REG - Tharisa PLC - Tharisa Production report Q1 FY2025

TharisaAnnouncement

13/01/2025 07:00

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RNS Number : 9879S  Tharisa PLC  13 January 2025

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 FY2025 ENDED 31 DECEMBER 2024

Tharisa, the mining, metals, and innovation company dual-listed on the
Johannesburg and London stock exchanges, announces its production results for
Q1 FY2025(( 1  (#_ftn1) )) and cash balance as at 31 December 2024.

Highlights

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

‒      0.02 at Tharisa Minerals

‒      0.08 at Karo Platinum

‒      PGM production of 29.9 koz (Q4 FY2024: 37.1 koz)

‒      Chrome production of 374.4 kt (Q4 FY2024: 426.8 kt)

‒      PGM prices averaging at US$1 381/oz for the quarter (Q4 FY2024:
US$1 370/oz)

‒      Average metallurgical grade chrome concentrate prices at
US$271/t for the quarter (Q4 FY2024: US$314/t)

‒      Group cash on hand of US$175.1 million (30 September 2024:
US$217.7 million), and debt of US$86.1 million (30 September 2024: US$108.8
million), resulting in a net cash position of US$89.0 million (30 September
2024: US$108.9 million)

 

                                                                           Quarter ended 31 Dec 2024     Quarter ended 30 Sep 2024     Quarter on quarter movement %    Quarter ended 31 Dec 2023     Year    ended 30 Sep 2024
 Reef mined                                                        kt      1 291.0                       1 286.5                       0.3                              1 058.6                       4 641.9
 Reef milled                                                       kt      1 377.6                       1 394.9                       (1.2)                            1 424.4                       5 593.8
 6E PGMs produced                                                  koz     29.9                          37.1                          (19.4)                           35.7                          145.1
 Chrome concentrates produced                                      kt      374.4                         426.8                         (12.3)                           462.8                         1 702.6
 Average PGM contained metal basket price                          US$/oz  1 381                         1 370                         0.8                              1 344                         1 362
 Average metallurgical grade chrome concentrate price - 42% basis  US$/t   271                           314                           (13.7)                           291                           299

 

 

 

Phoevos Pouroulis, CEO of Tharisa, commented:

"Undoubtedly a tough start to the new year impacted by drilling equipment
availability, as a consequence thereof we mined sub optimal oxidised reef
horizons. This yielded lower ROM grades and therefore lower recoveries. We
have subsequently improved the drilling rates and equipment availability. The
focus this quarter will be on optimising the feed grade and improving our
recoveries to previous levels.

While we have seen a drop in the chrome price due to slowing stainless steel
demand, we remain of the view that these price levels are unsustainable and
will need to correct to meet expected demand. The PGM pricing environment
remains stubbornly weak notwithstanding sound demand fundamentals.

The cybersecurity incident we experienced during the quarter did not directly
impact physical operations, but rather the administrative, accounting and
support services with work-around solutions being implemented to minimise any
disruptions. Good progress has been made in bringing the affected systems back
online. "

 

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

‒      0.02 at Tharisa Minerals

‒      0.08 at Karo Platinum

Market Update

‒      PGM prices remain subdued despite continued forecasts for
deficits in the various PGMs. The price weakness is compounded by a visible
lack of investor interest, despite the supply demand evidence. The low pricing
environment will lead to growing deficits as output continues to decline,
particularly in marginal deep level mines, with capital spend constrained.

‒      Chrome prices retreated in the quarter as uncertainty over
stainless steel demand drove a price reduction. Physical demand remains at
normal levels with port stocks approximating one month supply to ferrochrome
demand. Disruptions at the Mozambique border with lockdowns impacted road
transport to the port of Maputo, impacting the delivery of cargoes to end use
customers.

