Member Info for Tharisa

I have provided comment in a single doc 1/2

1. the Tharisa equity input into Karo in 2024 and later this year how was it calculated? We provided a full and detailed explanation into our Karo investment at the AGM in 2024, this was also published on RNS, the methodology has not changed

2. has the Total/Chariot solar farm at Tharisa started construction yet and if not why the delay and when will it start? We are waiting for final regulatory approval, out of our hands

3. the 2024 Mineral Resource and Mineral Reserve Statement says at Tharisa "ROM production from underground mining was scheduled from 2025 when the western area transitions to underground mining from the western open-pit highwall" but there has been no confirmation that this will start later this year and the capex cost and running cost compared to the open pit? Correct, no confirmation as yet but as you will recall from our results presentation we have earmarked $20m for the development of this project and did state we would update the mkt towards the middle of the year

4. you say the Tharisa LOM is actually longer but if the stated total open pit and underground combined reserve is 74.5 million tonnes reef of mine and yes the open pit production tails off but the underground production makes up for it so at an average open pit/underground production of 5.6 million tonnes/year the LOM is still 13.3 years (74.5/5.6)? correct, we are simply accelerating the underground project, in particular on the western side of the operation, there is no rush to go underground but we see opportunity

Chrome and PGM prices are on the website, same place as always

Investors, weekly chrome and PGM info

Ian, you will be appreciate I cannot give financial forecast or comment on those matters

Mike, which numbers are being kept from you?

Tthe LOM is actually longer as the tail off is not 5.6mtpa once we ove to undergrund, so the reserve numbrr is not really relevant as we have over 60 years planend udnerground, but even so, we have some 18y 4 year ago, so 14y LOM as you calculate is very much in line

Highlights

‒ Lost Time Injury Frequency Rate (‘LTIFR’) per 200 000 man hours worked of

‒ 0.02 at Tharisa Minerals

‒ 0.08 at Karo Platinum

‒ PGM production of 29.9 koz (Q4 FY2024: 37.1 koz)

‒ Chrome production of 374.4 kt (Q4 FY2024: 426.8 kt)

‒ PGM prices averaging at US$1 381/oz for the quarter (Q4 FY2024: US$1 370/oz)

‒ Average metallurgical grade chrome concentrate prices at US$271/t for the quarter (Q4 FY2024: US$314/t)

‒ Group cash on hand of US$175.1 million (30 September 2024: US$217.7 million), and debt of US$86.1 million (30 September 2024: US$108.8 million), resulting in a net cash position of US$89.0 million (30 September 2024: US$108.9 million)

Phoevos Pouroulis, CEO of Tharisa, commented:

“Undoubtedly a tough start to the new year impacted by drilling equipment availability, as a consequence thereof we mined sub optimal oxidised reef horizons. This yielded lower ROM grades and therefore lower recoveries. We have subsequently improved the drilling rates and equipment availability. The focus this quarter will be on optimising the feed grade and improving our recoveries to previous levels.

While we have seen a drop in the chrome price due to slowing stainless steel demand, we remain of the view that these price levels are unsustainable and will need to correct to meet expected demand. The PGM pricing environment remains stubbornly weak notwithstanding sound demand fundamentals.

The cybersecurity incident we experienced during the quarter did not directly impact physical operations, but rather the administrative, accounting and support services with work-around solutions being implemented to minimise any disruptions. Good progress has been made in bringing the affected systems back online. ”

https://www.overend.co.za/download/sens-rns-announcement-tharisa-q1-fy2025-production-report-13jan25.pdf

MANAGEMENT REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024

• Safety:

o Lost-time injury (LTI) free year

o Lost Time Injury Frequency Rate (LTIFR) of:

 0.00 per 200 000-man hours worked at Tharisa Minerals

 0.09 per 200 000-man hours worked at Karo Platinum

• Highlights:

o Record chrome output while meeting Platinum Group Metal (PGM) guidance

o Five-year wage agreement concluded

o Progress on beneficiation strategy with chrome alloy production and testing of upscaled batteries at Redox One

o Strong operational cash flow due to co-product model

o Successful US$5m share repurchase programme completed

o Continual investment in growth through the commodity cycle

o Maintaining above dividend policy payout

o Balance sheet primed for further growth opportunities

o FY2025 Guidance

 PGMs (6E basis) of 140 koz to 160 koz

 Chrome concentrates of 1.65 Mt to 1.8 Mt

• Financials:

o Revenue increased 11.0% to US$721.4 million (2023: US$649.9 million)

o EBITDA up 29.8% at US$177.6 million (2023: US$136.8 million)

o Profit before tax of US$117.7 million (2023: US$114.3 million)

o Headline earnings per share of US 28.1 cents (2023: US 28.3 cents)

o Net cash flows from operating activities of US$204.6 million (2023: US$148.3 million)

o Cash and cash equivalents of US$223.7 million*

o Proposed final dividend of US 3.0 cents per share totalling US 4.5 cents per share for the year, at 16.1% of NPAT

* Includes amounts held in financial and other assets

https://www.tharisa.com/annual-results.php

Comment from WPIC yesterday summarised by BMO

• The World Platinum Council (WPIC) has released a report following the development of its Price Attribution Model to better explain why the platinum price hasn’t reacted to the recent market deficits. The model concluded that the importance of major factors that contribute to the platinum price have changed over time. For instance, underlying fundamentals were most important in establishing price up until 2011; however, until present, it appears that market economics and sentiment had a greater bearing on price. That said, WPIC believes the market will shift back toward underlying fundamentals being the key driver for the platinum price in the future. WPIC notes that rapidly depleting above ground stocks and ongoing market deficits present an unsustainable situation, as this is absorbed by the market, it will begin to be reflected in sentiment and compound the effect of the underlying fundamentals.

