REG - Tharisa PLC - Q2 FY2024 Production Results
10/04/2024 07:00
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RNS Number : 9126J Tharisa PLC 10 April 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 SECOND QUARTER FY2024 ENDED 31 MARCH 2024
Tharisa, the mining, metals, and innovation company dual-listed on the
Johannesburg and London stock exchanges, announces its production results for
Q2 FY2024(( 1 (#_ftn1) )) and cash balance as at quarter end.
Quarter highlights
‒ Lost Time Injury Frequency Rate ('LTIFR') of
‒ 0.05 per 200 000-man hours worked at Tharisa Minerals
‒ 0.11 per 200 000-man hours worked at Karo Platinum
‒ PGM output consistent at 35.3 koz (Q1 FY2024: 35.7 koz)
‒ PGM basket price at US$1 343/oz (6E basis) (Q1 FY2024:
US$1 344/oz)
‒ Chrome output lower than previous quarter record production at
402.7 kt (Q1 FY2024: 462.8 kt)
‒ Average metallurgical grade chrome concentrate price held steady
at US$286/t (Q1 FY2024: US$291/t)
‒ Cash of US$184.6 million (31 December 2023: US$221.5 million),
and debt of US$114.0 million (31 December 2023: US$126.6 million), resulting
in a net cash position of US$70.6 million (31 December 2024: US$94.9
million)
‒ Announced US$5 million share repurchase on 26 March 2024
‒ Official launch of Redox One at the Africa Energy Indaba
‒ Production guidance for FY2024 remains between 145 koz and 155
koz PGMs (6E basis) and 1.7 Mt to 1.8 Mt of chrome concentrates
Key Operating Numbers
Quarter ended 31 Mar 2024 Quarter ended 31 Dec 2023 Quarter on quarter movement % Quarter ended 31 Mar 2023 Half year ended 31 Mar 2024 Half year ended 31 Mar 2023
Reef mined kt 1 035.0 1 058.6 (2.2) 1 028.0 2 093.6 2 109.5
Reef milled kt 1 378.5 1 424.4 (3.2) 1 370.0 2 802.8 2 797.4
6E PGMs produced (6E) koz 35.3 35.7 (1.1) 34.3 71.1 77.0
Average PGM contained metal basket price US$/oz 1 343 1 344 (0.1) 2 032 1 344 2 216
Chrome concentrates produced (excluding third party) kt 402.7 462.8 (13.0) 404.8 865.6 787.9
Average metallurgical grade chrome concentrate contract price - 42% basis US$/t CIF China 286 291 (1.7) 269 288 247
Phoevos Pouroulis, CEO of Tharisa, commented:
"Operationally we performed well, building on a record first quarter and on
track to meet guidance. Most pleasing is the continued trend in our improved
safety record. We continue to drive improvement in recoveries and efficiencies
which is highly sensitive to the variability and oxidisation of the feed into
our processing plants.
The Karo Platinum Project development continues with smaller work packages
aligned to capital availability, focusing on civil and infrastructure
development, as we progress on the road to procure the necessary third-party
financing to deliver the first phase into production.
A milestone in our innovation strategy was the official launch of Redox One,
which is at the forefront of developing long-term energy storage solutions,
using proprietary proven technology, to deliver a 'Mine-to-Megawatt' solution
at a competitive storage cost compared to existing technologies.
We also commenced with a US$5 million share repurchase programme to the
benefit of our shareholders and reflecting our firm belief in the current and
future prospects of our company.
As we celebrate ten years of our JSE listing today, I reflect on the original
vision of our Chairman, which has been brought to fruition, a sustainable
co-producer of PGMs and chrome from the MG reef horizon. We have delivered
deep value for our stakeholders, and building off our multi-generational
resources we look to unlock latent value in process optimisation and novel
downstream technologies."
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
‒ 0.05 per 200 000-man hours worked at Tharisa Minerals
‒ 0.11 per 200 000-man hours worked at Karo Platinum
Market Update
‒ PGM prices have stabilised after a pricing correction driven in
the main by negative sentiment around long-term demand drivers. The chrome
market remained robust with continued tight supply-demand fundamentals. Chrome
output by the major UG2 PGM producers has further tightened. We see continued
strong demand by ferrochrome and downstream stainless steel producers in China
and, while port stocks have risen marginally this calendar year, most of these
stocks are already accounted for and the market remains tight.
