Member Info for Tharisa

Dividend stands, and yes, there as a correction to tax treatment that we issued for RSA residents, payment dates and most important quantum, stand

Our logistics are running as smoothly as always, we continue to use Maputo and RB for the bulk of our material, and Durban is ruing smoothly. As you know, DP World is pending large sums of capital in Maputo and this we believe this will only enhance the opportunities to export c=via Maputo, although under the new leadership of Transnet they are working hard to restore the ports optimal functionality. Beira is far, I suspect they will look to Zim for chrome export although with the ban in place, not too sure how much will come out of Zim, for nw for us, everything as per normal , as for Saldanha, dedicated harbour, Walvis prohibitevely expensive from where we are

Https://clubofmozambique.com/news/mozambique-maputo-port-manager-to-invest-600m-in-three-years-interview-253499/

Https://www.moneyweb.co.za/moneyweb-podcasts/moneyweb-now/tharisa-sees-a-structural-increase-in-chrome-demand/

We had a PCB lunch in London yesterday organised by Berenberg, their summary below

Tharisa (BUY) – excellent catch up with management yesterday over lunch with the CEO – compelling value opportunity here to back up the truck on this incredibly well ran business. Chrome prices remain elevated and this will act as a tailwind for H2 cash generation, in our view, and provide a stable base as the Tharisa mine stabilises over the next six months. We remain Buy-rated, TP 120/sh. Stock on 0.52x NAV and 3.4x 2024E EBITDA – too cheap, and at some point that value disconnect will HAVE to close.

As Michael reitterated on the call, we have an annual dividend policy of 15% of NPAT, pay roughly 40% at interims and yes, the Share Buyback is seperate from the div policy

The policy is an annual policy of 15%, so we still have the second half of the year to pay out minimum of 15% of full year NPAT

Phoevos Pouroulis, CEO of Tharisa, commented:

“The fundamentals of our co product model once again showed relevance as we absorbed a nearly 40% decrease in PGM prices, countered by a 16% increase in chrome concentrate prices, maintaining our EBITDA in line with last year’s comparable number, while investing heavily in our future growth. In these challenging commodity markets, we have maintained our capital allocation discipline including returning cash to shareholders through the payment of an interim dividend combined with a share repurchase programme exceeding our stated policy.

Key to the operational success of our modern mine is our safety record.

The open pit economics are continually re-evaluated and, with increasing costs and haul distances for waste rock deposition, the progression to underground mining, in conjunction with open pit mining, is being accelerated. The successful transition to underground mining will also reduce third party ore purchases.

Beyond the mine gate, our energy division has made exciting strides with Redox One testing larger energy storage units, using our own chrome electrolyte while the downstream beneficiation looks to commercialise its pilot scale smelting and refining facilities.

The Karo Platinum Project is a Tier 1 resource and a multi-generational asset, development continues steadily with value engineering, mining and process optimisation running in parallel. The fiscal regime with the Government of Zimbabwe necessary for a Tier 1 project are being finalised, however, this and current market conditions are impacting on the funding workstreams and timeline for delivery of this project.

Tharisa remains a reliable and stable provider of commodities necessary for the planet’s decarbonisation drive. With our multi-generational ore bodies, innovative approach to optimising those resources and downstream beneficiation initiatives, we remain cognisant of our vision for shared value which involves optimising our businesses while providing returns to our stakeholders. Our commitment to this vision is reflected in these results, and we will continue to deliver further value for the long-term.”  

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

• Safety:

o 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

• Operations:

o Chrome production up 9.9% at 865.6 kt (2023: 787.9 kt) at an average metallurgical grade chrome price of US$288/t (2023: US$247/t), up 16.9%

o PGM production decreased by 7.7% at 71.1 koz (2023: 77.0 koz) at an average PGM basket price of US$1 344/oz (2023: US$2 216/oz), down 39.3%

• Corporate actions:

o Announced US$5 million share repurchase on 26 March 2024

o Official launch of Redox One at the Africa Energy Indaba

• Financials:

o Revenue increased 10.1% to US$369.1 million (2023: US$335.3 million)

o EBITDA flat at US$79.6 million (2023: US$81.2 million) at an EBITDA margin of 21.6% (2023: 24.2%)

o Profit before tax of US$53.2 million (2023: US$72.4 million)

o Headline earnings per share of US 13.2 cents (2023: US 17.6 cents), a 25.0% decrease

o Net cash flows from operating activities of US$86.2 million (2023: US$97.1 million)

o Net cash position of US$86.3 million

o Interim dividend of US 1.5 cents per share

Peel Hunt comment on trading statement

News: Tharisa has released the usual JSE-mandated trading update ahead of the interim FY24 results. This update highlights an expected EPS range of USc12.5-13.5, well ahead of our USc11 estimate. While the PGM market has remained subdued, the chrome concentrate market has stayed strong. The comment that adjusted (or headline) EPS and basic EPS are in the same range indicates to us that the upcoming results will be 'clean'.

