REG - Tharisa PLC - Production report Q4 and FY2024

TharisaAnnouncement

10/10/2024 07:00

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RNS Number : 5910H  Tharisa PLC  10 October 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

Key Operating Numbers

                                                                                             Quarter ended 30 Sep 2024    Quarter ended 30 Jun  2024     Quarter on quarter movement %    Quarter ended 30 Sep 2023    Year ended 30 Sep 2024    Year ended 30 Sep 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 metal basket price                                   US$/oz           1 370                        1 391                          (1.5)                            1 331                        1 362                     1 893
 Chrome concentrates produced (excluding third party)                       kt               426.8                        410.2                          4.0                              413.4                        1 702.6                   1 580.1
 Average metallurgical grade chrome concentrate contract price - 42% basis  US$/t CIF China  314                          309                            1.6                              291                          299                       263

 

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% Cr(2)O(3) (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 ended 30 Sep 2024    Quarter ended 30 Jun 2024    Quarter on quarter movement %    Quarter ended 30 Sep 2023    Year ended 30 Sep 2024    Year ended 30 Sep 2023
 Reef mined                                                                 kt               1 286.5                      1 261.9                      1.9                              1 158.9                      4 641.9                   4 177.3
 Stripping ratio                                                            m(3): m(3)       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 metal basket price                                   US$/oz           1 370                        1 391                        (1.5)                            1 331                        1 362                     1 893
 Platinum                                                                   US$/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 produced (excluding third party)                       kt               426.8                        410.2                        4.0                              413.4                        1 702.6                   1 580.1
 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 production                                              kt               53.2                         49.6                         7.3                              58.9                         193.3                     201.9
 Average metallurgical grade chrome concentrate contract price - 42% basis  US$/t CIF China  314                          309                          1.6                              291                          299                       263
 Average exchange rate                                                      ZAR:US$          18.0                         18.6                         (3.2)                            18.7                         18.2                      18.2

 

Paphos, Cyprus

10 October 2024

 

JSE Sponsor

Investec Bank Limited

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Investor Relations Contacts:

Ilja Graulich (Head of Investor Relations and Communications)

+27 11 996 3500

+27 83 604 0820

igraulich@tharisa.com (mailto: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).

 

 

 1  Tharisa's financial year is from 01 October to 30 September

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