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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 FOURTH QUARTER AND YEAR ENDED 30 SEPTEMBER 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 Q4 and financial year ended FY20231 and cash
balance as at the year end.
Quarter highlights
‒ Lost Time Injury Frequency Rate (‘LTIFR’) of 0.11 per 200 000-man hours worked
‒ Annual output
‒ Chrome production for the year at 1 580.1 kt (FY2022: 1 582.7 kt) with Q4 at 413.4 kt (Q3
FY2023 378.8 kt)
‒ PGM production for the year at 144.7 koz (FY2022: 179.2) with Q4 at 30.7 koz (Q3 FY2023:
37.0 koz)
‒ Strong increase in reef mining volumes quarter on quarter, up 27.5% to 1 158.9 kt (Q3 FY2023: 908.8
kt)
‒ Average annual metallurgical grade chrome concentrate prices up 26.2% at US$263/t (FY2022:
US$209/t)
‒ Significant quarter-on-quarter PGM price decrease of 21.5% to US$ 1 331/oz (Q3 FY2023: US$ 1 695/oz)
(6E basis) accelerated the annual price retreat of 26.1% with average prices received at US$1 893/oz
(FY2022: US$2 564/oz)
‒ The continued weakening of PGM prices and macro economics has resulted in a prudent and strategic
decision to extend the Karo Platinum Project timeline for commissioning by 12 months to June 2025,
with the opportunity to accelerate the timeline as markets become more favourable
‒ The Karo Platinum Project has progressed well, and the revised timeline is aligned to funding availability
and provides flexibility
‒ Group cash on hand increased to US$268.8 million (30 June 2023: US$242.6 million), and debt of
US$142.2 million (30 June 2023: US$101.1 million), resulting in a net cash position of US$126.6 million
(30 June 2023: US$141.5 million)
‒ Production guidance for FY2024 is set between 145 koz and 155 koz PGMs (6E basis) and 1.7 Mt to 1.8
Mt of chrome concentrates
1
Tharisa’s financial year is from 01 October to 30 September
Key Operating Numbers
Quarter Quarter Quarter Quarter Year Year Year on
ended ended on quarter ended ended ended year
30 Sep 30 Jun movement 30 Sep 30 Sep 30 Sep movement
2023 2023 % 2022 2023 2022 %
Reef mined kt 1 158.9 908.8 27.5 1 314.7 4 177.3 5 505.4 (24.1)
Reef milled kt 1 310.2 1 302.2 0.6 1 446.8 5 409.8 5 608.2 (3.5)
PGMs produced (6E) koz 30.7 37.0 (17.0) 45.3 144.7 179.2 (19.3)
Chrome concentrates kt 413.4 378.8 9.1 416.2 1 580.1 1 582.7 (0.2)
produced (excluding
third party)
Average PGM basket US$/oz 1 331 1 695 (21.5) 2 400 1 893 2 564 (26.2)
price
Average metallurgical US$/t 291 292 (0.3) 226 263 209 25.8
grade chrome
concentrate contract
price – 42% basis
Phoevos Pouroulis, CEO of Tharisa, commented:
“The divergence in commodity prices could not have been more visible than the past quarter which saw us
touching 52-week highs in the chrome market based on solid fundamentals, but these fundamentals were
distinctly lacking in the PGM market, which saw prices drop more rapidly and lower than the market anticipated,
resulting in broad based challenges for the PGM market on the supply side.
While current markets are volatile and unpredictable, we believe in the medium term outlook for PGMs
underpinned by a supply side constrained economy, this supported by a robust chrome market driven by stable
demand.
At Tharisa, our co-product model showed its resilience once again, supported by a strong recovery in chrome
production in the second half of the year and benefiting from a 26% increase in price. The earlier operational
mining challenges and resulting ore mix from our own ore and purchased ore did have a negative impact on PGM
recovery and thus production, however, this was supported by a strong focus and recovery in chrome in the
second half of the year. The waste contractor is now firmly in place, and we see a recovery in waste mining
volumes for FY2024, however, we remain cautious on our production outlook as evidenced by our guidance for
the coming year.
