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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 THIRD QUARTER ENDED 30 JUNE 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 Q3 FY20231 and cash balance as at the quarter
end.
Quarter highlights
‒ Lost Time Injury Frequency Rate (‘LTIFR’) of 0.06 per 200 000-man hours worked
‒ Processing capacity maintained
‒ PGM output increased to 37.0 koz (Q2 FY2023: 34.3 koz) with yield maintained and recoveries
improving
‒ Chrome output marginally lower at 378.8 kt (Q2 FY2023: 404.8 kt) on steady grades, yield, and
recoveries
‒ Mining volumes remain constrained
‒ Metallurgical grade chrome concentrate prices up 7.8% quarter on quarter averaging US$290/t (Q2
FY2023: US$269/t)
‒ Karo Platinum Project remains on track with major milestones of first concrete pour and pilot mining
commenced
‒ Cash on hand increased by US$36.8 million to US$242.6 million (31 March 2023: US$205.8 million),
resulting in a net cash position of US$141.5 million (31 March 2023: US$101.1 million)
‒ Strong balance sheet to support the growth of the business whilst providing returns to shareholders
Key Operating Numbers
Quarter Quarter Quarter on Quarter Nine Nine
ended ended quarter ended months months
30 June 31 March movement 30 June ended ended
2023 2023 % 2022 30 June 30 June
2023 2022
6E PGMs produced koz 37.0 34.3 7.9 42.1 114.0 133.9
Chrome concentrates produced kt 378.8 404.8 (6.4) 389.7 1 166.7 1 166.4
(excluding third party)
Average PGM contained metal US$/oz 1 695 2 032 (16.6) 2 677 2 049 2 619
basket price
1
Tharisa’s financial year is from 01 October to 30 September
Metallurgical grade chrome US$/t 290 269 7.8 247 258 201
concentrate contract price CIF
China
Phoevos Pouroulis, CEO of Tharisa, commented:
“The unique co-product model was again highlighted with the Company benefitting from continued favourable
chrome pricing while dealing with PGM pricing pressures, resulting in strong free cash generation - ending the
period with a further strengthened balance sheet with net cash of over US$140m.
The quarter also allowed us to review our in-pit mining plan with the appointment of a waste material contractor
helping to ensure sustainable access to the required reef horizons. Our output will, however, remain subdued for
the remainder of the year as we focus on mining flexibility for sustainable reef operations.
At Karo, we remain on track with project construction, completing our first concrete pour in June, with pilot
mining having commenced. The equity contribution by Tharisa of US$135 million is being drawn down to match
capital requirements with cash flow as we finalise the senior debt portion for this globally strategic mine.
Domestic headwinds coupled with macro events and commodity price uncertainty have pressured the business
and led to a material disconnect between equity valuations and intrinsic valuation underpinned by
cash generation. However, as we have shown in more complex historical times, the nature of Tharisa with
modern, low-cost structures leaves us well positioned to weather the environment and continue to provide
returns to shareholders while actively and sustainably growing the business.“
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 0.06 per 200 000-man hours worked
Market Update
‒ The pressure seen in the PGM market manifested itself in some unusual and often aggressive selling
patterns, with renewed fears of a macro economic slowdown, driven by China and the United States,
compounding price pressures. This despite car sales being set to surpass production last year, which
should underpin a demand for all PGM metals. However, pipeline destocking meant that this increased
demand was satisfied by pipeline inventories. We maintain that while prices are trading near 52-week
lows, in the medium to long-term, prices should rise, driven by supply complexities in the major
producing regions, with current pricing pressures leading to increased challenges faced by some higher
cost producers. While most commentators have pulled back price forecasts in line with recent events,
the long-term outlook for even the most conservative forecasts are indicating higher averages for PGMs
than current spot prices
