Tharisa PLC said on Wednesday its platinum group metal production declined for the first nine months of its financial year as it grappled with depressed prices and low volumes.

The Cyprus-headquartered platinum miner reported a 15% drop in PGM output to 114,000 ounces for the nine months that ended June 30 from 133,900 ounces in the same period last year.

Year-on-year, PGM production fell by 12% to 37,000 ounces in the third quarter, compared to 42,100 ounces in the corresponding quarter last year.

But PGM output rose by 7.8% to 37,000 ounces in the first quarter from 34,300 ounces in the second quarter.

The company warned that PGM output will remain subdued for the remainder of the financial year ending September 30 as it focuses on what it calls mining flexibility for sustainable reef operations.

In chrome, production was flat at 1.16 million tonnes year-on-year over the nine-month period.

Chrome output decreased by 2.7% to 378,800 tonnes for the third quarter from 389,700 tonnes in the same quarter in 2022.

On the quarterly basis, chrome production was 6.4% lower at 378,800 tonnes in the third quarter from 404,800 tonnes in the second quarter.

The mining group said the pressure seen in the PGM market manifested itself in ‘some unusual and often aggressive selling patterns’, with renewed fears of a macroeconomic slowdown, driven by China and the US, compounding price pressures.

‘This despite car sales being set to surpass production last year, which should underpin a demand for all PGM metals,’ it said.

But the company maintains that while prices are trading near 52-week lows, in the medium to long-term, prices should rise, driven by supply complexities in the major producing regions.

However, Tharisa said the chrome market showed its ongoing resilience as solid demand meant prices averaged well above those achieved in the previous quarters.

Copyright 2023 Alliance News Ltd. All Rights Reserved.