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Tharisa plc
(Incorporated in the Republic of Cyprus with limited liability)
(Registration number HE223412)
JSE share code: THA
LSE share code: THS
A2X share code: THA
ISIN: CY0103562118
LEI: 213800WW4YWMVVZIJM90
('Tharisa' or the 'Company')
PRODUCTION REPORT FOR THE SECOND QUARTER OF FY2023 ENDED 31 MARCH 2023
Tharisa, the platinum group metals (PGMs) and chrome co-producer dual-listed on the Johannesburg
and London stock exchanges, announces its production results for Q2 FY2023 and cash balance as at
the quarter end.
Quarter highlights
‒ Lost Time Injury Frequency Rate (‘LTIFR’) of 0.27 per 200 000-man hours worked
‒ Mining volume recovery slower than expected with continued adverse weather negatively
impacting flexibility in open pit
‒ Contractor appointed on a short term basis to assist with waste mining (starting 1 May 2023)
‒ Processing capacity maintained utilising ROM ore stockpiles and strategic ROM ore purchases
‒ Chrome output increased 5.7% to 404.8 kt (Q1 FY2023: 383.1 kt) with ROM grades up
at 18.4%
‒ PGM output lower at 34.3 koz (Q1 FY2023: 42.7 koz) on reduced recoveries due to
sub-optimal ore mix
‒ Metallurgical grade chrome concentrate prices up 20.6% quarter on quarter, and 52.0% up on
Q2 FY2022
‒ Karo Platinum Project on track and on budget with ground clearance and civil contractors
having commenced work on site
‒ Successfully concluded a US$130 million debt facility with Société Générale and Absa Bank
Limited; undrawn
‒ US$5 million additional subscription received in the Karo Mining Holdings Bond increasing
total proceeds to US$36.8 million
‒ Cash on hand US$205.8 million (31 December 2022: US$213.9 million), with a net cash
position of US$106.8 million (31 December 2022: US$101.1 million)
Key Operating Numbers
Quarte Quarter Quarter Quarte Half Half
r ended ended on r ended year year
31 Mar 31 Dec quarter 31 Mar ended ended
2023 2022 moveme 2022 31 Mar 31 Mar
nt % 2023 2022
Reef mined kt 1 028.0 1 081.5 (4.9) 1 419.7 2 109.5 2 833.6
6E PGMs produced koz 34.3 42.7 (19.7) 44.1 77.0 91.8
Chrome concentrates kt 404.8 383.1 5.7 374.9 787.9 776.7
produced (excluding third
party)
Average PGM contained US$/ 2 032 2 360 (13.9) 2 806 2 216 2 592
metal basket price oz
Metallurgical grade chrome US$/t 269 223 20.6 177 247 175
concentrate contract price CIF
China
Phoevos Pouroulis, CEO of Tharisa, commented:
“Tharisa continued to generate healthy free cash flow in the second quarter of our financial year
despite the significant impact of severe weather conditions to our open pit mining operations. While
chrome production was up, the ore mix saw PGM output in January and February fall below
expectations for the quarter. With our operational improvement implemented during the quarter
already delivering results, and the additional flexibility that both new equipment and the additional
waste contractor will bring to the pit, the second half of our financial year will see an improvement at
our flagship Tharisa mine.
Due to the challenges posed in December through to February specifically, management took the
prudent step of lowering full-year guidance by 10%. The unique and unparalleled properties of our
orebody, however, were once again shown to reap rewards as the chrome price reached levels as high
as US$300/ tonne and, while the PGM prices have pulled back recently, even at these levels we
continue to generate healthy margins.
Tharisa’s Vision 2025 strategy of reaching optimal and sustainable production from the Tharisa mine
remains intact, and we will benefit from the significant progress being made at Karo, our second tier
one mine – which remains on time and budget for first ore to the mill in H2 2024, as we continue to
evolve into a multi-asset/multi-jurisdiction PGM producer.”
