Tharisa’s first half 2018 results, from good to bad

The first half of fiscal 2018, ended Mar. 31, 2018, wasn’t so great (read bad) for Tharisa. While the company’s production of chrome concentrates rose, prices fell and you can figure out the rest.

Chrome concentrate production in the first half of fiscal 2018 (same 2017 period in parentheses) increased 15% to 732,500 mt (636,800 mt). Of that 558,900 mt (484,300 mt) was metallurgical grade and 173,600 mt (152,500 mt) was speciality grades). However, the contract price, c.i.f. China, fell 30.6% to $193 per mt vs. $278 in the same 2017 period.

As a result, while revenue rose a 13.8% to $199.2-million ($175.1-million), the company’s net profit fell 44.4% to $28.4-million ($51.1-million), while the EBITDA dropped 33.2% to $54.1-million ($81-million.

The increase in the average transport cost per mt of chrome concentrates, c.i.f. Major point China basis to $60.90 per mt from $50 (a 21.8% increase) didn’t help.

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