Wrap Text
Production report for the fourth quarter and year ended 30 September 2021
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 FOURTH QUARTER AND YEAR ENDED 30 SEPTEMBER 2021
Best quarterly production in the history of the Tharisa Mine
Fourth quarter and year-end highlights
- Five-year fatality free, with a Lost Time Injury Frequency Rate (‘LTIFR’) of 0.34 per 200 000-man
hours worked
- Delivered on production guidance with record quarterly output of Platinum Group Metals
(‘PGMs’) and chrome concentrates
- PGM production of 43.7 koz, up 12% Quarter on Quarter (‘QoQ’), delivering 157.8 koz for
the year, up 11% Year on Year (‘YoY’) at an average PGM basket price of US$3 074/oz
(ZAR45 336/oz), up 80% YoY
- Chrome output of 395.7 kt, up 4% QoQ, delivering 1 506.1 kt for the year, up 12% YoY at
an average metallurgical grade chrome price of US$154/t (ZAR2 284/t), up 10% YoY
- Record production performance has further strengthened the Company’s balance sheet
- Cash balance of US$83.4 million and a positive net cash position of US$47.9 million
- Decarbonisation targets set at a 30% reduction in emissions by 2030, carbon net neutral by 2050
across the Company’s operations
Post year-end highlights
- Commencement of cold commissioning of the Vulcan ultra-fine chrome processing plant in
October 2021, anticipated to increase recoveries of chrome concentrate to above 80%, thereby
increasing chrome production by 25% to 2.0 Mt
- Commencement of Salene Chrome plant construction
Guidance for FY2022
- FY2022 production guidance of between 165 koz to 175 koz PGMs (6E basis) and 1.75 Mt to 1.85
Mt of chrome concentrates. COVID-19 remains a risk to the Company and guidance is premised
on the current level of economic activity being maintained
Key Operating Numbers
Quarter Quarter Quarter on Quarter Year Year Year on
ended ended quarter ended ended ended year
30 Sep 30 Jun movement 30 Sep 30 Sep 30 Sep movement
2021 2021 % 2020 2021 2020 %
Reef mined kt 1 404.7 1 507.8 (6.8) 1 405.7 5 379.9 4 971.1 8.2
PGMs produced (6E) koz 43.7 39.0 12.1 40.5 157.8 142.1 11.0
Chrome concentrates kt 395.7 379.7 4.2 370.8 1 506.1 1 344.8 12.0
produced (excluding third
party)
Average PGM basket price US$/oz 2 854 3 804 (25.0) 1 951 3 074 1 704 80.4
Average metallurgical grade US$/t 167 160 4.4 142 154 140 10.0
chrome concentrate
contract price
Phoevos Pouroulis, CEO of Tharisa, commented:
“The fourth quarter of our financial year delivered the highest production of PGMs and chrome
concentrates in the history of the Tharisa Mine. This performance follows several strategic initiatives to
optimise the operation, these have built a sustainable platform for Tharisa to deliver further significant
growth over the long life of our open pit operations.
The continued improved performance over the past twelve months was achieved through the proficiency,
commitment and focus of all our staff, who not only delivered our results safely, but did so in the face of
COVID-19 uncertainty, which saw thousands of man hours lost during the past 12 months. The challenge
of the pandemic persists on numerous fronts, yet we remain confident that the measures we have taken
in the last two years will continue to allow us to overcome these and future challenges.
With the FY2022 production guidance provided for the Tharisa Mine, we see further growth particularly
from the investment made in the Vulcan plant, which is in the cold commissioning phase and will produce
chrome concentrates before the end of 2021. In Zimbabwe, the exciting developments with Salene Chrome,
in the construction phase, as well as the progress on the development of Karo Platinum, will contribute to
Tharisa’s growth trajectory over the next two years.
As we enter the next phase of the development of our business, Tharisa remains a key participant in the
global transition to a low carbon economy through the critical metals we produce. Not only will Tharisa
contribute to this transition, we will deliver on our stated goals of reaching 30% reduction in emissions by
2030 and carbon neutrality by 2050 through the extraordinary skills and initiatives of our own research
and development team as well as the adoption of leading technologies.”
