StockMarketWire.com - Mining firm Tharisa's basic earnings per share and headline earnings per share for the six months ended 31 March 2019 are expected to be $0.04 per share, with a tolerance of 10%.

This is a decrease of 60% relative to the EPS and HEPS of US$ 10 cents per share for the six months ended 31 March 2018.

According to the company this reflects:

- a material weakening of the metallurgical grade chrome concentrate price by 15.5% from US$193/t in H1 FY2018 to US$163/t in H1 FY2019;

- a 14.8% reduction in the volumes of chrome concentrates sold from 725.6 kt to 618.0 kt over the comparable period and a 11.9% reduction in PGM volumes sold from 76.1 koz to 67.0 koz; and

- the increase in the cash mining costs per tonne mined as a result of lower mining volumes has reduced economies of scale and are impacted furthermore by above inflation increases in costs such as diesel of 18.1% per litre in ZAR terms (typically comprising about 14.0% of on-mine cash costs),

Production volumes and recoveries of both chrome concentrates and PGMs have trended upwards in the second quarter in comparison to the first quarter ended 31 December 2018, and management expects this positive trend to continue into the second half of the financial year.

Tharisa is preparing its interim financial statements for the six months ended 31 March 2019, with the financial results expected to be released on or around 15 May 2019.




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