Chrome $272/t, take it any day of the week, given our recent meetings with buyers and the expansion of stain steel in China/Indonesia, they will need a lot of chrome

Tharisa Basket Price

Platinum $1 050.00

Palladium $1 227.00

Rhodium $4 750.00

Gold $2 759.15

Ruth $483.00

Iridium $4 640.00

Karo USD $1 434.62

Tharisa USD $1 504.06

Tharisa ZAR R26 619.09

So we have a treasury that gets live feeds from data providers, these are spot prices, our PGM concetrate contracts use these as a guide

Mike1959 is right, JM is v good on the pricing

https://matthey.com/products-and-markets/pgms-and-circularity/pgm-management/

Our basket this morning

Tharisa Basket Price

Platinum $1 010.00

Palladium $1 064.00

Rhodium $4 765.00

Gold $2 712.05

Ruth $483.00

Iridium $4 640.00

Karo USD $1 350.89

Tharisa USD $1 453.35

Tharisa ZAR R25 598.71

‒ Lost Time Injury Frequency Rate (‘LTIFR’) per 200 000 man hours worked of

‒ 0.00 at Tharisa Minerals

‒ 0.09 at Karo Platinum

‒ Annual output:

‒ PGM production for the year at 145.1 koz (FY2023: 144.7 koz) with Q4 at 37.1 koz (Q3 FY2024: 36.9 koz)

‒ Chrome production for the year at 1 702.6 kt (FY2023: 1 580.1 kt) with Q4 at 426.8 kt (Q3 FY2024 410.2 kt)

‒ Annual chrome production output highest in the history of the Company

‒ Average annual PGM price decrease of 28% to US$1 362/oz (FY2023: US$1 893/oz) averaging at US$1 370/oz for the quarter (Q3 FY2024: US$1 391/oz)

‒ Average annual metallurgical grade chrome concentrate prices up 13.7% at US$299/t (FY2023: US$263/t) while averaging at US$314/t for the quarter (Q3 FY2024: US$309/t)

‒ Group cash on hand of US$217.5 million (30 June 2024: US$189.9 million), and debt of US$108.8 million (30 June 2024: US$97.7 million), resulting in an increased net cash position of US$108.7 million (30 June 2024: US$92.2 million)

‒ US$5 million share repurchase completed

‒ Successful delivery on beneficiation strategy with production of chrome alloy and testing of upscaled batteries at Redox One

‒ Production guidance for FY2025 is set at between 140 koz and 160 koz PGMs (6E basis) and 1.65 Mt to 1.8 Mt of chrome concentrates

Phoevos Pouroulis, CEO of Tharisa, commented:

“A scene setting operational year underpinned by an excellent safety performance. With safety a core value, we have seen the success of record chrome output supported by guidance meeting PGM production.

For the coming year we are setting a similar target, with chrome dominating the operational forecast as we see real demand in China and beyond.

We have made great strides in furthering our technical study work on the underground development at the Tharisa Mine and I know this will be a welcome addition to our mining flexibility with the open pit operations being supported by the on-reef underground mine development.

Our continuing drive to beneficiate our product saw us successfully produce chrome alloy from a unique and proprietary process developed by our research and development business Arxo Metals and are selling this final alloy to commercial customers.

In our efforts to reduce our carbon emissions and secure energy independence, we entered into a 15-year agreement with Etana Energy, who will be providing up to 44% of the Tharisa Mine’s electricity demand via wheeled renewable energy. In addition, Redox One has upgraded its facilities for longer duration testing by commissioning three new larger scale batteries in line with the development plan.

We remain optimistic on the fundamentals of the PGM market and have thus continued to optimise our Karo Platinum project and have progressed with the plant construction, in line with capital availability, and we see this strategy continuing until we finalise the funding for the project.

I wish to wholeheartedly thank all our employees for t

Date and chrome prices, unfortuntalety the comment section here does not allow for great alignment

PGM Elevator Pitch – Ruthenium the first out of the de-stocking blocks as stocks completely deplete– could ignite other PGMs’ prices imminently

The ruthenium price has risen 13% in 3 days as OEM stocks run out. Massive demand from Seagate (up 25%) and Western Digital (up12%) for HDDs and SSDs, has seen a sharp increase in prices, which could continue for some time. However, the large stocks held mostly at producer level (we estimate them to be around 3.88Moz by end of 2024) may cap the rise. We estimate work-in-progress stocks for ruthenium to be around 250Koz/year which level is actually rock-bottom level for stocks.

