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Enriching lives through innovating the resources company of the future
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 2022 1
Tharisa, the platinum group metals (PGMs) and chrome co-producer dual-listed on the Johannesburg
and London stock exchanges, announces production and cash balance numbers for Q4 and financial year
ended 2022.
Quarter and year-end highlights
‒ Lost Time Injury Frequency Rate (‘LTIFR’) of 0.4 per 200 000-man hours worked
‒ Achieved seven fatality free years and six million fatality free shifts
‒ Continued focus on sustainable in pit mining led to consistent milling throughput resulting in:
‒ Quarterly PGM production increasing to 45.3 koz (Q3 FY2022: 42.1 koz), at a rougher
feed grade of 1.67 g/t (Q3 FY2022: 1.65 g/t) with recoveries at 76.2% (Q3 FY2022:
75.6%)
‒ Annual PGM production up 13.6% at 179.2 koz (FY2021: 157.8 koz)
‒ Quarterly chrome production increasing to 416.2 kt (Q3 FY2022: 389.7 kt) at a grade of
17.3% Cr2O3 (Q3 FY2022: 17.0%) and recovery at 69.6% (Q3 FY2022: 70.2%)
‒ Annual chrome production up 5.1% at 1 582.7 kt (FY2021: 1 506.1 kt)
‒ Strategic commodity portfolio and robust pricing supporting the Company’s capital allocation
and growth ambitions:
‒ Quarterly PGM basket price of US$2 400/oz (Q3 FY2022: US$2 677/oz) down 10.3%
‒ Annual PGM basket price of US$2 564/oz (FY2021: US$3 074/oz) down 16.6%
‒ Quarterly metallurgical grade chrome price of US$226/t (Q3 FY2022: US$247/t) down
8.5%
‒ Annual metallurgical grade chrome price of US$209/t (FY2021: US$154/t), up 35.7%
‒ Cash balance of US$143.4 million and positive net cash position of US$78.6 million
‒ Karo Platinum project on schedule with ‘ground-breaking’ due December 2022
1
Tharisa’s financial year begins 01 October and ends on 30 September.
Page 1 of 6
‒ Production guidance for FY2023 is set between 175 koz and 185 koz PGMs (6E basis) and 1.75
Mt to 1.85 Mt of chrome concentrates
Key Operating Numbers
Quarter Quarter Quarter on Quarter Year Year Year on
ended ended quarter ended ended ended year
30 Sep 30 Jun movement 30 Sep 30 Sep 30 Sep movement
2022 2022 % 2021 2022 2021 %
Reef mined kt 1 314.7 1 357.1 (3.1) 1 404.7 5 505.4 5 379.9 2.3
PGMs produced (6E) koz 45.3 42.1 7.6 43.7 179.2 157.8 13.6
Chrome concentrates kt 416.2 389.7 6.8 395.7 1 582.7 1 506.1 5.1
produced (excluding third
party)
Average PGM basket price US$/oz 2 400 2 677 (10.3) 2 854 2 564 3 074 (16.6)
Average metallurgical grade US$/t 226 247 (8.5) 167 209 154 35.7
chrome concentrate contract
price
Phoevos Pouroulis, CEO of Tharisa, commented:
“Operationally, this has been a rewarding year that will translate to a strong set of financial results,
despite the macro challenges that have impacted global supply chains, inflation, and the mining sector.
This operational performance is built on key decisions we made some years ago with the goal of
accelerating our growth strategy and thus building a highly innovative, stronger, and more sustainable
company.
Central to our success has been the continued efficiency at our flagship Tharisa Mine, where production
increased across the board, with the Vulcan Plant contributing to increased production resulting in
improved recoveries.
One of Tharisa’s core values is maintaining a strong health and safety record. This was again achieved
during the year, delivering seven fatality free years and six million fatality free shifts. We continue to
strive to be a zero-harm company.
