Tharisa, a leading PG
M (Platinum Group Metals) and chrome mining company, held its annual general meeting on February 21, 2024, where shareholders gave the green light to a special resolution authorizing the company to undertake a general repurchase of ordinary shares. This move comes amidst Tharisa’s dual listing on the Johannesburg and London stock exchanges and aims to address the perceived market undervaluation of the company’s shares. The board’s decision reflects confidence in the company’s prospects and commitment to enhancing shareholder value.
Approval for Share Repurchase
At its annual general meeting, Tharisa received approval from shareholders to initiate a share repurchase program, allowing the company to repurchase up to 10% of its ordinary shares in issue. This resolution underscores the board’s confidence in Tharisa’s long-term growth prospects and its commitment to delivering value to shareholders.
Market Perception and Dual Listing
Tharisa’s decision to pursue a share repurchase program stems from the belief that the company’s shares are trading at a significant discount, particularly in light of the challenging PGM commodity price environment. Despite the strong contribution from chrome sales, the market has not fully reflected this aspect of Tharisa’s business. The company’s dual listing on the Johannesburg and London stock exchanges provides it with broader access to capital markets and enhances its visibility among international investors.
Engagement of Peel Hunt LLP
To execute the share repurchase program, Tharisa has enlisted the services of Peel Hunt LLP, a leading independent investment bank and brokerage firm. Peel Hunt will manage and carry out on-market purchases of ordinary shares as principal on both the Johannesburg and London stock exchanges. The maximum amount allocated for the repurchase program is US$5 million, excluding associated expenses.
Commitment to Capital Discipline
Michael Jones, Chief Financial Officer of Tharisa, emphasized the company’s commitment to capital discipline and its confidence in the underlying strength of its business model. Despite the challenges posed by the PGM commodity pricing environment, Tharisa remains optimistic about the resilience of its co-product business model, particularly with regards to chrome prices. The ongoing development of the Karo Platinum Project further underscores Tharisa’s long-term growth strategy and commitment to delivering shareholder value.
Future Outlook and Strategic Roadmap
Tharisa’s decision to initiate a share repurchase program aligns with its strategic roadmap and long-term objectives. By leveraging its dual listing status and engaging in proactive capital management initiatives, Tharisa aims to unlock value for shareholders and capitalize on opportunities for growth. The company remains focused on maintaining capital discipline while advancing key projects, such as the Karo Platinum Project, which is poised to significantly enhance Tharisa’s position in the market.
Tharisa’s decision to embark on a share repurchase program reflects its confidence in the underlying strength of its business and its commitment to enhancing shareholder value. Through proactive capital management and strategic initiatives, Tharisa aims to address market undervaluation and capitalize on growth opportunities in the PGM and chrome mining sectors. As the company continues to execute its strategic roadmap, shareholders can look forward to realizing the full potential of their investment in Tharisa.