Health & Safety
- The health and safety of our stakeholders remains a core value to the Company and Tharisa
continues to strive for zero harm at its operations
- LTIFR of 0.34 per 200 000-man hours worked
- Tharisa recorded its fifth-year fatality free, a testament to the due diligence and focus of our staff
- South Africa is at an adjusted Alert Level 1 as the country has exited Wave 3
- The Company currently has zero active COVID-19 cases
Market Update
- While the PGM basket price increased by over 80% on an annual basis, this was somewhat
dampened by the softer PGM basket price in the last quarter, which saw the average basket price
reduce by 25% QoQ. While the upside price movement may be perceived to have overrun, short
term supply-demand disruptions need to be countered by the strong fundamentals of PGMs in
the longer term, driven by a healthy outlook for the internal combustion engine, investment and
industrial demand. While substitution will take place between palladium and platinum in catalytic
converters over time, the inability to substitute the minor metals, the largest of which is rhodium,
ensures that the PGM basket price will remain robust for at least the next 5-year period
- Chrome prices improved in the last quarter with an increase of over 4% compared to the June
2021 quarter, and also saw an increase of 10% on an annual basis, with spot trading at US$165/t.
Prices will need to remain at these levels for most producers to remain profitable and continue to
invest, as shipping rates have dented margins, with the global logistic industries continuing to be
impacted by the pandemic and challenges with supply chain management. Despite some output
cuts at stainless steel plants in China, output is nevertheless expected to increase close to double
digit percentage growth compared to 2020 as both domestic demand and export demand drives
higher output levels in China. South African inland logistics issues have led to longer supply chains
and thus increased pricing for products, while stockpiles of chrome at port level in China remain
constant
Operational Update
- Total reef mined slightly down QoQ but up over 8% YoY to 5.4 Mt
- Annual stripping ratio of 11.6 m3: m3 ahead of LOM requirements
- Tonnes milled increased QoQ leading to an increase in milled tonnes for the year of over 11% to
5.6 Mt
- Record quarterly PGM production at 43.7 koz leading to an annual output of 157.8 koz, within
guidance
- Record quarterly chrome output of 395.7 kt leading to an increase YoY of 12% in chrome output
to 1 506.1 kt, within guidance
- The improvements in PGM grade to 1.59 g/t are as a direct result of the mining efficiencies
achieved in the last 18 months, allowing the mine to focus on ‘right mining’ to achieve the optimal
grade mix
- Correct grade mix has resulted in the plants running optimally, leading to improved recoveries
- The mine has approximately 2-months ROM stockpile ahead of the plants
Zimbabwe update
- Salene Chrome is on track to commence production in Q1 FY2022
- Salene Chrome mining has commenced, and the metallurgical plant construction is in progress
- Karo Platinum implementation studies completed
Cash Balance and Debt Position
- Tharisa had a cash balance of US$83.4 million (30 June 2021 US$80.5 million) at the end of the
quarter and debt of US$35.5 million (30 June 2021 US$38.7 million) resulting in a positive net cash
position of US$47.9 million (30 June 2021 US$41.8 million), with a significant portion of capital
spent on the construction of the Vulcan plant being internally funded