Health & Safety
‒ The health and safety of our stakeholders remains a core value to the Group and Tharisa
continues to strive for zero harm at its operations
‒ LTIFR of 0.27 per 200 000-man hours worked
Market Update
‒ PGM prices came under pressure in the quarter as demand softened and destocking took
some shine off the strong pricing seen in FY2022. Rhodium and palladium prices remain the
most affected, with rhodium suffering from a small, tight, illiquid market influenced by a single
seller. With commodity markets generally directionless in the quarter as macro events
dominated fundamentals, and a slower than anticipated economic uplift post easing of COVID-
19 restrictions in China, meant the PGM basket price was lower than most analysts had
forecast. However, the outlook for the PGM basket remains strong as tight supply and strong
demand will ensure prices strengthen, with platinum the standout metal as the continued
shift into a supply deficit becomes evident
‒ Chrome prices remained robust following on from a strong first quarter, with spot at around
US$285/t at the time of writing. Stockpiles in China continue to hover at historically low levels
while demand for the product from South Africa remains strong, supply is hampered by
loadshedding and inland logistics challenges affecting the industry. While we will see some
short-term interruptions in China as some furnaces undergo maintenance, the long-term
fundamentals for the metal remain firmly intact, in particular due to the supply concentration
and the operational challenges some competing industry players have cited publicly, which
will have an impact on the already tight supply-demand fundamentals
Operational Update
‒ Total reef mined of 1 028.0 kt (Q1 FY2023: 1 081.5 kt) as adverse weather impacted the in-pit
flexibility affecting volume and reef mix
‒ Stripping ratio of 12.6 m3: m3 (Q1 FY2023: 10.6 m3: m3) improved as waste was moved in areas
recovering from in pit flooding
‒ Total reef tonnes milled for the quarter at 1 370.0 kt (Q1 FY2023: 1 427.8 kt), supplemented
by stockpiles and strategic ROM ore purchases
‒ Quarterly PGM production at 34.3 koz (Q1 FY2023: 42.7 koz)
‒ Rougher feed grade of 1.66 g/t (Q1 FY2023:1.66 g/t)
‒ Recovery of 61.9% (Q1 FY2023: 71.7%) as oxidised UG ROM ore was also milled
affecting PGM recovery
‒ Quarterly chrome production at 404.8 kt (Q1 FY2023: 383.1 kt)
‒ Grade of 18.4% Cr2O3 (Q1 FY2023: 17.0%)
‒ Recovery at 66.6% (Q1 FY2023: 65.7%) as yield from the Vulcan plant improved.
Speciality chrome production was lower due to a planned spiral replacement
programme
Karo Mining Holdings Update
‒ Extensive earthworks proceeding to plan
‒ Civils contracts for the pouring of the foundations for all plants and infrastructure at Karo have
been awarded
‒ Contracts for high voltage power line (31 km EIA permission) and all main transformers
awarded
‒ Ordering of long-lead items for the project continuing as per schedule
‒ Trial mining to commence
‒ 30 kt of ore to provide further information on drilling, blasting, grade control and
processing
‒ 150 employees and contractors on site in Zimbabwe, with majority of Zimbabwe management
positions filled
Cash Balance and Debt Position
Tharisa had a cash balance of US$205.8 million (31 December 2022: US$213.9 million) at the end of
the quarter, and debt of US$99.0 million (31 December 2022: US$112.8 million), resulting in a net cash
position of US$106.8 million (31 December 2022: US$101.1million). These cash and debt numbers
exclude the recently concluded US$130 million facilities which are undrawn at the reporting period.
Guidance
Due to lower than expected production in Q2 FY2023 production guidance is reduced by 10% from
the previous range of between 175 koz and 185 koz PGMs (6E basis) and 1.75 Mt to 1.85 Mt of chrome
concentrates.
