Member Info for Tharisa

Mike 1959, you right not much new on THS but the key here is that the mkt does not realise we running out of Merensky (traditionally western limb Merensky reef has a ratio of 3 platinum to 1 palladium while UG2 has a 1-1 ratio) so the primary platinum supply picture is changing, and platinum of course is the driver in the hydrogen economy and fuel cells, the Nedbank analyst finally put down what is key not only for PGM miners but miners globally, no one is spending enough capital to make sure the demand is met, whether we talking PGM, or copper or nickel, IDG

Visitor, we definitely do those, around events such as results and in between, obviously all done online the last 2 years due to C-19, but in physical events we have also focused on retail focused events in the evenings driven by Proactive for example, who host company specific events with some competitors, allowing both sides to meet those people who invest in us and for investors to put a face and body to the management of Tharisa. IDG

and yes, apologies for the radio silence, I was enjoying my #50 with my partner and daughter in my country of birth, including ensuring this stays true https://www.ft.com/content/adf01dcd-3613-44bf-a94c-ff7be33c2b48 culminating in 6 days in Berlin, which I had not visited since 1994, now back at the desk, 117 days till Christmas

extract from a report from Nedbank, which is true for all commodities I would argue

"Industry is undercapitalised
Real capex levels have been falling sharply since 2008 and remain extremely low
relative to historical levels, despite the sharp increase in nominal capex in recent years.
This reflects the undercapitalisation of the industry over the past decade and the impact
of inflationary pressure seen across the industry. We believe a large element of catchup
capex needs to be spent to replace reserves, in the absence of which production
could decline sharply over the next 5 to 10 years, in our view. Most producers have
already embarked on some growth initiatives, but more is needed, in our view,
especially given the significant inflationary pressure seen over the past few years."

Good Morning LSE
Silence does not mean we have not been busy, operations continuing as per our last update, quarterlies are due on 11 October and FY2022 results end of November.
We have made some senior appointments at Karo, ensuing that we have a team in place to tackle the mine build while receiving even further regulatory approvals that we have been working on. Funding progressing as per our last update, with the summer holidays in Europe meaning some delays in getting hold of people.
PGM prices have been holding up, as per below
Tharisa Basket Price
Platinum $864.00
Palladium $2 146.80
Rhodium $13 311.59
Gold $1 737.82
Ruth $450.48
Iridium $4 060.14
Karo USD $1 966.89
Tharisa USD $2 341.44
Chrome price steady at about $200/to with stockpiles in China at lowest level for the year, freight rates have pulled back slightly, our pipeline on chrome stocks at 6 week levels and logistics working as per normal, no major issues.
Eskom here in South Africa has been on and off but as you know, this does not affect our operations, as we have standby power and fall under load curtailment rather than load shedding.
We can only hope GS is right in the call on commodities https://www.mining.com/web/goldman-says-buy-commodities-now-worry-about-recession-later/.
No doubt we in for a tough economic run up till Christmas globally but the world needs commodities.
All the best for the latter half of FY2022.
IDG

Tharisa Basket Price
Platinum $864.00
Palladium $2 146.80
Rhodium $13 311.59
Gold $1 737.82
Ruth $450.48
Iridium $4 060.14
Karo USD $1 966.89
Tharisa USD $2 341.44

per ounce....chrome about $200/t

Mike, we can debate forever on the details on everything else but your analysis on strip ratio is wrong, yes, it is a cost, but it is a necessary cost, our LOM strip is about 12, so that cost we will always have, to have a slightly higher strip than LOM provides the flexibility the pit needs (and a balance sheet asset for future use, but that is a secondary pint) , so you should be grateful we are ahead, and not speak about deterioration, which is, I am sorry to say, as much as I understand what you explained, completely the wrong word in this regard. Falling behind on a strip below LOM is the worst that can happen as the catch up is immense. In mining, you need to spend to make money and we have never held back on spending.
With a number of reefs to mine, from a number of areas, a strip of 12 and above is what we need, as I said, provides the flexibility, ensures we maintain a ROM ore stockpile, ensures we can blend better, hence the normalised reef grade feed and ensures we have the 6 week pipeline to ensure our chrome deliveries remain on track.
IDG

