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Tharisa PLC Earnings Release 2024
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Earnings Release
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National Storage Mechanism | Additional information 
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% Cr2O3 (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$70.6 million).
Guidance
Production guidance for FY2024 remains between 145 koz and 155 koz PGMs (6E basis) and 1.7 Mt to 1.8 Mt of chrome concentrates.
The above forward looking statements have not been reported on or reviewed by Tharisa's auditors and is the responsibility of the directors.
Production Numbers
| Quarter ended 30 Jun 2024 | Quarter ended 31 Mar 2024 | Quarter on quarter movement % | Quarter ended 30 Jun 2023 | Nine months ended 30 Jun 2024 | Nine months ended 30 Jun 2023 | ||
| Reef mined | kt | 1 261.9 | 1 035.0 | 21.9 | 908.8 | 3 355.4 | 3 018.4 |
| Stripping ratio | m3: m3 | 12.7 | 14.0 | (9.3) | 14.2 | 12.8 | 12.3 |
| Reef milled | kt | 1 396.1 | 1 378.5 | 1.3 | 1 302.2 | 4 198.9 | 4 099.5 |
| PGM flotation feed | kt | 1 064.9 | 1 055.6 | 0.9 | 996.5 | 3 168.5 | 3 151.4 |
| PGM rougher feed grade | g/t | 1.57 | 1.66 | (5.4) | 1.67 | 1.61 | 1.66 |
| PGM recovery | % | 68.5 | 62.9 | 8.9 | 69.0 | 65.8 | 67.6 |
| 6E PGMs produced | koz | 36.9 | 35.3 | 4.5 | 37.0 | 107.9 | 114.0 |
| Platinum | koz | 19.4 | 19.2 | 1.0 | 20.9 | 59.1 | 63.8 |
| Palladium | koz | 5.8 | 6.4 | (9.4) | 6.6 | 17.4 | 20.1 |
| Rhodium | koz | 3.3 | 3.2 | 3.1 | 3.4 | 9.8 | 10.6 |
| Average PGM contained metal basket price | US$/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$/oz | 4 638 | 4 399 | 5.4 | 6 959 | 4 417 | 10 467 |
| Cr2O3 ROM grade | % | 18.0 | 18.1 | (0.6) | 17.8 | 18.4 | 17.7 |
| Chrome recovery | % | 67.3 | 66.4 | 1.4 | 67.9 | 68.1 | 66.7 |
| Chrome yield | % | 29.4 | 29.2 | 0.6 | 29.1 | 30.4 | 28.5 |
| Chrome concentrates produced (excluding third party) | kt | 410.2 | 402.7 | 1.9 | 378.8 | 1 275.7 | 1 166.7 |
| Metallurgical grade | kt | 336.0 | 339.5 | (1.0) | 306.0 | 1 065.3 | 1 018.5 |
| Specialty grades | kt | 74.2 | 63.2 | 17.4 | 72.8 | 210.4 | 148.2 |
| Third party chrome production | kt | 49.6 | 45.0 | 10.2 | 56.2 | 140.1 | 143.0 |
| Average metallurgical grade chrome concentrate contract price - 42% basis | US$/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
Connect with us on LinkedIn 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
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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