Miningweb: Tharisa FY2025: PGM price rally and $67.3M tax credit underpin 5.5% EBITDA rise

Key topics:PGM prices jumped 18.6%, offsetting a sharp 16.4% decline in total revenue.EBITDA rose 5.5% due to the PGM rally and a US$67.3 million tax credit.Company invested US$547 million to transition to underground mining for long-term growth..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..BizNews Reporter.1. Executive Summary and Financial PerformanceTharisa plc concluded the fiscal year 2025 (FY2025) with stable profit generation and a significantly strengthened balance sheet, demonstrating resilience against mixed commodity market dynamics.Financial Highlights: The Group reported Revenue of US$602.9 million, a decrease of 16.4% compared to the US$721.4 million recorded in FY2024. This contraction was primarily driven by lower chrome production volumes and a market price contraction in the chrome segment, where the average met-grade price fell 11.0% to **US$266/t** (from US$299/t).However, profitability was protected by strong Platinum Group Metals (PGM) pricing. The average PGM basket price saw an 18.6% uplift, reaching US$1,615/oz for the year. This supported a healthy increase in EBITDA, which rose 5.5% to US$187.3 million (up from US$177.6 million). This EBITDA figure includes a material, non-cash credit of **US$67.3 million** resulting from a favourable Tax Court judgement related to a long-standing mining royalties dispute, which was applied as a credit to the cost of sales. Ultimately, Profit Before Tax remained largely stable at US$117.6 million, a marginal 0.1% decrease year-on-year.Financial Position: The Group's financial stability was significantly reinforced, achieving a Net Cash Position of US$68.6 million as of 30 September 2025, reflecting a 59.2% increase from the Q3 position. This result is based on cash on hand of US$173.0 million and debt of US$104.4 million, following the successful securing of a new US$130 million debt facility to bolster capital for strategic growth projects.2. Operational Review and Growth TrajectoryThe operational results for FY2025 reflected a mixed production profile with a focus on resource extension and development projects.PGM Production (6E): Total production was 138.3 thousand ounces (koz), a 4.7% decrease from 145.1 koz in the prior year. However, the operational enhancements implemented successfully led to a strong recovery in the fourth quarter, posting a 19.7% quarter-on-quarter increase.Chrome Production: Total production was 1,558.2 thousand tonnes (kt), representing an 8.5% reduction from 1,702.6 kt in FY2024, reflecting operational challenges and a focus on PGM recovery optimisation.FY2026 Production Guidance: The Group forecasts PGM production (6E basis) between 145 koz and 165 koz for the next fiscal year, representing potential growth of 5% to 19% over FY2025. Chrome concentrate production is expected to be between 1.50 million tonnes (Mt) and 1.65 Mt..Capital investment is heavily focused on securing the long-term future of the operation, with US$547 million committed over the next ten years to phase in underground mining at the Tharisa Mine, extending the mine life beyond 2034. Furthermore, the Karo Platinum Project continues its development, with EPSA appointed as the mining contractor, signaling progression toward first ore extraction and geographical diversification.3. Environmental, Social, and Governance (ESG) StrategyTharisa's ESG strategy is critically linked to the global energy transition, emphasising the production of metals essential for decarbonisation technologies.The core environmental commitment is achieving net carbon neutrality by 2050, backed by a formal carbon action plan. The Climate Change and Sustainability Committee actively guides the Group towards a circular economy through enhanced mineral beneficiation and waste management innovation, such as exploring Redox One technology for utilising chrome in flow batteries.Safety remains a priority, with the Lost Time Injury Frequency Rate (LTIFR) remaining exceptionally low at 0.03 at Tharisa Minerals and 0.00 at the Karo Platinum Project, underscoring the Group’s robust safety management and oversight.

Miningweb: Tharisa FY2025: PGM price rally and $67.3M tax credit underpin 5.5% EBITDA rise

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