Mike
Not too sure why you are concerned about PGM, even if we produce at current rate for q4 we will hit top end of guidance, so not too sure why you are up on your outlook
Chrome, needs to be looked at in terms of primary, ie pre Vulcan, very much in line with volume, which is good, Vulcan recoveries are slower, and we admitted as much
Our strip ratio was up 11.8% not down, psl correct, even last quarter we were ahead of LOM strip.
So, the good news is that there are no vol concerns in the mine, and as as you said, 2m ahead on stockpile
Our chrome pipeline is 6 weeks, nothing has changed int at sense, while logistics are a nightmare, demand for the product remains strong and we are not holding product back

Third Quarter Highlights
? Lost Time Injury Frequency Rate (‘LTIFR’) of 0.49 per 200 000-man hours worked
? Achieved 6 million fatality free shifts
? Strong mining and milling throughput leading to:
? PGM production at 42.1 koz (Q2 FY2022 44.1 koz), at a normalised rougher feed grade of 1.65 g/t (Q2 FY2022 1.74 g/t) with steady recoveries at 75.6% (Q2 FY2022 75.4%)
? Chrome production at 389.7 kt up from the previous quarter (Q2 FY2022 374.9 kt)
? Vulcan Plant ramp up reflected in steady improvement in chrome recoveries – throughput recoveries of 80% expected to be reached by year end
? Strong commodity prices and steady production during the quarter delivering strong cash balance increases
? PGM basket price of US$2 677/oz (Q2 FY2022 US$2 806/oz) down 4.6%
? Metallurgical grade chrome price up 39.5% at US$247/t (Q2 FY2022 US$177/t)
? Cash balance of US$112.6 million and a positive net cash position of US$48.0 million
? Successful registration of solar power project for 40-megawatt peak (‘MWp’) with environmental and development authority to further de-risk the operations from the dependence on the national power grid and reduce carbon emissions in line with our carbon reduction strategy
? Growth strategy remains firmly on track
Phoevos Pouroulis commented:
“The team at Tharisa has completed a commendable quarter, maintaining strong production output which, supported by the favourable commodity markets, ensures a healthy balance sheet that will allow us to continue implementing our strategy.
The global macrotrends are challenging but Tharisa Mine’s life of more than sixty years gives us a strong foundation and the necessary financial resources to weather the headwinds of a tough economic climate, slowing growth, rising inflation, and weaker commodity markets.
As always, our focus remains on safety, operational excellence, and maintaining a low-cost profile. This quarter, our PGM and chrome output was strong once again, driven by the volume extracted from the Tharisa Mine open pit. Production from the Vulcan Plant is steadily increasing to nameplate capacity, proving that Tharisa’s proprietary technology is working well.
With our investment in almost 10 MW of standby power generation we have had negligible disruption to our operations due to the challenges at Eskom and the subsequent power curtailments.
Notwithstanding the rail and port infrastructure challenges, the logistics team have successfully exported our chrome products via various channels and modalities.
Beyond South Africa, our growth strategy remains on track with the detailed engineering design work, upfront infrastructure, and placement of long lead capital items for the Karo Platinum project continuing to progress in parallel with the finalisation of the financing options. Overall, this has been a supportive quarter for our organic and development growth"

https://bit.ly/3RoQoh7

as per Peel Hunt

"Management has declared an interim dividend of USc3, equating to a 19% payout
of 1H headline earnings – the same ratio as 1H FY21."

Dividend policy is based on 15% of NPAT, annualised, so interim to an extend is difficult to gauge as it is an annual number, and yes, that will go up or down with NPAT, which is heavily influenced by commodity prices, H1 2021 was close to 4000, now we at 2600, good news is chrome is behaving, at 295/t atm

