Tharisa PLC said on Thursday that platinum group metal prices remained under pressure on an annual basis in the first quarter of its financial year, while demand for chrome continued to strengthen.

The Cyprus-headquartered platinum miner also said it expects annual PGM production to rise to between 145,000 ounces and 155,000 ounces for the financial year ending September 30, compared to 144,700 ounces a year before. Over this period, chrome concentrates are projected to be between 1.7 million tonnes and 1.8 million tonnes, from 1.58 million tonnes.

For the first quarter that ended December 31, PGM output increased 16% to 35,700 ounces from 30,700 ounces in the fourth quarter to September 30. Compared to the same quarter in 2022, production slumped 16% from 42,700 ounces.

Average PGM price improved slightly by 1% to $1,344 an ounce in the first quarter, versus $1,331 in the fourth quarter. But the price plunged 43% compared to $2,360 in the first quarter of 2022.

Tharisa hit a record quarterly chrome output, up 12% to 462,800 tonnes in the first quarter from 413,400 tonnes in the previous quarter. However, production declined 21% compared to the first quarter of 2022.

Average metallurgical grade chrome concentrate prices held steady at USS291 per tonne on a quarterly basis. Prices surged 30% from $223 on an annual basis.

The company said continued strong demand was evident in the chrome market, particularly in the lead-up to a less disruptive Chinese New Year period starting on February 10, 2024.

The PGM market has continued to suffer from pricing pressure, however, a short-term reprieve towards the end of the quarter, driven by technical short covering, saw some price spikes, the miner said.

‘A positive start to our new financial year in what is traditionally a tough quarter with the festive season and inclement weather typically causing challenges to operations,’ Tharisa Chief Executive Officer Phoevos Pouroulis said.

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