TIDMTHS
RNS Number : 2912Z
Tharisa PLC
11 January 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 FY2024ED 31 DECEMBER
2023
Tharisa, the mining, metals, and innovation company dual-listed
on the Johannesburg and London stock exchanges, announces its
production results for Q1 FY2024 ([1]) and cash balance as at
quarter end.
Quarter highlights
-- Lost Time Injury Frequency Rate ('LTIFR') of
-- 0.09 per 200 000-man hours worked at Tharisa Minerals
-- 0.13 per 200 000-man hours worked at Karo Platinum
-- Increased mill throughput of 8.7% at 1 424.4 kt, with
improvements in both grade and recovery for PGMs and chrome
concentrate leads to
-- PGM output increasing to 35.7 koz (Q4 FY2023: 30.7 koz)
-- Record quarterly chrome output at 462.8 kt (Q4 FY2023: 413.4 kt)
-- PGM basket price showed slight improvement of 1% to US$1
344/oz (6E basis) (Q4 FY2023: US$1 331/oz)
-- Average metallurgical grade chrome concentrate prices held
steady at US$291/t (Q4 FY2023: US$291/t)
-- Group cash on hand at US$221.5 million (30 September 2023:
US$268.8 million), and debt of US$126.6 million (30 September 2023:
US$142.2 million), resulting in a net cash position of US$94.9
million (30 September 2023: US$126.6 million)
-- Production guidance for FY2024 remains between 145 koz and
155 koz PGMs (6E basis) and 1.7 Mt to 1.8 Mt of chrome
concentrates
Key Operating Numbers
Quarter Quarter Quarter Quarter Year
ended ended on quarter ended ended
31 Dec 30 Sep movement 31 Dec 30 Sep
2023 2023 % 2022 2023
Reef mined kt 1 058.6 1 158.9 (8.7) 1 081.5 4 177.3
-------- -------- -------- ------------ -------- --------
Reef milled kt 1 424.4 1 310.2 8.7 1 427.4 5 409.8
-------- -------- -------- ------------ -------- --------
PGMs produced (6E) koz 35.7 30.7 16.3 42.7 144.7
-------- -------- -------- ------------ -------- --------
Chrome concentrates
produced (excluding
third party) kt 462.8 413.4 11.9 383.1 1 580.1
-------- -------- -------- ------------ -------- --------
Average PGM basket
price US$/oz 1 344 1 331 1.0 2 360 1 893
-------- -------- -------- ------------ -------- --------
Average metallurgical
grade chrome concentrate
price - 42% basis US$/t 291 291 - 223 263
-------- -------- -------- ------------ -------- --------
Phoevos Pouroulis, CEO of Tharisa, commented:
"A positive start to our new financial year in what is
traditionally a tough quarter with the festive season and inclement
weather typically causing challenges to operations. We have made
good operational improvements, with waste mining advances leading
to a better mining and plant performance, resulting in record
quarterly chrome production.
This performance is vital and underpins our development of the
Karo Platinum Project and sets the trajectory for the coming
decades at our multi-generational Tharisa Mine.
PGM prices remain subdued, negatively affecting many of the PGM
miners in South Africa, once again our co-product business model
continues to be operationally cash-generative, and the chrome
market continues to enjoy strong demand as we enter the Chinese New
Year.
This year we will be expanding and rolling out our R&D
projects in distinct stages of development and commercialisation.
With a solid foundation we can re-frame the operating context and
re-focus our energy on our key competencies ultimately unlocking
value to all stakeholders."
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 of
-- 0.09 per 200 000-man hours worked at Tharisa Minerals
-- 0.13 per 200 000-man hours worked at Karo Platinum
Market Update
-- Continued strong demand was evident in the chrome market,
particularly in the lead up to, these days, a less disruptive
Chinese New Year period (official start date 10 February 2024),
with demand underpinned by economic fundamentals and continued
concerns about inland logistics in South Africa. Freight rates are
ticking up on the back of geo-political events impacting maritime
shipping routes
-- The PGM market has continued to suffer from pricing pressure,
however, a short-term reprieve towards the end of the quarter,
driven by technical short covering, saw some price spikes. The
effect of these low prices is evident on the PGM mines in South
Africa, with shaft and even mine closures underway. The major
pressure on PGM prices remains the (perceived) excess inventory in
the PGM pipeline. We expect this to be balanced once the real
demand we have seen from end users becomes evident, in particular
as further supply cuts are implemented and, on a macro level,
policy reduction of subsidies for EV vehicles influences demand
Operational Update
-- Total reef mined slightly down at 1 058.6 kt (Q4 FY2023: 1 158.9 kt)
-- Strategic ROM ore purchases supplemented own mine production
with Q1 FY2024 milling at 1 424.4 kt (Q4 FY2023: 1 310.2kt)
-- Quarterly chrome production at a record 462.8 kt (Q4 FY2023: 413.4 kt)
-- Grade of 19.1% Cr(2) O(3) (Q4 FY2023: 18.7%)
-- Recovery at 70.3% (Q4 FY2023: 70.0%)
-- Quarterly PGM production at 35.7 koz (Q4 FY2023: 30.7 koz)
-- Rougher feed grade of 1.60 g/t (Q4 FY2023: 1.57 g/t)
-- Recovery of 66.1% (Q4 FY2023: 62.7%)
Karo Platinum Update
-- The previously announced review of the commissioning timeline
of the Karo Platinum Project remains on track for first ore in mill
(FOIM) for June 2025
-- Funding solutions ring fenced to Karo Platinum are being
pursued in line with the revised production timeline
Cash Balance and Debt Position
-- Group cash on hand at US$221.5 million (30 September 2023:
US$268.8 million), and debt of US$126.6 million (30 September 2023:
US$142.2 million), resulting in a net cash position of US$94.9
million (30 September 2023: US$126.6 million)
Guidance
Production guidance for FY2024 is set between 145 koz and 155
koz PGMs (6E basis) and 1.7 Mt to 1.8 Mt of chrome
concentrates.