Production Numbers
Quarter Quarter Quarter Quarter Half year Half year
ended ended on ended ended ended
31 Mar 31 Dec quarter 31 Mar 31 Mar 31 Mar
2023 2022 moveme 2022 2023 2022
nt %
Reef mined kt 1 028.0 1 081.5 (4.9) 1 419.7 2 109.5 2 833.6
Stripping ratio m3: m3 12.6 10.6 18.9 12.7 11.5 11.9
Reef milled kt 1 370.0 1 427.4 (4.0) 1 362.2 2 797.4 2 794.3
PGM flotation feed kt 1 039.6 1 115.3 (6.8) 1 045.7 2 154.9 2 115.0
PGM rougher feed grade g/t 1.66 1.66 - 1.74 1.66 1.74
PGM recovery % 61.9 71.7 (13.7) 75.4 67.0 77.4
6E PGMs produced koz 34.3 42.7 (19.7) 44.1 77.0 91.8
Platinum produced koz 19.7 23.2 (15.1) 24.3 42.9 50.8
Palladium produced koz 6.1 7.5 (18.7) 7.4 13.6 14.9
Rhodium produced koz 3.0 4.2 (28.6) 4.2 7.2 8.8
Average PGM contained US$/o 2 032 2 360 (13.9) 2 806 2 216 2 592
metal basket price z
Platinum price US$/o 1 004 967 3.8 1 026 976 1 011
z
Palladium price US$/o 1 563 1 952 (19.9) 2 312 1 763 2 125
z
Rhodium price US$/o 10 812 12 951 (16.5) 17 023 12 133 15 189
z
Average PGM contained ZAR/o 35 801 41 682 (14.1) 42 784 39 094 39 721
metal basket price z
Cr2O3 ROM grade % 18.4 17.0 8.2 17.1 17.7 17.6
Chrome recovery % 66.6 65.7 1.4 67.8 66.2 66.7
Chrome yield % 29.5 26.8 10.1 27.5 28.2 27.8
Chrome concentrates kt 404.8 383.1 5.7 374.9 787.9 776.7
produced (excluding third
party)
Metallurgical grade kt 365.3 347.2 5.2 295.0 712.5 600.3
Specialty grades kt 39.5 35.9 10.0 79.9 75.4 176.4
Third party chrome kt 45.8 40.9 12.0 53.4 86.8 102.6
production
Metallurgical grade chrome US$/t 269 223 20.6 177 247 175
concentrate contract price CIF
China
Metallurgical grade chrome ZAR/t 4 827 3 932 22.8 2 700 4 387 2 670
concentrate contract price CIF
China
Average exchange rate ZAR:U 17.8 17.6 1.1 15.2 17.7 15.3
S$
Paphos, Cyprus
13 April 2023
JSE Sponsor
Investec Bank Limited
Connect with us on LinkedIn and Twitter to get further news and updates about our business.
Investor Relations Contacts:
Ilja Graulich (Head of Investor Relations and Communications)
+27 11 996 3500
+27 83 604 0820
igraulich@tharisa.com
Financial PR Contacts:
Bobby Morse / Oonagh Reidy
+44 207 466 5000
tharisa@buchanan.uk.com
Broker Contacts:
Peel Hunt LLP (UK Joint Broker)
Ross Allister / Georgia Langoulant
+44 207 7418 8900
BMO Capital Markets Limited (UK Joint Broker)
Thomas Rider / Nick Macann
+44 207 236 1010
Berenberg (UK Joint Broker)
Matthew Armitt / Jennifer Lee / Detlir Elezi
+44 203 207 7800
Nedbank Limited (acting through its Corporate and Investment Banking division) (RSA Broker)
Carlyle Whittaker
+27 11 294 0061
About Tharisa
Tharisa is an integrated resource group critical to the energy transition and decarbonisation of
economies. It incorporates exploration, mining, processing and the beneficiation, marketing, sales,
and logistics of PGMs and chrome concentrates, using innovation and technology as enablers. Its
principal operating asset is the Tharisa Mine, located in the south-western limb of the Bushveld
Complex, South Africa. The mechanised mine has an 18 year pit life and can extend operations
underground by at least 40 years. Tharisa also owns Karo Mining Holdings a low-cost, open-pit PGM
asset under construction and located on the Great Dyke in Zimbabwe. The Company is committed to
reducing its carbon emissions by 30% by 2030 and the development of a roadmap is continuing to be
net carbon neutral by 2050. Tharisa plc is listed on the Johannesburg Stock Exchange (JSE: THA) and
the Main Board of the London Stock Exchange (LSE: THS).
