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
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 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).