Wrap Text
Production Report for the first quarter FY2022 ended 31 December 2021
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 FY2022(1) ENDED 31 DECEMBER 2021
Best quarter on record kicks off a transformative year
Tharisa, the platinum group metals (PGMs) and chrome co-producer listed on the Johannesburg and
London stock exchanges, announces production results for the first quarter of FY2022.
First quarter highlights
- Lost Time Injury Frequency Rate (‘LTIFR’) of 0.47 per 200 000 man hours worked
- Quarterly production records set for processing volumes, PGM and chrome concentrate
production
- Tonnes milled at 1.43 Mt with a 10.1% increase in PGM rougher feed grade at 1.75 g/t
and Cr2O3 ROM grade at 18.1%
- PGM production of 47.7 koz, up 9.2% quarter on quarter (‘QoQ’), at an average PGM
basket price of US$2 394/oz (ZAR36 897/oz)
- Chrome production of 401.8 kt, up 1.5% QoQ, at an average metallurgical grade chrome
price of US$161/t (ZAR2 471/t)
- Vulcan Plant commissioning progressing well with hot tails feed from the Voyager Plant being
processed, first production is expected in the second quarter as planned
- Cash balance of US$79.1 million and a positive net cash position of US$24.4 million
Guidance for FY2022 is maintained at 165 koz to 175 koz PGMs (6E basis) and 1.75 Mt to 1.85 Mt of
chrome concentrates.
Quarter Quarter Q on Q Quarter Year
ended ended movement ended ended
31 Dec 30 Sep % 31 Dec 30 Sept
2021 2021 2020 2021
Reef mined kt 1 413.9 1 404.7 0.7 1 234.3 5 379.9
PGMs produced (6E) koz 47.7 43.7 9.2 39.3 157.8
Chrome concentrates produced kt 401.8 395.7 1.5 372.3 1 506.1
(excluding third party)
Average PGM basket price US$/oz 2 394 2 854 (16.1) 2 399 3 074
Average metallurgical grade chrome US$/t 161 167 (3.6) 136 154
concentrate contract price
Phoevos Pouroulis, CEO of Tharisa, commented:
“A great start to our new financial year, which will see the Company transform further with the
developments at our flagship asset, namely the integration of the Vulcan fine chrome recovery circuit at
the Tharisa Mine, enabling us to reach 2 Mt per annum of chrome production, reduce costs and carbon
emissions per unit. Our diversification and growth plan sees our projects in Zimbabwe becoming fully
integrated into the business within this financial year.
Our innovative and strategic initiatives continue to benefit the Tharisa Mine, with both PGM and chrome
concentrate output up quarter on quarter, and we see this trend continuing, as we work further on
improving our grade mix and upgrading our stockpile levels, not only in volume but in overall quality.
The commissioning of the Vulcan fine chrome recovery and beneficiation plant is nearly complete, with the
Voyager Plant throughput being fed into Vulcan, thus ensuring we will start with commercial production
from Vulcan in the second quarter as planned.
In Zimbabwe, mining on the high grade Salene Chrome operation is progressing well, with more than two
months of stockpile ahead of our mobile plant, which is being commissioned.
On Karo Platinum, we eagerly await the final regulatory sign off from our partners, the Zimbabwean
government, so that we can share the exciting plans we have made for the development of this world class
resource and project.
A strong start to the year, and I want to thank the Tharisa team for their continued focus and delivery.
We remain firmly on track to deliver, and hopefully exceed, our stated guidance of 165 koz to 175 koz
PGMs and 1.75 Mt to 1.85 Mt of chrome concentrates in the current financial year.”
