Latest news with #PGM
Zawya
4 days ago
- Business
- Zawya
South Africa: Mining production records 0.6% increase in April
The Minerals Council of South Africa indicated that mining production saw a slim increase of 0.6% month-on-month in April 2025, following 3.6% in March. Looming large, of course, is the US trade policy, mainly the introduction and hiking of tariffs on virtually all countries exporting to the US. Domestically, ongoing challenges that affect the sector's global competitiveness include double-digit electricity tariff escalation which has constrained deep-level mining and local beneficiation, as well as inefficient rail and port logistics. Production results In terms of the individual commodities, except for coal production (+4% m-o-m) there were contractions in bulk commodities, including iron ore (-2.8%) manganese (-7.5%), chrome (-4.2%), as well as the base metals, namely nickel (-23.3%) and copper (-16.5%). On the other hand, the production performance of the precious metals was mixed with gold (+9.1%) and diamonds (+0.2%) increased while the platinum group metals (PGMs) (-0.4%) contracted. The decline in nickel production was particularly steep, probably because currently supply exceeds demand. This is expected to be the case in 2025. In South Africa, nickel is mostly derived from PGM mines. Quarter-on-quarter (q-o-q), assuming that the level of production in May and June remains at comparable levels to that of April 2025, Q2 2025 production looks set to increase by 1.6%. If realised, that would be a notable improvement given the large Q1 2025 decline of 4.1%. Year-on-year (y-o-y) total mining production declined by a steep 7.7% in April 2025. This was the fourth consecutive decline in production volumes (y-o-y). Accounting for the decline was a drop in production of the major commodities, including the PGMs (-24.1%), coal (-1.7%), and gold (-2.5%), which together account for over 60% of mining production in South Africa. Significant declines were also recorded in nickel (21.9%) and copper (-9.5%). Iron ore (+5.3%), chrome (+2.3%), and diamonds (+10.1%) all registered growth in April production (y-o-y). Minerals sales earnings (nominal) were slightly up by 0.7% (y-o-y) in April 2025, driven by an increased sales value of gold (+57.6%), copper (+37.7%) and manganese (+66.6%). Sales earnings (y-o-y) in all the other subcomponents took a hit, viz.: PGMs (-20.1%), iron ore (-25.9), nickel (-30.3%), coal (-5.4%) and chrome (-2.2%). In April 2025 total mineral sales registered R68.1bn compared to R62.9bn the previous month. Gold sales accounted for more than R7.2bn of the difference in total sales. In the short-term, commodity prices present a mixed bag. Precious metals prices seem to be positive and might just be what is needed to spur production. Gold prices continue to be at elevated levels, up 38.1% ($3,222/oz) in April 2025 (y-o-y), whilst platinum was marginally higher at 1.9% ($1,021/oz). Among the major commodities, the prices of coal (-16.8%), iron ore (-10.1%) and palladium (-7.1%) were down in April (y-o-y). All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
IOL News
12-06-2025
- Business
- IOL News
Southern Palladium secures A$8m to fast-track Bengwenyama mine development
Southern Palladium said on Thursday it had raised A$8 million (R93m) in a share placement to accelerate development of its Bengwenyama platinum group metals (PGM) project in South Africa. Image: AFP Southern Palladium said on Thursday it had raised A$8 million (R93m) in a share placement to accelerate development of its Bengwenyama platinum group metals (PGM) project in South Africa. The company issued 16 million new shares at A$0.50 apiece, matching its last closing price on June 6 and representing a 10.5% premium to its 10-day volume-weighted average price (VWAP). No options were attached to the placement. One of the company's largest shareholders provided A$4.6m as a cornerstone investment, with the remainder backed by new and existing institutional investors. Southern Palladium said the funds would support the next phase of its Definitive Feasibility Study (DFS) and staged mine development at Bengwenyama, following recent environmental approval for a Mining Right. "This strategic placement provides the group with targeted funding support at an important juncture as we execute on the transition of Bengwenyama, a tier-one PGM project globally, towards staged mine development,' executive chairman Roger Baxter said in a statement. "In particular, we are pleased to have attracted such strong support from our existing institutional investors, led by a cornerstone investment from one of our largest shareholders, while also attracting new institutional investment - marking a vote of confidence for both the quality of the resource and our stated development strategy for the Bengwenyama PGM project" The company plans to publish an optimised Pre-Feasibility Study (PFS) shortly, incorporating a two-stage development strategy aimed at reducing initial capital costs. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Baxter said the placement would give the company a strong cash runway as it progresses towards early-stage mine development at what he described as 'one of the last premier greenfield PGM opportunities in the Bushveld Complex.' Shares issued under the placement will rank equally with existing shares and be listed on the Australian Securities Exchange. The placement was conducted within the company's existing issuance capacity under ASX Listing Rules 7.1 and 7.1A. BUSINESS REPORT Visit:
Yahoo
08-06-2025
- Business
- Yahoo
Tharisa PLC (TIHRF) (H1 2025) Earnings Call Highlights: Navigating Challenges with Strategic ...
