[miningmx.com] – THARISA, the Johannesburg-listed platinum and chrome producer, said it would haul in overhead and operating costs 10% in the current financial year in order to stave off the effects of falling metal prices.
“Further initiatives launched in light of the current state of spot markets include plans to reduce overhead and operational costs by up to 10%,” said Phoevos Pouroulis, CEO of Tharisa.
The price of platinum has fallen from $1,000/oz at the end of August to the current level of $880/oz with many platinum producers taking the view of lower-for-longer price outlook on the platinum group metal (PGM) markets.
Pouroulis was commenting following the release of Tharisa’s full-year operating and financial figures ended September 30 in which the company posted a maiden $6m profit compared to a $54.9m loss in the previous financial year. This translated into earnings per share of two US cents.
“Our full-year results show a business in the final stages of ramp up and yet to reach maturity,” said Pouroulis. “The posted profit is encouraging and bodes well for our plans to reach steady state in the year ahead,” he added.
Costs would be trimmed by improving efficiencies and minimising dilution. “These activities will ultimately improve the recovery of PGMs and chrome concentrate while reducing our cost base,” said Pouroulis.
Tharisa operates the Tharisa mine in the south-western limb of South Africa’s famed Bushveld Complex. It has its own concentrating capacity and is also developing beneficiation facilities.
Tharisa sold nearly 120,000 ounces of contained PGMs during the year, an increase of 49.1% year-on-year. The concentrate is sold to Impala Refining Services.
Chrome concentrate sales totaled 1.1 million tonnes which was roughly in line with the previous financial year. China remains the main market for metallurgical chrome concentrates, the company said.