On the corporate front, we have simplified our structure through fully aligning our long-term BEE
partners as shareholders in the broader Tharisa business. We have advanced our position in Karo
Platinum, which is on track to become the second world-class asset in our portfolio. The next major
milestone is ‘ground-breaking’ at the Karo site in December 2022, as this PGM asset moves into the
construction phase, with inaugural production planned for within the next 24 months. Tharisa remains
firmly committed to its strategy of delivering sustainable growth and value to all its stakeholders despite
the current volatility in the global markets.”
Page 2 of 6
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 0.4 per 200 000-man hours worked
‒ Achieved seven fatality free years and six million fatality free shifts
Market Update
‒ Although PGM prices are trading in the lower half of their 12-month range, driven by the
economic slowdown, prices have not retreated as much as anticipated. Demand-supply
fundamentals, particularly for palladium and rhodium, which remain in deficit, with platinum
projected to be in a deficit within the next 18 months, according to consensus market analysis.
While supply from Russia is difficult to predict, primary supply from South Africa is slowing,
driven by lack of development, rising costs and electricity curtailments, affecting deep level
mines in particular. At the same time, the increasing importance of PGMs for the future of the
hydrogen economy underpins our conviction that the fundamentals for these precious metals
remains strong
‒ Chrome prices were volatile during the quarter where they retreated in line with expectation,
mostly due to stainless steel and ferrochrome production curtailments in China. Consequently,
port inventory rose slightly, albeit off a very low base. Inflationary cost pressures, supply chain
constraints and the Covid policy in China remained key macro issues to the market. Towards the
end of the quarter, increased demand stimulated a higher price environment as production of
steel and alloy normalised. Policy announcements from the Party Congress on 16 October 2022
in China relating to the relaxation of Covid policies, and more stimulus packages being
announced, would bode well for demand of Tharisa’s chrome concentrates. We believe that
supply disruptions will mitigate a price retreat, in the face of pricing risks and slowing economies
heading towards a recessionary environment
Operational Update
‒ Total reef mined of 1 314.7 kt (Q3 FY2022: 1 357.1 kt) bringing the total reef mined for the year
to 5 505.4 kt (FY2021: 5 379.9 kt)
‒ Stripping ratio of 13.3 m3: m3 (Q3 FY2022: 14.2 m3: m3) with the annualised stripping ratio at
12.8 m3: m3 (FY2021: 11.6 m3: m3), all ahead of Life of Mine requirements
‒ Total reef tonnes milled for the quarter a record at 1 446.8 kt (Q3 FY2022: 1 367.1 kt) and the
year 5 608.2 kt (FY 2021: 5 600.0 kt)
‒ Quarterly PGM production at 45.3 koz (Q3 FY2022: 42.1 koz)
‒ Rougher feed grade of 1.67 g/t (Q3 FY2022: 1.65 g/t)
‒ Recovery of 76.2% (Q3 FY2022: 75.6%)
‒ Annual PGM production up 13.6% at 179.2 koz (FY2021: 157.8 koz)
‒ Annual feed grade 1.70 g/t (FY2021: 1.49 g/t)
‒ Annual recoveries of 76.6% (FY2021: 77.6%)
‒ Quarterly chrome production at 416.2 kt (Q3 FY2022: 389.7 kt)
‒ Grade of 17.3% Cr2O3 (Q3 FY2022: 17.0%)
‒ Recovery at 69.6% (Q3 FY2022: 70.2%)
‒ Annual chrome production up 5.1% at 1 582.7 kt (FY2021: 1 506.1 kt)
‒ Grade of 17.4% Cr2O3 (FY2021: 17.9% Cr2O3)
‒ Recovery at 68.3% (FY2021: 63.3%)
Page 3 of 6
‒ Vulcan Plant running at full throughput capacity with continued optimisation of output to
achieve planned chrome recoveries
Karo Platinum Update
‒ Ground-breaking planned December 2022
‒ Key management positions have been filled, including Project Director and Finance Director
‒ ESIA for concentrator and infrastructure approved
‒ Long lead items ordered to meet timelines
‒ Mining contractor selected
Cash Balance and Debt Position
‒ Tharisa had a cash balance of US$143.4 million (30 June 2022 US$112.6 million) at the end of
the quarter, and debt of US$64.8 million (30 June 2022 US$64.6 million). The increased cash has
resulted in an improved net cash position of US$78.6 million (30 June 2022 US$48.0 million).
