Pride Mzarabani
HARARE – Tharisa Plc reported that development of Zimbabwe’s Karo Platinum project remains on track, with investment focused on strategic infrastructure and mine development as the group ramps up capital expenditure to advance one of the country’s largest platinum mining projects.
The Johannesburg and London-listed platinum group metals (PGMs) and chrome producer said mobilisation of the Phase One mining contractor at Karo Platinum has been completed while open-pit waste stripping is well underway marking another major milestone in the project’s development.
The continued investment in Karo Platinum, together with the transition of Tharisa’s South African operations to underground mining, resulted in increased capital spending during the third quarter. As a result, the group’s net cash position declined to US$10.7 million at the end of June from US$54.7 million three months earlier, although it maintained a strong cash balance of US$198.8 million against debt of US$188.1 million.
Tharisa Chief Executive Officer Phoevos Pouroulis said “We continued to invest through the cycle, advancing the Karo Platinum development and the Tharisa underground project on a planned and disciplined basis.”
“While this investment increased debt during the quarter, the Group maintained close to US$200 million of cash on hand and a positive net cash position of US$10.7 million. With year-to-date production levels, we remain positioned to deliver against our FY2026 production guidance, supporting the Company’s sustainable multi-generational growth strategy.”
The latest investment update comes as construction activity at Karo Platinum gathers momentum, with strategic infrastructure works continuing alongside mine development as Tharisa executes its long-term expansion strategy in Zimbabwe.
The group’s stronger operational performance continued to underpin the investment programme after third-quarter PGM production increased 15.5% to 39,600 ounces from 34,300 ounces a year earlier. For the nine months ended June 30, PGM production rose 16% to 112,700 ounces compared with 96,900 ounces in the corresponding period last year.
Tharisa attributed the improved performance to a marked recovery in mining operations following weather-related disruptions experienced in the previous quarter. PGM recoveries improved to 83.8%, while reef mined increased 41.6%, supporting higher feed grades and offsetting the impact of slightly lower milling volumes.
Chrome production remained resilient despite lower tonnes milled. Third-quarter chrome concentrate production totalled 393,800 tonnes, broadly in line with prior periods, while nine-month output remained steady at 1.15 million tonnes.
“Our safety performance remained strong across both Tharisa Minerals and Karo Platinum,” Pouroulis said.
“Although PGM prices moderated from recent highs, with the basket price lower quarter on quarter, prices remained materially ahead of the prior-year comparative period and medium-term fundamentals remain supportive. Chrome prices were constructive during the reporting period, supported by strong customer demand.”
Average PGM prices during the third quarter increased 70% year-on-year to US$2,681 per ounce from US$1,574 previously, although they eased 12% from the previous quarter’s elevated levels. Chrome prices also remained supported by sustained customer demand.
Looking ahead, Tharisa said production remains on track to achieve its 2026 guidance of between 145,000 and 165,000 ounces of PGMs and between 1.50 million and 1.65 million tonnes of chrome concentrates, with Karo Platinum expected to remain a key pillar of the group’s long-term growth strategy as development progresses in line with budget.