2022 Robust mining and efficient processing deliver into strong commodity markets further strengthening the balance sheet as the Company acquired control of a tier one PGM asset on the Great Dyke in pursuit of its growth and diversification strategy while maintaining capital discipline and providing continued dividend returns to shareholders.
Key Highlights
? LTIFR of 0.72 per 200 000 man-hours worked, 5.8m fatality free shifts as at end April
? Continued growth in PGM and chrome production:
? PGM production of 91.8 koz, up 22.2% (2021: 75.1 koz) at an average PGM basket price of US$2 592/oz (2021 US$2 823/oz)
? Chrome production of 776.7 kt, up 6.3% (2021: 730.7 kt), at an average metallurgical grade chrome price of US$175/t (2021 US$145/t)
? Continued ramp up of Vulcan fine chrome recovery plant production with plant commissioning
? Consistent production and positive commodity markets translated into strong financial results
? Revenue of US$334.0 million, up 6.5% (2021: US$313.6 million)
? EBITDA of US$111.3 million (2021: US$124.2 million)
? Profit before tax of US$124.3 million (2021: US$104.6 million) EPS of US$ 32.7 cents (2021: US$ 21.4 cents)
? Interim dividend proposed of US$ 3 cents per share
? Cash balance of US$101.5 million and a positive net cash position of US$26.9 million
? FY2022 production guidance maintained
Delivering on strategy
? Acquisition of remaining 26% shareholding in Tharisa Minerals for US$ 25.6 m in a landmark BEE transaction through **************
? Acquired controlling interest in Karo Mining Holdings at a discount to the project NPV for a share settled purchase consideration of US$29.5 million
Phoevos Pouroulis, CEO of Tharisa, commented:
“The Tharisa team has delivered another cash generative performance based on our strong safety record, this in light of material increases in one of our major input costs being diesel. Our flagship Tharisa Mine increased its production in both PGMs and chrome, with significant progress delivered on our beneficiation strategy, which included the commissioning of chrome production from the self-funded Vulcan fine chrome recovery and beneficiation plant. During this period, Tharisa simplified its corporate ownership structure by aligning its key BEE partners with the Company’s long-term value-creation strategy and took a step further with our geographic diversification, which saw the completion of the acquisition of a controlling interest in Karo Platinum, a tier-one asset on the Great Dyke in Zimbabwe.
Tharisa’s cash generation ability has delivered a solid balance sheet for continuous investment. We have re-invested into the Company’s targeted and strategic initiatives such as Karo Platinum and the Arxo Metals Beneficiation Site (AMBS) as well towards continued investment in the Tharisa Mine, and we will also, and equally important, return capital to our shareholders with another dividend
https://www.tharisa.com/pdf/investors/interim-results/2022/booklet.

yip, radio silence here on numbers till 26 May I am afraid....

why out of touch? there are trapped dollars in Zimbabwe that have to buy local, perfect way of accessing capital, when we met the Fin Min 2years ago with analysts, he spoke to us about the SEZ Vic Falls, been a great success thus far, look at Caledonia

our basket this morning

Tharisa Basket Price
Platinum $920.00
Palladium $2 216.50
Rhodium $17 361.63
Gold $1 890.98
Ruth $535.46
Iridium $4 866.89
Tharisa USD $2 865.20

can't talk costs, we in a closed period, suffice to say, we are a volume driven mine, and if we keep volume up, costs are spread across the units, and you have the operating numbers and know what fuel has done, which is about 16% of our costs, wages are fixed to inflation and power usage, as you know, is very low

hi, no doubt, mkts are spooked about growth and the China clamp down, not to mention the humanitarian crisis in Ukraine, and I suspect, given May Day in Russia and its significance, the Ukraine issue may not have seen the worst, however, China believes its policy of lock-down will beat COVID and the economy will recover, which will drive demand and prices, our basket prices has haled up well, down some US150 only at this stage, while Chrome prices are hitting 280 and we are able to get to port and ship, will there be a cash flow delay as we battle harbours in China yes, but this too will settle, fundamentals remain in tact

Swatton, we paid a divi, capital items, another truck for example, so overall not a bad swing into cash, the debt is all the short term debt we have related to 90 day trade finance, our chrome team has been selling, a lot, after some logjams in late December, so catch up time which requires short term capital until we get paid from the customer, this comes in swings and roundabouts

