Tharisa Share Discussion Threads

[tigerbythetail] 06/12/2021 11:56

This looks good for chrome prices...

[tigerbythetail] 03/12/2021 19:59

Article on Karo copied from LSE (and presumably based on a briefing from the company)...

[km18] 02/12/2021 16:36

Tharisa is involved in the mining, processing, sale and logistics of platinum group metals to generate value by becoming a global low-cost producer of commodities to deliver a sustainable future. This corporate objective is strongly supported by the research and development team where efficient practices are implemented to construct cleaner integrated models for the decarbonation of global economies, thus closely matched with governments’ objective to reduce carbon emissions target to zero by 2050. This plausible vision was positively viewed by market participants, stakeholders, and was reflected on operating profit, where there was a significant hike of $89.2m.

[km18] 02/12/2021 16:29

Tharisa is involved in the mining, processing, sale and logistics of platinum group metals to generate value by becoming a global low-cost producer of commodities to deliver a sustainable future. This corporate objective is strongly supported by the research and development team where efficient practices are implemented to construct cleaner integrated models for the decarbonation of global economies, thus closely matched with governments’ objective to reduce carbon emissions target to zero by 2050. This plausible vision was positively viewed by market participants, stakeholders, and was reflected on operating profit, where there was a significant hike of $89.2m.

[deadly] 02/12/2021 14:14

The world and his friends' price targets are all very well but make no difference to the doldrums of this market.

[mfhmfh] 02/12/2021 13:08

from today's report:

'Fundamentals of PGMs in the longer term are robust, driven by a healthy outlook for the internal combustion engine (in the
short and medium term), investment demand, industrial demand and hydrogen fuel cell production for renewable energy. While
substitution will take place over time between palladium and platinum in catalytic converters, the inability to substitute the minor
metals, the major of these being rhodium, ensures that the PGM basket price will remain robust for at least the next five-years.'

[tigerbythetail] 02/12/2021 12:23

Berenberg - Buy - target 190p.

[tigerbythetail] 02/12/2021 10:37

Yes, but...
They're a highly mechanised open pit operation, in contrast with other South African PGM miners, most of whom are deep shaft underground operations. (I.e. it is far easier for Tharisa to maintain social distancing).
Also, they've been vaccinating the workforce for some time now.
And, production continued through previous waves of the virus.
Hopefully, the omicron variant of Covid turns out to be mild one, if an infectious one, as some medical sources are indicating.

[farrugia] 02/12/2021 10:00

they're located in South Africa no? isn't that the epi-center of the new variant pandemic where cases are rising rapidly?

[saltraider] 02/12/2021 08:56

The market just seems to take a rather jaundiced view of Tharisa. I'm OK with that. As long as things stay the way they are I think it is going to offer a pretty cheap way of buying a substantial dividend stream.

[moneyman50] 02/12/2021 08:54

Logically the share price should be a lot higher -160p range and would still be cheap.
The market seems to value “hot air” companies with no current earnings higher
But unfortunately the results are now known and whatever factor seems to hold back this shareprice will be looking for a fall due to lower PGM prices and uncertainties relating to the Omicron variant.This share always seems to be marked down on short term uncertainties and never reflects the company’s fundamentals or medium to long term prospects

[sotolo] 02/12/2021 08:37

Well let’s hope your right, last Dec it went from 85 to 140. Interesting it is worth 10% less than at the start of the year with profits up so hugely but then I suppose with shares it is the expectation rather than arrival that counts and at the start of the year rh was in take off and expectation of soaring profits whereas now rh is under half the peak, others coming down and expectation, whether right or wrong, for lower profit this year

[tigerbythetail] 02/12/2021 08:02

Hi Sotolo!
Judging by past experience, the shares may rise slowly but substantially over the next month. I'm not looking for a big rise today.
Tharisa just doesn't seem to be that kind of share...

[tigerbythetail] 02/12/2021 08:01

I'm happy on first skimming of results. Other companies would die for results like these...
Glad that they haven't included news on Karo as well today - that would have been information overload.

[sotolo] 02/12/2021 07:59

Tiger, let’s see if as you suggested a week ago the shares finally rise today, the dividend certainly looks nice

[lennonsalive] 02/12/2021 07:23

PROFIT BEFORE TAXUS$185.3 m2020: US$75.8 m)+144.5%

[thirty fifty twenty] 01/12/2021 17:35

thanks Tiger. i am similarly in CMCL and agree with your comments.
fingers crossed THS develops a similar l.term record

[tigerbythetail] 01/12/2021 17:06

As a long term holder of gold miner Caledonian Mining (CMCL), I'd just say that they have operated successfully for years now in Zimbabwe.
Great company, great management, great potential growth possibilities, great dividend!
My overall take on it is that Zimbabwe has had its nightmare, and nobody wants to go back to the dark days again.

[thirty fifty twenty] 01/12/2021 15:00

thanks UK George.

i was encouraged by the remarks from CMCL recently whch said that it saw very keen interest in its new canadian listing for its development in Zim. Obvs that is a different company and commodity! but i did see it as an expression of investor interest in the long term development of Zim.

secondly the THS mgt team have a lot of skin in the game and hae a good long term delivery record. i think they must have a view on adding capacity to the market and how that effects their overall profitability. There are a lot of moving parts i PGM market but as a lower cost producer i dont think THS wil come out worst from some extra capacity that they have a share in - it worked for TSCO lol!

anyway - the proof will be in the share price in 12 mths time,
and fingers crossed a pick up tomorrow.
pleased to see that THS keeping up their investor profile with a presentation tomorrow

All IMHO, DYOR + BoL
THS is in my top5 hldgs

[ukgeorge] 01/12/2021 10:36

More detail on how the Karo project can move forward and importantly how much THS would be putting in is key.

[ukgeorge] 01/12/2021 10:34

www.theindependent.co.zw/2021/11/12/karo-govt-review-us4bn-deal-as-zim-seeks-fair-share-after-very-encouraging-results/

The problem with Karo, is it's size. In that the capex is likely going to be a lot (although it will be mined by open pit to start) The process plant will likely be in the hundreds of millions. That article suggest potential to produce 1.4Moz per year, the platinum and palladium mkts are about 20 Moz a year. So 1.4Moz is material, the platinum mkt is in balance so the extra production will cause a surplus and palladium prices are on the way down from the elevated level. Long term electric vehicles are also going to eat away at demand. So is it wise to be investing heavily in a big project albeit low cost and large reserves.

THS has 26.8% of the project, but is likely the only major shareholder with any cash. So the worry is that they end up being the main shareholder taking a risk.

[tigerbythetail] 01/12/2021 08:32

Results tomorrow.
I wonder if we also get news on the Karo mega project in Zimbabwe. The DFS should be complete by now.
(The results will be good, of course. How the market reacts to any Karo news I don't know, but surely it can only add value to the company? Not a penny of the possible value of Karo is currently in Tharisa's share price.)
Meanwhile, rhodium price holding up (even increasing slightly) at $13,900/oz (JMAT). Palladium and platinum, though, are both struggling.

[loglorry1] 27/11/2021 07:48

The fall is justified due to the emergence of a new variant and the resulting decline in PGM. We will have to wait and see how thatt pans out but markets will and should price in the extra risk.

[moneyman50] 26/11/2021 21:17

Very frustrating -share price always tracks PGM prices downwards but never upwards in the same manner.

[tigerbythetail] 26/11/2021 15:29

Palladium now below $1,700. Like with oil this morning, IMO this isn't about fundamentals. It's about futures traders getting smoked and being forced to close leveraged positions at any price.
I think it's too early to look for a bounce, but it's something to think about on Monday.