Wrap Text
Production Report for the First Quarter FY2025 ended 31 December 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 FIRST QUARTER FY2025 ENDED 31 DECEMBER 2024
Tharisa, the mining, metals, and innovation company dual-listed on the Johannesburg and London stock
exchanges, announces its production results for Q1 FY2025(1) and cash balance as at 31 December 2024.
Highlights
- Lost Time Injury Frequency Rate ('LTIFR') per 200 000 man hours worked of
- 0.02 at Tharisa Minerals
- 0.08 at Karo Platinum
- PGM production of 29.9 koz (Q4 FY2024: 37.1 koz)
- Chrome production of 374.4 kt (Q4 FY2024: 426.8 kt)
- PGM prices averaging at US$1 381/oz for the quarter (Q4 FY2024: US$1 370/oz)
- Average metallurgical grade chrome concentrate prices at US$271/t for the quarter (Q4 FY2024: US$314/t)
- Group cash on hand of US$175.1 million (30 September 2024: US$217.7 million), and debt of
US$86.1 million (30 September 2024: US$108.8 million), resulting in a net cash position of US$89.0 million
(30 September 2024: US$108.9 million)
Quarter Quarter Quarter on Quarter Year
ended ended quarter ended ended
31 Dec 30 Sep movement 31 Dec 30 Sep
2024 2024 % 2023 2024
Reef mined kt 1 291.0 1 286.5 0.3 1 058.6 4 641.9
Reef milled kt 1 377.6 1 394.9 (1.2) 1 424.4 5 593.8
6E PGMs produced koz 29.9 37.1 (19.4) 35.7 145.1
Chrome concentrates produced kt 374.4 426.8 (12.3) 462.8 1 702.6
Average PGM contained metal basket US$/oz 1 381 1 370 0.8 1 344 1 362
price
Average metallurgical grade chrome US$/t 271 314 (13.7) 291 299
concentrate price – 42% basis
(1) Tharisa's financial year is from 01 October to 30 September
Phoevos Pouroulis, CEO of Tharisa, commented:
"Undoubtedly a tough start to the new year impacted by drilling equipment availability, as a consequence thereof
we mined sub optimal oxidised reef horizons. This yielded lower ROM grades and therefore lower recoveries. We
have subsequently improved the drilling rates and equipment availability. The focus this quarter will be on
optimising the feed grade and improving our recoveries to previous levels.
While we have seen a drop in the chrome price due to slowing stainless steel demand, we remain of the view that
these price levels are unsustainable and will need to correct to meet expected demand. The PGM pricing
environment remains stubbornly weak notwithstanding sound demand fundamentals.
The cybersecurity incident we experienced during the quarter did not directly impact physical operations, but
rather the administrative, accounting and support services with work-around solutions being implemented to
minimise any disruptions. Good progress has been made in bringing the affected systems back online. "
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
- 0.02 at Tharisa Minerals
- 0.08 at Karo Platinum
Market Update
- PGM prices remain subdued despite continued forecasts for deficits in the various PGMs. The price
weakness is compounded by a visible lack of investor interest, despite the supply demand evidence. The
low pricing environment will lead to growing deficits as output continues to decline, particularly in marginal
deep level mines, with capital spend constrained.
- Chrome prices retreated in the quarter as uncertainty over stainless steel demand drove a price reduction.
Physical demand remains at normal levels with port stocks approximating one month supply to ferrochrome
demand. Disruptions at the Mozambique border with lockdowns impacted road transport to the port of
Maputo, impacting the delivery of cargoes to end use customers.
