AI assistant
Tharisa PLC Audit Report / Information 2023
10568_rns_2023-12-21_795234be-029e-4143-b01b-80879dc68787.pdf
Audit Report / Information
Open in viewerOpens in your device viewer
tharisa
REPORT ON PAYMENTS TO GOVERNMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2023
enriching lives through innovating the resources company of the future
tharisa
INTRODUCTION
This report provides an overview of the payments made to governments by Tharisa plc ('Tharisa') and its subsidiaries for the financial year ended 30 September 2023, as required under the Cyprus Companies Law and the Cyprus Transparency Laws. These regulations enact domestic rules in line with Directive 2013/34/EU (the EU Accounting Directive (2013)) and apply to companies that are involved in extractive activities. While the regulations require disclosure in respect of the extractive operations only i.e. Tharisa Minerals (Pty) Ltd, Karo Platinum (Pvt) Ltd and Salene Chrome Zimbabwe (Pvt) Ltd, the disclosure herein relates to payments to governments in respect of all of the operations of the Group.
SUMMARY OF PAYMENTS TO GOVERNMENTS
| Country | Withholding | ||||
|---|---|---|---|---|---|
| Taxes US$'000 | Royalties US$'000 | taxes US$'000 | Other US$'000 | Total US$'000 | |
| Cyprus^{1} | 4 876 | - | - | 13 | 4 889 |
| South Africa | 24 451 | 10 217 | 658 | 1 374 | 36 700 |
| Zimbabwe | - | - | - | 1 127 | 1 127 |
| Total | 29 327 | 10 217 | 658 | 2 514 | 42 716 |
PAYMENTS BY ENTITY
| Cyprus | Withholding | ||||
|---|---|---|---|---|---|
| Taxes US$'000 | Royalties US$'000 | taxes US$'000 | Other US$'000 | Total US$'000 | |
| Tharisa plc | 68 | - | - | 3 | 71 |
| Arxo Resources Ltd | 4 640 | - | - | 1 | 4 641 |
| Tharisa Administration | |||||
| Services Ltd | 9 | - | - | 1 | 10 |
| Arxo Finance plc | 12 | - | - | 1 | 13 |
| Tharisa Investments Ltd | - | - | - | 1 | 1 |
| Karo Mining Holdings plc | 147 | - | - | 2 | 149 |
| Arxo Exploration (Cyprus) Ltd | - | - | - | 1 | 1 |
| Arxo Prospecting (Cyprus) Ltd | - | - | - | 1 | 1 |
| Arxo Technologies Ltd | - | - | - | 1 | 1 |
| Redox One Ltd | - | - | - | 1 | 1 |
| Total | 4 876 | - | - | 13 | 4 889 |
| South Africa | Withholding | ||||
| --- | --- | --- | --- | --- | --- |
| Taxes US$'000 | Royalties US$'000 | taxes US$'000 | Other US$'000 | Total US$'000 | |
| Tharisa Minerals (Pty) Ltd | 21 521 | 10 217 | 616 | 1 294 | 33 648 |
| Arxo Metals (Pty) Ltd | 2 599 | - | - | 43 | 2 642 |
| Arxo Logistics (Pty) Ltd | 130 | - | 42 | - | 172 |
| Ubhova Security (Pty) Ltd | 36 | - | - | - | 36 |
| Braeston (Pty) Ltd | 165 | - | - | - | 165 |
| MetQ (Pty) Ltd | - | - | - | 37 | 37 |
| Total | 24 451 | 10 217 | 658 | 1 374 | 36 700 |
1 The taxes incurred in Cyprus include the payment of the special contribution tax.
Page 2 of 4
tharisa
PAYMENTS BY ENTITY (CONTINUED)
| Zimbabwe | Taxes US$'000 | Royalties US$'000 | Withholding taxes US$'000 | Other US$'000 | Total US$'000 |
|---|---|---|---|---|---|
| Salene Chrome Zimbabwe (Pvt) Ltd | - | - | - | 287 | 287 |
| Karo Platinum (Pvt) Ltd | - | - | - | 840 | 840 |
| Total | - | - | - | 1 127 | 1 127 |
BASIS OF PREPARATION
Reporting entity
This report covers payments made to governments by Tharisa and its subsidiaries and includes payments made by the beneficiation, logistics, marketing and trading subsidiaries of the Company. Tharisa, its wholly owned subsidiaries Tharisa Minerals (Pty) Ltd and Salene Chrome Zimbabwe (Pvt) Ltd, are engaged in extractive activities, which are classified by the regulations as exploration, prospecting, discovery, development and extraction of minerals. During the year ended 30 September 2023, Tharisa acquired an additional 5% shareholding in Karo Mining Holdings Limited ('Karo Mining') increasing its shareholding to 75%. Karo Mining's main subsidiary is Karo Platinum (Pvt) Ltd ('Karo Platinum'), a company incorporated in Zimbabwe. Karo Platinum, once development has been completed, will be involved in extractive activities.
Reporting currency
The reporting currency of the Group is US$. Payments that have been made in currencies other than US$ were converted at the annual average exchange rate for the year ended 30 September 2023.
Government
Government refers to any national, regional or local authority of a country and includes any department, agency or undertaking controlled by that authority.
Types of payments
Taxes
These are taxes levied on the income, production or profits but in line with the regulations, exclude taxes levied on consumptions such as value added taxes, personal income taxes or sales taxes.
Royalties
These are payments for the right to extract minerals and are determined on the sales value. These taxes are applicable on the extraction of PGMs and chrome and are included in the operating costs.
Withholding taxes
These are taxes on shareholders (beneficial owners) when dividends are paid to them and, under normal circumstances, is withheld from their dividend payment by a withholding agent (the company paying the dividend).
Page 3 of 4
tharisa
Types of payments (continued)
Other
These are payments relating to stamp duties, company levies and insurance payments that provide wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer for the tort of negligence.
Other taxes include property related tax payments paid to the local government in South Africa. Property tax is imposed on South African property owners.
Other taxes paid in Zimbabwe relates to payments made to the Zimbabwe Electricity Transmission and Distribution Company for securing power connections as well as various payments for environmental fees and investment licences.
No other payments as stipulated in the regulation including production entitlements and fees and payments in kind have been made by the Group during the financial year ended 30 September 2023.
Unaudited
This report has not been reported on or reviewed by Tharisa's auditors.
Page 4 of 4