Operational Update

‒      Steady quarter on quarter reef mining at 1 291.0 kt (Q4 FY2024:
1 286.5 kt)

‒      Quarter on quarter reef milled at 1 377.6 kt (Q4 FY2024:
1 394.9 kt) supplemented by reduced ROM  purchases

‒      Quarterly PGM production at 29.9 koz (Q4 FY2024: 37.1 koz)

‒      Rougher feed grade of 1.39 g/t (Q4 FY2024: 1.56 g/t)

‒      Recovery of 61.7% (Q4 FY2024: 70.6%)

‒      Quarterly chrome production of 374.4 kt (Q4 FY2024: 426.8 kt)

‒      Grade of 16.9% Cr2O3 (Q4 FY2024: 18.2%)

‒      Recovery at 65.7% (Q4 FY2024: 68.8%)

‒      Underground definitive feasibility study progressing well with
early works capital being deployed

‒      Karo Platinum continues to evaluate value engineering
opportunities in a difficult PGM pricing environment. Work packages are
progressing in line with existing funding.

Cash Balance and Debt Position

‒      Group cash on hand of US$175.1 million (30 September 2024:
US$217.7 million), and debt of US$86.1 million (30 September 2024: US$108.8
million), resulting in a net cash position of US$89.0 million (30 September
2024: US$108.9 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.

 

                                                                                             Quarter ended 31 Dec 2024     Quarter ended 30 Sep 2024     Quarter on quarter movement %    Quarter ended 31 Dec 2023     Year    ended 30 Sep 2024
 Reef mined                                                                 kt               1 291.0                       1 286.5                       0.3                              1 058.6                       4 641.9
 Stripping ratio                                                            m(3): m(3)       12.4                          11.3                          9.7                              12.0                          12.5
 Reef milled                                                                kt               1 377.6                       1 394.9                       (1.2)                            1 424.4                       5 593.8
 PGM flotation feed                                                         kt               1 082.7                       1 049.6                       3.2                              1 048.0                       4 218.0
 PGM rougher feed grade                                                     g/t              1.39                          1.56                          (10.9)                           1.60                          1.60
 PGM recovery                                                               %                61.7                          70.6                          (12.6)                           66.1                          67.0
 6E PGMs produced                                                           koz              29.9                          37.1                          (19.4)                           35.7                          145.1
 Platinum produced                                                          koz              16.2                          22.3                          (27.4)                           20.5                          81.6
 Palladium produced                                                         koz              5.1                           6.0                           (15.0)                           5.2                           23.4
 Rhodium produced                                                           koz              2.8                           3.9                           (28.2)                           3.3                           13.8
 Average PGM contained metal basket price                                   US$/oz           1 381                         1 370                         0.8                              1 344                         1 362
 Platinum price                                                             US$/oz           966                           963                           0.3                              914                           942
 Palladium price                                                            US$/oz           1 011                         970                           4.2                              1 090                         1 002
 Rhodium price                                                              US$/oz           4 577                         4 616                         (0.8)                            4 216                         4 467
 Cr(2)O(3) ROM grade                                                        %                16.9                          18.2                          (7.1)                            19.1                          18.4
 Chrome recovery                                                            %                65.7                          68.8                          (4.5)                            70.3                          68.3
 Chrome yield                                                               %                27.2                          30.6                          (11.1)                           32.5                          30.4
 Chrome concentrates produced                                               kt               374.4                         426.8                         (12.3)                           462.8                         1 702.6
 Metallurgical grade                                                        kt               317.7                         355.8                         (10.7)                           389.9                         1 421.2
 Specialty grades                                                           kt               56.7                          71.0                          (20.1)                           72.9                          281.4
 Average metallurgical grade chrome concentrate contract price - 42% basis  US$/t CIF China  271                           314                           (13.7)                           291                           299
 Average exchange rate                                                      ZAR:US$          17.9                          18.0                          (0.6)                            18.7                          18.2

 

Paphos, Cyprus

13 January 2025

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 multi-generational Tharisa Mine, located in the
south-western limb of the Bushveld Complex, South Africa. Tharisa is also
developing the Karo Platinum Project, a low-cost, open-pit PGM asset located
on the Great Dyke in Zimbabwe, while simultaneously focusing on beneficiation
in the form of chrome and PGM alloys. A 15-year Power Purchase Agreement with
Etana for the procurement of wheeled renewable energy and a 40 MW solar
project under construction will ensure that Tharisa Minerals' drive to reduce
its carbon footprint by 30% by 2030 is well within reach, forming a major part
of a roadmap to become net carbon neutral by 2050. 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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