To view the PDF file, sign up for a MySharenet subscription.

THARISA PLC - Tharisa to transition to owner mining model

Release Date: 04/04/2017 08:00
Code(s): THA     PDF:  
Wrap Text
Tharisa to transition to owner mining model

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 to transition to owner mining model


Tharisa, a profitable low cost producer of PGMs and chrome, owns a large scale open pit operation
with an open pit life of 18 years and a further 40 years of underground mine extension. With the long
life of the open pit Tharisa has been evaluating the benefits of transitioning from contract mining to
an owner mining model at its Tharisa Mine in South Africa.


Tharisa currently contracts its mining operations to MCC Contracts Proprietary Limited (MCC). MCC’s
parent company Extract has announced a strategic decision to align its capital allocations with the
current mining environment and to review its business model. As a result, Tharisa has the opportunity
to purchase MCC’s existing on-site plant and equipment, as well as employ skilled employees currently
in service at the Tharisa Mine.


Tharisa has accordingly engaged with MCC in an orderly manner, to purchase a requisite portion of
the existing mining fleet as a going concern. Tharisa, in the normal course of managing its mining
operations, has developed engineering and geological skills that are integral to in-house mining, and
the successful conclusion of this process will ensure that the Tharisa Mine transitions to an owner
mining model without interruption.


The Company believes that with the long life of the open pit, the transition to an owner mining model
is a logical progression in its development. The change in the operating model is expected to have
both cost and operational benefits as well as providing financial flexibility, thereby cementing
Tharisa’s low-cost high margin position. Further details on this transaction will be published in due
course.
“Tharisa has spent the last two years building up its mining expertise and we are now happy that we
have the necessary skills to make a smooth transition. We are excited to have the opportunity to
directly control our own mining,” said Tharisa CEO Phoevos Pouroulis.


Tharisa will be releasing its production update for the second quarter and first half of its 2017 financial
year on Monday, 10 April, 2017.


Paphos, Cyprus
4 April 2017


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


Financial PR contacts:
Bobby Morse/Anna Michniewicz
+44(0) 20 7466 5000
tharisa@buchanan.uk.com

Date: 04/04/2017 08:00:00 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.

Share This Story