Our margins remain strong due to our mechanised low cost operations, with a continued disciplined capital
allocation strategy, ensuring investment in our existing businesses, providing sustainable growth and return to
shareholders.
Given the current PGM basket price weakness and uncertain global economic outlook, we have taken the
measured decision to extend the Karo Platinum timeline out to commissioning by June 2025, with the opportunity
to accelerate the timeline as markets become more favourable. The Karo Platinum Project has progressed well,
and the revised timeline is aligned to funding availability and provides flexibility to navigate volatile market
conditions.
Our growth strategy remains firmly intact, with continuous optimisation at the Tharisa Mine, investment in
downstream beneficiation, and our commitment to the development of the multi-generational Tier 1 Karo
Platinum Project.”
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 0.11 per 200 000-man hours worked
Market Update
‒ The chrome market continues to support sustainable pricing which is driven by supply-demand
fundamentals. Reduced port inventory in China highlights the tight market balance underpinned by the
growth in Chinese domestic ferrochrome and stainless steel industries. Supply chain complexities are
exacerbated by constrained rail and port logistics in South Africa together with the effect of erratic
electricity supply from Eskom
‒ PGM market remains under continued pricing pressure with uncertainty of the macro global economic
outlook having a direct effect on the demand for the precious metals. This is overlain by further
indecisiveness on the future of the internal combustion engine (ICE). During the latter half of Q4 FY2023
with the steep decline in PGM prices, analysts have cautioned that higher cost producers within the
PGM industry are not profitable at these commodity prices. The ‘higher for longer’ concerns of the
global interest rate market have impacted prices for now and we see muted upside in the short term
for PGM prices. In the medium to longer term demand drivers including the hydrogen economy,
possible supply cuts at unprofitable PGM producers, project delays and capital discipline versus
demand for the ICE, will require a recovery in PGM prices to ensure demand is met by supply
Operational Update
‒ Improved quarterly reef mined of 1 158.9 kt (Q3 FY2023: 908.8 kt)
‒ Annual reef mined down 24.1% to 4 177.3 kt (FY2022: 5 505.4 kt) due to inclement weather and
constrained pit flexibility
‒ Total annual reef tonnes milled flat at 5 409.8 kt (FY2022: 5 608.2 kt) as strategic ROM ore purchases
supplemented own mine production with Q4 FY2023 milling at 1 310.2 kt (Q3 FY2023: 1 302.2 kt)
‒ Annual chrome production at 1 580.1kt (FY2022: 1 582.7 kt)
‒ Grade of 17.9% Cr2O3 (FY2022: 17.4%)
‒ Recovery at 67.6% (FY2022: 68.3%)
‒ Quarterly chrome production at 413.4 kt (Q3 FY2023: 378.8 kt)
‒ Grade of 18.7% Cr2O3 (Q3 FY2023: 17.8%)
‒ Recovery at 70.0% (Q3 FY2023: 67.9%)
‒ Vulcan contributing to strong chrome recovery
‒ Annual PGM production at 144.7 koz (FY2022: 179.2 koz)
‒ Rougher feed grade of 1.64 g/t (FY2022: 1.70 g/t)
‒ Recovery of 66.5% (FY2022: 76.6%) as a result of ore mix from oxidised material and purchased
ROM impacting recoveries
‒ Quarterly PGM production at 30.7 koz (Q3 FY2023: 37.0 koz)
‒ Rougher feed grade of 1.57 g/t (Q3 FY2023: 1.67 g/t)
‒ Recovery of 62.7% (Q3 FY2023: 69.0%)
Karo Platinum Update
‒ One LTI recorded on the project for the year under review
‒ The PGM price environment has necessitated a review of the commissioning timeline of the Karo
Platinum Project
‒ First ore in mill (FOIM) now planned for June 2025
‒ Project team has divided major workstreams into smaller commitments to ensure continued
development aligned with funding availability
‒ Manufacturing of key long-lead items nearing completion
‒ Revised workstreams designed to accelerate the project implementation should the PGM market
become more favourable
‒ Pilot mining is continuing as planned to optimise mining design
‒ Additional current resource to reserve conversion underway
Cash Balance and Debt Position
Tharisa had a cash balance of US$268.8 million (30 June 2023: US$242.6 million) at the end of the quarter, and
debt of US$142.2 million (30 June 2023: US$101.1 million), resulting in a net cash position of US$126.6 million
(30 June 2023: US$141.5 million).
