Tharisa holds guidance as third-quarter PGM output rises but chrome softens

Tharisa kept its production targets intact after a stronger third quarter for platinum group metals (PGMs), but cautioned that chrome prices had softened as stainless steel mills cut back purchases.

In its update for the quarter to 30 June 2026, published on 14 July, the platinum and chrome producer reported PGM output of 39,600oz, up from 34,300oz in the previous quarter. Chrome production dipped to 393,800t from 404,000t because of lower milled tonnes and a small fall in recoveries. The company mined more reef as it recovered from weather-related interruptions in the preceding quarter.

Tharisa stayed on track for full-year production of 1.5Mt–1.65Mt of chrome and 145,000oz–165,000oz of PGMs for the year to September.

Chrome under pressure

Chrome prices averaged $306/t in the quarter, 5.5% more than in the previous three months. Chief executive Phoevos Pouroulis said prices had since eased as softer stainless steel demand and cautious buying by mills limited pricing, with prolonged tension in the Middle East, a region that accounts for about 15% of stainless steel consumption, adding to the pressure.

René Hochreiter of Noah Capital told Miningmx that the medium-term outlook remained strong. He said a recently approved energy deal for South African ferrochrome producers would mean more local ore is smelted into ferrochrome, leaving less concentrate available for export to China.

PGM prices fell about 11% quarter on quarter to an average of $2,681/oz, still high relative to a year earlier. Pouroulis described the medium-term fundamentals for PGMs as supportive.

Capital strain

The quarter also showed the cost of Tharisa's two large projects: the underground development of the Tharisa mine in North West province and the Karo Platinum new-build in Zimbabwe. Capital spending for the year, including sustaining capital, is set at about $168m.

Net cash fell to $10m from $54.7m at the end of March. Cash rose to $198.8m, but debt increased by about $58m to $188.1m after Tharisa drew down its $80m underground transition term loan. The company said the lower net cash reflected that drawdown and heavier spending at both projects.

Why it matters

The update underlined why the funding of Karo had become pressing. With net cash almost exhausted and roughly $300m of Karo financing still outstanding, Tharisa needed the special mining lease, which it secured in August, before lenders would commit. In September it went on to price a $300m bond. For now, the business relies on chrome and PGM cash from the Tharisa mine, which makes the chrome price more than a side issue.

Sources

• Miningmx: Tharisa sees price support despite weaker chrome, 14 Jul 2026
• Miningmx: Tharisa agrees fiscal rules with Zimbabwe for $545m project, 21 May 2026

Photo: Chromitite from the Bushveld Complex at the Mooinooi mine in North West province, the chrome-rich layer mined in the western Bushveld. James St. John, Wikimedia Commons, CC BY 2.0.