Operational Update
- Steady quarter on quarter reef mining at 1 291.0 kt (Q4 FY2024: 1 286.5 kt)
- Quarter on quarter reef milled at 1 377.6 kt (Q4 FY2024: 1 394.9 kt) supplemented by reduced ROM
purchases
- Quarterly PGM production at 29.9 koz (Q4 FY2024: 37.1 koz)
- Rougher feed grade of 1.39 g/t (Q4 FY2024: 1.56 g/t)
- Recovery of 61.7% (Q4 FY2024: 70.6%)
- Quarterly chrome production of 374.4 kt (Q4 FY2024: 426.8 kt)
- Grade of 16.9% Cr2O3 (Q4 FY2024: 18.2%)
- Recovery at 65.7% (Q4 FY2024: 68.8%)
- Underground definitive feasibility study progressing well with early works capital being deployed
- Karo Platinum continues to evaluate value engineering opportunities in a difficult PGM pricing environment.
Work packages are progressing in line with existing funding.
Cash Balance and Debt Position
- Group cash on hand of US$175.1 million (30 September 2024: US$217.7 million), and debt of
US$86.1 million (30 September 2024: US$108.8 million), resulting in a net cash position of US$89.0 million
(30 September 2024: US$108.9 million)
Guidance
- Production guidance for FY2025 is set at between 140 koz and 160 koz PGMs (6E basis) and 1.65 Mt to 1.8
Mt of chrome concentrates
The above forward-looking statements have not been reported on or reviewed by Tharisa's auditors and is the
responsibility of the directors.
Quarter Quarter Quarter on Quarter Year
ended ended quarter ended ended
31 Dec 30 Sep movement 31 Dec 30 Sep
2024 2024 % 2023 2024
Reef mined kt 1 291.0 1 286.5 0.3 1 058.6 4 641.9
Stripping ratio m3: m3 12.4 11.3 9.7 12.0 12.5
Reef milled kt 1 377.6 1 394.9 (1.2) 1 424.4 5 593.8
PGM flotation feed kt 1 082.7 1 049.6 3.2 1 048.0 4 218.0
PGM rougher feed grade g/t 1.39 1.56 (10.9) 1.60 1.60
PGM recovery % 61.7 70.6 (12.6) 66.1 67.0
6E PGMs produced koz 29.9 37.1 (19.4) 35.7 145.1
Platinum produced koz 16.2 22.3 (27.4) 20.5 81.6
Palladium produced koz 5.1 6.0 (15.0) 5.2 23.4
Rhodium produced koz 2.8 3.9 (28.2) 3.3 13.8
Average PGM contained metal basket US$/oz 1 381 1 370 0.8 1 344 1 362
price
Platinum price US$/oz 966 963 0.3 914 942
Palladium price US$/oz 1 011 970 4.2 1 090 1 002
Rhodium price US$/oz 4 577 4 616 (0.8) 4 216 4 467
Cr2O3 ROM grade % 16.9 18.2 (7.1) 19.1 18.4
Chrome recovery % 65.7 68.8 (4.5) 70.3 68.3
Chrome yield % 27.2 30.6 (11.1) 32.5 30.4
Chrome concentrates produced kt 374.4 426.8 (12.3) 462.8 1 702.6
Metallurgical grade kt 317.7 355.8 (10.7) 389.9 1 421.2
Specialty grades kt 56.7 71.0 (20.1) 72.9 281.4
Average metallurgical grade chrome US$/t 271 314 (13.7) 291 299
concentrate contract price – 42% basis CIF
China
Average exchange rate ZAR:US$ 17.9 18.0 (0.6) 18.7 18.2
Paphos, Cyprus
13 January 2025
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 multi-generational Tharisa Mine, located in the south-western limb of
the Bushveld Complex, South Africa. Tharisa is also developing the Karo Platinum Project, a low-cost,
open-pit PGM asset located on the Great Dyke in Zimbabwe, while simultaneously focusing on
beneficiation in the form of chrome and PGM alloys. A 15-year Power Purchase Agreement with Etana
for the procurement of wheeled renewable energy and a 40 MW solar project under construction will
ensure that Tharisa Minerals' drive to reduce its carbon footprint by 30% by 2030 is well within reach,
forming a major part of a roadmap to become net carbon neutral by 2050. 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: 13-01-2025 08:00:00
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