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THARISA PLC - Production Report for the Fourth Quarter and year ended 30 September 2024

Release Date: 10/10/2024 07:05
Code(s): THA     PDF:  
Wrap Text
Production Report for the Fourth Quarter and year ended 30 September 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 FOURTH QUARTER AND YEAR ENDED 30 SEPTEMBER 2024

Tharisa, the mining, metals, and innovation company dual-listed on the Johannesburg and London stock
exchanges, announces its production results for Q4 and financial year ended 2024(1) and cash balance as at
the year end.

Quarter and full year highlights

 -   Lost Time Injury Frequency Rate ('LTIFR') per 200 000 man hours worked of
     - 0.00 at Tharisa Minerals
     - 0.09 at Karo Platinum
 -   Annual output:
     - PGM production for the year at 145.1 koz (FY2023: 144.7 koz) with Q4 at 37.1 koz (Q3
       FY2024: 36.9 koz)
     - Chrome production for the year at 1 702.6 kt (FY2023: 1 580.1 kt) with Q4 at 426.8 kt (Q3
       FY2024 410.2 kt)
     - Annual chrome production output highest in the history of the Company
 -   Average annual PGM price decrease of 28% to US$1 362/oz (FY2023: US$1 893/oz) averaging at
     US$1 370/oz for the quarter (Q3 FY2024: US$1 391/oz)
 -   Average annual metallurgical grade chrome concentrate prices up 13.7% at US$299/t (FY2023:
     US$263/t) while averaging at US$314/t for the quarter (Q3 FY2024: US$309/t)
 -   Group cash on hand of US$217.5 million (30 June 2024: US$189.9 million), and debt of US$108.8
     million (30 June 2024: US$97.7 million), resulting in an increased net cash position of
     US$108.7 million (30 June 2024: US$92.2 million)
 -   US$5 million share repurchase completed
 -   Successful delivery on beneficiation strategy with production of chrome alloy and testing of
     upscaled batteries at Redox One
 -   Production guidance for FY2025 is set at between 140 koz and 160 koz PGMs (6E basis) and 1.65
     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 on     Quarter
                                              ended        ended       quarter       ended    Year ended   Year ended
                                             30 Sep       30 Jun      movement      30 Sep        30 Sep       30 Sep
                                               2024         2024             %        2023          2024         2023

 Reef mined                      kt         1 286.5      1 261.9           1.9     1 158.9       4 641.9      4 177.3

 Reef milled                     kt         1 394.9      1 396.1         (0.1)     1 310.2       5 593.8      5 409.8

 6E PGMs produced (6E)           koz           37.1         36.9           0.5        30.7         145.1        144.7

 Average PGM contained           US$/oz       1 370        1 391         (1.5)       1 331         1 362        1 893
 metal basket price

 Chrome concentrates             kt           426.8        410.2           4.0       413.4       1 702.6      1 580.1
 produced (excluding third
 party)

 Average metallurgical grade     US$/t          314          309           1.6         291           299          263
 chrome concentrate contract     CIF
 price – 42% basis               China


Phoevos Pouroulis, CEO of Tharisa, commented:

"A scene setting operational year underpinned by an excellent safety performance. With safety a core
value, we have seen the success of record chrome output supported by guidance meeting PGM production.
    
For the coming year we are setting a similar target, with chrome dominating the operational forecast as
we see real demand in China and beyond.

We have made great strides in furthering our technical study work on the underground development at
the Tharisa Mine and I know this will be a welcome addition to our mining flexibility with the open pit
operations being supported by the on-reef underground mine development.

Our continuing drive to beneficiate our product saw us successfully produce chrome alloy from a unique
and proprietary process developed by our research and development business Arxo Metals and are selling
this final alloy to commercial customers.

In our efforts to reduce our carbon emissions and secure energy independence, we entered into a 15-year
agreement with Etana Energy, who will be providing up to 44% of the Tharisa Mine's electricity demand
via wheeled renewable energy. In addition, Redox One has upgraded its facilities for longer duration
testing by commissioning three new larger scale batteries in line with the development plan.

We remain optimistic on the fundamentals of the PGM market and have thus continued to optimise our
Karo Platinum project and have progressed with the plant construction, in line with capital availability,
and we see this strategy continuing until we finalise the funding for the project.

I wish to wholeheartedly thank all our employees for their invaluable commitment over the past year."

