Tharisa Achieves Record Chrome Production While Facing PGM Market Struggles

Strong Chrome Production Amid Robust Demand

Tharisa has set a new record in chrome production for the fiscal year ending September 30, reaching 1.7 million tons—an 8% increase over 2023. This milestone stems from heightened demand, especially from China, and favorable global pricing. The average price for Tharisa’s chrome concentrate increased by 13.7%, rising to $299 per ton. CEO Phoevos Pouroulis anticipates continued strong demand, projecting 2025 chrome production between 1.65 million and 1.8 million tons. This positive outlook indicates confidence in chrome’s sustained market strength.

Platinum Group Metals (PGM) Struggles Amid Price Declines

In contrast, Tharisa faced difficulties in the platinum group metals (PGM) market. PGM production increased marginally by 0.3% to 145,100 ounces. However, PGM prices dropped significantly, plunging 28% year-over-year to $1,362 per ounce. This decline results from weakened demand and surplus inventories that have overstayed post-pandemic. To counter these challenges, Tharisa slowed the development of its Karo platinum project in Zimbabwe. This strategic decision aims to preserve capital amid the ongoing PGM price slump.

Despite this downturn, Tharisa remains cautiously optimistic about the PGM market. The company has set its 2025 PGM production target at 140,000 to 160,000 ounces. Tharisa plans to balance chrome and PGM production, managing volatility while focusing on chrome’s growth.

Strategic Focus Amid Diverging Market Conditions

The contrasting performance of Tharisa’s chrome and PGM sectors highlights diverging trends in the metals market. While chrome production thrives due to strong demand and rising prices, the PGM sector suffers from weak prices and oversupply issues. Tharisa’s strategic adjustments reflect this market reality, focusing on maximizing chrome production while managing the risks associated with PGM volatility. The company’s ability to navigate these divergent market conditions will be crucial for future growth and stability.