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]
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% Cr2O3 (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$94.9 million).
Guidance
Production
guidance for FY2024 remains between 145 koz and 155 koz PGMs (6E
basis) and 1.7 Mt to 1.8 Mt of chrome concentrates.
The
above forward looking statements have not been reported on or
reviewed by Tharisa's auditors and is the responsibility of the
directors.
Production
Numbers
|
|
|
Quarter
ended 31 Mar 2024
|
Quarter
ended 31 Dec 2023
|
Quarter
on quarter movement %
|
Quarter
ended 31 Mar 2023
|
Half
year ended 31 Mar 2024
|
Half
year ended 31 Mar 2023
|
|
Reef
mined
|
kt
|
1 035.0
|
1 058.6
|
(2.2)
|
1 028.0
|
2 093.6
|
2 109.5
|
|
Stripping
ratio
|
m3:
m3
|
14.0
|
12.0
|
16.7
|
12.6
|
12.9
|
11.5
|
|
Reef
milled
|
kt
|
1 378.5
|
1 424.4
|
(3.2)
|
1 370.0
|
2 802.8
|
2 797.4
|
|
PGM
flotation feed
|
kt
|
1 055.6
|
1 048.0
|
0.7
|
1 039.6
|
2 103.6
|
2 154.9
|
|
PGM
rougher feed grade
|
g/t
|
1.66
|
1.60
|
3.7
|
1.66
|
1.63
|
1.66
|
|
PGM
recovery
|
%
|
62.9
|
66.1
|
(4.8)
|
61.9
|
64.5
|
67.0
|
|
6E
PGMs produced
|
koz
|
35.3
|
35.7
|
(1.1)
|
34.3
|
71.1
|
77.0
|
|
Platinum
|
koz
|
19.2
|
20.5
|
(6.3)
|
19.7
|
39.7
|
42.9
|
|
Palladium
|
koz
|
6.4
|
5.2
|
23.1
|
6.1
|
11.6
|
13.6
|
|
Rhodium
|
koz
|
3.2
|
3.3
|
(3.0)
|
3.0
|
6.5
|
7.2
|
|
Average
PGM contained metal basket price
|
US$/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$/oz
|
4
399
|
4
216
|
4.3
|
10
812
|
4
306
|
12
133
|
|
Average
PGM contained metal basket price
|
ZAR/oz
|
25
362
|
25
189
|
0.7
|
35
801
|
25
275
|
39
094
|
|
Cr2O3
ROM grade
|
%
|
18.1
|
19.1
|
(5.2)
|
18.4
|
18.6
|
17.7
|
|
Chrome
recovery
|
%
|
66.4
|
70.3
|
(5.5)
|
66.6
|
68.5
|
66.2
|
|
Chrome
yield
|
%
|
29.2
|
32.5
|
(10.1)
|
29.5
|
30.9
|
28.2
|
|
Chrome
concentrates produced (excluding third party)
|
kt
|
402.7
|
462.8
|
(13.0)
|
404.8
|
865.6
|
787.9
|
|
Metallurgical
grade
|
kt
|
339.5
|
389.9
|
(12.9)
|
365.3
|
729.4
|
712.5
|
|
Specialty
grades
|
kt
|
63.2
|
72.9
|
(13.3)
|
39.5
|
136.2
|
75.4
|
|
Third
party chrome production
|
kt
|
45.0
|
45.4
|
(0.9)
|
45.8
|
90.4
|
86.8
|
|
Average
metallurgical grade chrome concentrate contract price - 42%
basis
|
US$/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
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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
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).
