Tharisa plc

Chrome ore supply deficit:

http://www.miningwee...risa-2018-01-30

From the Merafe Trading statement today:

The significant increase in earnings per share is primarily driven by substantially higher chrome ore and ferrochrome prices which were partially offset by:

*lower chrome ore and ferrochrome sales volumes; *stronger average Rand compared to US Dollar exchange rate; and *an increase in total costs per tonne of ferrochrome and chrome ore sold.

Good news for Tharisa.

Market update

The average PGM contained metal basket price for the three months ended September 2017 was USD825 (ZAR10 866) per ounce, which is USD33 an ounce higher than the USD792 (ZAR10 443) per ounce achieved in the quarter ended June 2017 and USD50 an ounce higher for the 2017 financial year compared to FY2016. The higher basket prices reflect, in particular, the increase in spot palladium prices, which surpassed the platinum price during the quarter.

With improved liquidity in the market during Q4 FY2017, contracted metallurgical grade chrome concentrate prices increased 17% to USD172 per tonne from USD147 per tonne the previous quarter, bringing the total average realised metallurgical chrome price during FY2017 to USD200 per tonne. 

The fundamentals of the global stainless steel market remain sound with continued growth forecast in 2018, supporting demand for chrome units in the form of ferrochrome and chrome ores. Specialty chrome concentrates, which comprised 24.3% of Tharisa's total chrome concentrate production in FY2017 and which supplies the chemical and foundry markets, continue to attract a premium of more than USD30 per tonne above the contracted metallurgical chrome concentrate prices.

Tharisa ready to shoot the lights out

http://www.sharenet....fe4ddd7164a269b

Edited by Bullhunter, 03 October 2017 - 11:02 AM.

Thinking of buying some shares, what is the outlook for this stock in the next 5 years?

Closed at R19.40 today. Up 29% since 30 August post.

A forward PE of 3.

 

If management improves the current  dividend policy of distributing only 10% of  net profit after tax, fair value, based on HEPS  vs an equity risk premium of 50% above the prime rate, fair value is R42.92

 

A single trade of 800 000 shares at R15.00 went through this morning.  That's typical of institutional backing.

 

“The fundamentals of the global stainless steel market remain sound with continued growth forecast in 2017, further supporting strong demand for chrome units in the form of ferrochrome and chrome ores,”  said Tharisa CEO, Phoevos Pouroulis in July 2017.

 120 000 shares traded at R18.00  between 13h34 and 13h41 today-a 20% gain in 6 trading days.  

Tharisa on the move.

A forward PE of 3.

If management improves the current  dividend policy of distributing only 10% of  net profit after tax, fair value, based on HEPS  vs an equity risk premium of 50% above the prime rate, fair value is R42.92

A single trade of 800 000 shares at R15.00 went through this morning.  That's typical of institutional backing.

“The fundamentals of the global stainless steel market remain sound with continued growth forecast in 2017, further supporting strong demand for chrome units in the form of ferrochrome and chrome ores,”  said Tharisa CEO, Phoevos Pouroulis in July 2017.