Mishma Chakanyuka, Staff Writer 
SUBDUED prices of platinum group metals (PGMs) globally during the course of 2024 adversely impacted development of Karo Mining Holdings (Karo)’s platinum project owing to delays in funding workstreams, the company has reported.
Karo, a local subsidiary of South African based resource group Tharisa plc said the PGMs’ price environment necessitated a review of the commissioning timeline now set for next year.
PGM miners’ revenues collapsed heavily in 2024 with the fall in palladium and rhodium prices and this, combined with steep mining cost inflation eroded margins triggering weak sentiment from investors.
“First ore in the mill (“FOIM”) is now planned for the second half of 2026 whilst the project workstreams have been divided into smaller commitments to ensure continued development aligned with funding availability,” the group said in a statement accompanying the financials for the year ended 30 September 2024.
“Negotiations for funding have been positive and now at an advanced stage with the group in possession of term sheets received from financiers which it is currently assessing whilst smaller work packages on the project are being completed.”
Karo also said its parent company, Tharisa plc has been following through on its commitment to fund the first US$135million of the project budget through equity and equity-type instruments and to provide various guarantees for the group to secure the additional debt.
“As of the reporting date US$107million had been received from Tharisa plc for utilisation on the ongoing construction work,” Karo said.
“In the current financial year, the US$65 million equity line that had been availed by Karo Mining Holdings in the prior year, was fully utilised for the project and a further US$70million equity line was availed and is being drawn down to fund the project working capital needs as they fall due.”
The group noted that management is at an advanced stage of securing debt funding amounting to US$225 million for the completion of the project construction and the balance of US$31,2million through an equity partner.
Karo Mining added that the directors will continue to review the spending, investment and commitments in the project; and have prepared scenarios to match the project commitments and funding availability should it be required to maintain available funds for the foreseeable future.
Consequently, the directors consider that, as of the date of approval of the consolidated financial statements, the group will continue to operate for the foreseeable future.
“Accordingly, the company has continued to adopt the going-concern basis in the preparation of the group’s consolidated financial statements.
The group has been able to settle its obligations as they fell due without challenges,” the group said.
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