Revenue: $280.8 million, down 24% year-on-year. EBITDA: $43.8 million, down 45% year-on-year. Net Profit After Tax: $8.2 million for the half year. Cash from Operations: $36 million, down from $86 million in the prior period. Capital Expenditure: $52.5 million, with $12.8 million allocated to Karo Platinum. Cash and Cash Equivalents: $193.6 million at the end of the half year. Headline Earnings Per Share: USD0.029. Interim Dividend: USD0.015 per share, representing 54.3% of NPAT. Share Repurchase Program: Announced a second program of USD5 million. PGM Production: 62,400 ounces. Chrome Concentrate Production: 755,400 tonnes. PGM Basket Price: $1,403 per ounce, up 4.4% from the prior period. Metallurgical Chrome Concentrate Price: $253 per tonne, down 12.2%. Net Cash: $87.6 million as of March 31, 2025. Total Debt: $106.1 million, with 73% as short-term debt. Warning! GuruFocus has detected 5 Warning Sign with TIHRF. Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tharisa PLC (TIHRF) reported industry-leading safety statistics with a lost time injury frequency rate of 0.02 at the Tharisa mine and 0.08 at Karo Platinum. The company maintained a strong cash position, ending the half-year with $193.6 million in cash and cash equivalents. Tharisa PLC (TIHRF) announced a second share repurchase program of USD5 million, following a successful first program. The company is advancing its Redox One long-duration energy storage battery to megawatt scale, indicating progress in energy storage solutions. Tharisa PLC (TIHRF) declared an interim dividend of USD0.015, maintaining a high payout ratio of 54.3% of net profit after tax, reflecting confidence in its business outlook. Revenue for the half-year decreased by 24% to $280.8 million, impacted by lower output and reduced PGM and chrome prices. EBITDA fell by 45% year-on-year to $43.8 million, reflecting operational challenges and lower commodity prices. The company faced severe weather disruptions, including thunderstorms and lightning, which affected operations in the first half. Tharisa PLC (TIHRF) experienced a decrease in net cash flow from operations, down to $36 million from $86 million in the prior period. The metallurgical chrome concentrate price dropped by 12.2%, contributing to the overall decline in revenue. Q: What is the outlook for chrome production in the next half of the year? A: Phoevos Pouroulis, CEO, stated that Tharisa has not revised its guidance and remains cautiously optimistic about meeting the lower end of its annual guidance for PGMs and chrome production. The company expects an improved second half due to a drier season and successful waste stripping to access reef horizons. Q: How is Tharisa addressing potential industrial action affecting logistics, particularly with Transnet? A: Phoevos Pouroulis, CEO, explained that Tharisa utilizes three portsRichards Bay, Durban, and Maputoproviding flexibility to redirect cargoes if needed. This multi-port strategy has proven effective in mitigating disruptions. Q: What are the implications of chrome being classified as a critical mineral in South Africa? A: Phoevos Pouroulis, CEO, welcomed the classification, noting that it aligns with Tharisa's strategy of beneficiation and product diversification. The company expects potential government support to enhance local value and accelerate projects like redox flow electrolyte production. Q: When will Tharisa's surface mine volumes start declining as underground mining ramps up? A: Phoevos Pouroulis, CEO, indicated that steady-state production from the underground mine is expected by 2029, allowing for continued open-pit mining until 2034. The transition provides flexibility and the potential to increase production capacity. Q: How is Tharisa mitigating weather-related disruptions, particularly from rainfall and lightning? A: Phoevos Pouroulis, CEO, highlighted the implementation of a comprehensive water management strategy, including dewatering boreholes and upgraded pumping capacity. For lightning, the company is considering reducing the storm scope radius to minimize operational disruptions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
IOL News
05-06-2025
- Business
- IOL News
Jubilee Metals receives R1. 6 billion offer for its South African chrome and PGM operations
Jubilee Metals, a diversified metals producer with operations in South Africa and Zambia, has received a conditional binding offer from a private mining and metals trading company to acquire the group's chrome and platinum group metals operations in South Africa Image: Supplied Jubilee Metals, a diversified metals producer with operations in South Africa and Zambia, has received a conditional binding offer from a private mining and metals trading company to acquire the group's chrome and platinum group metals (PGM) operations in South Africa for a consideration of up to $90 million (R1.6 billion). The shares leapt 4.17% to R1.00 on Thursday morning on the JSE as investors welcomed the news. The offer allows Jubilee to sharpen its focus on expanding its copper strategy in Zambia while retaining exposure to the PGM market through its Tjate Platinum mining project. Under the terms of the offer, Jubilee will retain all current rights to the Tjate Platinum mining project offering Jubilee continued exposure to the potential upside of the PGM market, while focusing to further advance the Company's copper strategy in Zambia. The total consideration of up to $90m is payable through a combination of cash upfront and deferred cash payments over an approximate three