South African platinum and chrome producer Tharisa has reported annual production in line with guidance for the 2026 financial year. The company produced 153,700oz of platinum group metals (PGM) for the year, with 41,000oz produced in the fourth quarter. This comes after a pricing environment that was materially stronger than the previous year. The average PGM contained-metal basket price amounted to $2,607/oz for the full year, compared with $1,615/oz a year ago.
Tharisa's chrome concentrate production also saw significant numbers, with 416,700 tonnes produced in the fourth quarter, bringing full-year production to 1.56-million tonnes. CEO Phoevos Pouroulis stated that the 2026 financial year marked a significant shift for Tharisa, as its growth moved from planning into construction. He expressed optimism about the platinum market fundamentals over the medium term, despite a revised forecast of a marginal surplus for 2026.
The company made notable progress with its Karo Platinum project in Zimbabwe. In August, Tharisa signed a 25-year special mining lease with the Zimbabwean government, securing tenure and fiscal certainty for the life of the project. The lease covers 23,903ha of the Great Dyke. This was followed by a five-year PGM concentrate offtake agreement with Valterra Platinum. These agreements have provided the necessary security for the project to move forward.
Tharisa also successfully issued $300m of bonds in September, supported by institutional investors from various regions, including Europe, the UK, the Middle East, North America, and Asia. The bond issue was oversubscribed, demonstrating investor confidence in the company's projects. Pouroulis emphasized that security of tenure, regulatory certainty, and offtake are crucial for attracting international capital to major African mining projects.
The Karo Platinum project is set to commence ore mining this month, with mechanical and pipeline installation scheduled for the first quarter of 2027. Electrical and instrumentation installation will follow in the second quarter of 2027. Commissioning is planned between July and October 2027, with first ore to the mill targeted for the fourth quarter of calendar 2027.
Once fully operational, the Karo Platinum project is expected to achieve steady-state production of between 220,000oz and 230,000oz of 6E (six elements: platinum, palladium, rhodium, ruthenium, iridium, and gold) per annum. This production level is anticipated to be reached about six months after the first ore is processed in the mill. The company has invested over $240m in the Karo project prior to approaching the bond market.
Looking ahead to 2027, Tharisa expects to produce between 150,000oz and 170,000oz of PGMs on a 6E basis and between 1.5-million and 1.65-million tonnes of chrome concentrates. This production forecast reflects output from the Tharisa Mine only. The Apollo underground transition at the Tharisa Mine is progressing according to plan, with Pouroulis emphasizing the company's commitment to delivering the Karo Platinum project and the next phase of growth at the Tharisa Mine safely and responsibly.
Key points
- Tharisa's 2026 financial year production was in line with guidance, with 153,700oz of PGM produced.
- The company made significant progress with its Karo Platinum project in Zimbabwe, securing a 25-year special mining lease and a five-year PGM concentrate offtake agreement.
- Tharisa expects to produce between 150,000oz and 170,000oz of PGMs in 2027, based on production from the Tharisa Mine only.