Guidance
Production guidance for FY2024 is set between 145 koz and 155 koz PGMs (6E basis) and 1.7 Mt to 1.8 Mt of
chrome concentrates.
Any forward looking statements have not been reported on or reviewed by Tharisa's auditors.
Production Numbers
Quarter Quarter Quarter Quarter Year Year Year on
ended ended on ended ended ended year
30 Sep 30 Jun quarter 30 Sep 30 Sep 30 Sep movement
2023 2023 movemen 2022 2023 2022 %
t%
Reef mined kt 1 158.9 908.8 27.5 1 314.7 4 177.3 5 505.4 (24.1)
Stripping ratio m3: m3 14.0 14.2 (1.4) 13.3 12.8 12.8 -
Reef milled kt 1 310.2 1 302.2 0.6 1 446.8 5 409.8 5 608.2 (3.5)
PGM flotation feed kt 970.6 996.5 (2.6) 1 108.1 4 122.0 4 274.5 (3.6)
PGM rougher feed g/t 1.57 1.67 (6.0) 1.67 1.64 1.70 (3.5)
grade
PGM recovery % 62.7 69.0 (9.1) 76.2 66.5 76.6 (13.2)
6E PGMs produced koz 30.7 37.0 (17.0) 45.3 144.7 179.2 (19.3)
Platinum produced koz 17.3 20.9 (17.2) 25.0 80.3 99.0 (18.9)
Palladium koz 5.2 6.6 (21.2) 7.9 24.8 30.0 (17.3)
produced
Rhodium produced koz 3.0 3.4 (11.8) 4.4 13.5 17.2 (21.5)
Average PGM US$/oz 1 331 1 695 (21.5) 2 400 1 893 2 564 (26.2)
contained metal basket
price
Platinum price US$/oz 940 1 034 (9.1) 887 981 968 1.3
Palladium price US$/oz 1 227 1 441 (14.9) 2 077 1 594 2 107 (24.3)
Rhodium price US$/oz 3 841 6 959 (44.8) 13 746 8 992 14 962 (39.9)
Average PGM ZAR/oz 24 842 31 544 (21.2) 40 850 34 107 40 437 (15.7)
contained metal basket
price
Cr2O3 ROM grade % 18.7 17.8 5.1 17.3 17.9 17.4 2.9
Chrome recovery % 70.0 67.9 3.1 69.6 67.6 68.3 (1.0)
Chrome yield % 31.6 29.1 8.6 28.8 29.2 28.2 3.5
Chrome concentrates kt 413.4 378.8 9.1 416.2 1 580.1 1 582.7 (0.2)
produced (excluding
third party)
Metallurgical grade kt 338.4 306.0 10.6 325.9 1 356.9 1 233.2 10.0
Specialty grades kt 75.0 72.8 3.0 90.3 223.2 349.5 (36.1)
Third party chrome kt 58.9 56.2 4.8 38.2 201.9 188.2 7.3
production
Average metallurgical US$/t 291 292 (0.3) 226 263 209 25.8
grade chrome
concentrate contract
price – 42% basis
Metallurgical grade ZAR/t 5 273 5 519 (4.5) 3 867 4 840 3 345 44.7
chrome concentrate CIF
contract price China
Average exchange rate ZAR:US 18.7 18.7 - 17.0 18.2 15.8 15.2
$
Paphos, Cyprus
17 October 2023
JSE Sponsor
Investec Bank Limited
Connect with us on LinkedIn 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
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
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).
