Wrap Text
Production Report for the third quarter FY2024 ended 30 June 2024
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 FY2024 ENDED 30 JUNE 2024
Tharisa, the mining, metals, and innovation company dual-listed on the Johannesburg and London stock
exchanges, announces its production results for Q3 FY2024(1) and cash balance as at quarter end.
Quarter highlights
- Lost Time Injury Frequency Rate ('LTIFR') per 200 000 man hours worked of
- 0.03 at Tharisa Minerals
- 0.10 at Karo Platinum
- PGM production increased to 36.9 koz (Q2 FY2024: 35.3 koz)
- PGM basket price steady at US$1 391/oz (6E basis) (Q2 FY2024: US$1 343/oz)
- Chrome production increased to 410.2 kt (Q2 FY2024: 402.7 kt)
- Continued strong average metallurgical grade chrome concentrate prices, up 8% to US$309/t
(Q2 FY2024: US$286/t)
- Group cash on hand of US$189.9 million (31 March 2024: US$184.6 million), and debt reduced
to US$97.7 million (31 March 2024: US$114.0 million), resulting in an increased net cash
position of US$92.2 million (31 March 2024: US$70.6 million)
- US$5 million share repurchase well on track with 1 600 058 shares repurchased to end June
2024
- Production guidance for FY2024 remains between 145 koz and 155 koz PGMs (6E basis) and 1.7
Mt to 1.8 Mt of chrome concentrates
(1) Tharisa's financial year is from 01 October to 30 September
Key Operating Numbers
Quarter Nine Nine
Quarter Quarter on Quarter months months
ended ended quarter ended ended ended
30 Jun 31 Mar movement 30 Jun 30 Jun 30 Jun
2024 2024 % 2023 2024 2023
Reef mined kt 1 261.9 1 035.0 21.9 908.8 3 355.4 3 018.4
Reef milled kt 1 396.1 1 378.5 1.3 1 302.2 4 198.9 4 099.5
6E PGMs produced (6E) koz 36.9 35.3 4.5 37.0 107.9 114.0
Average PGM contained US$/oz 1 391 1 343 3.6 1 695 1 359 2 049
metal basket price
Chrome concentrates kt 410.2 402.7 1.9 378.8 1 275.7 1 166.7
produced (excluding third
party)
Average metallurgical US$/t 309 286 8.0 290 295 258
grade chrome concentrate CIF
contract price – 42% basis China
Phoevos Pouroulis, CEO of Tharisa, commented:
"This third quarter marks nine months since we last recorded a lost time injury, something that we can
all be proud of, as our systems and continuous focus on safe production and zero harm keep our people
safe.
Operationally we delivered as planned, with improved mining and plant recoveries resulting in overall
PGM and chrome concentrate production increases. The focus on sustainable mining and the structural
improvements achieved in this year to date positions us for a strong last quarter, with further
improvements in the mining performance, providing the sustainable foundation for the medium to long
term plans for the mine.
Positive progress has been made with our plans for transitioning to underground development in the
west pit in parallel with the continued optimisation of open-pit mining.
The Karo Platinum project is progressing safely and well, with construction aligned with capital
availability and the various funding solutions progressing according to plan.
Our vision for Tharisa remains firmly intact, with sustainable mining complemented by maximising the
output from our ore bodies, coupled through our various beneficiation initiatives for both chrome and
PGMs together with the continued progress we are making in the renewable energy field with Redox
One, and the 40MW solar 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 per 200 000 man hours worked of
- 0.03 at Tharisa Minerals with no LTIs recorded to date in the financial year under review
- 0.10 at Karo Platinum with no accidents on site in the financial year under review
Market Update
- PGM prices for the quarter were at slightly higher levels than in the previous quarter supporting
the market view that the 'bottom of the market' has passed. Prices, however, continue to be
influenced and rangebound by continued inventory de-stocking, the pace of which is dependent
on economic activity, which has not reached previous heights yet. The narrative for PGM's is
changing with the realisation that the internal combustion engine will remain around much
longer, with hybrid drivetrains the natural progression in the longer term.
- Chrome prices have continued to trend upwards on strong fundamental demand for product
coupled with port inventories at the lower end, supporting prices. Logistics remain complex but
manageable.