Operational Update
‒ Total reef mined marginally lower at 1 035.0 kt (Q1 FY2024:
1 058.6 kt)
‒ Milling throughput was also slightly lower at 1 378.5 kt (Q1
FY2024: 1 424.4kt)
‒ Quarterly PGM production at 35.3 koz (Q1 FY2024: 35.7 koz)
‒ Rougher feed grade of 1.66 g/t (Q1 FY2024: 1.60g/t)
‒ Recovery of 62.9% (Q1 FY2024: 66.1%)
‒ Quarterly chrome production of 402.7 kt (Q1 FY2024: 462.8kt)
‒ Grade of 18.1% Cr(2)O(3) (Q1 FY2024: 19.1%)
‒ Recovery at 66.4% (Q1 FY2024: 70.3%)
Cash Balance and Debt Position
‒ Group cash on hand at US$184.6 million (31 December 2023:
US$221.5 million), and debt of US$114.0 million (31 December 2023: US$126.6
million), resulting in a net cash position of US$70.6 million (31 December
2024: US$94.9 million).
Guidance
Production guidance for FY2024 remains between 145 koz and 155 koz PGMs (6E
basis) and 1.7 Mt to 1.8 Mt of chrome concentrates.
The above forward looking statements have not been reported on or reviewed by
Tharisa's auditors and is the responsibility of the directors.
Production Numbers
Quarter ended 31 Mar 2024 Quarter ended 31 Dec 2023 Quarter on quarter movement % Quarter ended 31 Mar 2023 Half year ended 31 Mar 2024 Half year ended 31 Mar 2023
Reef mined kt 1 035.0 1 058.6 (2.2) 1 028.0 2 093.6 2 109.5
Stripping ratio m(3): m(3) 14.0 12.0 16.7 12.6 12.9 11.5
Reef milled kt 1 378.5 1 424.4 (3.2) 1 370.0 2 802.8 2 797.4
PGM flotation feed kt 1 055.6 1 048.0 0.7 1 039.6 2 103.6 2 154.9
PGM rougher feed grade g/t 1.66 1.60 3.7 1.66 1.63 1.66
PGM recovery % 62.9 66.1 (4.8) 61.9 64.5 67.0
6E PGMs produced koz 35.3 35.7 (1.1) 34.3 71.1 77.0
Platinum koz 19.2 20.5 (6.3) 19.7 39.7 42.9
Palladium koz 6.4 5.2 23.1 6.1 11.6 13.6
Rhodium koz 3.2 3.3 (3.0) 3.0 6.5 7.2
Average PGM contained metal basket price US$/oz 1 343 1 344 (0.1) 2 032 1 344 2 216
Platinum US$/oz 910 914 (0.4) 1 004 912 976
Palladium US$/oz 978 1 090 (10.3) 1 563 1 033 1 763
Rhodium US$/oz 4 399 4 216 4.3 10 812 4 306 12 133
Average PGM contained metal basket price ZAR/oz 25 362 25 189 0.7 35 801 25 275 39 094
Cr(2)O(3) ROM grade % 18.1 19.1 (5.2) 18.4 18.6 17.7
Chrome recovery % 66.4 70.3 (5.5) 66.6 68.5 66.2
Chrome yield % 29.2 32.5 (10.1) 29.5 30.9 28.2
Chrome concentrates produced (excluding third party) kt 402.7 462.8 (13.0) 404.8 865.6 787.9
Metallurgical grade kt 339.5 389.9 (12.9) 365.3 729.4 712.5
Specialty grades kt 63.2 72.9 (13.3) 39.5 136.2 75.4
Third party chrome production kt 45.0 45.4 (0.9) 45.8 90.4 86.8
Average metallurgical grade chrome concentrate contract price - 42% basis US$/t CIF China 286 291 (1.7) 269 288 247
Metallurgical grade chrome concentrate contract price ZAR/t CIF China 5 356 5 445 (1.6) 4 827 5 395 4 387
Average exchange rate ZAR:US$ 18.9 18.7 1.1 17.8 18.9 17.7
Paphos, Cyprus
10 April 2024
JSE Sponsor
Investec Bank Limited
Connect with us on LinkedIn
(https://protect-za.mimecast.com/s/Hc4jCJZK7oIYv07fVi1n3?domain=linkedin.com)
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 (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 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 (#_ftnref1) Tharisa's financial year is from 01 October to 30 September
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