Member Info for Tharisa

Hi, as you know, some 25% of our output is specialty, so we just cross reference where those Turkish prices trade, they obviously not what we actually get but as I said, a good reference

We announced on Friday that we would take a break from twitter for a while, chrome prices as per the tweet are on the website every Monday under investor section

Friday's trade

Tharisa closed flat at 74p having traded 33k shares. Today's volume equates to 25% of the 3 month trailing average daily volume of 128k shares.

We show a full breakdown of the unit costs on a tonnage basis, and show grade, yield, rougher feed grade etc, and we back calc for the analysts what our per ounce platinum costs would be, these numbers are all available publicly so pretty easy to back calc, in a different way, take the total operating costs plus normal capital (sustaining capex) and subtract depreciation, that gets you to a sub total costs, add credit , say PGM revenue or chrome, depending which number you are looking for, that gives you an all in costs and divide by output to get a unit cost number

We are a co-producer of PGM and chrome, so we do not show AISC for PGM, or chrome

PRODUCTION REPORT FOR THE THIRD QUARTER ENDED 30 JUNE 2023

Tharisa, the platinum group metals (PGMs) and chrome co-producer dual-listed on the Johannesburg and London stock exchanges, announces its production results for Q3 FY2023 and cash balance as at the quarter end.

Quarter highlights

‒ Lost Time Injury Frequency Rate (‘LTIFR’) of 0.06 per 200 000-man hours worked

‒ Processing capacity maintained

‒ PGM output increased to 37.0 koz (Q2 FY2023: 34.3 koz) with yield maintained and recoveries improving

‒ Chrome output marginally lower at 378.8 kt (Q2 FY2023: 404.8 kt) on steady grades, yield, and recoveries

‒ Mining volumes remain constrained

‒ Metallurgical grade chrome concentrate prices up 7.8% quarter on quarter averaging US$290/t (Q2 FY2023: US$269/t)

‒ Karo Platinum Project remains on track with major milestones of first concrete pour and pilot mining commenced

‒ Cash on hand increased by US$36.8 million to US$242.6 million (31 March 2023: US$205.8 million), resulting in a net cash position of US$141.5 million (31 March 2023: US$101.1 million

‒ Strong balance sheet to support the growth of the business whilst providing returns to shareholders

Phoevos Pouroulis, CEO of Tharisa, commented:

“The unique co-product model was again highlighted with the Company benefitting from continued favourable chrome pricing while dealing with PGM pricing pressures, resulting in strong free cash generation - ending the period with a further strengthened balance sheet with net cash of over US$140m.

The quarter also allowed us to review our in-pit mining plan with the appointment of a waste material contractor helping to ensure sustainable access to the required reef horizons. Our output will, however, remain subdued for the remainder of the year as we focus on mining flexibility for sustainable reef operations.

At Karo, we remain on track with project construction, completing our first concrete pour in June, with pilot mining having commenced. The equity contribution by Tharisa of US$135 million is being drawn down to match capital requirements with cash flow as we finalise the senior debt portion for this globally strategic mine.

Domestic headwinds coupled with macro events and commodity price uncertainty have pressured the business and led to a material disconnect between equity valuations and intrinsic valuation underpinned by cash generation. However, as we have shown in more complex historical times, the nature of Tharisa with modern, low-cost structures leaves us well positioned to weather the environment and continue to provide returns to shareholders while actively and sustainably growing the business.“

https://www.overend.co.za/download/sens-rns-announcement-tharisa-q3-fy2023-production-report-12jul23.pdf

I am assuming you have seen what has happened to the other PGM producers, and the PGM price themselves?

Based on what analysis?

As of this morning

Tharisa Basket Price

Platinum $904.50

Palladium $1 230.00

Rhodium $4 552.08

Gold $1 921.25

Ruth $398.47

Iridium $4 420.20

Karo USD $1 295.95

Tharisa USD $1 423.72

Tharisa ZAR R26 732.17

Https://www.karomining.com/presentations.php

Slide 4 and 19 provide a good summary

~190koz pa

FOIM July 2024

TerryMC1, vastly different electric usage patterns between the deep underground that PAN run and our open pit

He is not wearing sunglasses, I can assure you!

