What’s not to like about Tharisa?
The weak PGM prices and uncertainty about the financing of the Karo project in Zimbabwe have discouraged many, though others remain optimistic
Chrome saved the day for resource group Tharisa, which registered a 28% decline in its average platinum group metal (PGM) price during its 2024 financial year ended September. Comprising 68% of Tharisa’s total revenue, chrome has been driven by strong growth in the Chinese stainless steel industry.
Despite this resilience, Tharisa is a company with a love deficit. This could have some interesting outcomes, according to one stockbroker. “If the market doesn’t react soon and rerate the stock, we would expect the industry to further consolidate,” say analysts at the UK’s Tamesis Partners. Based on valuations before its year-end numbers were announced, Tharisa ought to be trading at 90p-£1.20 a share. It’s now at about 69p, up a modest 6% in the year to date...
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