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magazineTharisa remains a superb stock for value investors
THARISA (THS) 100p
Loss to date: -0.5%
Original entry point: Buy at 100.5p, 7 December 2017
South African chrome and platinum miner Tharisa (THS) was caught up in the summer sell-off in commodity producers amid weaker metal prices and volatile currency rates. However, the shares have more recently started to claw back lost territory.
The fourth quarter production figures on 8 October were slightly below expectations yet full-year targets were met thanks to better than expected recovery rates.
A deal to buy 90% of Zimbabwe-based chrome miner Salene has been restructured to an option agreement to buy the business only if initial exploration is satisfactory.
Tharisa’s investment case remains the same as when we said to buy the shares nearly a year ago. This is a low-cost producer trading on a cheap rating with the potential to churn out masses of cash. A lot of time is spent on improving operational efficiency which should provide a further boost to earnings over the longer-term.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell Youinvest.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
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