JOHANNESBURG (miningweekly.com) – JSE-listed platinum group metals (PGMs) and chrome producer Tharisa on Wednesday reported that its operations remain on track to meet the 2017 full-year production guidance of 147 000 oz of PGMs and 1.3-million tonnes of chrome concentrates, of which 300 000 t will be specialty grade chrome concentrates.

“We are positive about the prospects for the year and believe that, with the support of buoyant chrome prices, 2017 will be a definitive year with reduced unit costs and increased operating margins,” said CEO Phoevos Pouroulis.

During the first quarter of the financial year, ended December 31, Tharisa mined consistently above the combined plant processing capacity of 400 000 t/m at its Tharisa mine in the Bushveld Complex, bringing the total reef mined from the openpit to 1.22-million tonnes for the quarter.

“The focus remained on grade control and the optimal blend of material ahead of the operation’s two plants,” the company said, adding that during the quarter, three-million cubic metres of waste were removed.

Further, 1.2-million tonnes were milled during the quarter, notwithstanding planned routine maintenance, including yearly mill relining.

PGM recoveries, at 80.5%, remained well above the targeted recovery of 70%, resulting in PGM production of 34 800 oz on a 6E (platinum, palladium, rhodium, ruthenium, iridium and gold) basis.

Total chrome concentrate production was 322 000 t at a recovery rate of 64.3%, edging closer to the targeted recovery of 65% for chrome. Of that, 77 000 t was higher-value specialty grade material. Specialty grade material typically fetches a premium to metallurgical grade chrome.

The average PGM basket price for the three months under review was $740/oz, $64/oz lower than the $804/oz price achieved in the quarter ended September 30, 2016.

Metallurgical grade chrome prices rose almost 60% over the quarter.

Current market prices are significantly higher and while demand has eased ahead of the Chinese New Year, market fundamentals and lower Chinese port stocks should spur purchasing thereafter, the company said.