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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