Key Highlights

• Safety:

o Lost Time Injury Frequency Rate (‘LTIFR’) of 0.27 per 200 000-man hours worked

• Operations:

o Chrome production up 1.4% at 787.9 kt (2022: 776.7 kt) at an average metallurgical grade chrome price of US$247/t (2022: US$175/t), up 41.1%

o PGM production decreased by 16.1% at 77.0 koz (2022: 91.8 koz) at an average PGM basket price of US$2 216/oz (2022: US$2 592/oz), down 14.5%

• Corporate actions:

o Successfully concluded a US$130 million debt facility with Société Générale and Absa Bank Limited; undrawn as at 31 March 2023

o US$5 million additional subscription received in the Karo Mining Holdings Bond increasing total proceeds to US$36.8 million

• Financials:

o Revenue increased 0.4% to US$335.3 million (2022: US$334.0 million)

o EBITDA decreased by 27.0% to US$81.2 million (2022: US$111.3 million) at an EBITDA margin of 24.2% (2022: 33.3%)

o Profit before tax of US$72.4 million (2022: US$124.3 million)

o Headline earnings up 25.4% to US$52.8 million (2022: US$42.1 million)

o Headline earnings per share of US 17.6 cents (2022: US 15.5 cents), an increase of 13.5%

o Net cash flows from operating activities nearly doubled to US$97.1 million (2022: US$49.1 million)

o Interim dividend of US 3 cents per share

o Net cash position of US$112.7 million

Phoevos Pouroulis, CEO of Tharisa, commented:

“Mining has never been more relevant than it is today. The commodities that the mining industry produces are vital in the energy transition that we as a global community are undergoing. Thus, our investment in our assets, our strong production profile, our ability to get our product to market and the time and investment in research and development are vital to create a sustainable business in the long term. Despite the headwinds we experienced in the half-year, we nevertheless managed a healthy EBITDA margin, which ensures we can build on this sustainability and be part of the energy transition so vitally needed. While having a direct effect on our PGM production, Tharisa managed to successfully increase its chrome production, feeding a market which reached multi-year pricing highs during the period. Our unique model of co-producing high quality chrome and PGM products has allowed Tharisa to deliver strong returns to our stakeholders despite not only dealing with unprecedented rainfall, but also the impact of electricity curtailments and logistics issues in South Africa, in particular. Tharisa’s intention to become a multi-mine and multi-jurisdiction company is a strategy which de-risks the business, and the progress being made at Karo in Zimbabwe underpins Tharisa’s path to becoming one of the top ten producers of platinum, globally.

We are uniquely positioned to weather the elements given the make up of our operation, as a mechanised, open pit operation requiring low power and utilising a highly skilled workforce. This formula will ensure we remain competitive and a relevant player f

mike1959 pls email me on igraulich@tharisa.com

hi, 15% equity in the project, so will rely on dividend flows for their returns

Quarter highlights
? Lost Time Injury Frequency Rate (‘LTIFR’) of 0.27 per 200 000-man hours worked
? Mining volume recovery slower than expected with continued adverse weather negatively impacting flexibility in open pit
? Contractor appointed on a short term basis to assist with waste mining (starting 1 May 2023)
? Processing capacity maintained utilising ROM ore stockpiles and strategic ROM ore purchases
? Chrome output increased 5.7% to 404.8 kt (Q1 FY2023: 383.1 kt) with ROM grades up at 18.4%
? PGM output lower at 34.3 koz (Q1 FY2023: 42.7 koz) on reduced recoveries due to sub-optimal ore mix
? Metallurgical grade chrome concentrate prices up 20.6% quarter on quarter, and 52.0% up on Q2 FY2022
? Karo Platinum Project on track and on budget with ground clearance and civil contractors having commenced work on site
? Successfully concluded a US$130 million debt facility with Société Générale and Absa Bank Limited; undrawn
? US$5 million additional subscription received in the Karo Mining Holdings Bond increasing total proceeds to US$36.8 million
? Cash on hand US$205.8 million (31 December 2022: US$213.9 million), with a net cash position of US$106.8 million (31 December 2022: US$101.1 million)

Phoevos Pouroulis, CEO of Tharisa, commented:
“Tharisa continued to generate healthy free cash flow in the second quarter of our financial year despite the significant impact of severe weather conditions to our open pit mining operations. While chrome production was up, the ore mix saw PGM output in January and February fall below expectations for the quarter. With our operational improvement implemented during the quarter already delivering results, and the additional flexibility that both new equipment and the additional waste contractor will bring to the pit, the second half of our financial year will see an improvement at our flagship Tharisa mine.
Due to the challenges posed in December through to February specifically, management took the prudent step of lowering full-year guidance by 10%. The unique and unparalleled properties of our orebody, however, were once again shown to reap rewards as the chrome price reached levels as high as US$300/ tonne and, while the PGM prices have pulled back recently, even at these levels we continue to generate healthy margins.
Tharisa’s Vision 2025 strategy of reaching optimal and sustainable production from the Tharisa mine remains intact, and we will benefit from the significant progress being made at Karo, our second tier one mine – which remains on time and budget for first ore to the mill in H2 2024, as we continue to evolve into a multi-asset/multi-jurisdiction PGM producer.”