Health & Safety
- The health and safety of our stakeholders remains a core value and Tharisa continues to strive for
zero harm at its operations
- LTIFR of 0.47 per 200 000 man hours worked
Market update
- The PGM spot markets were weaker than the past several quarters, but early indications are that
the supply-demand balance is improving, with bottlenecks in the chip and motor industry abating,
and stockpiles from some of the major producers being worked through the market. While
COVID-19 seems to remain a short-term risk, global growth looks set to recover, with the
increasing emissions standards underpinning prices. On the back of this, prices have risen in the
early weeks of this calendar year, with the current spot basket price at around US$2 700/oz,
versus prices received for the quarter of US$2 394/oz
- Chrome prices remained steady quarter on quarter but have seen an uptick to around US$175/t
at the end of the quarter owing to increased consumption of chrome concentrates in China, as
power restrictions eased in many of the major industrial production hubs resulting in an increase
in ferrochrome output supported by stainless steel demand. Coupled with this increased
consumption was a significant destocking of port stocks, reducing from a quarter start of 4.0 Mt
to around 2.7 Mt presently, a level not seen since Q1 CY2018. Tharisa continues to deliver chrome
concentrates into the market notwithstanding logistical challenges, both inland and sea freight
Operational update
- Strong operational performance from mining through to processing, with several initiatives, such
as the water management projects ensuring delivery during this rainy quarter
- Total reef mined steady at 1 413.9 kt (Q4 FY2021: 1 404.7 kt)
- Record tonnes milled at 1 432.1 kt (Q4 FY2021: 1 428.1 kt)
- Improvement in PGM rougher freed grade at 1.75 g/t (Q4 FY2021: 1.59 g/t)
- Chrome yield improving to 28.1% (Q4 FY2021: 27.7%), up 1.4% QoQ
- Output in both PGM and chrome concentrate reached record quarterly levels
- PGM production of 47.7 koz, up 9.2% QoQ
- Chrome output of 401.8 kt, up 1.5% QoQ
- PGM recoveries were slightly lower at 79.3% (vs 80.0% QoQ) due to the feeding of more oxidised
material to improve the future stockpile mix ahead of the plant, which remains at 2-months ROM
Zimbabwe update
- Mining is progressing well at Salene Chrome with two months of ROM stockpile ahead of the
plant, which is being commissioned
- Karo Platinum is awaiting final approvals from the government, which are anticipated during the
current quarter
Cash balance and debt position
- Tharisa had a cash balance of US$79.1 million (30 September 2021 US$83.4 million) at the end of
the quarter and debt of US$54.7 million (30 September 2021 US$35.5 million), the increased debt
levels attributable to short term trade financing flows relating to the timing of chrome
concentrate shipments resulting in a positive net cash position of US$24.4 million (30 September
2021 US$47.9 million)
Guidance
- FY2022 production guidance of 165 koz to 175 koz PGMs (6E basis) and 1.75 Mt to 1.85 Mt of
chrome concentrates is maintained. COVID-19 remains a risk to the Company, and guidance is
premised on the current level of economic activity being maintained
Quarter Quarter Quarter on Quarter Year
ended ended quarter ended ended
31 Dec 30 Sep movement 31 Dec 30 Sept
2021 2021 % 2020 2021
Reef mined kt 1 413.9 1 404.7 0.7 1 234.3 5 379.9
Stripping ratio m3: m3 11.2 12.3 (8.9) 11.3 11.6
Reef milled kt 1 432.1 1 428.1 0.3 1 413.7 5 600.0
PGM flotation feed kt 1 069.3 1 071.6 (0.2) 1 080.3 4 248.2
PGM rougher feed grade g/t 1.75 1.59 10.1 1.43 1.49
PGM recovery % 79.3 80.0 (0.9) 78.9 77.6
6E PGMs produced koz 47.7 43.7 9.2 39.3 157.8
Platinum produced koz 26.5 23.6 12.3 21.5 86.7
Palladium produced koz 7.5 7.2 4.2 6.8 24.9
Rhodium produced koz 4.6 4.3 7.0 3.7 15.4
Average PGM contained metal basket US$/oz 2 394 2 854 (16.1) 2 399 3 074
price
Platinum price US$/oz 997 1 016 (1.9) 946 1 080
Palladium price US$/oz 1 941 2 295 (15.4) 2 349 2 513
Rhodium price US$/oz 13 522 16 721 (19.1) 14 621 18 860
Average PGM contained metal basket ZAR/oz 36 897 41 727 (11.6) 37 410 45 336
price
Cr2O3 ROM grade % 18.1 17.9 1.1 17.7 17.9
Chrome recovery % 65.6 65.0 0.9 62.8 63.3
Chrome yield % 28.1 27.7 1.4 26.3 26.9
Chrome concentrates produced kt 401.8 395.7 1.5 372.3 1 506.1
(excluding third party)
Metallurgical grade kt 305.3 309.3 (1.3) 278.5 1 141.5
Specialty grades kt 96.5 86.4 11.7 93.8 364.6
Third party chrome production kt 49.2 52.4 (6.1) 62.9 223.0
Metallurgical grade chrome concentrate US$/t 161 167 (3.6) 136 154
contract price CIF
China
Metallurgical grade chrome concentrate ZAR/t 2 471 2 435 1.5 2 114 2 284
contract price CIF
China
Average exchange rate ZAR:US$ 15.4 14.6 5.5 15.6 14.8
Footnotes:
(1) Tharisa’s financial year begins 01 October and ends on 30 September
Key operating numbers
Paphos, Cyprus
13 January 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
Financial PR contacts:
Bobby Morse / Ariadna Peretz / James Husband
+44 207 466 5000
tharisa@buchanan.uk.com
Broker contacts:
Peel Hunt LLP (UK Joint Broker)
Ross Allister / David McKeown / Alexander Allen
+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 Wyllie / Varun Talwar / 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
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 Salene Chrome, a development stage, low-cost, open-pit
asset, located adjacent to the Great Dyke in Zimbabwe. Tharisa plc is listed on the Johannesburg Stock
Exchange (JSE: THA) and the Main Board of the London Stock Exchange (LSE: THS).
Date: 13-01-2022 07:05:00
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