Peel Hunt view: While the YoY comparisons are not favourable, this comes as no surprise given the prevailing PGM basket prices and we would use any weakness in the Tharisa share price to add to positions

Closed period only ends when interims are out, and we workign on sorting the buyback given the higher SP prices but cannot do anything in the closed period

Trading statement – interim results for the six months ended 31 March 2024

In terms of section 3.4(b) of the JSE Listings Requirements, companies are required to provide guidance

to the market when they are satisfied that a reasonable degree of certainty exists that the financial results

for the current reporting period will differ by at least 20% from the results of the previous corresponding

reporting period.

Tharisa is preparing its financial statements for the interim results of the FY2024 financial year, with the

Reviewed Interim Condensed Consolidated Financial Statements expected to be released on or about 23

May 2024.

Tharisa’s headline earnings per share ('HEPS') for the six months ended 31 March 2024 are expected to

be between US 12.5 cents and US 13.5 cents per share with a tolerance of 10%. This is a decrease of

23.3% to 29.0% relative to the HEPS of US 17.6 cents per share for the six months ended 31 March 2023.

Tharisa’s basic earnings per share ('EPS') for the six months ended 31 March 2024 are expected to be

between US 12.5 cents and US 13.5 cents per share with a tolerance of 10%. This is a decrease of between

22.4% to 28.2% relative to the EPS of US 17.4 cents for the six months ended 31 March 2023, with both

HEPS and EPS being in part impacted by the nearly 40% drop in PGM prices received and increased cost

pressures.

The financial information on which this trading statement is based has not been reviewed and reported

on by the Company’s auditors.

We don't have to anounce when and how much we buy back under JSE rules, but will provide an update when approprttae, let's just say there has been more buying.....

Closed period till 24 May, so can't really add anything to the strategy outlined, Chrome parcels selling for 305 depsite stainless steel weakening, the PGM mkt was disected in the media follwing the PGM Industry day here in JHB on Wednesday, so all the latest is there

As is grade due to feedstock, Vulcan is doing well but maintenance has an impact on overall recoveries

Those details will be in the financial report on 24/5, needless to say we continue to spend our portion on Karo, net cash remains strong with Karo holding good cash that will allow them to continue development as per our revised timeline, remember this is q2 where we do major maintenance in the plants with downtime for some days during that period in the planst never mind a short February

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

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.”

https://www.sharenet.co.za/v3/sens_display.php?tdate=20240410070500&seq=1

Pick your PGM prices but this is the daiy morning number as of today, so aligned

Tharisa Basket Price

Platinum $941.50

Palladium $1 025.00

Rhodium $4 725.00

Gold $2 328.58

Ruth $440.00

Iridium $4 900.00

Karo USD $1 279.56

Tharisa USD $1 408.55

Tharisa ZAR R26 238.07

At the annual general meeting (‘AGM’) of Tharisa held on 21 February 2024, shareholders approved a special resolution authorising the Company to undertake a general repurchase of ordinary shares up to 10% of the 302 596 743 ordinary shares in issue at the date of the AGM.

Tharisa is dual listed on the Johannesburg and London stock exchanges. The Board believes that the Company’s shares are trading at a significant discount, having been negatively impacted by the PGM commodity price environment while not reflecting the strong co-product contribution from its chrome sales.

The Company has appointed Peel Hunt LLP (‘Peel Hunt’) to manage and carry out on-market purchases of ordinary shares as principal on both the Johannesburg and London stock exchanges, up to a maximum amount of US$5 million (the “Repurchase Programme”) (excluding associated expenses).

Tharisa is committed to capital discipline and believes that a share repurchase at its current valuation supports this.

Michael Jones, CFO of Tharisa, commented:

“We have maintained our strict capital discipline throughout the commodity cycles and believe it is opportune to allocate capital to a share repurchase programme to the benefit of our shareholders and reflecting our firm belief in the prospects for our company. While the PGM commodity pricing environment is challenging, chrome prices have remained firm reinforcing the strength of our co-product business model. The Karo Platinum Project is a multi-generational resource and, while maintaining capital discipline, we continue on the road to delivering the necessary third-party financing to deliver the first phase into production.”

https://www.sharenet.co.za/v3/sens_display.php?tdate=20240326073000&seq=5

Whole PGM complex on JSE taking a breather after a hard run last week