Tharisa (THA) H2 2024 earnings summary

Executive summary

• Achieved record revenue of $721.4 million, up 11% year-over-year, driven by strong chrome prices and volumes, and met PGM guidance despite a 28% drop in PGM prices.

• Maintained a zero lost time injury record, concluded a five-year wage agreement, and received three safety awards, ensuring workforce stability.

• Strong operational cash flow of $204.6 million, up 38%, and a healthy balance sheet with $223.7 million in cash and equivalents.

• Continued investment in growth projects, including Karo Platinum, commercial chrome alloy production, and battery technology innovation.

• Share repurchase program of $5 million completed and dividend policy maintained, supporting capital discipline.

Financial highlights

• Revenue rose 11% to $721.4 million; EBITDA increased 29.8% to $177.6 million; gross profit up 20.4% to $184.6 million.

• Net profit after tax was $82.6 million, down 4.8% year-over-year; headline EPS at 28.1c.

• Operating cash flow: $204.6 million; net cash position: $117.5 million; cash and equivalents: $223.7 million.

• Capital expenditure totaled $196.8 million, including $84.1 million on Karo Platinum.

• Annual dividend of 4.5 cents per share, 16.1% of NPAT, plus $5 million share repurchase.

Outlook and guidance

• FY2025 guidance: 140,000–160,000 ounces PGMs (6E basis) and 1.65–1.8 million tons chrome concentrates.

• Targeting 200,000 ounces of PGMs and 2 million tons of chrome within two years, contingent on ore quality.

• Ongoing investment in growth, with focus on underground mine development and Karo Platinum Project.

• Expectation of higher PGM prices in the next 12–24 months due to supply deficits and hydrogen economy demand.

• Focus on sustainable expansion, operational optimization, innovation, and diversification.