PRODUCTION REPORT FOR THE SECOND QUARTER ENDED 31 MARCH 2022
Stable mining and PGM output as Vulcan Plant comes online
Second quarter highlights
? Lost Time Injury Frequency Rate (‘LTIFR’) of 0.72 per 200 000 man-hours worked
? Mining rates maintained with mining blend optimised for PGMs, resulting in slightly lower chrome grade
? Steady recoveries, despite secondary mill breakdowns, resulting in slightly lower quarterly production in Q2 compared to the record Q1:
? PGM production of 44.1 koz, down 7.5% (Q1: 47.7 koz) at an improved average PGM basket price up 17.2% at US$2 806/oz (Q1: US$2 394/oz)
? Chrome production of 374.9 kt, down 6.7% (Q1: 401.8 kt), at an improved average metallurgical grade chrome price up 9.9% to US$177/t (US$161/t)
? Gradual ramp up of Vulcan Plant production with plant commissioning
? Consistent production into rising commodity prices further strengthened the Company’s balance sheet
? Cash balance of US$101.5 million and a positive net cash position of US$25.9 million
? FY2021 final dividend payment of US$14.1 million on 16 March 2022
? Announced acquisition of remaining 26% shareholding in Tharisa Minerals in a landmark BEE transaction
? Acquired controlling interest in Karo Mining Holdings with exercise of farm-in option at a discount to the project NPV for a purchase consideration of US$27.0 million
? Appointed Bernard Pryor as MD of Karo Mining Holdings post quarter end
Phoevos Pouroulis, CEO of Tharisa, commented:
Another safe and strong mining performance in what is traditionally our toughest operating quarter. Mining rates remain at record levels with production being impacted by certain secondary mill challenges which have since been addressed. These challenges dampened throughput and in turn production. This quarter’s output, though slightly lower, needs to be measured against our record breaking quarterly run rate and our step change to higher output remains intact on an annualised basis. Despite these challenges, on a half year comparable basis to 2021, PGM and chrome concentrates production increased by 22.2% and 6.3% respectively.
With continued focus on grade and throughput and the ramp-up of the Vulcan Plant production, we remain confident on achieving market guidance.
As Tharisa maintains its growth strategy, we have taken significant strides in simplifying the Group structure, through the consolidation of our ownership of Tharisa Minerals in a landmark BEE transaction, benefiting all shareholders. We also progressed our much anticipated cross border step by announcing our plans for developing the tier 1 Karo PGM project, doubling our PGM production within 24 months.

https://www.sharenet.co.za/v3/sens_display.php?tdate=20220412070500&seq=1

Fund, build, produce PGM

THARISA APPOINTS BERNARD PRYOR AS MANAGING DIRECTOR OF KARO MINING HOLDINGS
Bernard brings over 35 years of experience to Karo
Tharisa, the platinum group metals (PGMs) and chrome co-producer listed on the Johannesburg and London stock exchanges, is pleased to announce that Bernard Pryor has been appointed as Managing Director (‘MD’) of Karo Mining Holdings Limited (‘Karo Holdings’). Tharisa announced on 31 March 2022 that it has exercised its farm-in option and increased its stake in Karo Holdings to 66.3%. Karo Holdings holds an indirect 85% interest in the Karo Platinum Project in Zimbabwe.
Bernard is a Metallurgical Engineer by background with over 35 years’ experience in the international mining industry. He has held senior executive positions across a range of disciplines, including project acquisition, evaluation, development, and construction and has run large-scale fully operational mining assets. His experience also includes international commercial and general management, most notably in Australia, Brazil, West and Southern Africa, the Middle East and Russia. Recently, Bernard was CEO of Alufer Mining where, under his supervision, its flagship Bel Air bauxite mine in the Republic of Guinea was developed and put into production. Bernard has also held positions as CEO of African Minerals Limited and Q Resources plc. Between 2006 and 2010 he held senior positions within Anglo American Plc as Head of Business Development and was CEO of Anglo Ferrous Brazil Inc.
Phoevos Pouroulis, CEO of Tharisa, commented:
“We are privileged to have Bernie join our team as we embark on this transformative journey, developing our Tier 1 Karo Platinum asset in Zimbabwe. His technical expertise coupled with developing mines around the globe ensures we have leadership in place that will deliver on our stated objectives. I look forward to working with Bernie as we develop our second high-grade, low-cost and high-return PGM asset.”