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
     - 0.00 at Tharisa Minerals with no LTIs recorded in the financial year under review
     - 0.09 at Karo Platinum

Market Update

 -   PGM prices continue to be constrained by the latency of destocking of pipelines, while we see
     good demand and general realisation that the supply-demand balance is shifting given project
     cutbacks, production output shortcomings and need for new PGM metal, by various industries.
     We maintain that the PGM price over the next 12-24 months will be stronger, fuelled by the
     continued evidence that the internal combustion engine will remain relevant for a much longer
     time to come, and our firm view that hybrid drivetrains are an integral part of the transportation
     mix
 -   Chrome prices remain strong on the back of the fundamentals of the chrome market, with real
     growth in stainless steel, driven by demand from China and beyond. Inland logistics continue to
     be complex, while being professionally managed by our team

Operational Update

 -   Annual reef mined up 11.1% as pit remediation and accessibility improved in the second half of
     the year, with quarter on quarter reef mining improving by 1.9% to 1 286.5 kt (Q3 FY2024: 1 261.9
     kt) while third party purchases slowed significantly
 -   Reef milled for the year was up 3.4% to 5 593.8 kt and steady quarter on quarter reef milled at
     1 394.9 kt (Q3 FY2024: 1 396.1 kt) as throughput shifted more towards mined ore in line with
     reduced third party purchases
 -   Quarterly PGM production at 37.1 koz (Q3 FY2024: 36.9 koz)
     - Rougher feed grade of 1.56 g/t (Q3 FY2024: 1.57 g/t)
     - Recovery of 70.6% (Q3 FY2024: 68.5%)
 -   Quarterly chrome production of 426.8 kt (Q3 FY2024: 410.2 kt)
     - Grade of 18.2% Cr2O3 (Q3 FY2024: 18.0%)
     - Recovery at 68.8% (Q3 FY2024: 67.3%)

Cash Balance and Debt Position

 -   Group cash on hand of US$217.5 million (30 June 2024: US$189.9 million) and debt of US$108.8
     million (30 June 2024: US$97.7 million), resulting in an increased net cash position of
     US$108.7 million (30 June 2024: US$92.2 million)

Guidance

 -   Production guidance for FY2025 is set at between 140 koz and 160 koz PGMs (6E basis) and 1.65
     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      Quarter    Quarter on     Quarter          Year         Year
                                             ended        ended       quarter       ended         ended        ended
                                            30 Sep       30 Jun      movement      30 Sep        30 Sep       30 Sep
                                              2024         2024             %        2023          2024         2023

 Reef mined                  kt            1 286.5      1 261.9           1.9     1 158.9       4 641.9      4 177.3

 Stripping ratio             m3: m3           11.3         12.7        (11.0)        14.0          12.5         12.8

 Reef milled                 kt            1 394.9      1 396.1         (0.1)     1 310.2       5 593.8      5 409.8

 PGM flotation feed          kt            1 049.6      1 064.9         (1.4)       970.6       4 218.0      4 122.0

 PGM rougher feed grade      g/t              1.56         1.57         (0.6)        1.57          1.60         1.64

 PGM recovery                %                70.6         68.5           3.1        62.7          67.0         66.5

 6E PGMs produced            koz              37.1         36.9           0.5        30.7         145.1        144.7

    Platinum                 koz              22.3         19.4          14.9        17.3          81.6         80.3

    Palladium                koz               6.0          5.8           3.4         5.2          23.4         24.8

    Rhodium                  koz               3.9          3.3          18.2         3.0          13.8         13.5

 Average PGM contained       US$/oz          1 370        1 391         (1.5)       1 331         1 362        1 893
 metal basket price

    Platinum                 US$/oz            963          981         (1.8)         940           942          981

    Palladium                US$/oz            970          973         (0.3)       1 227         1 002        1 594

    Rhodium                  US$/oz          4 616        4 638         (0.5)       3 841         4 467        8 992

 Cr(2)O(3) ROM grade         %                18.2         18.0           1.1        18.7          18.4         17.9

 Chrome recovery             %                68.8         67.3           2.2        70.0          68.3         67.6

 Chrome yield                %                30.6         29.4           4.1        31.6          30.4         29.2

 Chrome concentrates         kt              426.8        410.2           4.0       413.4       1 702.6      1 580.1
 produced (excluding third
 party)

    Metallurgical grade      kt              355.8        336.0           5.9       338.4       1 421.2      1 356.9

    Specialty grades         kt               71.0         74.2         (4.3)        75.0         281.4        223.2

 Third party chrome          kt               53.2         49.6           7.3        58.9         193.3        201.9
 production

 Average metallurgical       US$/t             314          309           1.6         291           299          263
 grade chrome concentrate    CIF
 contract price – 42% basis  China

 Average exchange rate       ZAR:US           18.0         18.6         (3.2)        18.7          18.2         18.2
                             $


Paphos, Cyprus
10 October 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: 10-10-2024 07:05:00
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