Tharisa (THA) H2 2024 earnings summary

Executive summary

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

• Maintained a zero lost time injury record and concluded a five-year wage agreement, 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, positioning for further growth opportunities.

Financial highlights

• EBITDA rose nearly 30% to $177.6 million; net profit after tax was $82.6 million, down 4.8% year-over-year.

• Headline EPS at $0.281; full-year dividend of $0.045 per share, exceeding the 15% NPAT policy at 16%.

• Net cash from operating activities up 37.9% to $204.6 million; cash and equivalents at $223.7 million.

• Capital expenditure totaled $196.8 million, including $84 million on Karo Platinum and $65.8 million in deferred stripping.

• Gross profit margin at 25.6%, with gross profit of $184.6 million.

Outlook and guidance

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

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

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

• Karo Platinum project to drive near doubling of PGM output over the long term.

• Cautiously optimistic on chrome price recovery post-seasonal dip; expect stable stainless steel demand.