Tharisa sees price support despite weaker chrome

CHROME concentrate prices have softened in the wake of softer stainless steel demand, partly owing to the Middle East conflict, said Tharisa CEO Phoevos Pouroulis.He was commenting in Tharisa’s third-quarter production update, in which the group remained on target for chrome output of 1.5 to 1.65 million tons (Mt) and platinum group metal production of 145,000 to 165,000 ounces for the year ended September.PGM output increased to 39,600 oz (Q2: 34,300 oz), while chrome output fell to 393,800t from 404,000t, a result of lower milled tons and “a slight” fall in recoveries. The group mined more reef, however, as it recovered from weather-related interruptions during the previous quarter.Chrome prices were “constructive” in the period under review, averaging $306/t, a 5.5% increase on the previous quarter. Said Pouroulis: “Chrome prices remained strong during the reporting period but have since softened, as softer stainless steel demand and cautious mill procurement limited pricing, compounded by prolonged Middle East tensions in a region accounting for approximately 15% of stainless steel consumption.”PGM prices were weaker by about 11%, but at an average price of $2,681/oz they remain at elevated levels year-on-year. “Medium-term fundamentals remain supportive,” said Pouroulis of the PGM market.The market needs to cooperate, for Tharisa is tackling major capital-intensive projects currently, including the underground development of its Tharisa mine in South Africa’s North West province and Karo Platinum, a new-build in Zimbabwe. Capex for the year, including sustaining capex, is set at about $168m.The company ended the third quarter with net cash of $10m, compared with $54.7m at the previous quarter-end – a sign of the capital strain. Over the quarter cash increased to $198.8m (Q2: $184.3m), while debt at $188.1m was about $58m higher.“The reduction in net cash reflects the planned drawdown of the $80m underground transition term loan and increased capital spend across Karo Platinum and the Tharisa underground development during the quarter,” said the group.The post Tharisa sees price support despite weaker chrome appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com