3 UK Mining Stocks to Watch Out For

Savion Roberts

Bitcoin & Crypto

7 mins

Oct 11, 2022 11:57

On Tuesday, Royston Wild looks at three releases from UK mining stocks that could have an impact on the markets.

shares in ferrexpo slumped 9% on tuesday as it announced news of production disruptions following russian missile strikes in ukraine. this means that the company's share price is now significantly lower than it was just a day ago, as investors react to the news of production disruptions.

Ferrexpo is the world's third-largest exporter of iron ore pellets, and said that state-owned electricity infrastructure had been damaged on Monday. None of its employees had been injured as a result of the strikes. The company is committed to working with the Ukrainian government to help repair the infrastructure and ensure the safety of its employees.

The FTSE 250 business has temporarily suspended output following the attacks. Available power is being allocated to critical equipment required for essential services and local communities, it said.

The engineers' assessment of the damage to the electrical infrastructure is ongoing, and they have estimated that repairs will result in some production downtime. Ferrexpo is working to minimize the impact of the repairs on operations and will provide updates as soon as possible.

The company said that it currently has “a sufficient volume of its products, either currently in transit and or in stockpiles, to meet its expected sales volumes, subject to logistics corridors remaining available.” Looking ahead, the company is confident that it will be able to continue meeting customer demand for its products, provided that transportation routes remain open.

Ferrexpo is a leading iron ore producer with operations in Ukraine. The company operates three mines, an iron ore pellet plant and logistics facilities, and is one of the country's largest producers of iron ore pellets.

South African platinum and chrome producer Tharisa has announced its full-year results.

PGM specialist Tharisa continues to impress investors with its strong production numbers, posting a 6% increase in output for the year. This is good news for the company and its shareholders, as it indicates that Tharisa is on track to meet its goals.

Overall, Tharisa's PGM output for the 12 months to September was up 13.6% year on year, totaling 179,200 ounces. This is a strong performance for the company, and reflects the growing demand for PGMs globally.

Looking at the output for the final quarter, it is evident that PGM rose to 45,300 ounces from 42,100 ounces in the prior three-month period. This is a clear indication of the improvement in PGM's production and its commitment to meeting the demands of its customers.

It is good to see that chrome production is on the rise, with a 5.1% year-on-year increase in the year to September. This is a positive sign for the global economy, as chrome is an important commodity used in many industries. With output rising in the fourth quarter to 416,200 tonnes from 389,700 in the third quarter, it is clear that demand for chrome is growing.

I envisage that the mining stock will produce between 175,000 and 185,000 ounces of PGM in the current financial year, and that chrome production will be between 1.75 million and 1.85 million tonnes. This would be a great achievement for the company and would help to boost the economy.

Tharisa's annual PGM basket price fell 16.6% last year to $2,564 per ounce, but the company says prices have not retreated as much as anticipated. The business attributes the fall to the economic slowdown, but remains optimistic about the future.

Metallurgical grade chrome prices are on the rise, reaching $209 a tonne, up 35.7% from the previous year. This increase is due to strong demand from the stainless steel industry, which uses chrome to produce corrosion-resistant alloys.

Tharisa's Karo Platinum project is on schedule and set to break ground in December. Production is expected to begin within 24 months, making it a major player in the platinum market. This is great news for the company and its shareholders.

Thor Explorations: A New Way to Explore the Universe

Thor Explorations shares were trading 3% higher today following upbeat operating news here, too. The company reported that its flagship Seguela Gold Project in Ivory Coast is progressing well, with first gold production expected in early 2020.

Thor is on track to meeting its gold production targets for the year, with output coming in above guidance for the third quarter. The company's mines in Nigeria, Senegal and Burkina Faso are all performing well, and Thor is confident that it will be able to maintain its strong performance in the months to come. With gold prices remaining high, Thor is well positioned to continue growing its business and delivering shareholder value.

The AIM-listed mining stock said it achieved another record quarter of production at its flagship Segilola asset in Nigeria. This is great news for the company and its shareholders, as the Segilola mine continues to prove itself as a valuable asset.

Thor Explorations is targeting production of between 25,000 and 27,000 ounces of gold. This would put the company on track to meet its full-year production guidance of 90,000 to 100,000 ounces. Thor Explorations is a major player in the gold mining industry, and its production targets are closely watched by analysts and investors.

Looking ahead, the gold miner is confident that it will be able to meet its guidance for the year, with costs remaining under control. This positive outlook is a good sign for the future of the company and the gold mining industry as a whole.

The business aims to begin deeper exploration drilling at Segilola during the current quarter, it added. The programme is designed to extend the life of the asset. The business' aim is to begin deeper exploration drilling at Segilola during the current quarter in order to extend the life of the asset.