Higher-than-expected ore mined and milled was a reason, but also higher rougher feed grades in the PGM circuit than expected.
This is a good sign that the mine reset is now allowing a better and more stable mix of the various mineralised seams into the plant, said the broker.
Tharisa also maintained its impressive safety record, said Peel Hunt, with five years of operations without a fatality.
Production forecasts for the current year are slightly lower than Pell Hunt’s estimates at 1.75-1.85Mt chrome concentrates and 165-175koz PGM, but the PGM basket price of US$2,500/oz is well above our FY22E forecast basket price of US$2,110/oz.
We also suspect that management has allowed a conservative ramp-up schedule for the Vulcan plant to reach target recoveries.
Buy with a 250p target price, said the broker.
Shares rose 5% to 130p.