‒ The chrome market showed its ongoing resilience as solid demand meant prices averaged well above
those achieved in the previous quarters. While port stocks, which were sitting at multi-year lows have
increased, the supply pipeline remains tight, particularly as inland logistics in South Africa remain
challenging. In addition, there have been no major primary output increases in the local market due to
the lack of available resources and power constraints for smaller producers unable to access standby
power. The chrome market looks set to continue its strong performance for the remainder of the
calendar year 2023, particularly as new furnace commissioning continues to draw on material demand
Operational Update
‒ Total reef mined of 908.8 kt (Q2 FY2023: 1 028.0 kt) limited by constrained in pit flexibility
notwithstanding the increased waste stripping at 14.2 m3: m3 (Q2 FY2023: 12.6 m3: m3)
‒ Total reef tonnes milled for the quarter at 1 302.2 kt (Q2 FY2023: 1 370.0 kt), supplemented by strategic
ROM ore purchases
‒ Quarterly PGM production at 37.0 koz (Q2 FY2023: 34.3 koz)
‒ Rougher feed grade of 1.67 g/t (Q2 FY2023: 1.66 g/t)
‒ Recovery of 69.0% (Q2 FY2023: 61.9%) as the plants processed more fresh material
‒ Quarterly chrome production at 378.8 kt (Q2 FY2023: 404.8 kt)
‒ Grade of 17.8% Cr2O3 (Q2 FY2023: 18.4%)
‒ Recovery at 67.9% (Q2 FY2023: 66.6%)
‒ Speciality chrome production improving as spiral replacement program has been completed
Karo Platinum Update
‒ No LTI recorded on the project to date
‒ 540 people on site, of which 99 are Karo employees with the balance contractor employees
‒ Concrete foundation pouring progressing well with earthworks nearing completion
‒ Pilot mining commenced with contractor and staff onsite to commence operational tests
‒ Long-lead items manufacturing progressing as planned with first major deliveries schedule for Q4
calendar 2023
‒ Powerline construction to commence this quarter
Cash Balance and Debt Position
Tharisa had a cash balance of US$242.6 million (31 March 2023: US$205.8 million) at the end of the quarter, and
debt of US$101.1 million (31 March 2023: US$99.0 million), resulting in a net cash position of US$141.5 million
(31 March 2023: US$101.1 million). These cash and debt numbers continue to exclude the recently concluded
US$130 million facilities which are undrawn at the reporting period.
Production Numbers
Quarter Quarter Quarter on Quarter Nine Nine
ended ended quarter ended months months
30 June 31 March movement 30 June ended ended
2023 2023 % 2022 30 June 30 June
2023 2022
Reef mined kt 908.8 1 028.0 (11.6) 1 357.1 3 018.4 4 190.7
Stripping ratio m3: m3 14.2 12.6 12.7 14.2 12.3 12.6
Reef milled kt 1 302.2 1 370.0 (4.9) 1 367.1 4 099.5 4 161.4
PGM flotation feed kt 996.5 1 039.6 (4.1) 1 051.4 3 151.4 3 166.4
PGM rougher feed grade g/t 1.67 1.66 0.6 1.65 1.66 1.71
PGM recovery % 69.0 61.9 11.5 75.6 67.6 76.8
6E PGMs produced koz 37.0 34.3 7.9 42.1 114.0 133.9
Platinum produced koz 20.9 19.7 6.1 23.1 63.8 73.9
Palladium produced koz 6.6 6.1 8.2 7.2 20.1 22.1
Rhodium produced koz 3.4 3.0 13.3 4.0 10.6 12.8
Average PGM contained metal US$/oz 1 695 2 032 (16.6) 2 677 2 049 2 619
basket price
Platinum price US$/oz 1 034 1 004 3.0 958 994 994
Palladium price US$/oz 1 441 1 563 (7.8) 2 100 1 664 2 117
Rhodium price US$/oz 6 959 10 812 (35.6) 15 755 10 467 15 370
Average PGM contained metal ZAR/oz 31 544 35 801 (11.9) 41 531 36 671 40 299
basket price
Cr2O3 ROM grade % 17.8 18.4 (3.3) 17.0 17.7 17.4
Chrome recovery % 67.9 66.6 2.0 70.2 66.7 67.8
Chrome yield % 29.1 29.5 (1.4) 28.5 28.5 28.0
Chrome concentrates produced kt 378.8 404.8 (6.4) 389.7 1 166.7 1 166.4
(excluding third party)
Metallurgical grade kt 306.0 365.3 (16.2) 307.0 1 018.5 907.3
Specialty grades kt 72.8 39.5 84.3 82.7 148.2 259.1
Third party chrome production kt 56.2 45.8 22.7 47.4 143.0 150.0
Metallurgical grade chrome US$/t 290 269 7.8 247 258 201
concentrate contract price CIF
China
Metallurgical grade chrome ZAR/t 5 519 4 827 14.3 3 900 4 680 3 112
concentrate contract price CIF
China
Average exchange rate ZAR:US$ 18.7 17.8 5.1 15.6 18.0 15.4
Paphos, Cyprus
12 July 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 Platinum, 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).
