REG - Tharisa PLC - Q3 FY2024 Production Results

TharisaAnnouncement

10/07/2024 07:00

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RNS Number : 7254V  Tharisa PLC  10 July 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 THIRD QUARTER FY2024 ENDED 30 JUNE 2024

Tharisa, the mining, metals, and innovation company dual-listed on the
Johannesburg and London stock exchanges, announces its production results for
Q3 FY2024(( 1 )) and cash balance as at quarter end.

Quarter highlights

‒      Lost Time Injury Frequency Rate ('LTIFR') per 200 000 man hours
worked of

‒      0.03 at Tharisa Minerals

‒      0.10 at Karo Platinum

‒      PGM production increased to 36.9 koz (Q2 FY2024: 35.3 koz)

‒      PGM basket price steady at US$1 391/oz (6E basis) (Q2 FY2024:
US$1 343/oz)

‒      Chrome production increased to 410.2 kt (Q2 FY2024: 402.7 kt)

‒      Continued strong average metallurgical grade chrome concentrate
prices, up 8% to US$309/t (Q2 FY2024: US$286/t)

‒      Group cash on hand of US$189.9 million (31 March 2024: US$184.6
million), and debt reduced to US$97.7 million (31 March 2024: US$114.0
million), resulting in an increased net cash position of US$92.2 million
(31 March 2024: US$70.6 million)

‒      US$5 million share repurchase well on track with 1 600 058
 shares repurchased to end June 2024

‒      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 30 Jun 2024     Quarter ended 31 Mar 2024     Quarter on quarter movement %    Quarter ended 30 Jun 2023     Nine months ended 30 Jun 2024     Nine months ended 30 Jun 2023
 Reef mined                                                                 kt               1 261.9                       1 035.0                       21.9                             908.8                         3 355.4                           3 018.4
 Reef milled                                                                kt               1 396.1                       1 378.5                       1.3                              1 302.2                       4 198.9                           4 099.5
 6E PGMs produced (6E)                                                      koz              36.9                          35.3                          4.5                              37.0                          107.9                             114.0
 Average PGM contained metal basket price                                   US$/oz           1 391                         1 343                         3.6                              1 695                         1 359                             2 049
 Chrome concentrates produced (excluding third party)                       kt               410.2                         402.7                         1.9                              378.8                         1 275.7                           1 166.7
 Average metallurgical grade chrome concentrate contract price - 42% basis  US$/t CIF China  309                           286                           8.0                              290                           295                               258

 

Phoevos Pouroulis, CEO of Tharisa, commented:

"This third quarter marks nine months since we last recorded a lost time
injury, something that we can all be proud of, as our systems and continuous
focus on safe production and zero harm keep our people safe.

Operationally we delivered as planned, with improved mining and plant
recoveries resulting in overall PGM and chrome concentrate production
increases. The focus on sustainable mining and the structural improvements
achieved in this year to date positions us for a strong last quarter, with
further improvements in the mining performance, providing the sustainable
foundation for the medium to long term plans for the mine.

Positive progress has been made with our plans for transitioning to
underground development in the west pit in parallel with the continued
optimisation of  open-pit mining.

The Karo Platinum project is  progressing safely and well, with construction
aligned with capital availability and the various funding solutions
progressing according to plan.

Our vision for Tharisa remains firmly intact, with sustainable mining
complemented by maximising the output from our ore bodies, coupled through our
various beneficiation initiatives for both chrome and PGMs together with the
continued progress we are making in the renewable energy field with Redox One,
and the 40MW solar project."

 

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

‒      0.03 at Tharisa Minerals with no LTIs recorded to date in the
financial year under review

‒      0.10 at Karo Platinum with no accidents on site in the financial
year under review

Market Update

‒      PGM prices for the quarter were at slightly higher levels than
in the previous quarter supporting the market view that the 'bottom of the
market' has passed. Prices, however, continue to be influenced and rangebound
by continued inventory de-stocking, the pace of which is dependent on economic
activity, which has not reached previous heights yet. The narrative for PGM's
is changing with the realisation that the internal combustion engine will
remain around much longer, with hybrid drivetrains the natural progression in
the longer term.

‒      Chrome prices have continued to trend upwards on strong
fundamental demand for product coupled with port inventories at the lower end,
supporting prices. Logistics remain complex but manageable.

