Tharisa H1 Earnings Call Highlights

Tharisa LON: THS reported sharply higher first-half earnings and cash generation, supported by stronger platinum group metals prices and stable chrome production, while management said it continues to fund underground development in South Africa and advance the Karo Platinum project in Zimbabwe.

Chief Executive Officer Phoevos Pouroulis said the six months ended March 31, 2026, were marked by “a really good half-year period,” with the company looking to improve both PGM and chrome output in the second half, despite inflationary pressure tied in part to higher diesel prices.

PGM Prices Drive Earnings Growth

Chief Financial Officer Michael Jones said Tharisa’s co-product model, producing both PGMs and chrome concentrates, again demonstrated resilience. Revenue rose 28% to $359.4 million, driven mainly by a stronger PGM basket price and higher PGM sales volumes.

Jones said EBITDA increased 138.1% to $104.3 million, while profit before tax rose to $69.9 million. Earnings per share were $0.158, up 532% from the comparable period. Operational cash flow totaled $96.4 million.

The board approved an increased interim dividend of 0.025 per share, which Jones said equated to a 15.9% payout of consolidated net profit after tax.

Tharisa produced 753,300 tonnes of chrome concentrate in the period, broadly flat year over year, while PGM production rose to 73,100 ounces. Jones said the average PGM basket price increased 85.3% to $2,099 per ounce, while the average metallurgical-grade chrome price rose 12.3% to $284 per tonne.

On an FCA revenue basis, Jones said PGMs contributed just under 60% of revenue and chrome just over 40%. Rhodium, despite representing about 10% of production, contributed roughly 35% of revenue because of strong pricing.

Balance Sheet Remains Net Cash Positive

Tharisa ended the period with cash and cash equivalents of $184.3 million and total debt of $130.3 million, resulting in a net cash position of $54 million. Jones described the balance sheet as “extremely healthy” and said it is positioned to fund ongoing investments.

The company invested $103.5 million during the six-month period. That included $65.5 million in sustaining capital expenditure, $16.3 million for underground development and $21.4 million in Karo Platinum and other future-focused projects. Total capital commitments at March 31 stood at $120.2 million, largely tied to underground mine development, with Karo Platinum commitments of $27.7 million.

Jones said Tharisa has secured the full $179 million in facilities and asset-backed financing required for its underground mining project. He added that stronger prices have reduced peak funding required for the project by about $45 million, from $173 million.

Underground Transition and Karo Progress

Pouroulis said Tharisa has made significant progress at the Tharisa Mine, including the first blast at the Apollo portal, marking the start of underground development. He said portal development at Apollo West was 134% of plan at the end of April and that the project is fully funded.

The company plans to transition over roughly eight years to a fully underground mechanized board-and-pillar mine. Pouroulis said the operation is expected to reach steady-state output of 255,000 tonnes per month at the west mine before the east pit transitions, with underground output exceeding 6 million tonnes annually by 2033 or 2034.

At Karo Platinum in Zimbabwe, Tharisa has invested $241 million to date. Pouroulis said mining contractor EPSA has mobilized, equipment is arriving and open-pit waste stripping has begun to build run-of-mine stockpiles ahead of concentrator commissioning. He said the company is targeting 226,000 ounces of PGM production from the first 10 years of open-pit mining at Karo.

Pouroulis also said 26 kilometers of underground drilling have been completed at Karo, with the potential to unlock at least 50 additional years of underground mining on the Great Dyke. Management said the project is approximately 15 months from first ore and mill from financial close.

Market Outlook and Logistics

Pouroulis said current spot pricing at May 18 was $2,805 per ounce for the Tharisa Mine PGM basket and $2,359 per ounce for the Karo Platinum basket. He said the general market consensus during platinum week was that prices would remain firm, with stable demand and forecast deficits across platinum, palladium, rhodium, ruthenium and iridium.

He cited automotive demand, lower battery electric vehicle penetration, hybrid vehicle trends, investment demand, jewelry demand and potential uses in artificial intelligence, digital data storage and E-glass as factors supporting PGM demand.

On chrome, Pouroulis said current spot prices were $305 per metric ton, with a six-month average of $284. He said demand remains strong and stable, driven by stainless steel, and noted growing use of high-chrome ferritic stainless steels in construction and infrastructure applications.

In response to investor questions, Pouroulis said Tharisa moved about 22% of cargo by rail during the half year, up from very little in the prior year. About 60% of cargo was exported through Maputo, 40% mainly through Richards Bay and smaller volumes through Durban. He said the company would like to move back toward an 80% rail and 20% road mix over time.

Diesel, Zimbabwe Financing and Capital Markets

Addressing diesel supply risks linked to conflict in the Gulf, Pouroulis said Tharisa had engaged with its primary supplier, secured secondary and tertiary supply options and added storage capacity. He said management is also targeting a roughly 10% saving per cubic meter of rock moved through fuel additives, traffic management, haulage optimization and payload management.

On Zimbabwe, Pouroulis said the company had made “great progress” with the government on outstanding matters for Karo, including execution-ready agreements that still need to move through a multi-ministry process. He said the key issues included fiscal stability, foreign exchange protections and the free flow of capital.

Jones said Karo financing is tied to securing those government agreements. He said Tharisa is well advanced with a development finance institution on a shorter-dated funding package and expects progress on funding to be announced around the time fiscal stability agreements are finalized.

Tharisa also said it is establishing a Level 1 ADR program in the United States, with JPMorgan appointed as depositary bank. Pouroulis said a migration to a premium main market listing on the London Stock Exchange is under consideration, while the company is also evaluating broader U.S. investor access due to interest in critical and strategic minerals.

Pouroulis closed the presentation by thanking Jones, who is retiring after more than 15 years with the company, and welcoming CFO designate Jacques Breytenbach, who is set to take over from Aug. 1.

About Tharisa LON: THS

About Tharisa – delivering on expansion and growth opportunities, commercialising technology solutions Tharisa is an integrated resource group playing a pivotal role in the global energy transition and the decarbonisation of economies. Leveraging innovation and technology, Tharisa covers the entire value chain – exploration, mining, processing, beneficiation, marketing, sales, and logistics – for PGMs and chrome concentrates. The low cost, multigenerational Tharisa Mine is located on the southwestern limb of the Bushveld Complex, South Africa, the largest source of PGMs and chrome globally.

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