Iridium destocking of the 6Koz may also soon be completed and when completed may see a sharper increase than even ruthenium because there are no surface stocks we know of. However, this may be capped by slo(up 12%)w demand from fuel cells for another few months. Work-in-progress (rock-bottom) level of stocks for iridium is estimated to be around 60Koz.

Other PGMs may follow soon.

• Platinum stocks are likely to be down to 3.3Moz at year end. Another 2 years of 1Moz deficits that we forecast will see ZERO stocks by late 2025, a situation which will not happen because there are always around 3 months demand worth of rock-bottom work in progress stocks, meaning that Pt stocks could run out by end 2025

• Palladium stocks are forecast at 2.1Moz at end 2024. Take 2Moz rock-bottom work in progress stocks and palladium will have ZERO stocks by early 2025if our forecast of 500Koz deficit in the palladium market is correct.

• Rhodium stocks are maybe down to 50Koz right now, below the 250Koz rock-bottom work in progress stocks normally in the market. Our forecast is for a 65Koz deficit for 2024. This means that rhodium prices could rise at any time in the next few weeks.

Conclusion – A rise in PGM prices across the board is fairly imminent. Ruthenium could be the initiator for other PGM prices to ignite.

No, I have been on leave, not everything is sinister in this world

Tharisa Basket Price

Platinum $987.50

Palladium $1 046.00

Rhodium $4 250.00

Gold $2 657.63

Ruth $320.00

Iridium $4 300.00

Karo USD $1 296.42

Tharisa USD $1 355.68

Tharisa ZAR R23 328.18

Sep Average

2 305,00

3 305,00

4 305,00

5 305,00

6 302,50

9 302,50

10 302,50

11 302,50

12 302,50

13 302,50

16 302,50

17 302,50

18 302,50

19 302,50

20 302,50

23 302,50

As of yesterday we done about 79% measured in $ terms

Tharisa, the mining, metals, and innovation company dual-listed on the Johannesburg and London stock exchanges, has entered into a long-term Power Purchase Agreement (‘PPA’) for the procurement of wheeled renewable energy for the Tharisa Mine, situated on South Africa’s western limb of the Bushveld Complex.

The 15-year agreement with Etana Energy Proprietary Limited (‘Etana’) will see Etana provide up to 44% of the Tharisa Mine’s electricity energy demand via wheeled energy from wind and solar farms in the Western Cape and Northern Cape using the existing electricity transmission grid. The wheeled energy is planned to come on stream in 2026. This transaction will enable the Tharisa Mine to better manage its power costs and benefit from the renewable energy certificates arising from the transaction. This wheeled energy will complement the Tharisa Mine’s 40 MW solar power plant being developed by TotalEnergies Renewables South Africa Proprietary Limited and Chariot Transitional Power South Africa Proprietary Limited, which is designed to provide 30% of Tharisa Minerals energy needs.

Importantly, the Etana PPA and the solar project will ensure that Tharisa Minerals’ drive to reduce its carbon footprint by 30% by 2030 is well within reach while simultaneously guaranteeing pre-determined power costs for a portion of power needs, with up to 76% of Tharisa Minerals’ energy needs being provided by renewable energy from 2026 onwards under these agreements.

Etana was granted an energy trading licence in May 2022 for a period of 25 years and is one of five companies to hold energy trading licences in South Africa. Etana has signed and announced several other customer PPAs, including from other mining ventures and property companies.

Lucien Matthews, Executive Special Projects of Tharisa, commented:

“This second major renewable energy project is the natural progression in our quest to reduce our reliance on fossil fuel driven energy, and a major component of creating the sustainable resources company of the future. With established partners in the renewable energy space, I am certain we will not only meet but exceed our carbon reduction targets both in quantum and in terms of our set timeline of 2030.

I must commend the Tharisa team and our partners in the strategic and commercial swiftness in attaining this significant outcome, as both these aspects will ensure we maintain control on our operating costs base which is a vital cog in our drive for sustainability of our multi-generational resource.”

https://www.overend.co.za/download/tharisa-signs-long-term-renewable-power-purchase-agreement.pdf

Https://unlockthestock.co.za/event/tharisa/

nothing new generally but a good session with Unlock the Stock always, where Phoevos presents ufront but more focused on Q&A by mkt watchers

Https://www.miningweekly.com/article/china-south-africa-still-driving-chrome-supply-globally-2024-07-22

China, South Africa still driving chrome supply globally

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

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.”

Pricing is spot on, and yes, stainless steel pricing has weakened but supply inquiries to us have not

• While many physical markets have weakened over the past month, chrome ore has bucked the trend with spot assessments rising to $320/t CIF China. This is now 5% above the peak level seen in 2023, and comes amid strong ferrochrome output gains in China. However, stainless steel prices have weakened recently, which may act as a near term cap. Chrome ore inventories at Chinese ports are currently around 2.6Mt according to latest Fastmarkets assessments, which is low compared to historical norms.