Operational Update
- Total reef mined up 21.9% as the benefits of increased stripping provides the necessary in-pit
flexibility, with tonnage at 1 261.9 kt (Q2 FY2024: 1 035.0 kt)
- Another strong milling performance at 1 396.1 kt (Q2 FY2024: 1 378.5kt) with throughput
supplemented by strategic ROM purchases
- Quarterly PGM production at 36.9 koz (Q2 FY2024: 35.3 koz)
- Rougher feed grade of 1.57 g/t (Q2 FY2024: 1.66 g/t)
- Recovery of 68.5% (Q2 FY2024: 62.9%)
- Quarterly chrome production of 410.2 kt (Q2 FY2024: 402.7 kt)
- Grade of 18.0% Cr2O3 (Q2 FY2024: 18.1%)
- Recovery at 67.3% (Q2 FY2024: 66.4%)
Cash Balance and Debt Position
- Group cash on hand of US$189.9 million (31 March 2024: US$184.6 million), and debt reduced
to US$97.7 million (31 March 2024: US$114.0 million), resulting in an increased net cash
position of US$92.2 million (31 March 2024: US$70.6 million).
Guidance
Production guidance for FY2024 remains between 145 koz and 155 koz PGMs (6E basis) and 1.7 Mt to
1.8 Mt of chrome concentrates.
The above forward looking statements have not been reported on or reviewed by Tharisa's auditors and
is the responsibility of the directors.
Production Numbers
Quarter Nine Nine
Quarter Quarter on Quarter months months
ended ended quarter ended ended ended
30 Jun 31 Mar movement 30 Jun 30 Jun 30 Jun
2024 2024 % 2023 2024 2023
Reef mined kt 1 261.9 1 035.0 21.9 908.8 3 355.4 3 018.4
Stripping ratio m3 : m3 12.7 14.0 (9.3) 14.2 12.8 12.3
Reef milled kt 1 396.1 1 378.5 1.3 1 302.2 4 198.9 4 099.5
PGM flotation feed kt 1 064.9 1 055.6 0.9 996.5 3 168.5 3 151.4
PGM rougher feed grade g/t 1.57 1.66 (5.4) 1.67 1.61 1.66
PGM recovery % 68.5 62.9 8.9 69.0 65.8 67.6
6E PGMs produced koz 36.9 35.3 4.5 37.0 107.9 114.0
Platinum koz 19.4 19.2 1.0 20.9 59.1 63.8
Palladium koz 5.8 6.4 (9.4) 6.6 17.4 20.1
Rhodium koz 3.3 3.2 3.1 3.4 9.8 10.6
Average PGM contained US$/oz 1 391 1 343 3.6 1 695 1 359 2 049
metal basket price
Platinum US$/oz 981 910 7.8 1 034 935 994
Palladium US$/oz 973 978 (0.5) 1 441 1 013 1 664
Rhodium US$/oz 4 638 4 399 5.4 6 959 4 417 10 467
Cr2O3 ROM grade % 18.0 18.1 (0.6) 17.8 18.4 17.7
Chrome recovery % 67.3 66.4 1.4 67.9 68.1 66.7
Chrome yield % 29.4 29.2 0.6 29.1 30.4 28.5
Chrome concentrates kt 410.2 402.7 1.9 378.8 1 275.7 1 166.7
produced (excluding third
party)
Metallurgical grade kt 336.0 339.5 (1.0) 306.0 1 065.3 1 018.5
Specialty grades kt 74.2 63.2 17.4 72.8 210.4 148.2
Third party chrome kt 49.6 45.0 10.2 56.2 140.1 143.0
production
Average metallurgical US$/t 309 286 8.0 290 295 258
grade chrome concentrate CIF
contract price – 42% basis China
Average exchange rate ZAR:US$ 18.6 18.9 (1.6) 18.7 18.7 18.0
Paphos, Cyprus
10 July 2024
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
+44 207 418 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 mine has a 13-year open pit life and is strategically accelerating access to the vast
underground resource which extends for over 60 years. Tharisa is developing the Karo Platinum Project,
a low-cost, open-pit PGM asset 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 to become net carbon
neutral by 2050. As part of this energy transition, the 40 MW solar project adjacent to the Tharisa Mine
is well advanced. Redox One is accelerating the development of a proprietary iron chromium redox flow
long duration battery utilising the commodities we mine. Tharisa plc is listed on the Johannesburg Stock
Exchange (JSE: THA) and the Main Board of the London Stock Exchange (LSE: THS).
Date: 10-07-2024 07:05:00
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