve deeper into Tharisa's performance and outlook, CNBC Africa recently interviewed CEO Phoevos Pouroulis. Pouroulis highlighted the company's resilience and ability to navigate obstacles successfully, particularly citing the challenges posed by the COVID-19 pandemic and inflation pressures on fuel and diesel prices. Tharisa's focus on efficiency and cost control has enabled it to overcome above-inflationary cost pressures and deliver strong results. Looking ahead, the company aims to enhance productivity and increase output, with plans to double its PGM production through the Kauro Platinum Project in Zimbabwe. Pouroulis emphasized the importance of increased efficiency and productivity, along with a growth strategy to diversify the company's portfolio. Tharisa's optimistic outlook is driven by bullish sentiment on the chrome market, with stable demand and robust prices. Despite a 16.6% drop in PGM prices from record highs, the company remains confident in strong demand fundamentals, especially in relation to auto-catalysts and emissions standards. The shift towards hydrogen as a clean energy source also presents a significant opportunity for the company, given South Africa's role as a major producer of platinum. Tharisa's green transition efforts align with market trends and demand for sustainable solutions. The company's expansion into Zimbabwe with the Kaura Platinum project signifies its commitment to growth and diversification. The project's quick development timeline and rich resource base position Tharisa for future success in the PGM market. However, amidst these positive developments, political uncertainty in South Africa poses challenges for international companies like Tharisa. Pouroulis acknowledged the impact of political volatility on investor confidence and emphasized the importance of the rule of law. While refraining from judgment on the current political situation, he highlighted the need for stability and certainty to attract foreign investment and spur economic growth. In conclusion, Tharisa Mining's impressive revenue growth and strategic initiatives underscore its resilience in the face of challenges. The company's commitment to efficiency, productivity, and sustainable practices bodes well for its future prospects in the mining industry.