REG - Tharisa PLC - Tharisa Q1 FY2024 production report
11/01/2024 07:00
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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 FY2024 ENDED 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 (#_ftn1) )) 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$126.6 million)
‒ Production guidance for FY2024 remains between 145 koz and 155 koz
PGMs (6E basis) and 1.7 Mt to 1.8 Mt of chrome concentrates
Key Operating Numbers
Quarter ended 31 Dec 2023 Quarter ended 30 Sep 2023 Quarter on quarter movement % Quarter ended 31 Dec 2022 Year ended 30 Sep 2023
Reef mined kt 1 058.6 1 158.9 (8.7) 1 081.5 4 177.3
Reef milled kt 1 424.4 1 310.2 8.7 1 427.4 5 409.8
PGMs produced (6E) koz 35.7 30.7 16.3 42.7 144.7
Chrome concentrates produced (excluding third party) kt 462.8 413.4 11.9 383.1 1 580.1
Average PGM basket price US$/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$126.6 million)
Guidance
Production guidance for FY2024 is set between 145 koz and 155 koz PGMs (6E
basis) and 1.7 Mt to 1.8 Mt of chrome concentrates.
Any forward looking statements have not been reported on or reviewed by
Tharisa's auditors.
Quarter ended 31 Dec 2023 Quarter ended 30 Sep 2023 Quarter on quarter movement % Quarter ended 31 Dec 2022 Year ended 30 Sep 2023
Reef mined kt 1 058.6 1 158.9 (8.7) 1 081.5 4 177.3
Stripping ratio m(3): m(3) 12.0 14.0 (14.3) 10.6 12.8
Reef milled kt 1 424.4 1 310.2 8.7 1 427.4 5 409.8
PGM flotation feed kt 1 048.0 970.6 8.0 1 115.3 4 122.0
PGM rougher feed grade g/t 1.60 1.57 1.9 1.66 1.64
PGM recovery % 66.1 62.7 5.4 71.7 66.5
6E PGMs produced koz 35.7 30.7 16.3 42.7 144.7
Platinum koz 20.5 17.3 18.5 23.2 80.3
Palladium koz 5.2 5.2 - 7.5 24.8
Rhodium koz 3.3 3.0 10.0 4.2 13.5
Average PGM basket price US$/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$/oz 4 216 3 841 9.8 12 951 8 992
Average PGM basket price ZAR/oz 25 189 24 842 1.4 41 682 34 107
Cr(2)O(3) ROM grade % 19.1 18.7 2.1 17.0 17.9
Chrome recovery % 70.3 70.0 0.4 65.7 67.6
Chrome yield % 32.5 31.6 2.8 26.8 29.2
Chrome concentrates produced (excluding third party) kt 462.8 413.4 11.9 383.1 1 580.1
Metallurgical grade kt 389.9 338.4 15.2 347.2 1 356.9
Specialty grades kt 72.9 75.0 (2.8) 35.9 223.2
Third party chrome production kt 45.4 58.9 (22.9) 40.9 201.9
Average metallurgical grade chrome concentrate contract price - 42% basis US$/t CIF China 291 291 - 223 263
Metallurgical grade chrome concentrate contract price ZAR/t CIF 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
(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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