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A fall in PGM and chrome prices took the shine off strong numbers
Thursday 09 Dec 2021 Author: Tom Sieber

Tharisa (THS) 117.6p

Loss to date: 10.9%

Original entry price: Buy at 132p, 28 October 2021

Platinum group metals and chrome miner Tharisa (THS) may have drifted lower amid recent price weakness for its products and Covid-related concerns in South Africa but we think the shares will regain momentum as evidence piles up of its improved cash flow in 2022.

On 2 December the company reported a record pre-tax profit of $185.3 million for the 12 months to 30 September, up 144.5% year-on-year on a 46.9% increase in revenue as margins improved. Free cash flow totalled more than $100 million and the dividend was up 157% to a record level.

The company also ended the year with a strong balance sheet, with net cash of $46.6 million. As the Vulcan processing plant is brought on stream operating costs are expected to come down and the company’s carbon footprint is also expected to reduce.

CEO Phoevos Pouroulis tells Shares the company is geared up to manage Covid risks despite the emergence of the Omicron variant in South Africa. This reflects the fact the open pit Tharisa mine is ‘socially distanced by the nature of the operations’, with clinics and track and tracing also set up on site.

SHARES SAYS: Stick with Tharisa. 

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