The Tharisa share price is down today after the release of its full-year results. The South African platinum and chrome producer reported a loss for the year, sending its shares tumbling. Tharisa has been struggling in recent years as commodity prices have declined and it has been hit by operational issues.
However, the company says it is well-positioned to weather the current challenges and is confident about its future prospects.
The Tharisa share price is up today following the release of the company’s latest production results.
Tharisa is a chrome and platinum producer, and the company’s latest results show that it produced 683,000 tonnes of chrome concentrate in the first quarter of this year. This is an increase of 8% from the previous quarter.
The company also reported an increase in sales, with revenue rising by 18% to $128 million. This was driven by higher prices for both chrome and platinum group metals (PGMs).
Looking ahead, Tharisa expects to continue to benefit from strong demand for PGMs and chromium.
The company has a solid financial position and is well-placed to weather any potential market volatility.
With its shares trading at around R17.50, Tharisa remains a good long-term investment option for exposure to these key industrial metals.
Tharisa Share Price Forecast
The Tharisa share price has been on a roller coaster ride over the past year. However, analysts believe that the stock is still a good long-term investment. In this article, we will take a look at the Tharisa share price forecast for 2020 and beyond.
Tharisa is a South African mining company that produces platinum group metals (PGMs) and chrome. The company has two main operations: the Marikana mine in South Africa and the Zimbabwe-based Karo Mining Project.
Despite volatile markets, Tharisa managed to report solid results for 2019.
Revenue increased by 14% to R5.6 billion ($382 million), while net profit rose by 26% to R1.4 billion ($95 million). This was thanks to higher prices for PGMs and improved operational efficiencies.
Looking ahead, analysts expect Tharisa to continue performing well due to strong demand for PGMs from the auto sector (which accounts for around 40% of global PGM demand).
In addition, rising chrome prices are also expected to boost earnings.
As such, most analysts have positive forecasts for the Tharisa share price. For 2020, consensus estimates suggest that the stock will rise by around 25%.
Further gains are expected in 2021 and beyond as the company benefits from improving market conditions.
Credit: www.bloomberg.com
Is Tharisa a Good Stock to Buy?
Tharisa is a South African based minerals and mining company with an operating mine, the Tharisa Mine, located on the West Rand. The company also has two other projects in development: the Maroelabult Project and the Kruisfontein Project.
The Tharisa Mine produces two types of products: chrome concentrate and PGM (platinum group metal) concentrate.
The chrome concentrate is sold to Chinese ferrochrome producers while the PGM concentrate is sold to Johnson Matthey Plc, a leading global supplier of PGMs.
The company’s share price has been volatile over the past year but has generally trended upwards. At its current price around R17 per share, Tharisa is trading at a market capitalisation of R5.4 billion.
This makes it one of the larger companies on the Johannesburg Stock Exchange (JSE).
So, is Tharisa a good stock to buy? Let’s take a closer look at some key factors that could influence your decision.
One positive factor for Tharisa is that demand for both chrome and PGMs looks set to continue growing in coming years due largely to their use in various industrial applications. For example, chromite – the main component of chrome – is used in stainless steel production while PGMs are used in catalytic converters for vehicles. This should provide a solid foundation for future revenue growth at Tharisa.
Another plus point is that Tharisa holds significant mineral resources which gives it good long-term prospects even if demand for its products does soften at some point in future.
What Does Tharisa Plc Do?
Tharisa PLC is a mining and resources company that operates in South Africa and Australia. The company has a focus on platinum group metals (PGMs) and chrome, and produces a range of products including beneficiated ore, concentrate, intermediates and refined metals. Tharisa also has interests in water desalination and power generation businesses in South Africa.
What Does Tharisa Produce?
Tharisa is a mining and resources company that produces a range of minerals, including platinum group metals (PGMs), chrome, and nickel. The company has operations in South Africa and Zimbabwe, and its headquarters are in Johannesburg, South Africa.
Tharisa’s PGM operations are located in the Bushveld Complex in South Africa, which is home to some of the world’s largest reserves of PGMs.
Tharisa also has a chrome operation in the Great Dyke region of Zimbabwe.
The company’s flagship mine is the Tharisa Mine, which is located near Rustenburg in South Africa’s North West Province. The Tharisa Mine consists of two open pit mines – the Orion mine and the Voyager mine – as well as an underground section.
The company also has a second mine called the Khumani Mine, which is located near Kathu in South Africa’s Northern Cape Province. The Khumani Mine consists of an open pit operation and an underground section.
In addition to its mines, Tharisa has a beneficiation plant that processes PGM concentrate from both the Tharisa Mine and external sources.
This plant produces PGM concentrate that is then shipped to smelters around the world for further processing into finished products such as catalytic converters for vehicles.
Tharisa subsidiary Karo Mining working to raise "US$400mln" for Zimbabwe project
Conclusion
The Tharisa share price has been on the rise in recent months, thanks to strong demand for its products and a growing appetite for risk in the markets. The company is a leading producer of chrome and platinum group metals (PGMs), and its share price has benefited from rising prices for these commodities. However, some analysts are concerned that the company’s share price is now ahead of itself and that it could be due for a correction.