year period. Jubilee's board has reviewed the offer and recognises its compelling value proposition. The company is also evaluating its dividend policy to potentially enable future distributions to shareholders. A detailed shareholder circular outlining the transaction will be issued soon. Absa Corporate and Investment Bank, a division of Absa Bank Limited, has been appointed as the financial advisor for the transaction. Strategic Focus on Copper in Zambia The disposal of the chrome and PGM operations allows Jubilee to prioritise its Zambian operations, where the company sees significant growth potential. Strong copper markets support higher earnings potential resulting in higher margins than that of chrome. It said, "With the anticipated continuing expansion of the world's growth in electrification generally, renewable power and automotive applications, demand for copper is expected to remain high. Jubilee has demonstrated its ability to successfully recover copper from shallow, transitional reefs. Recent trials confirm the Roan concentrator's capability to maintain a ROM feedstock run rate of between 35 000 to 40 000 tonnes per month (tpm) on the transitional reefs equating to 240 (at 35 000 tpm throughput and min Cu grade) to 360tpm of Cu units (at 40 000tpm and targeted Cu grade," Jubilee said. Jubilee recently continued to expand its near surface mining portfolio with the execution of two further agreements offering the exclusive right to perform its due diligence on these properties with the option to purchase the rights pending the outcome of the due diligence. Zambia holds additional potential opportunities which Jubilee seeks to secure. Jubilee's in country operational presence and processing know-how, positions Jubilee well to pursue these opportunities.
Zawya
30-05-2025
- Business
- Zawya
African Mining Week (AMW) to Spotlight Opportunities in South Africa's Platinum Group Metals (PGM) Market
The upcoming African Mining Week (AMW) – Africa's premier gathering for mining stakeholders, taking place from October 1-3, 2025, in Cape Town – will feature a dedicated panel exploring investment and growth opportunities within the country's platinum group metals (PGM) market. Titled, South Africa's Strategic Influence in the Global PGM Market, the panel session will spotlight national initiatives designed to strengthen the country's PGM value chain – an industry that already accounts for approximately 80% of global supplies. As South Africa strengthens its position as the world's leading producer of PGM, the session will foster greater collaboration among industry stakeholders. Speakers are expected to address challenges and opportunities across the value chain, identifying strategies for accelerating production and consolidating the country's position as a major global supplier. African Mining Week serves as a premier platform for exploring the full spectrum of mining opportunities across Africa. The event is held alongside the African Energy Week: Invest in African Energies 2025 conference from October 1-3 in Cape Town. Sponsors, exhibitors and delegates can learn more by contacting sales@ South Africa's PGM market offers significant opportunities for mining companies and investors. In May 2025, mining firm Ivanhoe Mines reached a significant milestone by driving underground development into the high-grade platinum, palladium, rhodium, nickel, gold and copper orebody at the Platreef Mine in Mokopane. First production at the project is targeted for Q4, 2025, followed by Phase 2 within two years after first production. The project, containing over 95 million tons of PGMs, aims to produce 450,000 ounces annually in Phase 2. Meanwhile, Canada-based Platinum Group Metals Ltd. recently announced plans to raise $1.8 billion through a private placement to advance the Waterburg Project in South Africa. The project holds proven and probable reserves of 246.2 million tons of platinum, palladium, rhodium and hold at an average grade of 2.96 grams per ton. With aims to diversify its product portfolio and enhance revenue generation, mining Group Pelagic Resources launched the development of a new PGM concentrator at its Kookfontein Mine in February this year. Designed by exploration company Nuco Chrome in early 2024, the concentrator is currently in an advanced development stage and is expected to be commissioned in the first half of 2025. Other major PGM developments in South Africa include the 40-million-ounce Bengwenyama Project by Southern Palladium, which completed a pre-feasibility study in October last year, confirming a 14% increase in PGM reserves. Meanwhile, Vanadium Resources Ltd. recently signed an agreement with China Energy Engineering International Group for the provision of engineering, procurement and construction services for the Steelpoortdrift Vanadium Project. The open pit mine and treatment facility will be developed for the exploitation of 680 million tons of vanadium resources in the Bushveld Complex. Additionally, Northam Platinum Holdings is reviving the Eland Mine Complex in the North West Province, with aims to increase PGM production from 100,000 ounces annually in 2025 to 180,000 ounces by 2028. Amid this growth, AMW will serve as a key platform to unpack these developments and explore new strategies being implemented to attract investment and boost production. The event will bring together South African regulators, mining executives and global partners to shape the future of the country's PGM sector. Distributed by APO Group on behalf of Energy Capital&Power.
