THARISA PLC - Project completion, which will reduce the groups cost of debt

Project completion, which will reduce the group’s cost of debt

Tharisa plc

(Incorporated in the Republic of Cyprus with limited liability)

(Registration number HE223412)

JSE share code: THA

LSE share code: THS

ISIN: CY0103562118

('Tharisa')



Tharisa announces project completion, which will reduce the group’s cost of debt

Tharisa is pleased to announce that the project completion test in respect of the
ZAR1 billion senior debt finance facility has been successfully completed. As a result of
project completion, the facility’s interest rate will reduce from JIBAR + 490 bps pa to
JIBAR + 340 bps pa. In addition, the guarantee provided by the holding company to its
subsidiary will lapse.

The achievement of this milestone proves Tharisa’s business model to economically mine at
the required run rate of at least 400 ktpm, the technical ability of the plants to process this
material at the nameplate capacity of 400 ktpm and to produce in specification PGM and
chrome concentrates.

The facility, which was raised to fund the expansion of Tharisa Minerals’ mining footprint
and for the construction of the Voyager Plant, was raised in February 2012 and was utilised
in full.     As at 30 September 2016, the balance outstanding on the facility was
ZAR502.2 million (USD36.5 million), with a final scheduled repayment date of 31 March
2019. The group holds a cash amount of ZAR135.3 million (USD9.8 million) as a debt service
reserve account resulting in a net amount of ZAR366.9 million (USD26.7 million) owing on
the facility at 30 September 2016.

The loan was provided by HSBC Bank Plc Johannesburg Branch, Nedbank Corporate and
Investment Banking (a division of Nedbank Limited) and Absa Bank Limited (acting through
its corporate and investment banking division). The independent technical consultant to the
lenders was Snowden Mining Industry Consultants Proprietary Limited.
The group targets a debt to equity ratio of 15% and as at 30 September 2016, the total debt
to equity ratio (off-setting the debt service reserve account against the debt), was
approximately 17.5%.


“While commodity prices have recorded a recovery from recent lows, the commodity
markets remain volatile and to further de-risk the business the group will continue to reduce
its debt levels. I would like to give recognition to the teamwork that was required to ensure
the successful conclusion of the project completion tests and to thank the management of
Tharisa Minerals for achieving this milestone achievement,” said Tharisa CFO Michael Jones.


The above information has not been reported on or reviewed by Tharisa’s auditors.

Paphos, Cyprus

15 November 2016



JSE Sponsor
Investec Bank Limited



Investor Relations contact:
Tharisa plc
Sherilee Lakmidas
+27 11 996 3538
+27 79 276 2529
slakmidas@tharisa.com


Broker contacts:
Peel Hunt LLP (Joint Broker)
Matthew Armitt / Ross Allister
+44 207 7418 8900

BMO Capital Markets Limited (Joint Broker)
Jeffrey Couch/Neil Haycock/Thomas Rider
+44 020 7236 1010

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