Victoria Falls Stock Exchange (VFEX)-listed platinum group metals (PGM) miner, Karo Mining Holdings (KMH), is navigating challenging market conditions while advancing its flagship Karo Platinum Project, Mining Zimbabwe reports.
By Rudairo Mapuranga
In its recently released audited financial statements for the year ending September 30, 2024, the company highlighted significant progress despite delays in project funding caused by a downturn in PGM prices. First Ore in Mill (FOIM) is now scheduled for the second half of 2026, reflecting a slight timeline shift. However, ongoing negotiations with financiers indicate that the project remains on track.
The 2024 financial year posed unique challenges for KMH, primarily due to weaker PGM market conditions that impacted funding workstreams. In response, the company has adopted a phased approach, breaking the project into smaller, manageable work packages to ensure progress aligns with available funding. Term sheets from prospective financiers are currently under review, and the company remains optimistic about securing the necessary capital for full-scale implementation.
While KMH’s development has slowed, the long-term outlook is promising, driven by increasing global demand for PGMs. Platinum, palladium, and other associated metals are critical to the automotive and energy sectors, particularly as the transition to cleaner technologies accelerates, necessitating high-performance catalytic converters.
KMH’s financial performance showed a remarkable turnaround in 2024. The company posted a net profit of US$13.5 million, compared to a loss of US$2.5 million in 2023. This improvement was largely attributable to a fair value gain on financial liabilities amounting to US$16.7 million, contributing to the positive bottom line. However, revenue generation remains absent as the company is still in its development phase, with FOIM expected in 2026.
The company’s balance sheet reflects a robust liquidity position, with cash and cash equivalents rising to US$62 million by the end of the financial year, up from US$12.3 million in 2023. This increase is attributed to successful capital-raising efforts, including proceeds from share issuances and loans.
Securing sufficient capital remains a top priority for KMH. To date, the company has received US$107 million from Tharisa plc, its major shareholder, to fund ongoing construction activities for the Karo Platinum Project. Additionally, KMH is in advanced stages of securing US$225 million in debt financing, with further equity partners being pursued to meet the remaining capital requirements.
The company’s commitment to creating long-term value for shareholders is evident in its capital investments, which amounted to US$22.6 million for the year. This underscores KMH’s dedication to advancing its mining project despite market volatility.
KMH is also positioning itself as a leader in sustainable mining. Its partnership with the Government of Zimbabwe, which holds a 15% free-carry stake in the Karo Platinum Project, reflects a commitment to sharing project benefits with the local community. Furthermore, the company is exploring cleaner technologies to reduce its environmental footprint, aligning with global efforts to decarbonize the mining sector.
