Karo edges closer to multi-million dollar financial closure
CLOUDINE MATOLA
Karo Mining Holdings is edging closer to securing US$175.8m in crucial debt funding, with financial closure now targeted for early this year.
This funding is vital for completing its ongoing platinum project construction, which commenced in December 2022.
The total funding required to finish the Karo Platinum Project is US$499m.
The company’s progress was buoyed by a 45% recovery in platinum group metal (PGM) basket prices in 2025, which improved the project’s fundability and debt capacity.
In its financial results for the year ended September 30, 2025, the company provided specifics on its funding strategy. Karo has been utilizing a US$150m facility from its parent company, Karo Mining Holdings (KMH).
Of this, US$133m was drawn by September 2025, with the remaining US$17m scheduled for release in FY2026 to meet upcoming obligations.
Tharisa plc, the ultimate parent company, will provide an additional US$20 million through a commodity-linked notes debt facility from Arxo Finance, available from December 2025. Tharisa plc has also committed to continue funding Karo and will provide parent company guarantees for Karo Platinum’s debt.
An important catalyst for finalizing the US$175.8 m debt package is the conclusion of fiscal negotiations with the Zimbabwean government.
Tharisa CEO Phoevos Pouroulis stated that fiscal terms were expected to be finalized “early in the new year” (2026), which would pave the way for securing the remaining project balance.
Significant construction milestones have been achieved on site. Design and earthworks are fully complete, while civil works are 80% complete.
Procurement stands at 70% complete, and fabrication is 37% complete. Bulk utilities, including water and power supply, are fully secured.
The pivotal milestone of “first ore in the mill” is expected 15 months after financial close. With financial closure targeted for 2026, this sets the stage for the transition from construction to ore processing.
Independent auditors BDO Limited noted that development was extended due to delays in concluding funding but issued an unmodified audit opinion. They confirmed management had performed necessary impairment tests on the US$170.0 million in mine development assets and found no material uncertainty regarding the company’s ability to continue as a going concern, partly due to Tharisa’s continued support.
For the year ended September 30, 2025, Karo’s loss decreased to US$2.172m from US$2.501m in the prior period.
The improved pricing environment is a key tailwind. After a slump in 2024, the spot PGM basket price rose to US$1,882.74 per 6E ounce in 2025, supporting the project’s economics.
Karo’s report highlighted uncertainty regarding Zimbabwe’s draft Finance Bill for 2026, which proposes potential tax changes. Management believes it is probable, though not certain, that the Karo Platinum Project will be outside the scope of the proposed changes, based on tax concessions negotiated in July 2025.
The final financial impact remains unquantified until the bill is enacted.
The company stated its directors will continue to monitor spending and manage project commitments against funding availability, with contingency plans in place to maintain necessary funds.
The key upcoming milestones for the Karo Platinum Project, based on the latest reports, are as follows.