Operational Update

‒      Total reef mined up 21.9% as the benefits of increased stripping
provides the necessary in-pit flexibility, with tonnage  at 1 261.9 kt (Q2
FY2024: 1 035.0 kt)

‒      Another strong milling performance at 1 396.1 kt (Q2 FY2024:
1 378.5kt) with throughput supplemented by strategic ROM purchases

‒      Quarterly PGM production at 36.9 koz (Q2 FY2024: 35.3 koz)

‒      Rougher feed grade of 1.57 g/t (Q2 FY2024: 1.66 g/t)

‒      Recovery of 68.5% (Q2 FY2024: 62.9%)

‒      Quarterly chrome production of 410.2 kt (Q2 FY2024: 402.7 kt)

‒      Grade of 18.0% Cr(2)O(3) (Q2 FY2024: 18.1%)

‒      Recovery at 67.3% (Q2 FY2024: 66.4%)

Cash Balance and Debt Position

‒      Group cash on hand of US$189.9 million (31 March 2024: US$184.6
million), and debt reduced to US$97.7 million (31 March 2024: US$114.0
million), resulting in an increased net cash position of US$92.2 million
(31 March 2024: US$70.6 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 30 Jun 2024     Quarter ended 31 Mar 2024     Quarter on quarter movement %    Quarter ended 30 Jun 2023     Nine months ended 30 Jun 2024     Nine months ended 30 Jun 2023
 Reef mined                                                                 kt               1 261.9                       1 035.0                       21.9                             908.8                         3 355.4                           3 018.4
 Stripping ratio                                                            m(3): m(3)       12.7                          14.0                          (9.3)                            14.2                          12.8                              12.3
 Reef milled                                                                kt               1 396.1                       1 378.5                       1.3                              1 302.2                       4 198.9                           4 099.5
 PGM flotation feed                                                         kt               1 064.9                       1 055.6                       0.9                              996.5                         3 168.5                           3 151.4
 PGM rougher feed grade                                                     g/t              1.57                          1.66                          (5.4)                            1.67                          1.61                              1.66
 PGM recovery                                                               %                68.5                          62.9                          8.9                              69.0                          65.8                              67.6
 6E PGMs produced                                                           koz              36.9                          35.3                          4.5                              37.0                          107.9                             114.0
 Platinum                                                                   koz              19.4                          19.2                          1.0                              20.9                          59.1                              63.8
 Palladium                                                                  koz              5.8                           6.4                           (9.4)                            6.6                           17.4                              20.1
 Rhodium                                                                    koz              3.3                           3.2                           3.1                              3.4                           9.8                               10.6
 Average PGM contained metal basket price                                   US$/oz           1 391                         1 343                         3.6                              1 695                         1 359                             2 049
 Platinum                                                                   US$/oz           981                           910                           7.8                              1 034                         935                               994
 Palladium                                                                  US$/oz           973                           978                           (0.5)                            1 441                         1 013                             1 664
 Rhodium                                                                    US$/oz           4 638                         4 399                         5.4                              6 959                         4 417                             10 467
 Cr(2)O(3) ROM grade                                                        %                18.0                          18.1                          (0.6)                            17.8                          18.4                              17.7
 Chrome recovery                                                            %                67.3                          66.4                          1.4                              67.9                          68.1                              66.7
 Chrome yield                                                               %                29.4                          29.2                          0.6                              29.1                          30.4                              28.5
 Chrome concentrates produced (excluding third party)                       kt               410.2                         402.7                         1.9                              378.8                         1 275.7                           1 166.7
 Metallurgical grade                                                        kt               336.0                         339.5                         (1.0)                            306.0                         1 065.3                           1 018.5
 Specialty grades                                                           kt               74.2                          63.2                          17.4                             72.8                          210.4                             148.2
 Third party chrome production                                              kt               49.6                          45.0                          10.2                             56.2                          140.1                             143.0
 Average metallurgical grade chrome concentrate contract price - 42% basis  US$/t CIF China  309                           286                           8.0                              290                           295                               258
 Average exchange rate                                                      ZAR:US$          18.6                          18.9                          (1.6)                            18.7                          18.7                              18.0

 

 

Paphos, Cyprus

10 July 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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