- The Company’s strong balance sheet with low leverage positions it to fund its growth aspirations
Quarter Quarter Quarter on Quarter Year Year Year on
ended ended quarter ended ended ended year
30 Sep 30 Jun movement 30 Sep 30 Sep 30 Sep movement
2021 2021 % 2020 2021 2020 %
Reef mined kt 1 404.7 1 507.8 (6.8) 1 405.7 5 379.9 4 971.1 8.2
Stripping ratio m3: m3 12.3 10.9 12.8 13.0 11.6 12.1 (4.1)
Reef milled kt 1 428.1 1 413.1 1.1 1 401.8 5 600.0 5 036.1 11.2
PGM flotation feed kt 1 071.6 1 072.3 (0.1) 1 062.5 4 248.2 3 765.9 12.8
PGM rougher feed grade g/t 1.59 1.52 4.6 1.54 1.49 1.46 2.1
PGM recovery % 80.0 74.4 7.5 77.1 77.6 80.1 (3.1)
6E PGMs produced koz 43.7 39.0 12.1 40.5 157.8 142.1 11.0
Platinum produced koz 23.6 21.8 8.3 22.7 86.7 78.7 10.2
Palladium produced koz 7.2 5.5 30.9 6.1 24.9 23.0 8.3
Rhodium produced koz 4.3 3.9 10.3 3.9 15.4 13.5 14.1
Average PGM contained US$/oz 2 854 3 804 (25.0) 1 951 3 074 1 704 80.4
metal basket price
Platinum price US$/oz 1 016 1 185 (14.3) 901 1 080 876 23.3
Palladium price US$/oz 2 295 2 794 (17.9) 2 283 2 513 2 147 17.0
Rhodium price US$/oz 16 721 24 232 (31.0) 10 482 18 860 8 348 125.9
Average PGM contained ZAR/oz 41 727 53 801 (22.4) 32 978 45 336 27 691 63.7
metal basket price
Cr2O3 ROM grade % 17.9 18.0 (0.6) 18.0 17.9 18.2 (1.6)
Chrome recovery % 65.0 63.0 3.2 62.3 63.3 62.1 1.9
Chrome yield % 27.7 26.9 3.0 26.4 26.9 26.7 0.7
Chrome concentrates kt 395.7 379.7 4.2 370.8 1 506.1 1 344.8 12.0
produced (excluding third
party)
Metallurgical grade kt 309.3 280.8 10.1 277.6 1 141.5 1 023.2 11.6
Specialty grades kt 86.4 98.9 (12.6) 93.2 364.6 321.6 13.4
Third party chrome kt 52.4 59.0 (11.2) 52.8 223.0 169.8 31.3
production
Metallurgical grade US$/t 167 160 4.4 142 154 140 10.0
chrome concentrate CIF
contract price China
Metallurgical grade ZAR/t 2 435 2 274 7.1 2 376 2 284 2 231 2.4
chrome concentrate CIF
contract price China
Average exchange rate ZAR:US$ 14.6 14.1 3.5 16.9 14.8 16.2 (8.6)
Paphos, Cyprus
12 October 2021
JSE Sponsor
Investec Bank Limited
Connect with us on LinkedIn and Twitter 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
Financial PR contacts:
Bobby Morse / Augustine Chipungu / James Husband
+44 207 466 5000
tharisa@buchanan.uk.com
Broker contacts:
Peel Hunt LLP (UK Joint Broker)
Ross Allister / David McKeown / Alexander Allen
+44 207 7418 8900
BMO Capital Markets Limited (UK Joint Broker)
Thomas Rider / Pascal Lussier Duquette / Nick Macann
+44 207 236 1010
Berenberg (UK Joint Broker)
Matthew Armitt / Jennifer Wyllie / Varun Talwar / Detlir Elezi
+44 203 207 7800
Nedbank Limited (acting through its Corporate and Investment Banking division) (RSA Broker)
Carlyle Whittaker
+27 11 294 0061
About Tharisa
Tharisa is an integrated resource group critical to the energy transition and decarbonisation of
economies. It incorporates mining, processing, exploration and the beneficiation, marketing, sales and
logistics of PGMs and chrome concentrates, using innovation and technology as enablers. Its principal
asset is the Tharisa Mine located in the South-Western Limb of the Bushveld Complex, South Africa. The
mechanised mine has a 14-year open pit life and the ability to extend operations underground by at
least an additional 40 years. Tharisa also owns Salene Chrome, a development stage, low cost, open pit
asset, located adjacent to the Great Dyke in Zimbabwe. Tharisa plc is listed on the Johannesburg Stock
Exchange (JSE: THA) and the Main Board of the London Stock Exchange (LSE: THS)
Date: 12-10-2021 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