https://bit.ly/3GEiLEm

Tharisa, the platinum group metals (‘PGMs’) and chrome co-producer dual-listed on the Johannesburg and London stock exchanges, is pleased to announce it has, subject to the fulfilment of certain conditions precedent, concluded a US$130 million debt facility (the ‘Facility’) with Societe Generale and Absa Bank Limited (acting through its corporate & investment banking division) (‘Absa’), as part of the Company’s ongoing debt capital program.
Spanning a 42-month tenure, the Facility is part of Tharisa’s funding strategy of optimising its capital requirements as the Company invests in its assets and pursues its growth objectives, while maintaining a sustainable dividend policy. The facility comprises a term loan of US$80 million and a revolving US$50 million facility, secured by commodity offtake agreements. This capital raise follows the successful issue of a three-year USD32 million bond listed on the Victoria Falls Stock Exchange (“VFEX”) on 16 December 2022.
Michael Jones, CFO of Tharisa, commented:
“The Societe Generale and Absa senior debt facilities, as well as the significant free cash flow generated from the Tharisa Mine, provide significant flexibility to Tharisa’s capital allocation policy. This debt raise forms part of our strict approach to capital allocation and combines ongoing investment in our producing mining operations and our growth projects, whilst maintaining our commitment to delivering a sustainable dividend to our shareholders, which has exceeded US$80m over the past 7 years”.
This agreement with Societe Generale and Absa is an excellent outcome for the Company, another key step in Tharisa’s development as not only a hugely innovative mining group focused on critical metals, but also a Company committed to sustainable growth for the benefit of all of its stakeholders.”
At 31 December 2022, Tharisa had a cash balance of US$213.9 million and debt of US$112.8 million with an improved net cash position of US$101.1 million. The cash and debt numbers include the fully consolidated capital raise on the VFEX.

Posted these on twitter also, summarized below, showing how reliant China is on chrome from South Africa and some thoughts by Noah on PGM mkt

https://twitter.com/tharisa_sa/status/1635571007984476160?s=20

https://twitter.com/tharisa_sa/status/1635576033112989699?s=20

Platinum moves to second place for revenue contribution in SA basket
SA Basket price spot: R1.275m/kg, R39,646/oz, 15% down on 2022 avg.
Avg YTD 2023 SA basket price: R1.415m/kg, R44,027/oz
Nearly all platinum shares have technically printed a death cross and those which haven’t (IMP and SSW) are likely to do so within the next few days. Stand back and let this “svbt-show” develop before any further action.
Recommendation – buy on weakness, but there is time
All platinum shares are in a bear market, which is likely to last some time yet (to mid-2023 is our best technical estimate) before the first inklings of a golden cross start appearing.
Buy the following platinums on weakness:
• Tharisa remains top and best value small platinum share in our rankings.
• Northam is offering good value, now in overall 3rd place in our rankings, due to its share price fall.
• Sibanye is our second-best platinum stock value because of its share price fall due to Stillwater woes.

Just to clarify, this IRR etc is not a new number, we provided a Karo update in October 2022 where the new numbers were presented
https://www.tharisa.com/presentations.php
Many of you eve attended the investormeet presentation that Bernard Pryor and Phoevos gave on the updated LOM plan etc https://www.youtube.com/watch?v=GguTFrctC90

Please note that there is a difference between “load shedding” and “load curtailment”. During load shedding, certain areas will be affected for a limited time and on a rotation basis. This is what affects most households and businesses in urban areas and what is most often spoken about in the media. Heavy users fall under load curtailment.

When load curtailment is needed, then we are requested to reduce our load. Eskom communicate with us in advance when load curtailment is needed and the “Load curtailment stage” is not necessarily the same as the “Load shedding stage” often communicated in the public domain.

Prior to us having the generators (we installed these in 2020), we switched off some of our processes in a phased approach with the objective of limiting the production impact. In FY22, we did not have to stop any part of our operation because we consistently made use of our generators to reduce the load as requested by Eskom.

We can handle load curtailment up to stage 8 (we have thus far only ever been asked for load curtailment stage 2) for a limited duration in a day, but then we need to make use of our generators and switch off certain parts of our operations. This mentioned duration is dependent on our crushed ore stockpiles capacity. Stage 8 load curtailment is the maximum and final stage.

Clearly our power requirements are very different from those of the underground mines, so while there are media reports of power affecting those mines, we are in a completely different situation.