As the global demand for platinum surges, Phoevos Pouroulis, CEO of Tharisa, stands at the helm of a company poised to capitalize on this lucrative opportunity. With platinum prices reaching a 12-year high, Tharisa has set ambitious targets for platinum group metal (PGM) production, aiming for a significant increase in output by 2026.
Ambitious Production Targets
In Tharisa’s recent fourth quarter and full-year production report, Pouroulis announced a target of producing between 145,000 to 165,000 ounces of PGMs in 2026. This is a notable increase from the 138,300 ounces produced in the current year and aligns with the company’s historical performance, as the last time it achieved similar production levels was in the 2022 financial year. Impressively, nearly 50% of Tharisa’s total production is platinum, underscoring the company’s focus on this precious metal.
Challenges and Opportunities
While the outlook for 2025 appears less optimistic due to necessary pit remediation, signs of recovery are emerging. In the fourth quarter, PGM production saw a 19.7% increase, reaching 41,300 ounces compared to 34,500 ounces in the previous quarter. This uptick coincided with a remarkable rise in platinum prices, which have surged by 85% this year alone.
Tharisa reported an 18.6% increase in the average annual PGM price, which stood at $1,615 per ounce. The fourth quarter saw an even more impressive basket price increase of 24.1%. Such price movements are indicative of a robust market, driven by supply constraints and rising demand.
Market Dynamics and Future Prospects
The PGM market, particularly for platinum, has been one of the strongest performers in 2025. Tharisa’s report highlighted ongoing deficits and tightening stocks as key factors propelling prices. Currently trading at $1,639.90 per ounce, platinum is nearing levels last seen in 2013. Analysts, including René Hochreiter from Noah Capital, predict that platinum could reach $2,000 per ounce, citing a 17% demand deficit anticipated for 2025.
Demand from various sectors, including jewelry, industrial applications, and investment, remains robust, further supporting the optimistic outlook for platinum prices. This favorable market environment is expected to help Tharisa offset challenges in its chrome production, which has faced price pressures.
Chrome Production Outlook
Tharisa has guided for chrome concentrate production between 1.5 million tons to 1.65 million tons in 2026, slightly down from the 1.56 million tons produced this year. The chrome price has seen an 11% decline, averaging $266 per ton, down from $299 per ton in 2024. Despite this, analysts from Peel Hunt suggest that surging PGM prices will mitigate the impact of lower chrome volumes on Tharisa’s overall performance.
Strategic Investments for Growth
In a bold move to enhance its operational capabilities, Tharisa recently unveiled a 10-year, $547 million capital program aimed at transitioning to underground mining in the North West province. This strategic investment is expected to increase the company’s exposure to platinum, potentially raising it to 55% of total production once two targeted reefs are operational.
While the initial market reaction to the capital expenditure may be cautious, analysts like Arnold van Graan from Nedbank Securities believe that the long-term benefits of this project will support Tharisa’s valuation, especially in a rising PGM price environment.
Market Performance and Future Outlook
Tharisa’s shares have surged by 47% year-to-date, reflecting investor confidence in the company’s strategic direction and the favorable market conditions for PGMs. With a market capitalization exceeding R7 billion, Tharisa is well-positioned to leverage its strengths in platinum production as it navigates the challenges and opportunities ahead.
In conclusion, under the leadership of Phoevos Pouroulis, Tharisa is not only setting ambitious production targets but also strategically positioning itself to thrive in a dynamic and evolving market. As platinum prices continue to rise, the company’s focus on innovation and operational efficiency will be crucial in securing its place as a leader in the PGM sector.
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