Behind Tharisa’s breakout results: a company building for decades, not quarters

When EasyEquities chief enablement officer and CN&CO founder Carel Nolte recently sat down with Tharisa CEO Phoevos Pouroulis to discuss the company’s latest interim results, the conversation quickly moved beyond earnings numbers and commodity prices. Instead, it became a fascinating look at what it takes to build a mining business designed not for the next quarter, but for the next generation.

The webinar, titled “Behind Tharisa’s breakout results”, was managed and hosted by CN&CO Events, the team behind many successful online and IRL events, including the InsureTalk webinar series.

The conversation offered investors a rare opportunity to hear directly from the leader of one of South Africa’s most interesting mining success stories. With more than 8 000 EasyEquities investors holding Tharisa shares, the discussion focused on strategy, execution, growth and the long-term outlook for both the company and the commodities it produces.

Delivering despite challenging conditions

Tharisa’s latest results showed strong earnings growth and improved profitability, but Phoevos was quick to point out that these outcomes were not simply the result of favourable commodity prices.

For him, the standout achievement was operational execution.

The first half of the year was marked by severe weather conditions, including heavy rainfall, flooding and lightning events across South Africa. Despite these challenges, Tharisa successfully delivered strong production volumes while maintaining one of the best safety records in the mining sector.

“Safety is a core value for us,” said Phoevos. “A safe, clean mine is a productive mine.”

That commitment to disciplined operations has helped position Tharisa among the lowest-cost producers in its sector, providing resilience even when commodity markets become volatile.

A transformational underground future

One of the most significant developments discussed during the webinar was Tharisa’s transition from open-pit mining to underground operations.

While the project carries an estimated investment of around R10 billion, Phoevos emphasised that this capital will be deployed over approximately 10 years and forms part of a carefully considered long-term strategy.

The underground development is expected to unlock an additional 60 years of mine life, extending the future of the Tharisa Mine well beyond the lifespan of its current open-pit operations.

Importantly, the move underground is not simply about extending mine life. It is also expected to improve operating efficiency by reducing waste stripping and lowering haulage requirements, both significant contributors to mining costs.

For investors, it is a reminder that successful mining companies must think decades ahead.

As Phoevos noted, it can take as long as 16 years to bring a mine from discovery into production.

The chrome story investors often overlook

While platinum group metals (PGMs) frequently dominate headlines, Phoevos believes chrome remains one of the most underappreciated parts of the Tharisa investment case.

South Africa holds more than 70% of the world’s chrome resources, while China, the largest consumer of chrome through its stainless steel industry, has virtually no domestic supply. Tharisa alone supplies approximately 10% of China’s chrome import requirements from a single mine.

That statistic surprised even Carel!

Chrome’s importance stems from its role in stainless steel production, where it provides corrosion and rust resistance. It is a critical ingredient that cannot easily be replaced.

Demand continues to grow through applications ranging from infrastructure projects and bridges to renewable energy technologies, electric vehicles and industrial manufacturing.

At the same time, new chrome supply is becoming increasingly difficult and expensive to develop. The result could be a tightening supply-demand balance that supports long-term pricing strength.

Building the next growth engine in Zimbabwe

Beyond its South African operations, Tharisa is investing heavily in Karo Platinum in Zimbabwe, a project Phoevos described as transformative for the group.

The project sits on the Great Dyke, the world’s second-largest geological formation containing platinum group metals.

Years of exploration and development work have already been completed, and construction activity is now accelerating. Mining has begun, infrastructure is being developed and processing facilities are under construction.

For Tharisa, Karo represents far more than a new mine. It creates geographic diversification, reduces reliance on a single asset and positions the company for significant growth. Perhaps most importantly, the project is expected to create approximately 1 200 permanent jobs and thousands more contractor opportunities in Zimbabwe.

Phoevos spoke passionately about the positive impact mining investment can have on communities and economies, highlighting the importance of creating opportunities in regions where employment remains scarce.

A changing narrative around PGMs

One of the most interesting parts of the discussion centred on the future demand outlook for platinum group metals.

Just a few years ago, the market narrative suggested that battery electric vehicles would eventually eliminate the need for PGMs used in internal combustion engines. Today, that narrative is becoming more nuanced. While electric vehicle adoption continues, many global manufacturers are embracing hybrid technologies and extending the lifespan of internal combustion engines.

At the same time, entirely new sources of demand are emerging. Artificial intelligence, data centres, advanced semiconductors, hydrogen technologies and fibre-optic infrastructure are all creating opportunities for increased PGM consumption.

Materials such as platinum, palladium, rhodium, iridium and ruthenium possess unique properties that make them valuable in high-temperature and high-performance technologies. As AI infrastructure expands globally, demand for these metals could increase significantly.

“The conversation has moved on,” explained Phoevos. “We are seeing growing interest in future-facing technologies and where these critical minerals fit into that picture.”

A bigger business, a bigger opportunity

Looking ahead three years, Phoevos believes Tharisa could look very different from the company investors see today.

With Karo Platinum moving toward production and the underground expansion advancing, he expects the group to roughly double in size.

Revenue could exceed US$1 billion, profitability could increase substantially and the business would be supported by multiple assets across different jurisdictions.

For investors, that growth could also help address concerns around concentration risk and potentially drive a market valuation more reflective of the company’s underlying performance.

Throughout the conversation, one theme remained constant. While markets may focus on short-term commodity cycles and daily headlines, Tharisa continues to make decisions based on decades rather than months.

For long-term investors, that may be the most important takeaway of all.

Watch the interview below: