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Tharisa Plc - Reviewed Interim Condensed Consolidated Financial Statements For The Six Months Ended 31 March 2018 & Cash Dividend

Release Date: 16/05/2018 08:00
Code(s): THA
 
Wrap Text
Reviewed Interim Condensed Consolidated Financial Statements for the six months ended 31 March 2018 & Cash Dividend

THARISA PLC                                                  
Incorporated in the Republic of Cyprus with limited liability
Registration number: HE223412                                
JSE share code: THA                                          
LSE share code: THS                                          
ISIN: CY0103562118                                           

REVIEWED INTERIM
CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
For the six months ended 31 March 2018 

CORPORATE INFORMATION 

THARISA PLC                                                     TRANSFER SECRETARIES
Incorporated in the Republic of Cyprus with limited liability   Cymain Registrars Limited
Registration number: HE223412                                   Registration number: HE174490
JSE share code: THA                                             26 Vyronos Avenue
LSE share code: THS                                             1096 Nicosia
ISIN: CY0103562118                                              Cyprus
                                                                
                                                                Computershare Investor Services Proprietary Limited
REGISTERED ADDRESS                                              Registration number: 2004/003647/07
                                                                Rosebank Towers
Office 108 - 110                                                15 Bierman Avenue
S. Pittokopitis Business Centre                                 Rosebank 2196
17 Neophytou Nicolaides and Kilkis Streets                      (PO Box 61051 Marshalltown 2107)
8011 Paphos                                                     South Africa                                                                
Cyprus     
                                                           
POSTAL ADDRESS                                                  JSE SPONSOR                                                                
PO Box 62425                                                    Investec Bank Limited                                                                
8064 Paphos                                                     Registration number: 1969/004763/06
Cyprus                                                          100 Grayston Drive
                                                                Sandown Sandton 2196
WEBSITE                                                         (PO Box 785700 Sandton 2146)
http://www.tharisa.com                                                 South Africa
                                                                
DIRECTORS OF THARISA
Loucas Christos Pouroulis (Executive Chairman)                  AUDITORS
Phoevos Pouroulis (Chief Executive Officer)                     Ernst & Young Cyprus Limited
Michael Gifford Jones (Chief Finance Officer)                   Registration number: HE222520
John David Salter (Lead independent non-executive director)     Jean Nouvel Tower
Antonios Djakouris (Independent non-executive director)         6 Stasinos Avenue
Omar Marwan Kamal (Independent non-executive director)          1060 Nicosia
Carol Bell (Independent non-executive director)                 Cyprus
Roger Davey (Independent non-executive director)                                                                
Joanna Ka Ki Cheng (Non-executive director)                     JOINT BROKERS
Zhong Liang Hong (Non-executive director)                       Peel Hunt LLP
                                                                Moore House
JOINT COMPANY SECRETARIES                                       120 London Wall
Lysandros Lysandrides                                           EC 2Y 5ET
26 Vyronos Avenue                                               England
1096 Nicosia                                                    Contact: Ross Allister/James Bavister/David McKeown
Cyprus                                                          +44 207 7418 8900

Sanet de Witt                                                   BMO Capital Markets Limited
The Crossing                                                    95 Queen Victoria Street
372 Main Road                                                   London EC4V 4HG
Bryanston Johannesburg 2021                                     England
South Africa                                                    Contact: Jeffrey Couch/Neil Haycock/Thomas Rider
Email: secretarial@tharisa.com                                  +44 020 7236 1010

INVESTOR RELATIONS                                              FINANCIAL PUBLIC RELATIONS
Sherilee Lakmidas                                               Buchanan
The Crossing                                                    100 Cheapside
372 Main Road                                                   London EC2V 6DN
Bryanston Johannesburg 2021                                     England
South Africa                                                    Contact: Bobby Morse/Anna Michniewicz
Email: ir@tharisa.com                                           +44 020 7466 5000

MISSION
To maximise shareholder returns through innovative exploitation of mineral resources in a responsible manner

INTRODUCTION
Tharisa is an integrated resource group incorporating mining and the processing, beneficiation, marketing,sales and logistics of PGM and chrome concentrates.
Production guidance for FY2018 is 150 koz of PGMs and 1.4 Mt of chrome concentrate. The Vision 2020 strategy for the Group is to increase production to
200 koz of PGMs and 2 Mt of chrome concentrates by year end 2020. 

VALUES
- The safety and health of our people is a priority
- We take responsibility for the effect that our operations may have on the environment
- We are committed to the upliftment of our local communities
- We conduct ourselves with integrity and honesty
- We strive to achieve superior returns for our shareholders
- We originate new opportunities and will continue to challenge convention through innovation

STRATEGIC INITIATIVES
- Implementation of optimisation initiatives to maximise value extraction
- Growth through innovative research and development
- To generate value by becoming a globally significant low-cost producer of strategic commodities
- Leveraging off the established platform for expansion into multi-commodities with geographic diversity
- Capital discipline with an annual dividend policy of at least 15% of NPAT and capital allocation to low risk projects

HIGHLIGHTS 

REEF MINED 
2.45 Mt
(2017: 2.45 Mt)
In line with guidance

PGM
PRODUCTION
(5PGE+Au)
Up 11.4%
77.0 koz
(2017: 69.1 koz)

CHROME
CONCENTRATE
PRODUCTION
Up 15.0%
732.5 kt
(2017: 636.8 kt)

REVENUE
Up 13.8%
US$199.2m
(2017: US$175.1 m)

NET PROFIT
AFTER TAX
Down 44.3%
US$28.4m
(2017: US$51.0 m)

EBITDA 
Down 33.2%
US$54.1m
(2017: US$81.0 m)

CASH GENERATED
FROM OPERATIONS
Up 17.9%
US$52.1m
(2017: US$44.2 m)

EARNINGS
PER SHARE
Down 37.5%
US$ 10 cents
(2017: US$ 16 cents)

MAIDEN INTERIM
DIVIDEND
US$ 2 cents

GROUP STATISTICS

                                                           Unit    H1 FY2018    H1 FY2017     % Change

Reef mined                                                   kt      2 451.3      2 449.1          0.1
Stripping ratio                                m3 waste/m3 reef          8.1          8.4        (3.6)
Reef milled                                                  kt      2 597.4      2 417.7          7.4
PGM flotation feed                                           kt      1 895.6      1 783.0          6.3
PGM rougher feed grade                                      g/t         1.52         1.54        (1.3)
PGM ounces produced                                 5PGE+Au koz         77.0         69.1         11.4
PGM recovery                                                  %         83.2         78.3          6.3
Average PGM basket price                                 US$/oz          909          760         19.6
Average PGM basket price                                 ZAR/oz       11 606       10 306         12.6
Cr2O3 ROM grade                                              %          18.1         17.5          3.4
Chrome recovery                                              %          65.9         63.4          3.9
Chrome yield                                                 %          28.2         26.3          7.2
Chrome concentrates produced                                 kt        732.5        636.8         15.0
  Metallurgical grade                                        kt        558.9        484.3         15.4
  Specialty grades                                           kt        173.6        152.5         13.8
Third-party chrome production                                kt        106.2            -            -
Metallurgical grade chrome concentrate
contract price                                  US$/t CIF China          193          278       (30.6)
Metallurgical grade chrome concentrate
contract price                                  ZAR/t CIF China        2 436        3 783       (35.6)
Average exchange rate                                   ZAR:US$         12.8         13.6        (5.9)
Group revenue                                       US$ million        199.2        175.1         13.8
Gross profit                                        US$ million         55.7         82.4       (32.4)
Net profit for the period                           US$ million         28.4         51.1       (44.4)
EBITDA                                              US$ million         54.1         81.0       (33.2)
Net cash flows from operating activities            US$ million         52.1         44.2         17.9
Headline earnings per share                           US$ cents           10           16       (37.5)
Earnings per share                                    US$ cents           10           16       (37.5)
Gross profit margin                                           %         28.0         47.0       (40.4)
EBITDA margin                                                 %         27.2         46.3       (41.3)
Net debt                                            US$ million         22.7          7.0        224.3
Capital expenditure                                 US$ million         17.7          8.5        108.2
Debt to total equity ratio                                    %         25.4         14.8         71.6
Net debt to total equity ratio                                %          7.0          2.7        159.3

MANAGEMENT REPORT


DEAR SHAREHOLDER
Tharisa continues being a strong cash generative business which is underpinned by solid operational performance. In the
six months ended 31 March 2018, the Group through its low cost co-production business model delivered robust
operational and financial results.

Safety remains a top priority and Tharisa continues to strive for zero harm at its operations. Tharisa achieved a Lost
Time Injury Frequency Rate (LTIFR) of 0.12 per 200 000 man hours worked at 31 March 2018. This is among the lowest
LTIFRs in the PGM and chrome industries in South Africa. Tharisa continues to implement appropriate risk management
processes, strategies, systems and training to promote a safe working environment for all.

The Group reported a profit before tax of US$37.2 million for the interim period with net cash flows from operating
activities of US$ 52.1 million. Earnings per share amounted to US$ 10 cents and a maiden interim dividend of US$ 2 cents
a share was declared.

The first half of FY2018 marks Tharisa's transition to an owner mining operating model and proves that the Group's
approach to continued improvements delivers tangible results. Production milestones included:
- PGM production at 77.0 koz, up 11.4% from 69.1 koz
- PGM recoveries increased to 83.2% from 78.3%, exceeding the targeted 80.0%
- Chrome production at 732.5 kt, up 15.0% from 636.8 kt
- Chrome recoveries improved to 65.9% from 63.4%, exceeding the targeted 65.0%

Tharisa's average PGM contained metal basket price benefitted from the increases in palladium and rhodium prices,
contributing to an increase of 19.6% to US$909/oz from US$760/oz in the prior year. Average contracted metallurgical
grade chrome concentrate prices decreased to US$193/t from US$278/t reported in H1 FY2017. Current metallurgical
chrome spot prices are trading at similar levels. Global growth in stainless steel production remains robust with an
independent market research company forecasting a further rise in worldwide output of nearly 5% in CY2018.

Specialty chrome concentrates, which comprise 23.7% of chrome concentrate production, are sold into the chemical and
foundry markets globally and these grades continue to attract a significant premium above the contracted metallurgical
chrome concentrate price.

OPERATIONAL OVERVIEW
                                                 31 March   31 March   Change
                                          Unit       2018       2017        %
Reef mined                                  kt    2 451.3    2 449.1      0.1
Reef milled                                 kt    2 597.4    2 417.7      7.4
On mine cash cost per tonne milled         US$       32.7       31.0      5.5
Consolidated cash cost per tonne milled
(excluding transport)                      US$       36.4       34.0      7.1

MINING
The Tharisa Mine is unique in that it mines multiple mineralised layers with defined PGM and chrome contents. The mine
is a large-scale open pit with a life of mine of up to 17 years and the potential to extend the mine by a further 40 years
by mining underground.

During the six months under review, 2.45 Mt of ore at an average grade of 1.52 g/t PGMs on a 5PGE+Au basis and
18.1% chrome was mined. Tharisa aims to mine 5.0 Mt ROM to produce 150.0 koz of PGMs and 1.4 Mt of chrome
concentrates in FY2018.

In the past six months, Tharisa has successfully transitioned to an owner miner operating model following the
US$21.8 million acquisition of the mining fleet from the former contractor, as well as the transfer of 876 employees who
were already in service at the Tharisa Mine, ensuring a seamless changeover.

The change in operating model was the logical progression given the long life of the open pit, allowing Tharisa to take
direct control over its mining operations thereby controlling the reef grades and the delivery of improved quality ore to
the processing plants, optimising the feed, throughput and recovery within the plants.

The fleet purchased from the mining contractor has been supplemented by additional drill rigs and yellow fleet to
optimise the fleet ensuring that it has the capability of achieving the required mining run rates. Employee training remains
a priority and world class on-mine simulators are used to ensure skill competency. This, and the implementation of
preventative maintenance protocols, has improved the effective utilisation of the mining fleet.

The mining team's focus remains on opening up access to the full mining strike length and the maintenance of the correct
multi- reef layer profile to ensure stable feed grades for processing. While the stripping ratio was 8.1 on a per cubic metre
basis for the six months, the plan is to achieve the LOM strip ratio of 9.6 in the second half of the year.

PROCESSING
Tharisa has two processing plants - the Genesis and Voyager standalone concentrator plants. The Genesis Plant
incorporates the Challenger Plant on the feed circuit for the extraction of specialty grade chrome concentrates principally
from natural fines.

During the six-month period, 2.6 Mt of reef was processed through the two plants producing 77.0 koz of contained
PGMs on a 5PGE+Au basis and 732.5 kt of chrome concentrates. Of the 732.5 kt of chrome concentrates produced,
173.6 kt or 23.7% of the chrome concentrate production was specialty grade chrome concentrates.

Overall PGM recovery was 83.2%, an improvement of 6.3% on the H1 FY2017 PGM recovery of 78.3%, and demonstrates
the benefits of stability in the plant feed grades and the increase in competent ores being processed with a lower portion
of "weathered" ore. Recoveries have also benefitted from the successful commissioning of the high energy flotation circuit
at the Genesis Plant in Q4 FY2017. The target PGM recovery was 80.0%.

The average chrome recovery was 65.9%, a 3.9% improvement from the 63.4% recovery recorded for H1 FY2017,
exceeding the chrome recovery target of 65.0%.

VISION 2020
The Vision 2020 projects are targeting an increase in Tharisa Minerals' production to 200 kozpa of PGMs and 2 Mtpa of
chrome concentrates by year end 2020.

The optimisation projects and additional processing plants, together with improved mining grades, are planned to add
61.8 kozpa of PGMs and 602 ktpa of chrome concentrates to the Tharisa Mine's annual production by the end of 2020.
The project details are as follows:

Upgrade of the crusher circuit at the Genesis Plant
The additional crusher circuit at the Genesis Plant will be commissioned in Q4 FY2018. The ZAR90 million
(US$7.5 million) project aims to increase the Genesis Plant throughput by 15.0% or about 180 ktpa, targeting an
increase in the higher value specialty chrome grade production by adding approximately 24 ktpa of chemical grade
chrome concentrate and approximately 18 ktpa of foundry grade chrome concentrate.

PGM optimisation at the Voyager Plant
The addition of flash flotation and a scavenger plant with high energy mechanisms at the Voyager Plant is aimed at
improving PGM recoveries and increasing PGM production by an estimated 14 kozpa. The project is expected to be
commissioned during Q1 FY2019 at an estimated capital cost of approximately ZAR70 million (US$5.8 million).

Vulcan Fine Chrome Recovery Plant
The construction of the Vulcan Plant will facilitate additional recovery of fine chrome from tailings streams.The proprietary
process is being developed by Tharisa and a demonstration scale plant is scheduled to be commissioned in Q3 FY2018.
The feasibility study and process design for a full scale plant will be undertaken in conjunction with the operation of
the demonstration plant. The full scale Vulcan Plant is expected to be commissioned during Q1 FY2019 with projected
chrome concentrate production of 380 ktpa. The estimated capital cost is ZAR300 million (US$25 million).

Apollo Chrome and PGM Plant
The Apollo Plant will be designed and built as an independent chrome plant with PGM flotation to produce chrome
concentrate from UG1 ore that will be mined at the Tharisa Mine's west pit. The plant will also be able to process MG
reef horizons.

The plant will be designed in two phases, the first of which is expected to treat 600 ktpa and the second phase expected
to double capacity. The feasibility study is being undertaken and test work and resource estimation are in progress. Plant
construction is estimated to take approximately 12 months, with commissioning planned for Q2 FY2020. The Apollo
Plant is expected to produce 6 kozpa of PGMs and 180 ktpa of chrome concentrates. The capital cost is estimated at
ZAR300 million (US$25 million).

COMMODITY MARKETS AND SALES

                                                      31 March   31 March
                                               Unit       2018       2017   Change %
PGM basket price                             US$/oz        909        760       19.6
PGM basket price                             ZAR/oz     11 606     10 306       12.6
42% metallurgical grade chrome concentrate
contract price - CIF China                    US$/t        193        278     (30.6)
42% metallurgical grade chrome concentrate
contract price - CIF China                    ZAR/t      2 436      3 783     (35.6)

The PGM basket price has traded higher compared to H1 FY2017, with the average PGM contained metal basket price
benefiting from the rally in palladium, rhodium and ruthenium spot prices over the period under review.The average US$
basket prices increased 19.6% and ZAR basket prices increased 12.6% following the strengthening of the ZAR against
the US$.

PGM production continued to be sold to Impala Refining Services under the off-take agreement as well as to Lonmin
under a research and cooperation agreement. A total of 76.1 koz was sold during the period.

The Tharisa Mine's PGM prill split was as follows:

                                                                  31 March   31 March
                                                                      2018       2017
                                                                         %          %

Platinum                                                              56.4       54.6
Palladium                                                             16.3       16.3
Rhodium                                                                9.2        9.7
Gold                                                                   0.2        0.2
Ruthenium                                                             13.5       14.3
Iridium                                                                4.4        4.9

Contracted metallurgical grade chrome concentrate prices decreased over the period to an average US$193/t
from the average US$278/t achieved in H1 FY2017 when the market witnessed an unprecedented increase in
spot chrome prices. Spot metallurgical chrome prices as quoted by FerroAlloyNet traded between US$162/t and
US$245/t during the period. This compares to the US$190/t and US$410/t range in the comparative six months.

The demand for chrome concentrate is driven by the increasing demand for stainless steel, which fundamentally
remains robust. In CY2017, global stainless steel production increased by 5.8% year on year with Chinese production
up 4.7% year on year to 25.8 Mt, according to the International Stainless Steel Forum. The fundamentals of the
global stainless steel market remain sound with an independent market research company forecasting a further rise
in worldwide output of nearly 5% in CY2018, further supporting strong demand for chrome units in the form of
ferrochrome and chrome ores.

Chinese chrome port stocks have increased to levels of approximately 3.0 Mt since April 2018. With domestic
Chinese monthly requirements of approximately 1.2 Mt, this equates to 10 weeks' supply assuming all stocks are
immediately available.

Tharisa's chrome concentrate sales for the period totalled 725.6 kt, an increase of 44.4% compared to H1 FY2017
sales of 502.4 kt. Inventory levels totalled 74.9 kt as at end March 2018. Third-party sales totalled 85.6 kt.

Third-party sales comprise the sales of the UG2 chrome concentrate produced at Lonmin's K3 UG2 chrome plant (K3),
which is operated by Tharisa subsidiary Arxo Metals.

LOGISTICS
                                                                          31 March         31 March
                                                              Unit            2018             2017         Change %
Average transport costs per tonne of chrome
concentrate - CIF main ports China basis                     US$/t            60.9             50.0             21.8

The chrome concentrate destined for main ports in China is shipped either in bulk from the Richards Bay Dry Bulk
Terminal or via containers from Johannesburg and transported by road to Durban from where it is shipped. The
economies of scale and in-house expertise have ensured that Tharisa's transport costs, a major cost to the Group,
remained competitive.

China remains the main market for metallurgical chrome concentrates and the metallurgical grade chrome concentrates
produced by the Tharisa Mine were sold on a CIF main ports China basis. The majority was shipped in bulk with a
negligible quantity being shipped in containers.

Arxo Logistics has sufficient storage capacity at both the Richards Bay Dry Bulk Terminal and the Durban container port
to manage the full production capacity of the Tharisa Mine and the third-party production.

FINANCIAL OVERVIEW
The financial results of the Group were characterised by firstly increased revenue as volume sales for both PGMs and
chrome concentrates increased while the pricing metrics for both commodities reflected opposing trends. The overall
PGM basket price increased by 19.6% to US$909/oz with the Group basket price, in particular, benefiting from the prill
split favouring palladium (at 16.3%) and rhodium (at 9.2%) while there was a normalisation in the metallurgical grade
chrome concentrate price which averaged US$193/t (on a CIF main ports China basis) against the prior period average
of US$278/t (a decrease of 30.6%). Secondly, with the transition to an owner mining model and the leveraged purchase
of the fleet, the overall gearing of the Group increased to 25.4% (a net debt to equity ratio of 7.0%).

Investor sentiment in South Africa improved following leadership changes within the ruling African National Congress.
This is reflected in the strengthening ZAR, being the base cost currency for the Group's mining operations in South
Africa, from an average of ZAR13.60 to ZAR12.80 against the US$, an average strengthening of 5.9%, impacting on the
overall cost base of the Group. The country's foreign debt avoided a further credit downgrading with Moody's retaining
an investment grade rating changing the outlook to "stable". The South African domestic interest rate (as measured by
the repo rate) was reduced just prior to the reporting period by 25 basis points to 6.50%. The Groups commodities are
priced in US$ and the cost base is mainly in ZAR and therefore the Group is positioned as a Rand hedge stock.

Group revenue totalled US$199.2 million (2017: US$175.1 million) of which US$55.5 million was derived from the sale
of PGM concentrate and US$130.3 million was derived from the sale of chrome concentrates. The agency and trading
segment contributed US$13.4 million.This is an increase in revenue relative to the comparable period of 13.8%. Speciality
grade chrome concentrates, comprising 23.7% of overall chrome sales, continued to trade at a premium of approximately
US$50/t.

On a segmental basis the increase in revenue is as a result of:
- an increase in the unit sales of PGMs by 9.8% from 69.3 koz to 76.1 koz with an increase in the PGM basket price
  of 19.6% from US$760/oz to US$909/oz
- an increase in the unit sales of metallurgical grade chrome concentrate by 53.4% from 360.2 kt to 552.7 kt.
  However, the metallurgical grade chrome concentrate price decreased by 30.6% from US$278/t to US$193/t
- an increase in the unit sales of specialty grade chrome concentrates by 21.6% from 142.2 kt to 172.9 kt
- increase in third party trading and logistics, building on the existing platforms, which contributed US$13.4 million
  to revenue.

Other income includes an amount of US$1.9 million being non-recurring income relating to the discounted purchase
of the mining fleet. Other than for this amount there have been no other non-recurring or exceptional income sources
during the interim period.

Gross profit amounted to US$55.7 million (2017: US$82.4 million) with a gross profit margin of 28.0% (2017: 47.0%).
The mining fleet, infrastructure and human resources were structured to enable the mining to produce at least the
market guidance ROM of 5.0 Mt for the current financial year and to move the required waste to achieve the life of
mine (open pit) stripping ratio of 9.6 on a per cubic metre basis. The fixed costs inherent in catering for this mining
capacity have impacted on the overall cost of sales. With a mining contractor model, the costs were directly linked to
the volumes moved. Included in cost of sales is the depreciation charge arising pursuant to the ownership of the fleet
of US$4.8 million. In addition, diesel cost, a significant component of the mining cost, increased on average by 22.1%
per litre. Costs incurred with the transport of the metallurgical grade chrome concentrates from the mine to the
customer increased by 21.8% from US$50.0/t to US$60.9/t, the majority of this increase related to an increase in the
freight costs.

As a co-producer of PGMs and chrome concentrates the shared costs of production for segmental reporting purposes
are based on the relative contribution to revenue on an ex-works basis, allocated 45% to the PGM segment and 55% to
the chrome segment.This is in accordance with the accounting policy of the Group and IFRS.The comparable period was
allocated 25% to the PGM segment and 75% to the chrome segment. The change to the basis of allocation of the shared
costs is, in effect, an 80.0% increase in respect of the allocation to the PGM segment and a 26.7% decrease in respect of
the allocation to the chrome segment.

The segmental cost of sales and gross profit contribution, as extracted from the condensed consolidated interim financial
statements, is as follows:

                                                     31 March 2018               31 March 2017
                                                       PGM        Chrome           PGM        Chrome
                                                   US$'000       US$'000       US$'000       US$'000
Cost of sales
 Excluding selling costs                            39 711        56 235        20 837        48 280
 Selling costs                                         205        34 827           180        23 458
Gross profit contribution                           15 542        39 234        19 036        63 328
Gross profit margin                       (%)         28.0          30.1          47.5          46.9
Sales volumes                                     76.1 koz      725.6 kt      69.3 koz      502.4 kt
Unit cost of sales excluding selling costs       US$522/oz       US$78/t     US$301/oz       US$96/t
Variance                                  (%)         73.4        (18.8)

The PGM segment gross profit margin of 28.0% (2017: 47.5%) is lower than the previous year notwithstanding the
increased revenue due, in part, to the revised basis of allocating shared costs.

The chrome segment gross profit margin of 30.1% (2017: 46.9%) is lower than the previous year following the
normalisation of the selling prices for the metallurgical grade chrome concentrate notwithstanding benefitting from the
revised basis of allocating shared costs.

The agency and trading segment contributed US$1.0 million to the Group gross profit at a margin of 7.2%.
The major components of the cash cost of sales for PGMs and chrome concentrates are depicted in the graphs below:
PGMs                                                        CHROME CONCENTRATES

Mining                26%                                   Mining                24% 
Utilities             7%                                    Utilities             6%
Reagents              6%                                    Reagents              0%
Steel balls           3%                                    Steel balls           5%
Labour                26%                                   Labour                29%
Diesel                14%                                   Diesel                13%
Overheads and other   18%                                   Overheads and other   23%

While not being directly comparable following the transition to an owner mining model effective 1 October 2017, on a
unit cost basis, the reef mining cost per tonne mined increased marginally by 5.1% from US$19.5/t to US$20.5/t.This cost
per reef tonne mined was incurred on a stripping ratio of 8.1 on a per cubic metre basis. On a per cube mined basis i.e.
including both waste and reef, the cost increased marginally from US$7.68/m3 to US$7.84/m3 (the prior period stripping
ratio being 8.3 on a per cubic metre basis).

The consolidated cash cost per tonne milled (i.e. including mining and processing but excluding transport and freight)
increased by 4.3% from US$34.9/t to US$36.4/t, benefitting from the consistent feed into the plant and improved
processing efficiencies as reflected in the recoveries with milling being above the name plate plant capacity.

Administrative expenses increased from US$12.5 million to US$20.4 million mainly due to an increase in employee
costs which included certain bonus payments following the successful transition to an owner mining model and costs
associated with the employment of additional support staff (time and attendance, procurement, human resources and
safety) necessary as an owner miner. After accounting for the administrative expenses, the Group achieved an operating
profit of US$37.4 million (2017: US$69.9 million).

EBITDA amounted to US$54.1 million (2017: US$81.0 million).

Finance costs (totalling US$5.1 million) principally relate to the balance owing on the senior debt facility, the bridge loan
and original equipment manufacturer finance for the purchase of the mining fleet from the contractor as well as additional
mining equipment, and the trade finance facilities of Arxo Resources on the discounting of letters of credit on chrome
concentrate contracted sales as well as the limited recourse discounting of the PGM receivables.

While revenue reflected an increase over the comparable period based on increased volumes sold and an increased
PGM basket price, the lower chrome concentrate prices and costs associated with the transition to the owner mining
model, contributed to a decrease in the net profit before tax to US$37.2 million (2017: US$68.3 million).

The tax charge amounted to US$8.8 million, an effective charge of 23.6%. The cash tax paid amounted to US$2.1 million.
Notwithstanding that the Group has fully utilised its tax losses, as at the period end the Group had unredeemed capex
for tax purposes of US$124.0 million. The deferred tax liability amounted to US$33.3 million.

Foreign currency translation differences for foreign operations arising where the Company has funded the underlying
subsidiaries with US$ denominated funding and the reporting currency of the underlying subsidiary is not in US$,
amounted to a favourable US$35.4 million following the strengthening of the ZAR.

Basic and diluted earnings per share for the period amounted to US$ 10 cents (2017: US$ 16 cents) with headline
earnings per share of US$ 10 cents (2017: US$ 16 cents).

The Group successfully closed the refinancing of the senior debt facility and the bridge loan facility (utilised to part finance
the purchase of the mining fleet) with a three year secured term loan of ZAR400.0 million as well as securing corporate
facilities in the amount of ZAR400 million. As a consequence, the amount held in the designated debt service reserve
account is now available to the Group. The corporate facilities have not been drawn.

Total debt amounted to US$82.6 million, resulting in a debt to total equity ratio of 25.4%. This exceeds the long-term
targeted debt to total equity ratio of 15% principally due to the leveraged purchase of the mining fleet. Group cash and
cash equivalents amounted to US$59.9 million resulting in a net debt to total equity ratio of 7.0%.

The capex spend for the period amounted to US$17.7 million of which US$10.6 million related to the mining fleet
and US$1.3 million related to processing optimisation initiatives. This is in addition to the US$21.8 million paid for the
acquisition of the mining fleet from MCC Contracts (Pty) Limited.The depreciation charge amounted to US$14.4 million.

The Group generated net cash from operations of US$52.1 million (2017: US$44.2 million) and after taking into account
the capex, a free cash flow of US$34.5 million. Cash on hand amounted to US$59.9 million.

There is continued focus on working capital management with the current ratio at 2.1 times.

The Group has early adopted IFRS 9 Financial Instruments, IFRS 15 Revenue from Contracts with Customers and IFRS
16 Leases. The Group entered into a number of new lease agreements for the addition of mining fleet subsequent to
30 September 2017 and consequently decided to early adopt these standards. The early adoption resulted in a negligible
adjustment to retained earnings at 1 October 2017.

From time to time the group concludes transactions with related parties. These transactions are concluded on an arms'
length basis and are disclosed in the ensuing interim condensed consolidated financial statements.

INTERIM DIVIDEND
In accordance with its dividend policy of distributing at least 15% of annual net profit after tax and following the
introduction of an interim dividend, the board has declared its first interim cash dividend of US$ 2 cents per ordinary
share. The interim dividend will be paid on Wednesday, 20 June 2018. Shareholders on the principal Cyprus register will
be paid in US$, shareholders whose shares are held through Central Securities Depositary Participants (CSDPs) and
brokers and are traded on the JSE will be paid in South African Rand (ZAR) and holders of Depositary Interests traded
on the LSE will be paid in Sterling (GBP).

The timetable for the dividend declaration is as follows:
Declaration and currency conversion date                                                         Tuesday, 15 May 2018
Currency conversion rates announced                                                             Thursday, 17 May 2018
Last day to trade cum-dividend rights on the JSE                                                 Tuesday, 5 June 2018
Last day to trade cum-dividend rights on the LSE                                               Wednesday, 6 June 2018
Shares will trade ex-dividend rights on the JSE                                                Wednesday, 6 June 2018
Shares will trade ex-dividend rights on the LSE                                                 Thursday, 7 June 2018
Record date for payment on both JSE and LSE                                                       Friday, 8 June 2018
Dividend payment date                                                                        Wednesday, 20 June 2018

No dematerialisation or rematerialisation of shares within Strate will be permitted between Wednesday, 6 June 2018 and
Friday, 8 June 2018, both days inclusive. No transfers between registers will be permitted between Thursday, 17 May 2018
and Friday, 8 June 2018, both days inclusive.

Tax implications of the dividend
Shareholders are advised that the dividend declared will be paid out of income reserves and may therefore be subject
to dividend withholding tax depending on the tax residency of the shareholder.

South African tax residents
South African shareholders are advised that the dividend constitutes a foreign dividend. For individual South African tax
resident shareholders, dividend withholding tax of 20% will be applied to the gross dividend of US$ 2 cents per share.
Therefore, the net dividend of US$ 1.6 cents per share will be paid after US$ 0.4 cents in terms of dividend withholding
tax has been applied. Shareholders who are South African tax resident companies are exempt from dividend tax and will
receive the dividend of US$ 2 cents per share. This does not constitute legal or tax advice and is based on taxation law
and practice in South Africa. Shareholders should consult their brokers, financial and/or tax advisors with regard to how
they will be impacted by the payment of the dividend.

UK tax residents
UK tax residents are advised that the dividend constitutes a foreign dividend and that they should consult their brokers,
financial and/or tax advisors with regard to how they will be impacted by the payment of the dividend.

Cyprus tax residents
Individual Cyprus tax residents are advised that the dividend constitutes a local dividend and that they should consult
their brokers, financial and/or tax advisors with regard to how they will be impacted by the payment of the dividend.

Shareholders and Depositary Interest holders should note that information provided should not be regarded as
tax advice.

PRINCIPAL BUSINESS RISKS
Tharisa regards principal business risks as the issues that may, if they materialise, substantially affect the Group's ability to
create and sustain value in the short-, medium- and long-term.

These risks determine how the Group devises and implements its strategy since each risk has the potential to impact the
Group's ability to achieve its strategic objectives. Each risk also carries with it challenges and opportunities. The Group's
strategy takes into account known risks, but risks may exist of which the Group is currently unaware.

An overview of the risks which could affect the Group's operational and financial performance was included in the
Group's 2017 Annual Report which is available on the Group's website. The following risks have been identified which
may impact the Group over the next six months.

Regulatory compliance
Tharisa Minerals' right to mine is dependent on strict adherence to legal and legislative requirements. While there is still
uncertainty on the proposed amendments to the South African Mineral and Petroleum Resources Development Act
(MPRDA) and the accompanying Mining Charter, the approach taken by the newly appointed Mineral Resources Minister
Gwede Mantashe appears to be more inclusive than his predecessor.

A finalised Mining Charter would provide regulatory certainty and could go some way towards attracting investment in
the sector.

The Group is required to comply with a range of health and safety laws and regulations in connection with its mining,
processing and on mine logistics activities. Regular inspections are conducted by the Department of Mineral Resources
to ensure compliance. Any perceived violation of the regulations could lead to a temporary shutdown of all or a portion
of the Group's mining operations.

Labour unrest in South Africa
While labour relations are currently stable, the risk of potential unrest remains. The Group will start wage negotiations
in Q3 FY2018 to replace the existing three-year wage agreement that expires in June 2018. Negotiations will this year
encompass agreement for both the mining and processing employees. Mining employees were previously represented by
the former contractor and had a separate wage agreement.Tharisa Minerals has recognition agreements with the relevant
trade unions - the Association of Mineworkers and Construction Union and the National Union of Mineworkers.

The Group intends on concluding a further three-year wage agreement.

Unscheduled breakdowns
The Group's performance is reliant on consistent mining and the production of PGM and chrome concentrates from the
Tharisa Mine. Any unscheduled breakdown leading to a prolonged reduction in either mining or production may have a
material impact on the Group's financial performance and results of operations. Tharisa transitioned to the owner mining
model, which has given it greater control of its mining fleet. The Group has purchased additional fleet to optimise the
fleet. Long lead items for the fleet and the plant are kept in stock and preventative maintenance programmes are in place
for both the fleet and the plant.

Global commodity prices and currency risk
The Group's revenues, profitability and future rate of growth depends on the prevailing market prices of PGMs and
chrome. A sustained downward movement in the market price for PGMs and/or chrome may negatively affect the
Group's profitability and cash flows. The Group's reporting currency is US$. The Group's operations are predominantly
based in South Africa with a ZAR cost base while the majority of the revenue stream is in US$ exposing the Group to the
volatility and movements in the ZAR. Fluctuations in the US$ and ZAR may have a significant impact on the performance
of the Group. To counter this, the Group continues to work on reducing costs and increasing operating efficiencies.

Financing and liquidity
The activities of the Group expose it to a variety of financial risks including market, commodity prices, credit, foreign
exchange and interest rate risks. The Group closely monitors and manages these risks. Cash forecasts are regularly
updated and reviewed including sensitivity scenarios with reference to the above risks.

BOARD APPOINTMENT
Tharisa welcomed Zhong Liang Hong to the Board as a non-executive director with effect from 1 April 2018.
Mr Hong represents Fujian Wuhang Stainless Steel Co., Ltd and Hong Kong HeYi Mining Resources Company Ltd,
which respectively hold 7.46% and 1.99% of Tharisa's issued share capital with voting rights as at 31 March 2018.

OUTLOOK
Tharisa's business model is robust with the business cash generative throughout the commodity cycle. The declaration of
a maiden interim dividend is testament to the maturing of the business and is evidence of the capital discipline employed
by the Group.

The Group expects continued strong operational performance for the remainder of the year with a focus on
increasing its production through the continual improvement processes and delivery of the first of its Vision 2020
optimisation projects.

The benefits of the owner mining operational model should become evident in the second half of the financial year and
Tharisa is on track to achieve its FY2018 guidance of 150 koz PGMs and 1.4 Mt chrome concentrates, of which 350 kt
will be specialty grade. The Vision 2020 projects aim to take production to 200 kozpa of PGMs and 2 Mtpa of chrome
concentrates by 2020.

Tharisa would like to thank its staff, management and directors for their continued support in achieving these interim results.

STATEMENT BY THE MEMBERS OF THE BOARD OF DIRECTORS AND THE COMPANY
OFFICIALS RESPONSIBLE FOR THE PREPARATION OF THE INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS ACCORDING TO THE CYPRUS SECURITIES
AND EXCHANGE COMMISSION LEGISLATION
In accordance with sections 10(3)(c) and 10(7) of Law No. 190(I)/2007, as amended, providing for the transparency
requirements of issuers whose securities are admitted to trading on a regulated market (the Transparency Law),
we, the members of the Board of Directors of Tharisa plc, responsible for the preparation of the interim condensed
consolidated financial statements of Tharisa plc for the period ended 31 March 2018, hereby declare that to the
best of our knowledge:
a) the interim condensed consolidated financial statements for the period ended 31 March 2018:
   have been prepared in accordance with International Accounting Standard 34: Interim Financial Reporting
   and as stipulated for under section 10(4) of the Transparency Law, and
    - give a true and fair view of the assets and liabilities, the financial position and profit or losses of Tharisa plc
      and its undertakings, as included in the interim condensed consolidated financial statements as a whole; and
    
b) the adoption of a going-concern basis for the preparation of the financial statements continues to be appropriate
   based on the foregoing and having reviewed the forecast financial position of the Group; and
   
c) the interim management report provides a fair review of the information required by section 10(6) of the
   Transparency Law.

Loucas Pouroulis        Executive Chairman
Phoevos Pouroulis       Chief Executive Officer
Michael Jones           Chief Finance Officer
David Salter            Lead independent non-executive director
Antonios Djakouris      Independent non-executive director
Omar Kamal              Independent non-executive director
Carol Bell              Independent non-executive director
Roger Davey             Independent non-executive director
Joanna Ka Ki Cheng      Non-executive director
Zhong Liang Hong        Non-executive director

Paphos
15 May 2018

REPORT ON REVIEW OF INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS

TO THE SHAREHOLDERS OF THARISA PLC
Introduction
We have reviewed the interim condensed consolidated financial statements of Tharisa Plc (the "Company"), and its
subsidiaries (collectively referred to as "the Group") contained in the accompanying interim report,
which comprise the interim condensed consolidated statement of financial position as at 31 March 2018 and the interim
condensed consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows
for the six-month period then ended and selected explanatory notes. Management is responsible for the preparation
and presentation of these interim condensed consolidated financial statements in accordance with International Financial
Reporting Standard IAS 34 Interim Financial Reporting (IAS 34). Our responsibility is to express a conclusion on these
interim condensed consolidated financial statements based on our review.

Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim
Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information
consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical
and other review procedures. A review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing and consequently does not enable us to obtain assurance that we would become
aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim
condensed consolidated financial statements do not present fairly, in all material respects, the financial position of the
entity as at 31 March 2018 and of its financial performance and its cash flows for the six-month period then ended in
accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting (IAS 34).

Stavros Pantzaris
Certified Public Accountant and Registered Auditor
for and on behalf of
Ernst & Young Cyprus Limited
Certified Public Accountants and Registered Auditors
Nicosia


INTERIM CONDENSED CONSOLIDATED STATEMENT OF
PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
for the six months ended 31 March 2018

                                                                        Six months    Six months        Year
                                                                             ended         ended       ended
                                                                          31 March      31 March     30 Sept
                                                                              2018          2017        2017
                                                                          Reviewed      Reviewed     Audited
                                                              Notes        US$'000       US$'000     US$'000
Revenue                                                           5        199 179       175 119     349 443
Cost of sales                                                     6      (143 436)      (92 755)   (226 789)
Gross profit                                                                55 743        82 364     122 654
Other income                                                      7          2 072            83         160
Administrative expenses                                           8       (20 422)      (12 530)    (26 903)
Results from operating activities                                           37 393        69 917      95 911
Finance income                                                               3 699          4 042      3 580
Finance costs                                                              (5 130)        (5 090)    (7 689)
Changes in fair value of financial assets at fair value
through profit or loss                                                       1 204          (540)      (813)
Net finance costs                                                            (227)        (1 588)    (4 922)
Profit before tax                                                           37 166         68 329     90 989
Tax                                                               9        (8 753)       (17 316)   (23 316)
Profit for the period/year                                                  28 413         51 013     67 673

Other comprehensive income
Items that may be classified subsequently to profit or loss:
Foreign currency translation differences for
foreign operations, net of tax                                              35 422          5 422       (387)
Other comprehensive income, net of tax                                      35 422          5 422       (387)
Total comprehensive income for the period/year                              63 835         56 435      67 286
Profit for the period/year attributable to:
  Owners of the Company                                                     25 960         41 925      57 601
  Non-controlling interest                                                   2 453          9 088      10 072
                                                                            28 413         51 013      67 673
Total comprehensive income for the period/year attributable to:
  Owners of the Company                                                     49 433         46 188      57 451
  Non-controlling interest                                                  14 402         10 247       9 835
                                                                            63 835         56 435      67 286
Earnings per share
Basic earnings per share                     (US$ cents)        10              10             16          22
Diluted earnings per share                   (US$ cents)        10              10             16          22


INTERIM CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
as at 31 March 2018

                                                                               31 March    31 March    30 Sept
                                                                                   2018        2017       2017
                                                                               Reviewed    Reviewed    Audited
                                                                      Notes     US$'000     US$'000    US$'000

ASSETS
Non-current assets
Property, plant and equipment                                            11     308 534     225 992    232 559
Goodwill                                                                            961         876        838
Long-term deposits                                                       12           -       4 796      4 505
Other financial assets                                                            5 791       3 696      3 767
Deferred tax assets                                                      13       2 445       2 127      1 952
Total non-current assets                                                        317 731     237 487    243 621
Current assets
Inventories                                                              14      26 903      36 353     20 802
Trade and other receivables                                              15      78 173      52 581     70 374
Other financial assets                                                              901         590         49
Current taxation                                                                    108          61        132
Cash and cash equivalents                                                16      59 930      26 620     49 742
Total current assets                                                            166 015     116 205    141 099
Total assets                                                                    483 746     353 692    384 720
EQUITY AND LIABILITIES
Share capital                                                            17         260         257        260
Share premium                                                            17     280 149     277 006    280 082
Other reserve                                                                    47 245      47 245     47 245
Foreign currency translation reserve                                           (50 088)    (69 148)   (73 561)
Retained earnings                                                                58 399      28 076     42 877
Equity attributable to owners of the Company                                    335 965     283 436    296 903
Non-controlling interests                                                      (10 655)    (24 645)   (25 057)
Total equity                                                                    325 310     258 791    271 846
Non-current liabilities
Borrowings                                                               18      35 053      10 495      4 375
Provisions                                                               19      11 114       6 327      6 923
Deferred tax liabilities                                                 13      33 297      20 280     23 823
Total non-current liabilities                                                    79 464      37 102     35 121
Current liabilities
Borrowings                                                               18      42 119      23 080     45 026
Other financial liabilities                                                           -           -        599
Current taxation                                                                    827         505        212
Trade and other payables                                                         36 026      34 214     31 916
Total current liabilities                                                        78 972      57 799     77 753
Total liabilities                                                               158 436      94 901    112 874
Total equity and liabilities                                                    483 746     353 692    384 720

The interim condensed consolidated financial statements were authorised for issue by the Board of Directors on
15 May 2018.
Phoevos Pouroulis                                                                             Michael Jones
Director                                                                                            Director


                                                                         Attributable to owners of the Company
                                                                                     Foreign
                                                                                        currency                               Non-
                                                          Share      Share     Other translation    Retained            controlling      Total
                                                        capital    premium   reserve     reserve    earnings     Total     interest     equity
                                                Notes   US$'000    US$'000   US$'000     US$'000     US$'000   US$'000      US$'000    US$'000
      
Balance at 30 September 2017                                260     280 082   47 245   (73 561)      42 877    296 903     (25 057)    271 846   
Impact of adopting IFRS 16                        3.3         -           -        -          -        (15)       (15)            -       (15)   
Balance at 1 October 2017                                   260     280 082   47 245   (73 561)      42 862    296 888     (25 057)    271 831   
Total comprehensive income for the period                                                                                                        
Profit for the period                                         -           -        -          -      25 960     25 960        2 453     28 413   
Other comprehensive income:                                                                                                                      
Foreign currency translation differences                      -           -        -     23 473           -     23 473       11 949     35 422   
Total comprehensive income for the period                     -           -        -     23 473      25 960     49 433       14 402     63 835   
Transactions with owners of the Company                                                                                                          
Contributions by and distributions to owners                                                                                                      
Issue of ordinary shares*                          17         -          67        -          -           -         67            -         67   
Dividends paid                                     25         -           -        -          -    (13 010)   (13 010)            -   (13 010)   
Equity-settled share-based payments                           -           -        -          -       2 587      2 587            -      2 587   
Contributions by owners of the Company                        -          67        -          -    (10 423)   (10 356)            -   (10 356)   
Total transactions with owners of the Company                 -          67        -          -    (10 423)   (10 356)            -   (10 356)   
Balance at 31 March 2018 (Reviewed)                         260     280 149   47 245   (50 088)      58 399    335 965     (10 655)    325 310   
Balance at 30 September 2016                                257     456 181   47 245   (73 411)   (193 521)    236 751     (34 892)    201 859   
Total comprehensive income for the period                                                                                                        
Profit for the period                                         -           -        -          -      41 925     41 925        9 088     51 013   
Other comprehensive income:                                                                                                                       
Foreign currency translation differences                      -           -        -      4 263           -      4 263        1 159      5 422   
Total comprehensive income for the period                     -           -        -      4 263      41 925     46 188       10 247     56 435   
Transactions with owners of the Company                                                                                                          
Contributions by and distributions to owners                                                                                                     
Capital reduction                                  17         -   (179 175)        -          -     179 175          -            -          -   
Capital distribution                               17         -           -        -          -     (2 570)    (2 570)            -    (2 570)   
Equity-settled share-based payments                           -           -        -          -       3 067      3 067            -      3 067   
Contributions by owners of the Company                        -   (179 175)        -          -     179 672        497            -        497   
Total transactions with owners of the Company                 -   (179 175)        -          -     179 672        497            -        497   
Balance at 31 March 2017 (Reviewed)                         257     277 006   47 245   (69 148)      28 076    283 436     (24 645)    258 791   
  

* The value of the issued share capital is less than the reporting amount and amounts to US$182.


INTERIM CONDENSED CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 March 2018

                              Attributable to owners of the Company
                                                                                      Foreign
                                                                                     currency                                    Non-
                                                      Share       Share    Other  translation    Retained                 controlling       Total
                                                    capital     premium  reserve      reserve    earnings         Total      interest      equity
                                             Notes  US$'000     US$'000  US$'000      US$'000     US$'000       US$'000       US$'000     US$'000
Balance at 30 September 2016                            257     456 181   47 245     (73 411)   (193 521)       236 751      (34 892)     201 859   
Total comprehensive income for the year                                                                                                             
Profit for the year                                       -           -        -            -      57 601        57 601        10 072      67 673   
Other comprehensive income:                                                                                                                         
Foreign currency translation differences                  -           -        -        (150)           -         (150)         (237)       (387)   
Total comprehensive income for the year                   -           -        -        (150)      57 601        57 451         9 835      67 286   
Transactions with owners of the Company                                                                                                             
Contributions by and distributions to owners                                                                                                        
Capital reduction                               17        -   (179 175)        -            -     179 175             -             -           -   
Capital distribution                            17        -           -        -            -     (2 570)       (2 570)             -     (2 570)   
Equity-settled share-based payments                       -           -        -            -       2 192         2 192             -       2 192   
Issue of ordinary shares                        17        3       3 076        -            -           -         3 079             -       3 079   
Contributions by owners of the Company                    3   (176 099)        -            -     178 797         2 701             -       2 701   
Total transactions with owners of the Company             3   (176 099)        -            -     178 797         2 701             -       2 701   
Balance at 30 September 2017                            260     280 082   47 245     (73 561)      42 877       296 903      (25 057)     271 846   


Companies which do not distribute 70% of their profits after tax, as defined by the Special Contribution for the Defence
of the Republic Law, during the two years after the end of the year of assessment to which the profits refer, will be
deemed to have distributed this amount as dividend. Special contribution for defence at 17% will be payable on such
deemed dividend to the extent that the ultimate shareholders at the end date of the period of two years from the end
of the year of assessment to which the profits refer are both Cypriot tax residents and Cypriot domiciled entities. The
amount of this deemed dividend distribution is reduced by any actual dividend paid out of the profits of the relevant
year at any time. This special contribution for defence is paid by the company for the account of the shareholders. These
provisions do not apply for ultimate beneficial owners that are non-Cyprus tax resident individuals. Retained earnings is
the only reserve that is available for distribution.

The notes on pages 23 to 60 are an integral part of these financial statements.


INTERIM CONDENSED CONSOLIDATED STATEMENT OF
CASH FLOWS
for the six months ended 31 March 2018

                                                                 Six months Six months        Year
                                                                      ended      ended       ended
                                                                   31 March   31 March     30 Sept
                                                                       2018       2017        2017
                                                                   Reviewed   Reviewed     Audited
Notes                                                               US$'000    US$'000     US$'000
Cash flows from operating activities
Profit for the period/year                                           28 413     51 013      67 673
Adjustments for:
Depreciation of property, plant and equipment                 11     14 369      8 366      16 929
Loss on disposal of property, plant and equipment                        13          -         196
Gain on bargain purchase                                      20    (1 884)          -           -
Impairment losses on goodwill                                             -         28          57
Inventory net realisable value adjustment                              (13)         36          24
Scrapping of property, plant and equipment                              894          -           -
Changes in fair value of financial assets at fair value
through profit or loss                                              (1 204)        540         813
Interest income                                                       (695)      (598)     (1 122)
Interest expense                                                      5 130      4 355       7 689
Tax                                                                   8 753     17 315      23 316
Equity-settled share-based payments                                   1 978      2 196       4 342
                                                                     55 754     83 251     119 917
Changes in:
 Inventories                                                        (1 736)   (22 178)     (5 063)
 Trade and other receivables                                            485      (211)    (21 839)
 Trade and other payables                                           (2 702)   (16 167)    (15 068)
 Provisions                                                           2 454      1 377       1 792
Cash from operations                                                 54 255     46 072      79 739
Income tax paid                                                     (2 108)    (1 852)     (3 990)
Net cash flows from operating activities                             52 147     44 220      75 749
Cash flows from investing activities
Interest received                                                       636        540         708
Additions to property, plant and equipment                    11   (17 670)    (8 458)    (26 398)
Net cash outflow from business combination                    20   (21 840)          -           -
Proceeds from disposal of property, plant and equipment                  55          -           -
Additions to other financial assets                                 (3 951)      (911)       (925)
Refund of long-term deposits                                          7 609      5 437       5 726
Net cash flows used in investing activities                        (35 161)    (3 392)    (20 889)
Cash flows from financing activities
Net repayment of bank credit facilities                       18    (8 134)   (15 790)       6 073
Advances received                                             18     62 191          -
Repayment of borrowings                                       18   (41 109)   (10 961)    (17 917)
Lease payments                                                18    (4 608)          -           -
Dividends and capital reduction paid                               (13 010)          -     (2 570)
Interest paid                                                 18    (4 652)    (3 574)     (6 371)
Net cash flows used in financing activities                         (9 322)   (30 325)    (20 785)
Net increase in cash and cash equivalents                             7 664     10 503      34 075
Cash and cash equivalents at the beginning of the period/year 16     49 742     15 826      15 826
Effect of exchange rate fluctuations on cash held                     2 524        291       (159)
Cash and cash equivalents at the end of the period/year       16     59 930     26 620      49 742


NOTES TO THE INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
for the six months ended 31 March 2018


1.  REPORTING ENTITY
    Tharisa plc (the Company) is a company domiciled in Cyprus. These interim condensed consolidated interim
    financial statements for the six months ended 31 March 2018 comprise the Company and its subsidiaries (together
    referred to as the Group). The Group is primarily involved in platinum group metals (PGM) and chrome mining,
    processing, trading and the associated logistics. The Company is listed on the main board of the Johannesburg Stock
    Exchange and has a secondary standard listing on the main board of the London Stock Exchange.

2.  BASIS OF PREPARATION
    Statement of compliance
    These interim condensed consolidated financial statements have been prepared in accordance with International
    Accounting Standards 34 Interim Financial Reporting and the Listings Requirements of the Johannesburg Stock
    Exchange. Selected explanatory notes are included to explain events and transactions that are significant to obtain
    an understanding of the changes in the financial position and performance of the Group since the last consolidated
    financial statements as at and for the year ended 30 September 2017. These interim condensed consolidated
    financial statements do not include all the information required for full consolidated financial statements prepared in
    accordance with IFRS. The interim condensed consolidated financial statements should be read in conjunction with
    the annual consolidated financial statements for the year ended 30 September 2017, which have been prepared in
    accordance with IFRS.

    These interim condensed consolidated financial statements were approved by the Board of Directors on
    15 May 2018. These interim condensed consolidated financial statements for the six months ended 31 March
    2018 have been reviewed by the Group's external auditors, not audited.

    Use of estimates and judgements
    Preparing the interim condensed consolidated financial statements requires management to make judgements,
    estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and
    liabilities, income and expenses. Actual results may differ from these estimates.

    In preparing these interim condensed consolidated financial statements, except for the early adoption of new IFRS'
    as disclosed in note 3, significant judgements made by management in applying the Group's accounting policies and
    the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements
    as at and for the year ended 30 September 2017.

    Functional and presentation currency
    The interim condensed consolidated financial statements are presented in United States Dollars (US$) which is the
    Company's functional currency and amounts are rounded to the nearest thousand.

    Going concern
    After making enquiries which include reviews of current cash resources, forecasts and budgets, timing of cash flows,
    borrowing facilities and sensitivity analyses and considering the associated uncertainties to the Group's operations,
    the Directors have a reasonable expectation that the Group has adequate financial resources to continue in
    operational existence for the foreseeable future. For this reason, they continue to adopt the going-concern basis in
    preparing the interim condensed consolidated financial statements.

    New and revised International Financial Reporting Standards and Interpretations
    The Group has early adopted IFRS 9: Financial Instruments, IFRS 15: Revenue from Contracts with Customers and IFRS
    16: Leases. The nature and effect of these adoptions are disclosed in note 3.

    Several other amendments and interpretations apply for the first time for the period ended 31 March 2018. Other
    than IAS 7: Disclosure Initiative (Amendment) as disclosed in note 18, these did not have an impact on the interim
    condensed consolidated financial statements of the Group.

3.SIGNIFICANT ACCOUNTING POLICIES
  The accounting policies applied by the Group in these interim condensed consolidated financial statements are in
  terms of IFRS. Except as disclosed below, the accounting policies are the same as those applied by the Group in its
  audited consolidated financial statements as at and for the year ended 30 September 2017.
  3.1  Change in accounting policies - Financial Instruments
       The Group has early adopted all of the requirements of IFRS 9: Financial Instruments (IFRS 9) as of
       1 October 2017. IFRS 9 replaces IAS 39: Financial Instruments: Recognition and Measurement (IAS 39). IFRS 9
       utilises a revised model for recognition and measurement of financial instruments and a single, forward-looking
       "expected loss" impairment model. Most of the requirements of IAS 39 for classification and measurements
       of financial liabilities were carried forward in IFRS 9, therefore the Group's accounting policy with respect to
       financial liabilities remains unchanged.The Group applied IFRS 9 using the full retrospective method of adoption
       on initial date of application.

       As a result of the early adoption of IFRS 9, management has changed its accounting policy for financial assets
       retrospectively for assets that were recognised at the date of application. The change did not impact the
       carrying value of any financial assets on transition date.

       The Group's new accounting policy for financial instruments according to IFRS 9 is set out below:
       Classification
       The Group classifies its financial instruments in the following categories:
      - At fair value through profit or loss
      - At fair value through other comprehensive income
      - At amortised cost
      The Group determines the classification of financial assets at initial recognition. The classification of debt
      instruments is driven by the Group's business model for managing the financial assets and their contractual
      cash flow characteristics. Equity instruments that are held for trading are classified at fair value through profit
      or loss, for other equity instruments, on the day of acquisition the Group can make an irrevocable election
      (on an instrument-by-instrument basis) to designate them as at fair value through other comprehensive income.
      Financial liabilities are measured at amortised cost, unless they are required to be measured at fair value through
      profit or loss (such as derivatives) or the Group has designated to measure them at fair value through profit
      or loss.

      The Group completed a detailed assessment of its financial assets and liabilities at 1 October 2017.
      The following table presents the original classification according to IAS 39 and the new classification according
      to IFRS 9:

       Financial assets                         Original classification IAS 39      New classification IFRS 9
       Long-term deposits                       Amortised cost                      Amortised cost
       Other financial assets
         Investments in cash and                Amortised cost                      Amortised cost
         income funds
         Discount facility                      Fair value through profit or loss   Fair value through profit or loss
         Forward exchange contracts             Held for trading                    Fair value through profit or loss
         Investment in equity instruments       Held for trading                    Fair value through profit or loss
      Trade and other receivables               Amortised cost                      Amortised cost
      PGM receivable                            Held for trading                    Fair value through profit or loss
      Cash and cash equivalents                 Amortised cost                      Amortised cost

      Financial liabilities                     Original classification IAS 39      New classification IFRS 9
      Borrowings                                Amortised cost                      Amortised cost
      Income received in advance                Amortised cost                      Amortised cost
      Trade and other payables                  Amortised cost                      Amortised cost

      Upon adoption of IFRS 9, the Group made an irrevocable election to classify marketable securities at fair value
      through profit or loss.
      
      Measurement: Financial assets and liabilities at amortised cost
      Financial assets and liabilities at amortised cost are initially recognised at fair value, and subsequently carried at
      amortised cost less any impairment.
      
      Measurement: Financial assets and liabilities at fair value through profit or loss
      Financial assets and liabilities carried at fair value through profit or loss are initially recorded at fair value and
      transaction costs are expensed in the statement of profit or loss. Realised and unrealised gains and losses arising
      from changes in the fair value of the financial assets and liabilities held at fair value through profit or loss are
      included in the statement of profit or loss in the period in which they arise. Where management has designated
      to recognise a financial liability at fair value through profit or loss, any changes associated with the Group's own
      credit risk will be recognised in other comprehensive income.
      
      Impairment of financial asset at amortised cost
      The Group recognises a foward-looking expected credit loss for all financial assets that are measured at
      amortised cost. Expected credit losses are based on the difference between the contractual cash flows due
      in accordance with the contract and all the cash flows that the Group expects to receive. The shortfall is then
      discounted at an approximation to the asset's original effective interest rate.
      
      For contract assets and trade and other receivables, the Group applies the standard's simplified approach and
      calculates estimated credit losses based on lifetime expected credit losses. The Group establishes a provision
      matrix that is based on the Group's historical loss experience, adjusted for foward-looking factors specific to
      the debtors and the economic environment.
      
      For other debt financial assets held at amortised cost, at each reporting date, the Group measures the loss
      allowance (if applicable) for the financial asset at an amount equal to the lifetime expected credit losses if the
      credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the
      financial asset has not increased significantly since initial recognition, the Group measures the loss allowance for
      the financial asset at an amount equal to twelve months expected credit losses.
      
      Impairment losses on financial assets carried at amortised cost are reversed in subsequent periods if the
      amount of the loss decreases and the decrease can be objectively related to an event occurring after the
      impairment was recognised.
      
      Decrecognition: Financial assets
      The Group derecognises financial assets only when the contractual rights to cash flows from the financial
      assets expire, or when it transfers the financial assets and substantially all the associated risks and rewards of
      ownership to another entity. Gains and losses on derecognition are generally recognised in the statement of
      profit or loss. However, gains and losses on derecognition of financial assets classified as fair value through other
      comprehensive income remain within the accumulated other comprehensive income.
      
      Derecognition: Financial liabilities
      The Group derecognises financial liabilities only when its obligations under the financial liabilities are discharged,
      cancelled or expired. The difference between the carrying amount of the financial liability derecognised and the
      consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in
      the statement of profit or loss.
      
      Hedge accounting
      The Group does not apply hedge accounting.

         Impact of adopting IFRS 9 on the Group's interim condensed consolidated financial statements
         The adoption of IFRS 9 did not impact the carrying value of any financial assets on transition date, consequently
         adopting IFRS 9 did not result in a restatement of comparative results.

     3.2 Change in accounting policies - Revenue from contracts with customers
         The Group has early adopted all of the requirements of IFRS 15: Revenue from Contracts with Customers (IFRS 15)
         with a date of initial application of 1 October 2017. IFRS 15 supersedes IAS18: Revenue and related Interpretations
         and it applies to all revenue arising from contracts with customers, unless those contracts are in the scope of
         other standards of IFRS. The Group applied IFRS 15 using the modified retrospective method and therefore,
         comparative information has not been restated and continues to be presented in accordance with IAS 18.
         IFRS 15 was applied to all open contracts on date of initial application. As a result, the Group has changed its
         accounting policy for revenue recognition as detailed below.

         Comparative accounting policy in terms of IAS 18
         Revenue was measured at the fair value of the consideration received or receivable. Revenue from the sale of
         goods was recognised when significant risks and rewards of ownership had been transferred to the customer,
         recovery of the consideration was probable, the associated costs and possible return of goods could be
         estimated reliably, there was no continuing management involvement with the goods and the amount of
         revenue could be measured reliably.

         Revenue from the sale of PGMs was initially recognised at the estimated fair value of the consideration
         receivable at the date of delivery. Adjustments to the sale price occurred based on movements in the metal
         market price and currency up to the date of final pricing. Final pricing was based on the monthly average market
         price in the month of settlement. The period between initial recognition and final pricing was typically three
         months. The revenue adjustment mechanism embedded within the sale arrangement had the characteristics
         of a commodity derivative. Accordingly the fair value of the final sales price adjustment was re-estimated
         continuously and changes in fair value were recognised as a re-estimated adjustment to revenue in profit or
         loss and trade receivables in the statement of financial position.

         The Group entered into contracts for the sale of chrome concentrates. Revenue arising from chrome sales
         under these contracts was recognised when the price was determinable, the product had been delivered in
         accordance with the terms of the contract, the significant risks and rewards of ownership had been transferred
         to the customer, collection of the sale price was probable and associated costs could be reliably estimated.
         These criteria might vary per contract. As sales from chrome contracts were subject to a customer survey
         adjustment with regards to quality, sales were initially recorded on a provisional basis using management's best
         estimate of the chrome quality. Subsequent adjustments were recorded in revenue to take into account final
         adjustments, if different from the initial estimates.

         Revenue from the rendering of services was recognised in proportion to the stage of completion of the work
         performed at the reporting date.

         Accounting policy in terms of IFRS 15
         Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts
         collected on behalf of third parties, unless the Group acts as principal. The Group recognises revenue when it
         transfers control over a product or service to a customer. Revenue is presented net of Value Added Tax, rebates
         and discounts and after eliminating intergroup sales.

         Operating segments, and the amounts of each segment item reported in the consolidated financial statements,
         are identified from the financial information provided regularly to the Group's management for the purposes of
         allocating resources to, and assessing the performance of, the Group's various lines of business and geographical
         locations. The Board of Directors is of the view that the Group had three operating segments during the
         reporting period, the PGM segment, the chrome segment and the agency and trading segment.

         The following is a description of the Group's current principal activities separated by reportable segment, from
         which the Group recognises its revenue.

PGM segment
The PGM segment principally generates revenue from the sale of PGM concentrate, which consists of the
sale of platinum, palladium, rhodium, gold, ruthenium, iridium, nickel and copper. The Group enters into
off-take agreements with customers for the supply of PGM concentrate. Revenue from the sale of PGM
concentrate is recognised at the prevailing market basket price and exchange rates, when delivered to the
customers in terms of the off-take agreements. Revenue recognised includes variable consideration as
revenue is subject to final pricing and currency adjustments after the beneficiation process is completed.
Revenue recognised is adjusted for expected final adjustments based on spot rates, which are estimated
based on prevailing market information and recognised as a separate component within revenue.
Adjustments to the sale price occur based on movements in the metal market price and exchange rates
up to the date of final pricing.

Any subsequent changes that arise due to differences between initial and final assay are still considered within
the scope of IFRS 15 and are subject to the constraint on estimates of variable consideration. When considering
the initial assay estimate, the Group has considered the requirements of IFRS 15 in relation to the constraint on
estimates of variable consideration. It will only include amounts in the calculation of revenue where it is highly
probable that a significant revenue reversal will not occur when the uncertainty relating to final assay/quality is
subsequently resolved.

Consequently, at the time the concentrate passes to the client, the Group will recognise a receivable as
from that time it considers it has an unconditional right to consideration. This receivable is accounted for in
accordance with IRFS 9.

The PGM commodity derivative is no longer separated from the host contract. This is because the existence
of the provisional pricing features means the concentrate receivable fails to meet the requirements to be
measured at amortised cost. Instead, the entire receivable is measured at fair value, with subsequent movements
being recognised in profit or loss.

Chrome segment
The Group currently produces two specifications of chrome concentrates, metallurgical chrome concentrate
and specialty chrome concentrates. It generates revenue from the sale of these products. The chrome market
is typically a "spot" market. The Group enters into short-term sale contracts. The Group also enters into long-
term volume off-take agreements for the supply of chrome concentrates.

Revenue arising from chrome concentrate sales under short-term sale contracts and off-take agreements is
recognised when the chrome concentrate is delivered and a customer takes control of the chrome concentrate.
Revenue is recognised based on the fixed sale price in terms of the contract, the quantity delivered and the
quality as determined by an independent survey. Export sales may, as specified in the contract, be subject to a
final survey upon arrival at destination port. Revenue recognised for export sales is adjusted for expected final
adjustments, which are estimated based on historical data for similar transactions.

Agency and trading segment
The Group operates a third party chrome plant and markets and sells the chrome concentrate produced
at this plant. The Group determines whether it acts as principal or agent by assessing whether the Group
controls the transaction and what its performance obligations are. Considerations to determine control include
whether the Group provides the performance obligation itself, the Group is primarily responsible for fulfilling
the promise to provide the specified chrome concentrates, the Group has inventory risk before the specified
products are transferred to the customer and the Group determines the selling price. In the absence of any of
the aforementioned factors, control of the transaction may be doubtful and the Group would recognise the
margin achieved in revenue as an agent.

Metallurgical and specialty chrome concentrates are produced at this plant. The Group enters into short-
term contracts for the sale of these chrome concentrates. Revenue arising from short-term sale contracts
is recognised when the chrome concentrate is delivered and a customer takes control of the chrome
concentrates. This occurs in accordance with the terms of each contract. Delivery terms also vary between the
sale of metallurgical chrome concentrate and specialty chrome concentrates. Sales from chrome concentrates
are subject to surveys to determine the chrome quality and quantity. Revenue is recognised based on the fixed
sale price in terms of the contract, the quantity delivered and the quality as determined by an independent
survey. Export sales may, as specified in the contract, be subject to a final survey upon arrival at destination port.
Revenue recognised for export sales is adjusted for expected final adjustments, which are estimated based on
historical data for similar transactions.

The Group also provides logistics services to customers. These services include long-term contracts and
ad hoc logistics services. Revenue is recognised at a point in time as the performance obligation has been
fulfilled which is the delivery of the specified goods. Any earned consideration, which is conditional, will be
recognised as a contract asset rather than a trade and other receivable.

Revenue is also generated from consulting services rendered. These services include geological, marketing
and administration services. Revenue is recognised over time, using an input method to measure progress
towards complete customer satisfaction.

Contract balances
Timing of revenue recognition may differ from the timing of invoicing to customers. The Group records a
receivable, included in trade and other receivables in the statement of financial position, when revenue is
recognised prior to invoicing. Similarly, unearned revenue received (income received in advance), is disclosed as
a current liability classified in trade and other payables in the statement of financial position, if it will be earned
within one year.

Payment terms and conditions vary by contract type and delivery method, although for local sales terms
generally include a requirement of payment upon completion of delivery of the products. For export
transactions, payments terms vary from 30 to 90 days, however, the Group obtains a letter of credit from a
reputable bank in most instances before shipment occurs.

In the instance where the timing of revenue recognition differs from the timing of invoicing, the Group
has determined that due to the short-term nature, the contracts with customers generally do not include
a significant financing component. The primary purpose of the Group's invoicing terms is to provide
customers with simplified and predictable ways of purchasing products, not to receive financing from
customers or to provide financing to customers. Similarly, due to the short-term nature of unearned
revenue received, being less than 12 months, no financing component exists.

Commissions recognised from costs to obtain a contract with a customer
The Group recognises the incremental costs, arising from the concluding of sale contracts, as expenses in cost
of sales in the statement of profit or loss when incurred. Such commission fees relate to the chrome segment
and are short-term in nature.

Impact of adopting IFRS 15 on the Group's interim condensed consolidated financial statements
IFRS 15 requires the Group to recognise revenue for sales of products as it transfers control over those
products to customers, which generally occurs on delivery and is determined by the agreed delivery terms.This
is generally consistent with the timing of revenue recognition in accordance with the previous standard, IAS 18.
No incremental costs have been capitalised on adoption of IFRS 15 because lead times for individual orders are
less than one year and costs to fulfil contracts are already recognised as inventories. The Group has used the
modified retrospective transition method, under which the effect of initially applying IFRS 15 is adjusted against
the opening balance of equity at 1 October 2017. For the reasons described above, this effect is not material
to the Group. Under this transition method, comparative information for prior periods has not been restated
and continues to be reported in accordance with the previous standard, IAS 18.

3.3 Change in accounting policies - Leases
    The Group has early adopted all of the requirements of IFRS 16: Leases (IFRS 16) effective 1 October 2017
    (initial application). IFRS 16 replaces IAS 17: Leases (IAS 17). The Group has applied IFRS 16 using the modified
    retrospective approach and therefore the comparative information has not been restated and continues to
    be reported in terms of IAS 17 and IFRIC 4 - Determining whether an arrangement contains a lease. The
    Group recognised the cumulative effect of initial application of IFRS 16, in terms of the modified retrospective
    approach, in retained earnings at 1 October 2017. As a result, the Group has changed its accounting policy for
    leases as detailed below.

    As a lessee
    Comparative accounting policy in terms of IAS 17
    In terms of IAS 17, the Group was required to classify its leases as either finance leases or operating leases and
    account for those two types of leases differently (both as a lessor or a lessee). A lease was classified as a finance
    lease if it transferred substantially all the risks and rewards incidental to ownership. A lease was classified as an
    operating lease if all the risks and rewards incidental to ownership did not substantially transfer.

    Finance leases were recognised as assets and liabilities in the statement of financial position at amounts equal to the
    fair value of the leased property or, if lower, the present value of the minimum lease payments.The corresponding
    liability to the lessor was included in the statement of financial position as a finance lease obligation.The discount
    rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease.
    The lease payments are apportioned between the finance charge and reduction of the outstanding liability. The
    finance charge is allocated to each period during the lease term so as to produce a constant periodic rate on
    the remaining balance of the liability.

    Operating lease payments, in the event of the Group operating as lessee, were recognised as an expense on a
    straight-line basis over the lease term. The difference between the amounts recognised as an expense and the
    contractual payments were recognised as an operating lease asset. The liability was not discounted.

    Accounting policy in terms of IFRS 16
    The Group recognises a right-of-use asset and a lease liability at the commencement date of the contract for
    all leases conveying the right to control the use of identified assets for a specified period. The commencement
    date is the date on which a lessor makes an underlying asset available for use by the lessee.

    The right-of-use assets are initially measured at cost, which comprises the amount of initial measurement of the
    lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct
    costs incurred by the lessee and an estimate of costs to be incurred by the lessee in dismantling and removing
    the underlying assets or restoring the site on which the assets are located, less any lease incentives.

    Subsequent to initial measurement, the right-of-use assets are depreciated from the commencement date using
    the straight-line method over the shorter of the estimated useful lives of the right-of-use assets or the end of
    lease term. These are as follows:

    Right-of-use asset                                                                    Depreciation term in years
    Buildings and premises               Straight-line over the respective lease terms, between three and five years
    Mining fleet                                                                 Based on estimated production hours

    After the commencement date, the right-of-use assets are measured at cost less any accumulated depreciation
    and any accumulated impairment losses and adjusted for any re-measurement of the lease liability.

    The lease liability is initially measured at the present value of the lease payments that are not paid at the
    commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
    determined, the Group's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate
    as the discount rate.

Lease payments included in the measurement of the lease liability include the following:
- Fixed payments, less any lease incentives receivable
- Variable lease payments that depend on an index or rate, initially measured using the index or rate as
  at the commencement date
- Amounts expected to be payable by the lessee under residual value guarantees
- The exercise price of a purchase option if the lessee is reasonably certain to exercise that option;
- Lease payments in an optional renewal period if the Group is reasonably certain to exercise an
  extension option
- Payments of penalties for early terminating the lease, unless the Group is reasonably certain not to
  terminate early

The lease liability is measured at amortised cost using the effective interest rate method. It is remeasured when
there is a change in future lease payments arising from a change in an index or rate, if there is a change in the
Group's estimate of the amount expected to be payable under a residual value guarantee, or if the Group
changes its assessment of whether it will exercise a purchase, an extension or a termination option.

When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the
right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been
reduced to zero.

Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of vehicles
that have a lease term of 12 months or less and leases of low-value assets such as computer equipment.

As a lessor
In the event of lease contracts based on which the Group is acting as a lessor, each of its leases is classified as
either an operating or finance lease. A lease is classified as a finance lease if it transfers substantially all the risks
and rewards incidental to ownership to the lessee. Indicators of a finance lease include whether the lease is for
the major part of the economic life of the asset, whether the lease transfers ownership of the asset to the lessee
by the end of the lease term and whether at inception date of the lease, the present value of the minimum lease
payments amount to substantially all of the fair value of the leased asset.

Leases where a significant portion of the risks and rewards incidental to ownership are retained by the lessor,
are classified as operating leases.

When the Group is an intermediate lessor, it accounts for its interest in the head lease and the sub-lease
separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from
the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the
Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

Rental income is classified in other income.

Impact of adopting IFRS 16 on the Group's interim condensed consolidated financial statements
The adoption of IFRS 16 resulted in the Group recognising a number of leases for buildings and premises on
1 October 2017. These were previously treated as operating leases in terms of IAS 17. On 1 October 2017,
the previously recognised equalisation of operating lease liabilities in terms of IAS 17 was reversed from trade
and other payables and the corresponding after tax impact on retained earnings corrected. Simultaneously the
right-of-use assets and the corresponding lease liabilities were recognised while the after tax depreciation and
finance charges were corrected to retained earnings.

The following table summarises the impact of adopting IFRS 16 on the Group's extracted consolidated
Statement of financial position at 1 October 2017:

                                                                                  As
                                                                          previously    Adjustments
                                                                            reported             at
                                                                             30 Sept      1 October    1 October
                                                                                2017           2017         2017
Note                                                                         US$'000        US$'000      US$'000

Non-current assets                                                                                       
Property, plant and equipment                                           11   232 559          1 166      233 725   
Deferred tax asset                                                      13     1 952              7        1 959   
Equity and liabilities                                                                                             
Retained earnings                                                             42 877           (15)       42 862   
Non-current liabilities                                                                                            
Borrowings                                                              18     4 375          1 014        5 389   
Current liabilities                                                                                                
Borrowings                                                              18    45 026            191       45 217   
Trade and other payables                                                      31 916           (17)       31 899   


4.OPERATING SEGMENTS
  Segmental performance is measured based on segment revenue, cost of sales and gross profit, as included in the
  internal management reports that are reviewed by the Group's management.

                                                                                           Agency and
                                                                       PGM      Chrome        trading       Total
                                                                   US$'000     US$'000        US$'000     US$'000

Six months ended 31 March 2018 (Reviewed)                                                                       
Revenue                                                             55 458     130 296         13 425     199 179   
Cost of sales                                                                                                       
Cost of sales excluding selling costs                             (39 711)    (56 235)       (12 414)   (108 360)   
Selling costs                                                        (205)    (34 827)           (44)    (35 076)   
                                                                  (39 916)    (91 062)       (12 458)   (143 436)   
Gross profit                                                        15 542      39 234            967      55 743   
Six months ended 31 March 2017 (Reviewed)                                                                           
Revenue                                                             40 053     135 066              -     175 119   
Cost of sales                                                                                                       
Cost of sales excluding selling costs                             (20 837)    (48 280)              -    (69 117)   
Selling costs                                                        (180)    (23 458)              -    (23 638)   
                                                                  (21 017)    (71 738)              -    (92 755)   
Gross profit*                                                       19 036      63 328              -      82 364   
Year ended 30 September 2017 (Audited)                                                                              
Revenue                                                             90 924     252 869          5 650     349 443   
Cost of sales                                                                                                       
Cost of sales excluding selling costs                             (54 336)   (107 634)        (4 241)   (166 211)   
Selling costs                                                        (366)    (59 068)        (1 144)    (60 578)   
                                                                  (54 702)   (166 702)        (5 385)   (226 789)   
Gross profit                                                        36 222      86 167            265     122 654   


* During the period ended 31 March 2017, US$3.2 million was included in the chrome segment which relates to the agency 
and trading segment.

The shared costs relating to the manufacturing of the PGM and the chrome concentrates are allocated to the
relevant operating segments based on the relative sales value per product on an ex-works basis. During the period
ended 31 March 2018, the relative sales value of chrome concentrates decreased compared to the relative sales
value of PGM concentrate and consequently the allocation basis of shared costs was amended to 45% (PGM
concentrate) and 55% (chrome concentrates) respectively. The allocated percentage for PGM concentrate and
chrome concentrates accounted for in the comparative period was 25% for PGM concentrate and 75% for chrome
concentrates while for the year ended 30 September 2017, shared costs were allocated 35% for PGM concentrate
and 65% for chrome concentrates.

The Agency and trading operating segment represents third-party trading and third-party logistics operations and
includes the production, marketing and sales of chrome concentrates produced at a chrome plant owned by a third
party.

Geographical information
The following table sets out information about the geographical location of the Group's revenue from external
customers. The geographical location analysis of revenue from external customers is based on the country of
establishment of each customer.

                                                                              Six months   Six months       Year
                                                                                   ended        ended      ended
                                                                                31 March     31 March    30 Sept
                                                                                    2018         2017       2017
                                                                                Reviewed     Reviewed    Audited
Revenue from external customers                                                  US$'000      US$'000    US$'000

South Africa                                                                      84 321       73 612    151 886
China                                                                             47 318       57 986     86 035
Singapore                                                                          2 188        3 215     13 961
Hong Kong                                                                         65 352       37 601     94 866
Other countries                                                                        -        2 705      2 695
                                                                                 199 179      175 119    349 443

Revenue represents the sales value of goods supplied to customers, net of value added tax.
The following table summarises sales to external customers with whom transactions have individually exceeded
10% of Group revenue:

                                          Six months ended        Six months ended            Year ended
                                            31 March 2018           31 March 2017         30 September 2017
                                         Segment       US$'000  Segment         US$'000   Segment        US$'000

Customer 1                                  PGM         48 757      PGM          40 052      PGM          88 118
Customer 2                               Chrome         28 585   Chrome          33 535    Chrome         60 370
Customer 3                               Chrome         22 659   Chrome          23 840    Chrome         43 676

5. REVENUE
   Revenue is disaggregated by segments in the following categories:

                                                                              Six months   Six months       Year
                                                                                   ended        ended      ended
                                                                                31 March     31 March    30 Sept
                                                                                    2018         2017       2017
                                                                                Reviewed     Reviewed    Audited
                                                                                 US$'000      US$'000    US$'000

PGM segment
Platinum                                                                          31 058       26 067     58 019
Palladium                                                                         10 207        6 839     15 939
Rhodium                                                                           10 629        4 862     11 045
Gold                                                                                 131          108        243
Ruthenium                                                                          1 250          177        595
Iridium                                                                            1 734        1 306      3 292
Copper                                                                               136          162        375
Nickel                                                                               621          536      1 199
Metal adjustments                                                                  (308)          (4)        217
Total revenue from PGM segment                                                    55 458       40 053     90 924
Chrome segment
Metallurgical                                                                    101 812      101 782    193 719
Specialty                                                                         28 484       33 284     59 150
Total revenue from chrome segment                                                130 296      135 066    252 869
Agency and trading segment
Metallurgical chrome                                                              13 045            -      4 399
Specialty chrome                                                                      55            -          -
Logistics                                                                            201            -      1 228
Consulting                                                                           124            -         23
Total revenue from agency and trading segment                                     13 425            -      5 650

Revenue is disaggregated by segments in the following geographical locations:

                                                                                               Agency
                                                                           PGM    Chrome  and trading
                                                                       segment   segment      segment      Total
                                                                       US$'000   US$'000      US$'000    US$'000

Six months ended 31 March 2018 (Reviewed)
South Africa                                                            55 458    28 484          379     84 321
China                                                                        -    42 518        4 800     47 318
Singapore                                                                    -       532        1 656      2 188
Hong Kong                                                                    -    58 762        6 590     65 352
                                                                        55 458   130 296       13 425    199 179
Six months ended 31 March 2017 (Reviewed)
South Africa                                                            40 053    33 559            -     73 612
China                                                                        -    57 986            -     57 986
Singapore                                                                    -     3 215            -      3 215
Hong Kong                                                                    -    37 601            -     37 601
Other countries                                                              -     2 705            -      2 705
                                                                        40 053   135 066            -    175 119
Year ended 30 September 2017 (Audited)
South Africa                                                            90 924    59 150        1 811    151 885
China                                                                        -    82 196        3 839     86 035
Singapore                                                                    -    13 961            -     13 961
Hong Kong                                                                    -    94 866            -     94 866
Other countries                                                              -     2 696            -      2 696
                                                                        90 924   252 869        5 650    349 443

                                                                  Six months        Six months              Year
                                                                       ended             ended             ended
                                                                    31 March          31 March           30 Sept
                                                                        2018              2017              2017
                                                                    Reviewed          Reviewed           Audited
                                                                     US$'000           US$'000           US$'000

  Revenue recognised in current period for which
  performance obligations were partially satisfied in
  previous period:
  PGM revenue recognised in preceding period/year
  based on initial results                                          (28 994)          (26 080)          (26 080)
  PGM revenue based on final results                                  30 823            26 224            26 224
  PGM revenue adjustment recognised
  in current period/year                                               1 829               144               144
  Chrome revenue recognised in preceding period/year
  based on initial results                                          (41 197)          (39 818)          (39 818)
  Chrome revenue based on final results                               41 177            39 672            39 672
  Chrome revenue adjustment recognised
  in current period/year                                                (20)             (146)             (146)
  Revenue recognised which was included in opening income
  received in advance liability:
  Chrome revenue recognised upon completion
  of performance conditions                                                -                 -             3 102

  The period ended 31 March 2018 includes PGM revenue of US$28.7 million and chrome revenue of
  US$46.2 million that was based on provisional results as final prices and surveys were not yet available at the date
  of this report. Contract balances are included in trade receivables, refer to note 15.

                                                                             Six months    Six months       Year
                                                                                  ended         ended      ended
                                                                               31 March      31 March    30 Sept
                                                                                   2018          2017       2017
                                                                               Reviewed      Reviewed    Audited
                                                                                US$'000       US$'000    US$'000

6.COST OF SALES
  Mining                                                                         56 243        49 262     96 005
  Salaries and wages                                                              7 816         5 865     12 467
  Utilities                                                                       4 770         4 031      9 495
  Diesel                                                                            310           282        705
  Materials and consumables                                                       5 605         4 078      8 274
  Re-agents                                                                       2 287         1 816      3 653
  Steel balls                                                                     3 773         3 175      6 757
  Overhead                                                                        3 375         3 292      8 055
  State royalties                                                                 1 595           970      1 665
  Depreciation - property, plant and equipment                                   16 273         8 077     16 476
  Agency and trading                                                             12 414         3 800      4 241
  Selling costs                                                                  35 076        23 638     60 578
  Change in inventories
  - finished products and ore stockpile                                         (6 101)      (15 531)    (1 582)
  Cost of sales                                                                 143 436        92 755    226 789


                                                                             Six months    Six months      Year
                                                                                  ended         ended     ended
                                                                               31 March      31 March   30 Sept
                                                                                   2018          2017      2017
                                                                               Reviewed      Reviewed   Audited
                                                                                US$'000       US$'000   US$'000

7.OTHER INCOME
  Gain on bargain purchase (refer to note 20)                                     1 884             -         -
  Consulting fees received                                                          143             -         5
  Rental income                                                                      10            14        20
  Sundry sales                                                                        -            34        91
  Other income                                                                       35            35        44
                                                                                  2 072            83       160

                                                                   Six months       Six months             Year
                                                                        ended            ended            ended
                                                                     31 March         31 March          30 Sept
                                                                         2018             2017             2017
                                                                     Reviewed         Reviewed          Audited
                                                                      US$'000          US$'000          US$'000

8.ADMINISTRATIVE EXPENSES
  Directors and staff costs
  Non-executive directors                                                 295              254              536
  Employees:salaries                                                    8 121            4 262            9 213
          bonuses                                                       2 650              776            1 339
          pension fund and medical aid contributions                      843              663            1 405
                                                                       11 909            5 955           12 493
  Audit - external audit services                                         313              142              429
  Consulting*                                                             697              884            2 773
  Corporate and social investment                                          30               50               73
  Depreciation                                                            500              256              453
  Discount facility and related fees                                      432              257              516
  Equity-settled share-based payment expense                            1 978            2 196            4 342
  Fees for professional services of the listing                             -                -              260
  Health and safety                                                       419              122              300
  Internal audit                                                           39                -                -
  Impairment losses                                                         -               28                -
  Insurance                                                               377              458              914
  Legal and professional                                                  236              127              873
  Loss on disposal of property, plant and equipment                        13                -              196
  Office administration, rent and utilities                               315              282              660
  Security                                                              1 193              485              828
  Telecommunications and IT related costs                                 793              308              719
  Training                                                                150              151              313
  Travelling and accommodation                                            214              195              358
  Sundry expenses                                                         814              634              403
                                                                       20 422           12 530           26 903
    
  * Consulting fees includes US$53 thousand (31 March 2017: US$nil and 30 September 2017: US$61 thousand) which
    was paid to the former external auditor for tax and accounting services as approved by the Audit Committee.

                                                                            Six months    Six months       Year
                                                                                 ended         ended      ended
                                                                              31 March      31 March    30 Sept
                                                                                  2018          2017       2017
                                                                              Reviewed      Reviewed    Audited
                                                                               US$'000       US$'000    US$'000

9.TAX
  Corporate income tax for the year
  Cyprus                                                                        1 457           992       1 554
  South Africa                                                                  1 300         1 381       2 596
  Special contribution for defence in Cyprus                                        2             3           4
  Dividend withholding tax                                                        158             -           -
  Deferred tax
  Originating and reversal of temporary differences                             5 836        14 940      19 162
  Tax charge                                                                    8 753        17 316      23 316
  Reconciliation between tax charge and accounting profit
  at applicable tax rates:
  Profit before tax                                                            37 166        68 329      90 989
  Notional tax on profit before taxation, calculated at the
  rates applicable in the jurisdictions concerned                              20 513        19 019      23 165
  Non-taxable income
  Revaluation of intergroup US$ denominated
  preference shares                                                          (11 761)       (2 045)       (695)
  Intergroup dividends received                                               (2 007)       (1 316)     (2 423)
  Interest received                                                               (8)           (1)         (6)
  Non-deductible expenses
  Intergroup dividends paid                                                     1 600         1 195       2 415
  Investment related                                                              240           208         526
  Interest paid                                                                    16             1          51
  Capital expenses                                                                123            97         170
  Other                                                                            10           124          73
  Recognition of deemed interest income for tax purposes                           27            34          40
  Tax charge                                                                    8 753        17 316      23 316

   Tax is recognised on management's best estimate of the weighted average annual income tax rate expected for the
   full financial year applied to the pre-tax income of the interim period. The corporation tax rate is 12.5% in Cyprus,
   0% in Guernsey and 28.0% in South Africa.

   Under certain conditions interest income may be subject to defence contribution at the rate of 30.0% in Cyprus.
   Such interest income is treated as non-taxable in the computation of corporation taxable income. In certain
   instances, dividends received from abroad may be subject to defence contribution at the rate of 17.0%.

   The Group's consolidated effective tax rate for the six months ended 31 March 2018 was 23.6% (31 March 2017:
   25.3%; 30 September 2017: 25.6%).

   At 31 March 2018, the Group's unredeemed capital balance available for offset against future mining taxable
   income in South Africa amounted to US$124.0 million (31 March 2017: US$108.6 million and 30 September 2017:
   US$99.6 million).

   Other than Cyprus and South Africa, no provision for tax in other jurisdictions was made as these entities either
   sustained losses for taxation purposes or did not earn any assessable profits.

10.EARNINGS PER SHARE
   Basic and diluted earnings per share
   The calculation of basic and diluted earnings per share has been based on the profit attributable to the ordinary
   shareholders of the Company and the weighted average number of ordinary shares outstanding. Vested Share
   Appreciation Rights (SARS) issued to employees at award prices lower than the current share price, results in a
   potential dilutive impact on the weighted average number of issued ordinary shares and have been included in the
   calculation of dilutive weighted average number of issued ordinary shares. Vested SARS issued to employees at
   award prices higher than the current share price, were excluded from the calculation of diluted weighted average
   number of issued ordinary shares because their effect would have been anti-dilutive.
   
                                                                                 Six months   Six months       Year
                                                                                      ended        ended      ended
                                                                                   31 March     31 March    30 Sept
                                                                                       2018         2017       2017
                                                                                   Reviewed     Reviewed    Audited
   
   Profit attributable to ordinary shareholders                       (US$'000)      25 960       41 925     57 601
   Weighted average number of issued
   ordinary shares for basic earnings per share                          ('000)     260 141      256 178    257 393
   Weighted average number of issued
   ordinary shares for diluted earnings per share                        ('000)     261 782      256 178    257 393
   Earnings per share
   Basic                                                            (US$ cents)          10           16         22
   Diluted                                                          (US$ cents)          10           16         22
   
   Headline and diluted headline earnings per share
   The calculation of basic and diluted headline earnings per share has been based on the profit attributable to the
   ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding. Vested
   Share Appreciation Rights (SARS) issued to employees at award prices lower than the current share price, results
   in a potential dilutive impact on the weighted average number of issued ordinary shares and have been included in
   the calculation of dilutive weighted average number of issued ordinary shares. Vested SARS issued to employees at
   award prices higher than the current share price, were excluded from the calculation of diluted weighted average
   number of issued ordinary shares because their effect would have been anti-dilutive.

                                                                             Six months   Six months       Year
                                                                                  ended        ended      ended
                                                                               31 March     31 March    30 Sept
                                                                                   2018         2017       2017
                                                                               Reviewed     Reviewed    Audited

   Headline earnings attributable to
   ordinary shareholders                                         (US$'000)       24 730       41 953     57 799
   Weighted average number of issued ordinary
   shares for basic headline earnings per share                     ('000)      260 141      256 178    257 393
   Weighted average number of issued ordinary
   shares for diluted headline earnings per share                   ('000)      261 782      256 178    257 393
   Headline earnings per share
   Basic                                                       (US$ cents)           10           16         22
   Diluted                                                     (US$ cents)           10           16         22

   Reconciliation of profit to headline earnings
                                                                                   Six months Six months      Year
                                                                                        ended      ended     ended
                                                                                     31 March   31 March   30 Sept
                                                                            Non-         2018       2017      2017
                                                                     controlling     Reviewed   Reviewed   Audited
                                                 Gross         Tax      interest          Net        Net       Net
                                               US$'000     US$'000       US$'000      US$'000    US$'000   US$'000
   
   Profit attributable
   to ordinary shareholders                                                            25 960     41 925    57 601
   Net adjustments:
     Gain on bargain purchase                  (1 884)           -           490      (1 394)          -         -
     Scrapping of property, plant
     and equipment                                 894       (250)         (167)          477          -         -
     Exchange loss on net change
     in investment in foreign
     subsidiary                                    672           -             -          672
     Impairment losses on goodwill                   -           -             -            -         28        57
     Loss on disposal of property,
     plant and equipment                            13         (4)           (2)            7          -       141
   Headline earnings                                                                   25 722     41 953    57 799
   
                                                                                                                                                Office
                                                                                                                                             equipment
                                                                                                                                        and furniture,
                                                                                                                                             community
                                                                         Mining                                                Computer       and site
                                                         Freehold    assets and                   Right-of-use                equipment         office   Right-of-use      Leasehold
                                                         land and        infra-                         asset:       Motor          and       improve-         asset:       improve-
                                                        buildings     structure   Mining fleet    mining fleet    vehicles     software          ments      buildings          ments      Total
                                                         US$'000        US$'000        US$'000         US$'000     US$'000      US$'000        US$'000        US$'000        US$'000    US$'000
   
   11. PROPERTY, PLANT AND EQUIPMENT                                                                                                                   
   31 March 2018 (Reviewed)                                                                                                                            
   Total cost                                             17 682        320 597         35 293          11 928         698        6 449            952          2 540              -    396 139   
   Total accumulated depreciation                          (781)       (77 310)        (3 909)         (1 542)       (367)      (2 671)          (613)          (412)              -   (87 605)   
   Net book value at 31 March 2018                        16 901        243 287         31 384          10 386         331        3 778            339          2 128              -    308 534   
   Reconciliation of net book value                                                                                                                                                               
   Net book value at 30 September 2017                    14 762        206 682          6 731               -         305        3 628            278              -            173    232 559   
   Recognition of right-of-use assets                          -              -              -               -           -            -              -          1 166              -      1 166   
   Transfers                                                   -              -              -               -           -            -              -            173          (173)          -   
   Net book value at 1 October 2017                       14 762        206 682          6 731               -         305        3 628            278          1 339              -    233 725   
   Additions                                                  68          6 738         10 570           4 438          16          185             93            776              -     22 884   
   Additions in terms of business combination (note 20)        -          1 887         21 466           7 003           -            -              -              -              -     30 356   
   Transfers                                                   -          5 720        (5 719)               -           -            -           (24)             23              -          -   
   Transferred to trade and other receivables                  -              -              -           (476)           -            -              -              -              -      (476)   
   Disposals                                                   -              -           (67)               -           -            -            (1)              -              -       (68)   
   Depreciation                                             (95)        (8 561)        (3 424)         (1 425)        (32)        (539)           (48)          (245)              -   (14 369)   
   Impairment                                                  -              -          (894)               -           -            -              -              -              -      (894)   
   Exchange adjustment on translation                      2 166         30 821          2 721             846          42          504             41            235              -     37 376   
   Net book value at 31 March 2018                        16 901        243 287         31 384          10 386         331        3 778            339          2 128              -    308 534 
   
   Included in additions to mining assets and infrastructure are additions to the deferred stripping asset of
   US$1.0 million (31 March 2017 and 30 September 2017: no additions).
   
   The estimated economically recoverable proved and probable mineral reserve was reassessed at 30 September
   2017 which gave rise to a change in accounting estimate. The remaining reserve that management had previously
   assessed was 100.3 Mt and at 30 September 2017 was assessed to be 97.0 Mt. As a result, taking into account
   depletion of the reserve during the year ended 30 September 2017, the expected useful life of the plant increased.
   The impact of the change on the actual depreciation expense, included in cost of sales, is a reduced depreciation
   of US$0.1 million.
   
   Capital commitments
   At 31 March 2018, the Group's capital commitments for contracts to purchase property, plant and equipment
   amounted to US$10.8 million (31 March 2017: US$3.2 million; 30 September 2017: US$6.5 million).
   
   Securities
   At 31 March 2018, US$6.1 million of the carrying amount of the Group's mining fleet was pledged as security
   against the equipment loan facility. At 31 March 2017, US$185.1 million (30 September 2017: US$213.5 million) was
   secured against the secured bank borrowings.  
   
                                                                                                                             Office
                                                                                                                          equipment
                                                                                                                     and furniture,
                                                                                                                          community
                                                      Mining                                                Computer       and site
                                      Freehold    assets and                  Right-of-use                 equipment         office     Right-of-use    Leasehold
                                      land and        infra-                        asset:        Motor          and       improve-           asset:     improve-
                                     buildings     structure   Mining fleet   mining fleet     vehicles     software          ments        buildings        ments      Total
                                       US$'000       US$'000        US$'000        US$'000      US$'000      US$'000        US$'000          US$'000      US$'000    US$'000

  31 March 2017 (Reviewed)
  Total cost                            15 234       260 838               -             -          553        4 064            588                -          133    281 410
  Total accumulated depreciation         (554)      (52 423)               -             -        (261)      (1 557)          (490)                -        (133)   (55 418)
  Net book value at 31 March 2017       14 680       208 415               -             -          292        2 507             98                -            -    225 992
  Reconciliation of net book value
  Net book value at 1 October 2016      14 090       205 159               -             -          317          874             91                -            3    220 534
  Additions                                369         6 117               -             -           25        1 924             23                -            -      8 458
  Depreciation                           (128)       (7 827)               -             -         (57)        (333)           (18)                -          (3)    (8 366)
  Exchange adjustment on translation       349         4 966               -             -            7           42              2                -            -      5 366
  Net book value at 31 March 2017       14 680       208 415               -             -          292        2 507             98                -            -    225 992
  30 September 2017 (Audited)
  Total cost                            15 354       266 019           7 030             -          594        5 542            796                -          220    295 555
  Total accumulated depreciation         (592)      (59 337)           (299)             -        (289)      (1 914)          (518)                -         (47)   (62 996)
  Net book value at 30 September 2017   14 762       206 682           6 731             -          305        3 628            278                -          173    232 559
  Reconciliation of net book value
  Net book value at 1 October 2016      14 090       205 159               -             -          317          874             91                -            3    220 534
  Additions                                666        14 602           7 124             -           73        3 504            240                -          189     26 398
  Disposals                                  -         (196)               -             -            -            -              -                -            -      (196)
  Depreciation                           (174)      (15 570)           (303)             -         (90)        (725)           (51)                -         (16)   (16 929)
  Exchange adjustment on translation       180         2 687            (90)             -            5         (25)            (2)                -          (3)      2 752
  Net book value at 30 September 2017   14 762       206 682           6 731             -          305        3 628            278                -          173    232 559


                                                                    31 March         31 March           30 Sept
                                                                        2018             2017              2017
                                                                    Reviewed         Reviewed           Audited
                                                                     US$'000          US$'000           US$'000

12.LONG-TERM DEPOSITS
   Long-term deposits                                                       -            4 796             4 505
   The long-term deposits represented restricted cash which was designated as a "debt service reserve account" which
   was required by the terms of the Common Terms Agreement for the senior debt facility payable by Tharisa Minerals
   Proprietary Limited.
 
   Effective 28 March 2018, the senior debt facility was settled in full (refer to note 18) and consequently the restricted
   cash was released and became available to the Group.

                                                                  31 March           31 March           30 Sept
                                                                      2018               2017              2017
                                                                  Reviewed           Reviewed           Audited
                                                                   US$'000            US$'000           US$'000

13.DEFERRED TAX
   Deferred tax assets                                               2 445              2 127             1 952
   Deferred tax liabilities                                       (33 297)           (20 280)          (23 823)
   Net deferred tax liability                                     (30 852)           (18 153)          (21 871)
   Reconciliation of net deferred tax liability
   Balance at the beginning of the period/year                    (21 871)            (3 878)           (3 878)
   Impact of adoption of IFRS16                                          7                  -                 -
   Balance at the beginning of the period/year                    (21 864)            (3 878)           (3 878)
   Amounts recognised in:
     Profit and loss                                               (5 836)           (14 940)          (19 162)
     Equity                                                            515                802               861
   Exchange differences                                            (3 667)              (137)               308
   Balance at the end of the period/year                          (30 852)           (18 153)          (21 871)
   Deferred tax assets and deferred tax liabilities are not offset unless the Group has a legally enforceable right to offset
   such assets and liabilities.

   The recoverability of deferred tax assets was assessed in respect of each individual legal entity. The estimates used to
   assess the recoverability of recognised deferred tax assets include a forecast of the future taxable income and future
   cash flow projections based on a three-year period. The Group did not have tax losses and temporary differences
   for which deferred tax was not recognised.

                                                                     31 March         31 March          30 Sept
                                                                         2018             2017             2017
                                                                     Reviewed         Reviewed          Audited
                                                                      US$'000          US$'000          US$'000

14.INVENTORIES
   Finished products                                                    8 853           25 594            6 620
   Ore stockpile                                                        4 798            5 177            5 807
   Consumables                                                         13 252            5 582            8 375
                                                                       26 903           36 353           20 802
   Inventories are stated at the lower of cost or net realisable value. During the period ended 31 March 2018, the
   Group reversed inventory previously written down to net realisable value of US$0.1 million (31 March 2017:
   net realisable value write-down of US$0.1 million and 30 September 2017: net realisable value write-down of
   US$0.1 million) relating to certain consumables and spares.

                                                                                  31 March   31 March   30 Sept
                                                                                      2018       2017      2017
                                                                                  Reviewed   Reviewed   Audited
                                                                                   US$'000    US$'000   US$'000
 
15.TRADE AND OTHER RECEIVABLES
   Trade receivables                                                                60 040     39 741    55 602
   Other receivables - related parties (note 21)                                       108         48        59
   Deposits, prepayments and other receivables                                       1 720      1 803     1 081
   Accrued income                                                                    2 747      5 482     3 167
   Value added tax (VAT) receivable                                                 12 253      5 507     9 327
   Royalty tax                                                                       1 305          -     1 138
                                                                                    78 173     52 581    70 374
   Ageing of trade receivables:
   Current                                                                          57 929     33 870    43 677
   Less than 90 days past due but not impaired                                       2 089      3 911     7 540
   Greater than 90 days past due but not impaired                                       22      1 960     4 385
                                                                                    60 040     39 741    55 602

   Included in VAT is an amount of ZAR104.4 million (31 March 2017: ZAR50.3 million and 30 September 2017:
   ZAR79.5 million) which relates to diesel rebates receivable from the South African Revenue Service (SARS) in
   respect of the mining operations. The Group received a letter of demand and rejection from SARS. The Group is
   strongly of the view that it fully complies with all the regulations to be entitled to this refund and is appealing SARS's
   decision. The Group is taking the necessary legal action to recover the amount due.

   Based on past experience, management believes that no impairment allowance (31 March 2017 and 30 September
   2017: no impairment allowance) is required in respect of the trade and other receivables as there has not been a
   significant change in credit quality and the balances are still considered fully recoverable. The Group does not hold
   any collateral over these balances.

                                                                   31 March           31 March           30 Sept
                                                                       2018               2017              2017
                                                                   Reviewed           Reviewed           Audited
                                                                    US$'000            US$'000           US$'000

16. CASH AND CASH EQUIVALENTS
    Bank balances                                                    56 356             26 425            39 983
    Short-term deposits                                               3 574                195             9 759
                                                                     59 930             26 620            49 742
    Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are generally
    call deposit accounts and earn interest at the respective short-term deposit rates.
    At 31 March 2018, an amount of US$1.9 million (31 March 2017: US$1.7 million and 30 September 2017: US$1.7
    million) was provided as security for a bank guarantee issued in favour of a trade creditor and US$0.3 million (31
    March 2017 and 30 September 2017: US$0.3 million) was provided as security against certain credit facilities of
    the Group.
    The Group had unutilised borrowing facilities of ZAR400 million available at 31 March 2018 (refer to note 18)
    (31 March 2017 and 30 September 2017: no unutilised facilities available).

17. SHARE CAPITAL AND PREMIUM
    Share capital
    The Company did not issue any ordinary shares during the six months ended 31 March 2018 and 31 March 2017.
    Allotments during the year ended 30 September 2017 were in respect of the award of 2 984 853 ordinary shares
    granted in terms of the Share Award Scheme (Conditional Awards) and 1 033 576 ordinary shares issued as
    treasury shares to satisfy the potential future settlement of Appreciation Rights of the participants' of the Tharisa
    Share Award Plan.

    During the period ended 31 March 2018, 181 074 (31 March 2017: nil and year ended 30 September 2017:
    46 302) ordinary shares were transferred from treasury shares to satisfy the exercise of Appreciation Rights by the
    participants of the Tharisa Share Award Scheme.
    At 31 March 2018, the Company had 261 000 000 (31 March 2017: 255 891 886 and 30 September 2017:
    261 000 000) ordinary shares in issue of which 806 200 (31 March 2017: nil and 30 September 2017: 987 274)
    were held in treasury.

    Share premium
    The share premium represents the excess of the issue price of the ordinary shares over their nominal value, to the
    extent that it is registered at the Registrar of Companies in Cyprus, less share issue costs and any registered transfers
    to retained earnings.
    During the period ended 31 March 2017, the share premium account was reduced by US$179.2 million with a
    corresponding increase in retained earnings to reduce the accumulated losses to US$nil. The required Court Order
    was obtained and filed at the Registrar of Companies in Cyprus. This includes a distribution of US$2.6 million (US$1
    cent per share) which was approved by way of a Special Resolution on 1 February 2017.The Special Resolution was
    ratified by the abovementioned Court Order on 8 March 2017.

    During the year ended 30 September 2017, the movement in the share premium account relates to the
    aforementioned and the issue and allotment of ordinary shares granted in terms of the Share Award Schemes.

                                                                                   31 March   31 March   30 Sept
                                                                                       2018       2017      2017
                                                                                   Reviewed   Reviewed   Audited
                                                                                    US$'000    US$'000   US$'000
 
18.BORROWINGS
   Non-current
   Facilities                                                                        21 865          -         -
   Equipment loan facility                                                            4 114          -         -
   Leases                                                                             9 074          -     1 497
   Secured bank borrowings                                                                -     10 495     2 878
                                                                                     35 053     10 495     4 375
   Current
   Facilities                                                                        10 860          -         -
   Equipment loan facility                                                            5 370          -         -
   Leases                                                                             4 951        611       847
   Bank credit facilities                                                            20 938      6 709    29 072
   Secured bank borrowings                                                                -     14 852    14 876
   Guardrisk loan                                                                         -        908       231
                                                                                     42 119     23 080    45 026

    Facilities
    Effective 28 March 2018, the Group concluded the ZAR800 million Facilities which comprises of:
    - a three-year senior secured amortising term loan of ZAR400 million (Term loan);
    - a three-year secured committed revolving facility of ZAR300 million (Revolving facility); and
    - an overdraft facility of ZAR100 million (Overdraft).

    The financing was obtained by Tharisa Minerals Proprietary Limited and guaranteed by the Company.
    The Term loan bears interest at the three-month JIBAR plus 320 basis points nominal annual compounded quarterly
    and is repayable in 12 equal consecutive quarterly instalments commencing on 30 June 2018. The Revolving
    facility is available for three years and bears interest at the one-month JIBAR plus 340 basis points nominal annual
    compounded quarterly and is repayable in full at least once every 12 months. Interest is payable monthly in arrears.
    The Overdraft facility is available for one year and bears interest at the South African prime rate payable monthly
    in arrears.

    The Facilities contain the following financial covenants for Tharisa Minerals Proprietary Limited:
    - Debt to equity ratio of less than 0.67 times
    - Net debt to EBITDA of less than 2.0 times
    - EBITDA to interest of greater than 4.0 times

    At 31 March 2018, Tharisa Minerals Proprietary Limited complied with all financial covenants.
    
    The Term loan was utilised, inter alia, to settle the secured bank borrowings at 29 March 2018 and in part to settle
    the bridge loan at 31 March 2018. The unutilised facilities at 31 March 2018 amounted to ZAR400 million.
    
    Equipment loan facility
    Tharisa Minerals Proprietary Limited entered into an equipment loan facility of US$25 million with Caterpillar
    Financial Services Corporation for the funding of certain Caterpillar mining equipment. The funding was partially
    utilised for the purchase of existing mining equipment acquired from MCC Contracts Proprietary Limited as well
    as replacement parts and new mining equipment. The loan is structured in three tranches and repayment of each
    tranche varies between 24 and 48 equal monthly instalments, payable in arrears. Interest is calculated on the three-
    month US$ Libor plus between 350 and 400 basis points.
    
    The equipment loan facility is secured by a first notarial bond over the equipment and is guaranteed by the Company.
    
    The equipment loan facility contains the following Group financial covenants:
    
    - Net debt to tangible net worth not higher than 1.4 times
    - Net debt to EBITDA lower than 2.0 times
    - EBITDA to interest greater than 4.0 times

    Leases
    The Group entered into a number of lease arrangements for the renting of office buildings, premises, computer
    equipment, vehicles and mining fleet. The Group has elected not to recognise right-of-use assets and lease liabilities
    for short-term leases of vehicles that have a lease term of 12 months or less and leases of low-value assets such as
    computer equipment.
    
    Lease expenses of US$0.2 million (31 March 2017 and 30 September 2017: US$ nil) and US$0.1 million (31 March
    2017: US$0.3 million and 30 September 2017: US$0.7 million) were included in cost of sales and administrative
    expenses respectively for the period ended 31 March 2018.
    
    The duration of leases relating to buildings and premises are for a period of five years, payments are due at the
    beginning of the month escalating annually on average by 8.0%. At 31 March 2018, the remaining term of these leases
    vary between four and four and a half years. These leases are secured by cash deposits varying from one to three
    times the monthly lease payments.
    
    The duration of leases relating to the mining fleet are for periods between 14 and 36 months and bear interest at
    interest rates between the South African prime interest rate and the South African prime interest rate plus 300 basis
    points. The leases are secured by the mining fleet leased.

                                                                                          31 March   31 March    30 Sept
                                                                                              2018       2017       2017
                                                                                          Reviewed   Reviewed    Audited
                                                                                           US$'000    US$'000    US$'000
  
    Minimum lease payments due:
    Within one year                                                                          6 103        649      1 046
    Two to five years                                                                       10 190          -      1 620
                                                                                            16 293        649      2 666
    Less future finance charges                                                            (2 268)       (38)      (322)
    Present value of minimum lease payments due                                             14 025        611      2 344
    Present value of minimum lease payments due:
    Within one year                                                                          4 951        611        847
    Two to five years                                                                        9 074          -      1 497
                                                                                            14 025        611      2 344

    Bank credit facilities
    The bank credit facilities relate to the discounting of the letters of credit by the Group's banks following performance
    of the letter of credit conditions by the Group, which results in funds being received in advance of the normal
    payment date. Interest on these facilities at the reporting date was US Libor plus 3.5% per annum (31 March 2017:
    US Libor plus 2.6% per annum and 30 September 2017: US Libor plus 1.6% per annum).
    
    Secured bank borrowings
    Effective 29 March 2018, the secured bank borrowings of ZAR1 billion obtained from a consortium of banks was
    prepaid and settled in full. The financing was obtained by Tharisa Minerals Proprietary Limited, a subsidiary of the
    Group, and was for a period of seven years repayable in 22 equal quarterly instalments with the first repayment
    date at 31 December 2013. The Group was required to maintain funds in a debt service reserve account, which
    was consequently released.
    
    Guardrisk loan
    The loan payable at 30 September 2017 was settled in full during the period ended 31 March 2018.
    
    Bridge loan
    During the period ended 31 March 2018, Tharisa Minerals Proprietary Limited concluded a bridge loan of
    ZAR250 million from Absa Bank Limited. The bridge loan part funded the acquisition of mining fleet and equipment
    of MCC Contracts Proprietary Limited (refer to note 20). The bridge loan was repayable by 31 March 2018 and
    carried interest at JIBAR plus 325 basis points. The bridge loan was repaid in full on 29 March 2018.

                                                                                             Borrowings
                                                                  Equipment                  Bank credit      Secured bank   Guardrisk    Bridge        Total        Current
                                                Facilities    loan facility       Leases      facilities        borrowings        loan      loan    borrowing    liabilities         Total
                                                   US$'000          US$'000      US$'000         US$'000           US$'000     US$'000    US$'000      US$'000       US$'000       US$'000
  
    Reconciliation of borrowings to cash flow
    from financing activities
    Balance 30 September 2017                            -                -        2 344          29 072            17 754         231          -       49 401             -        49 401
    Adoption of IFRS 16                                  -                -        1 205               -                 -           -          -        1 205             -         1 205
    Balance at 1 October 2017                            -                -        3 549          29 072            17 754         231          -       50 606             -        50 606
    Changes from financing cash flows
    Advances received from bank credit facilities        -                -            -          90 243                 -           -          -       90 243             -        90 243
    Repayment of bank credit facilities                  -                -            -        (98 377)                 -           -          -     (98 377)             -      (98 377)
    Net repayment of bank credit facilities              -                -            -         (8 134)                 -           -          -      (8 134)             -       (8 134)
    Advances received                               30 218           12 434            -               -                 -           -     19 539       62 191             -        62 191
    Repayment of borrowings                              -          (2 499)            -               -          (18 827)       (244)   (19 539)     (41 109)             -      (41 109)
    Lease payments                                       -                -      (4 608)               -                 -           -          -      (4 608)             -       (4 608)
    Interest paid                                        -            (266)            -           (261)           (1 112)         (2)      (909)      (2 550)       (2 102)       (4 652)
    Total changes from financing cash flows         30 218            9 669      (4 608)         (8 395)          (19 939)       (246)      (909)        5 790       (2 102)         3 688
    Foreign currency translation differences         2 480              719        1 269               -             1 064          13          -        5 545             -         5 545
    Liability-related changes
    Lease agreements entered into                       -                 -        5 214               -                 -           -          -        5 214             -         5 214
    Business combination (note 20)                      -                 -        7 003               -                 -           -          -        7 003             -         7 003
    Interest expense                                   27               266        1 598             261             1 121           2        909        4 184             -         4 184
    Revaluation of foreign denominated loan             -           (1 170)            -               -                 -           -          -      (1 170)             -       (1 170)
    Total liability-related changes                    27             (904)       13 815             261             1 121           2        909       15 231             -        15 231
    Balance at 31 March 2018                       32 725             9 484       14 025          20 938                  -          -          -       77 172       (2 102)        75 070


                                                                         31 March          31 March           30 Sept
                                                                             2018              2017              2017
                                                                         Reviewed          Reviewed           Audited
                                                                          US$'000           US$'000           US$'000

19.PROVISIONS
   Provision for rehabilitation
   Opening balance                                                          6 923             4 607             4 607
   Capitalised to inventories                                               2 778             1 107             1 340
   Capitalised to mining assets and infrastructure                          (324)               270               451
   Recognised as part of business combination (note 20)                       133                 -                 -
   Recognised in profit or loss                                               347               210               494
   Exchange differences                                                     1 257               133                31
   Closing balance                                                         11 114             6 327             6 923

   In terms of the Mineral and Petroleum Resources Development Act No 28, of 2002, the Group is required to make
   financial provision for its decommissioning and restoration costs that will be incurred upon cessation of mining
   activities. The provision has been calculated based on total estimated rehabilitation costs, discounted back to their
   present values. The pre-tax discount rates are adjusted annually and reflect current market assessments. These
   costs are expected to be utilised mostly towards the end of the life of mine and associated infrastructure, which is
   currently estimated to be within 16 years. Financial provision is not required to be made for the decommissioning of
   certain structures, such as housing, which may have an alternative use.

   The current estimated rehabilitation cost to be incurred mostly at the end of the life of the open pit mine taking
   escalation factors into account is US$17.4 million (31 March 2017: US$13.4 million and 30 September 2017:
   US$13.7 million). The estimate was calculated by an independent external expert.

   In determining the amounts attributable to the rehabilitation provision, management used a discount rate of 8.0%
   (31 March 2017: 8.8% and 30 September 2017: 8.5%) which represents the rate associated to the 10-year South
   African Bond Yield (31 March 2017 and 30 September 2017: R186 government bond of South Africa), estimated
   rehabilitation timing of 16 years (31 March 2017: 19 years and 30 September 2017: 18 years) and an inflation rate of
   4.9% (31 March 2017: 4.5% and 30 September 2017: 4.5%) which represents the weighted average of the historical
   inflation rate since the mining operations commenced and the average long-term inflation target range of the South
   African Reserve Bank.

   An insurance company has provided a guarantee to the Department of Mineral Resources to satisfy the legal
   requirements with respect to environmental rehabilitation and the Group has pledged as collateral its investments
   in interest-bearing debt instruments to the insurance company to support this guarantee.

20.BUSINESS COMBINATION
   Effective 1 October 2017, the acquisition of mining equipment, spares and consumables from MCC Contracts
   Proprietary Limited (MCC), the previous mining contractor of Tharisa Minerals Proprietary Limited, became
   unconditional. The transaction included the transfer of the employment of 876 personnel of MCC. In addition,
   Tharisa Minerals Proprietary Limited took cession and assignment of certain leases entered into by MCC.
 
   The fair value of plant and equipment and inventories acquired was determined by an external independent valuator.
   The carrying values of trade and other receivables acquired and liabilities assumed were equal to their fair values
   on date of acquisition. The bargain purchase gain arose due to differences in the carrying values and fair values of
   plant and equipment.
 
   The total cash consideration paid for the acquisition was ZAR279.5 million. No deferred consideration or contingent
   consideration exists.
 
   The purchase consideration was funded by a bridge loan from ABSA Bank Limited and an original equipment 
   manufacturer finance facility from Caterpillar Financial Services Corporation (refer to note 18).
 
   The fair values of the identifiable assets and liabilities of MCC as at the date of acquisition were:
                                                                                                         Fair value
                                                                                                      recognised on
                                                                                                        acquisition
                                                                                                            US$'000
 
   Assets
   Property, plant and equipment (note 11)                                                                   30 356
   Inventories                                                                                                1 051
   Trade and other receivables                                                                                  150
                                                                                                             31 557
   Liabilities
   Borrowings (note 18)                                                                                     (7 003)
   Provisions (note 19)                                                                                       (133)
   Trade and other payables                                                                                   (697)
                                                                                                            (7 833)
   Total identifiable net assets at fair value                                                               23 724
   Bargain purchase arising on acquisition                                                                  (1 884)
   Purchase consideration transferred                                                                        21 840
   Net cash flow on acquisition                                                                              21 840
   Transaction costs of US$0.1 million relating to the acquisition were included in administrative expenses during the
   period ended 31 March 2018.

21.RELATED PARTY TRANSACTIONS
   Related party transactions exist between shareholders and the Group's directors and key management personnel.
   These transactions are concluded at arm's length in the normal course of business. All intergroup transactions have
   been eliminated on consolidation.

                                                                      Six months        Six months            Year
                                                                           ended             ended           ended
                                                                        31 March          31 March         30 Sept
                                                                            2018              2017            2017
                                                                        Reviewed          Reviewed         Audited
                                                                         US$'000           US$'000         US$'000

   Transactions and balances with related parties:
   Other income - Rocasize Proprietary Limited                                17               13               28
   Cost of sales - Rocasize Proprietary Limited                              101               60              154
   Administrative expenses - Rocasize Proprietary Limited                     15                9               68
   Interest expense
   Langa Trust                                                                 -                -                3
   Arti Trust                                                                135              129              262
   Ditodi Trust                                                               14               13               27
   Makhaye Trust                                                              14               13               27
   The Phax Trust                                                             27               26               53
   The Rowad Trust                                                            14               13               27
   MJ Jacquet-Briner                                                          14               13               27
                                                                             218              207              426
   Amounts due to directors
   A Djakouris                                                                21               21               21
   JD Salter                                                                  24               24               30
   O Kamal                                                                    14               13               16
   C Bell                                                                     20               20               26
   R Davey                                                                    17                -               19
   J Ka Ki Cheng                                                              11                7               11
                                                                             107               85              123

                                                                                Six months   Six months       Year
                                                                                     ended        ended      ended
                                                                                  31 March     31 March    30 Sept
                                                                                      2018         2017       2017
                                                                                  Reviewed     Reviewed    Audited
                                                                                   US$'000      US$'000    US$'000

  Interest bearing - accrued dividends payable to
  related parties
  Arti Trust                                                                         2 852        2 515      2 486
  Ditodi Trust                                                                         245          216        214
  Makhaye Trust                                                                        245          216        214
  The Phax Trust                                                                       488          430        425
  The Rowad Trust                                                                      245          216        213
  MJ Jacquet-Briner                                                                    245          216        213
                                                                                     4 320        3 809      3 765
  Trade and other receivables (note 15)
  The Tharisa Community Trust                                                            5            5          5
  Rocasize Proprietary Limited                                                         103           43         54
                                                                                       108           48         59

  Compensation to directors and key management:
                                                                                     Provident
                                                                           Share-     fund and
                                                     Salary    Expense      based         risk
                                                   and fees allowances   payments     benefits     Bonus      Total
                                                   US$'000     US$'000    US$'000      US$'000   US$'000    US$'000

  Six months ended
  31 March 2018 (Reviewed)
  Non-executive directors                              295          -           -            -         -        295
  Executives directors                                 703          5           -           27       652      1 387
  Other key management                                 489         16           -           40       366        911
                                                     1 487         21           -           67     1 018      2 593
  Six months ended
  31 March 2017 (Reviewed)
  Non-executive directors                              254          -           -            -         -        254
  Executives directors                                 688          4           -           20        76        788
  Other key management                                 460         13           -           31        49        553
                                                     1 402         17           -           51       125      1 595
  Year ended
  30 September 2017 (Audited)
  Non-executive directors                              536          -           -            -         -        536
  Executives directors                               1 333          9         821           73       143      2 379
  Other key management                                 865         27         518           95       117      1 622
                                                     2 734         36       1 339          168       260      4 537

  

    Share-based awards to the directors and to key management were as follows:
                                                             Opening
    Ordinary shares                                          balance       Allocated          Vested          Total
    Six months ended 31 March 2018 (Reviewed)
    LTIP - executive directors                             1 808 316               -               -      1 808 316
    LTIP - key management                                  1 202 153               -               -      1 202 153
    SARS - executive directors                             1 362 327               -               -      1 362 327
    SARS - key management                                    924 136               -               -        924 136
    Six months ended 31 March 2017 (Reviewed)
    LTIP - executive directors                             1 723 522               -               -      1 723 522
    LTIP - key management                                  1 115 106               -               -      1 115 106
    SARS - executive directors                             1 243 870               -               -      1 243 870
    SARS - key management                                    885 344               -               -        885 344
    Year ended 30 September 2017 (Audited)
    LTIP - executive directors                             1 723 522         842 682        (757 888)     1 808 316
    LTIP - key management                                  1 115 106         564 792        (477 745)     1 202 153
    SARS - executive directors                             1 243 870         842 682        (724 225)     1 362 327
    SARS - key management                                    885 344         564 792        (526 000)       924 136

    Relationships between parties:
    The Tharisa Community Trust and Rocasize Proprietary Limited
    The Tharisa Community Trust is a shareholder of Tharisa Minerals Proprietary Limited and owns 100% of the issued
    ordinary share capital of Rocasize Proprietary Limited.

    Langa Trust, Arti Trust, Phax Trust and Rowad Trust
    A Director of the Company is a beneficiary of these trusts.

    Ditodi Trust and Makhaye Trust
    Certain of the non-controlling shareholders of Tharisa Minerals Proprietary Limited are beneficiaries of these trusts.

    MJ Jaquet-Briner
    MJ Jaquet-Briner is a director of Tharisa Minerals Proprietary Limited and is a shareholder in the non-controlling
    interest of Tharisa Minerals Proprietary Limited.

                                                                             31 March          31 March             30 Sept
                                                                                 2018              2017                2017
                                                         Fair value          Reviewed          Reviewed             Audited
                                                              level           US$'000           US$'000             US$'000

22. FINANCIAL INSTRUMENTS
    Financial assets measured at fair value
    Investments in equity instrument                        Level 1                37                 42                 49
    Discount facility                                       Level 2               676                  -                  -
    Forward exchange contracts                              Level 2               188                  -                  -
    Trade and other receivables at fair values
    PGM receivable                                          Level 2            18 261             12 704             17 254
    Financial liabilities measured at fair value
    Discount facility                                       Level 2                 -                  -                449
    Forward exchange contracts                              Level 2                 -                  -                150
    Financial assets at amortised cost
    Long-term deposits                                                              -              4 796              4 505
    Other financial assets - investment in cash and income funds                5 791              4 244              3 767
    Trade and other receivables                                                44 634             32 567             41 574
    Cash and cash equivalents                                                  59 930             26 620             49 742
    Financial liabilities at amortised cost
    Borrowings                                                                 77 172             33 575             49 401
    Trade and other payables                                                   30 131             23 231             29 753
   There were no transfers between Level 1 and Level 2 fair value measurements during the period.

    The Group considers that the fair values of the financial assets and financial liabilities approximate their carrying
    values at each reporting date.

    Fair value hierarchy
    All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy,
    based on the lowest level input that is significant to the fair value measurement as a whole, as follows:

    Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
    Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
              directly or indirectly observable
    Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
              unobservable.

23. CONTINGENT LIABILITIES
    There is no litigation, current or pending, which is considered likely to have a material adverse effect on the Group.

24. EVENTS AFTER THE REPORTING PERIOD
    The Board of Directors are not aware of any matter or circumstance arising since the end of the period that will
    impact these interim condensed consolidated financial results.

25. DIVIDENDS AND REDUCTION OF SHARE PREMIUM
    The Company declared a dividend of US$ 5 cents on 30 November 2017 which was approved at the Annual
    General Meeting on 10 January 2018. A capital distribution of US$2.6 million (US$ 1 cent per share) was declared
    on 1 February 2017 as a reduction of share premium.

LEGAL DISCLAIMER

Some of the information in these materials may contain projections or forward-looking statements regarding future
events, the future financial performance of the Group, its intentions, beliefs or current expectations and those of its
officers, directors and employees concerning, among other things, the Group's results of operations, financial condition,
liquidity, prospects, growth, strategies and business.You can identify forward looking statements by terms such as "expect",
"believe", "anticipate", "estimate", "intend", "will", "could", "may" or "might" or the negative of such terms or other similar
expressions. These statements are only predictions and actual results may differ materially. Unless otherwise required by
applicable law, regulation or accounting standard, the Group does not intend to update these statements to reflect events
and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors
could cause the actual results to differ materially from those contained in projections or forward-looking statements of
the Group, including, among others, general economic conditions, the competitive environment, risks associated with
operating in South Africa and market change in the industries the Group operates in, as well as many other risks
specifically related to the Group and its operations. 

A pdf of this announcement is available on the company's website http://www.tharisa.com.

RNS users, please click on, or paste the following link into your web browser, to view the associated pdf document. 

http://www.tharisa.com

Paphos, Cyprus
16 May 2018


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)
Ross Allister / James Bavister / David McKeown
+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


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