Tharisa Share Discussion Threads

[tigerbythetail] 05/12/2022 16:54

www.miningweekly.com/article/tharisa-delivers-its-strongest-financial-results-yet-2022-12-05/rep_id:3650

[moneyman50] 05/12/2022 13:28

Agree -the dividend cut does not inspire confidence-record eps and net current asset position yet the directors decide to cut the dividend and at the same time taking more remuneration.As always shareholders taking the pain and not sharing in the gain.
We shall see how the bond issue has gone shortly but I think it will be do well.

[podgyted] 05/12/2022 12:12

I think the extension to the Karo bond offering and the dividend cut has given the market pause to think.

[tigerbythetail] 05/12/2022 10:29

I agree that cutting the dividend was a decision which made for a bad headline. And most investors don't look beyond the "headlines". So THS have done themselves no favours with that.
BUT, other than that, the results are excellent. And the outlook for Pd and Rh prices is solid, and China emerging from lockdown should support chrome prices as well.
Going by fundamentals, would anybody think this company was overvalued if the share price were 200p, not 100p? I don't think so. But here we are!

[moneyman50] 05/12/2022 08:40

The market never likes a cut in the dividend.
A 1c dividend costs the company $3million dollars.
Looking at the cash position and the net current asset position an extra 2c dividend (total $6 million) would have very little/no effect whatsoever on the Karo investment and would have gone done well with investors/potential investors.

[lennonsalive] 05/12/2022 08:37

It's just not one for the market at the moment until big buyers come in. I can see this going sub 100

[cb7] 05/12/2022 08:21

I can perhaps understand why they have been cautious with the dividend, as going forward they will have more capital expenditure with the Karo project.

[sotolo] 05/12/2022 08:20

…and of course share price down to boot

[sotolo] 05/12/2022 07:53

Indalo divi is about 5.4%, with share price down 20% yield remains much the same.

[spooky] 05/12/2022 07:45

Berenberg raises target price from 240 to 260.

[indalo] 05/12/2022 07:34

Agree the dividend is a disappointment, especially given the poor share price performance. On the other hand net profits of $167m over market cap’ of $380m make it PE of 2.28, with the potential to double output (and profit?) from Karo, with minimal or no dilution due to the reinvestment of cash flow. So a doubling of profit followed by a doubling of rating (supported by a more generous future dividend policy off higher earnings) would suggest 4x today’s share price if the PE re rates to just 4.6x FY25 earnings. Meanwhile being paid 5.8% to wait, with very low share price risk is not a bad return.

[moneyman50] 05/12/2022 07:33

The profits after tax have not fallen-the reduction referred to by Sotolo appears to be due to foreign currency differences reflecting the cost of assets purchased in Zars being translated into dollars.The accumulated profits are up In accordance with the EPS whereas the foreign exchange difference reserve deficit has increased.The fall in dividend is very disappointing due to the increase revenue and profits generated

[sotolo] 05/12/2022 07:17

Well sorry I was wrong on the dividend but I didn’t expect it to be down annually over 20% and with the first divi still decent this one to be down a third, but then I didn’t expect net profit after tax on which it is based to be down over 20%, why? Will share price fall?

[moneyman50] 05/12/2022 07:16

Very disappointing to see a cut in dividend despite an increase in EPS.Despite increase in EPS total dividend cut from 9c to 7c per share for the year and virtually the minimum amount according to the dividend policy.!
Where is the special dividend previously hinted at due to high profits?

[pecuniarum copia] 04/12/2022 11:17

Main not AiM...



A regular dividend payer, Tharisa’s policy is to pay out a minimum of 15% of consolidated net profit after tax to shareholders.

Tharisa is listed on the Johannesburg Stock Exchange (JSE: THA) and the Main Market of the London Stock Exchange (LSE: THS)

[andydaf] 04/12/2022 08:03

Doubled my holding here friday.I think the karo project puts lots of people off THS but i quite like the risk/reward of the expansion plans.If and its a big if they can pull this expansion off using profits and not too much debt Tharisa could be a billion dollar company.No one knows the future but barring a global depression i think the management here can pull it off.Remenber unlike a lot of uk companies management have a lot of skin in the game here.Like everyone i enjoy my dividends and if they can pay 8/9 cents a year during the expansion phase its a bonus.Time will tell but lets hope Karo is a success not just for us shareholders but also for Zimbabwe.As always Good luck to all

[sotolo] 02/12/2022 17:34

I am hoping/expecting 6c not more

[whitehunter] 02/12/2022 16:22

Monday will be interesting. Personally I’m hoping for an increase/maintain in dividend despite investing in new mine. Feels like there is still a big seller about which is hard to fathom for a company that appears to be raking it in.

[moneyman50] 02/12/2022 16:21

Tharisa dividends have also been paid without the deduction of any withholding tax to UK residents .
Any thoughts on final dividends-EPS last year 37c per share -this year indication 41c to 42c per share (without accounting for profit on Karo acquisition )
Last years total dividend 9c per share (4c interim plus 5c final)
So far this year we have only had 3c per share interim so being optimistic final could be 6c or 7c per share making total of 9c or 10c per share for this year.Net cash is up approx $30 million at 30/9/2022 compared to 30/9/2021 .Any dividend cut might look bad seeing BEE interest (and cut dividends usually have negative effect on share price)has been converted to shares and still loads of cash retained to part finance Karo.

[ukgeorge] 02/12/2022 15:45

I'm tempted to buy back into these, really staggering EPS.

Obviously palladium and rhodium have dropped but still going to be making massive profits.

[casholaa] 02/12/2022 15:33

I learn something new everyday.

[redtrend] 02/12/2022 12:47

Spawny - THS is a Cyprus registered company so it is my understanding there is no withholding taxes between THS and its shareholders when dividends paid.

However when THS release their accounts on Monday there will be line items for withholding taxes, I assume between THS own entities. Based on double taxation treaty I think withholding tax between SA and Cyprus is 5%, subject to unredeemed capital balances offsetting any amounts. However i'm on my mobile so can't fact check myself, but having a look at THS Accounts 2021 could provide better answer.

[casholaa] 02/12/2022 12:23

Mine are in an isa

[spawny100] 02/12/2022 11:26

Apologies for a question probably asked already. Is there withholding tax on this in an ISA please?