The Company's strong balance sheet enables the Group to execute its growth strategy.
Guidance
Production guidance for FY2023 is set between 175 koz and 185 koz PGMs (6E basis) and 1.75 Mt to 1.85
Mt of chrome concentrates.
Production Numbers
Quarter Quarter Quarter on Quarter Year Year Year on
ended ended quarter ended ended ended year
30 Sep 30 Jun movement 30 Sep 30 Sep 30 Sep movement
2022 2022 % 2021 2022 2021 %
Reef mined kt 1 314.7 1 357.1 (3.1) 1 404.7 5 505.4 5 379.9 2.3
Stripping ratio m3: m3 13.3 14.2 (6.3) 12.3 12.8 11.6 10.3
Reef milled kt 1 446.8 1 367.1 5.8 1 428.1 5 608.2 5 600.0 0.1
PGM flotation feed kt 1 108.1 1 051.4 5.4 1 071.6 4 274.5 4 248.2 0.6
PGM rougher feed grade g/t 1.67 1.65 1.2 1.59 1.70 1.49 14.1
PGM recovery % 76.2 75.6 0.8 80.0 76.6 77.6 (1.3)
6E PGMs produced koz 45.3 42.1 7.6 43.7 179.2 157.8 13.6
Platinum produced koz 25.0 23.1 8.2 23.6 99.0 86.7 14.2
Palladium produced koz 7.9 7.2 9.7 7.2 30.0 24.9 20.5
Rhodium produced koz 4.4 4.0 10.0 4.3 17.2 15.4 11.7
Average PGM contained US$/oz 2 400 2 677 (10.3) 2 854 2 564 3 074 (16.6)
metal basket price
Platinum price US$/oz 887 958 (7.4) 1 016 968 1 080 (10.4)
Page 4 of 6
Palladium price US$/oz 2 077 2 100 (1.1) 2 295 2 107 2 513 (16.2)
Rhodium price US$/oz 13 746 15 755 (12.8) 16 721 14 962 18 860 (20.7)
Average PGM contained ZAR/oz 40 850 41 531 (1.6) 41 727 40 437 45 336 (10.8)
metal basket price
Cr2O3 ROM grade % 17.3 17.0 1.8 17.9 17.4 17.9 (2.8)
Chrome recovery % 69.6 70.2 (0.9) 65.0 68.3 63.3 7.9
Chrome yield % 28.8 28.5 1.1 27.7 28.2 26.9 4.8
Chrome concentrates kt 416.2 389.7 6.8 395.7 1 582.7 1 506.1 5.1
produced (excluding third
party)
Metallurgical grade kt 325.9 307.0 6.2 309.3 1 233.2 1 141.5 8.0
Specialty grades kt 90.3 82.7 9.2 86.4 349.5 364.6 (4.1)
Third party chrome kt 38.2 47.4 (19.4) 52.4 188.2 223.0 (15.6)
production
Metallurgical grade US$/t 226 247 (8.5) 167 209 154 35.7
chrome concentrate CIF
contract price China
Metallurgical grade ZAR/t 3 867 3 900 (0.8) 2 435 3 345 2 284 46.5
chrome concentrate CIF
contract price China
Average exchange rate ZAR:US$ 17.0 15.6 9.0 14.6 15.8 14.8 6.8
Paphos, Cyprus
11 October 2022
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
Page 5 of 6
Financial PR Contacts:
Bobby Morse / Ariadna Peretz
+44 207 466 5000
tharisa@buchanan.uk.com
Broker Contacts:
Peel Hunt LLP (UK Joint Broker)
Ross Allister / David McKeown
+44 207 7418 8900
BMO Capital Markets Limited (UK Joint Broker)
Thomas Rider / Pascal Lussier Duquette / 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 mining, processing, exploration, 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 a 20-year open-pit life and the ability to extend
operations underground by at least an additional 40 years. Tharisa also owns Karo Mining Holdings and
Salene Chrome, development stage, low-cost, open-pit PGM and chrome assets respectively, 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).
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