Any forward looking statements have not been reported on or
reviewed by Tharisa's auditors.
Quarter Quarter Quarter Quarter Year ended
ended ended on quarter ended 30 Sep
31 Dec 30 Sep movement 31 Dec 2023
2023 2023 % 2022
Reef mined kt 1 058.6 1 158.9 (8.7) 1 081.5 4 177.3
--------- -------- -------- ------------ -------- -----------
m(3)
Stripping ratio : m(3) 12.0 14.0 (14.3) 10.6 12.8
--------- -------- -------- ------------ -------- -----------
Reef milled kt 1 424.4 1 310.2 8.7 1 427.4 5 409.8
--------- -------- -------- ------------ -------- -----------
PGM flotation feed kt 1 048.0 970.6 8.0 1 115.3 4 122.0
--------- -------- -------- ------------ -------- -----------
PGM rougher feed grade g/t 1.60 1.57 1.9 1.66 1.64
--------- -------- -------- ------------ -------- -----------
PGM recovery % 66.1 62.7 5.4 71.7 66.5
--------- -------- -------- ------------ -------- -----------
6E PGMs produced koz 35.7 30.7 16.3 42.7 144.7
--------- -------- -------- ------------ -------- -----------
Platinum koz 20.5 17.3 18.5 23.2 80.3
--------- -------- -------- ------------ -------- -----------
Palladium koz 5.2 5.2 - 7.5 24.8
--------- -------- -------- ------------ -------- -----------
Rhodium koz 3.3 3.0 10.0 4.2 13.5
--------- -------- -------- ------------ -------- -----------
Average PGM basket price US$/oz 1 344 1 331 1.0 2 360 1 893
--------- -------- -------- ------------ -------- -----------
Platinum US$/oz 914 940 (2.8) 967 981
--------- -------- -------- ------------ -------- -----------
Palladium US$/oz 1 090 1 227 (11.2) 1 952 1 594
--------- -------- -------- ------------ -------- -----------
Rhodium US$/oz 4 216 3 841 9.8 12 951 8 992
--------- -------- -------- ------------ -------- -----------
Average PGM basket price ZAR/oz 25 189 24 842 1.4 41 682 34 107
--------- -------- -------- ------------ -------- -----------
Cr(2) O(3) ROM grade % 19.1 18.7 2.1 17.0 17.9
--------- -------- -------- ------------ -------- -----------
Chrome recovery % 70.3 70.0 0.4 65.7 67.6
--------- -------- -------- ------------ -------- -----------
Chrome yield % 32.5 31.6 2.8 26.8 29.2
--------- -------- -------- ------------ -------- -----------
Chrome concentrates
produced (excluding
third party) kt 462.8 413.4 11.9 383.1 1 580.1
--------- -------- -------- ------------ -------- -----------
Metallurgical grade kt 389.9 338.4 15.2 347.2 1 356.9
--------- -------- -------- ------------ -------- -----------
Specialty grades kt 72.9 75.0 (2.8) 35.9 223.2
--------- -------- -------- ------------ -------- -----------
Third party chrome production kt 45.4 58.9 (22.9) 40.9 201.9
--------- -------- -------- ------------ -------- -----------
Average metallurgical
grade chrome concentrate US$/t
contract price - 42% CIF
basis China 291 291 - 223 263
--------- -------- -------- ------------ -------- -----------
Metallurgical grade ZAR/t
chrome concentrate contract CIF
price China 5 445 5 273 3.3 3 932 4 840
--------- -------- -------- ------------ -------- -----------
Average exchange rate ZAR:US$ 18.7 18.7 - 17.6 18.2
--------- -------- -------- ------------ -------- -----------
Paphos, Cyprus
11 January 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 advancing the vast mechanised 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).
[1] Tharisa's financial year is from 01 October to 30
September
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END
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