Broker Peel Hunt has maintained its price target for Tharisa (THS ) of 190p, following the release of the South African mining company’s second quarter results.

“At 404,000 tonnes, Tharisa produced considerably more chrome concentrates than our 357,000 tonne estimate”, the broker said. 

“Realised pricing was also higher than we expected, adding a double benefit. Higher PGM realisations look to offset lower-than-expected PGM output.”

Tharisa produced 34,000 ounces during the quarter, as against Peel Hunt’s estimate of 36,000 ounces, so that was a miss, caused largely by inclement weather. But overall, the broker stated: “Second quarter of FY26 a beat.” 

So, in light of this, what’s the company worth?

“Trading at 1.9x FY26E EV/EBITDA, we do not believe Tharisa shares are beginning to price in the 40-year life extension from the underground work, the potential at Karo, or the structural platinum deficit,” said Peel Hunt. 

“We reiterate our buy recommendation and 190p target price.”

Peel Hunt also highlighted the ability of Tharisa to make up for lost ground by aggressive ore purchasing. This meant an additional 58,000 tonnes of ore was processed through the Voyager and Genesis plants in the March quarter. 

This purchased ore was likely higher in chrome content, so the 16.9% average grade meant output exceeded expectations. 

“Present spot chrome concentrate prices of around US$315 per tonne have, so far, more than compensated for rising sea freight costs, implying some degree of insulation to higher fuel and explosives costs in the second half,” the broker added. 

“The Iran conflict and the demand uncertainties that it is creating are overshadowing the value on offer within the Tharisa share price. Progress at the underground operation adds low-cost longevity to the present cash flows. Less visible, but progress nonetheless on the Karo mine licence and funding package also bring growth in cash flows closer. In our view, neither look to be priced in given an EV/EBITDA multiple of 1.9 times.

 

View from Vox

 

Peel Hunt clearly delineating the value on offer from Tharisa, which is set to benefit from a benign pricing environment and a mining future that stretches visibility out far further than is normal for most mining companies of a comparable size. What’s more, Tharisa is not new to this game. The company has been on the ground producing product in South Africa for many years, and is highly experienced. All told, the 190p target offers a lot of upside on the current 119p price.