Wrap Text
Production Report for the First Quarter FY2024 ended 31 December 2023
Tharisa plc
(Incorporated in the Republic of Cyprus with limited liability)
(Registration number HE223412)
JSE share code: THA
LSE share code: THS
A2X share code: THA
ISIN: CY0103562118
LEI: 213800WW4YWMVVZIJM90
('Tharisa' or the 'Company')
PRODUCTION REPORT FOR THE FIRST QUARTER FY2024 ENDED 31 DECEMBER 2023
Tharisa, the mining, metals, and innovation company dual-listed on the Johannesburg and London stock
exchanges, announces its production results for Q1 FY2024(1) and cash balance as at quarter end.
Quarter highlights
- Lost Time Injury Frequency Rate ('LTIFR') of
- 0.09 per 200 000-man hours worked at Tharisa Minerals
- 0.13 per 200 000-man hours worked at Karo Platinum
- Increased mill throughput of 8.7% at 1 424.4 kt, with improvements in both grade and recovery
for PGMs and chrome concentrate leads to
- PGM output increasing to 35.7 koz (Q4 FY2023: 30.7 koz)
- Record quarterly chrome output at 462.8 kt (Q4 FY2023: 413.4 kt)
- PGM basket price showed slight improvement of 1% to US$1 344/oz (6E basis) (Q4 FY2023:
US$1 331/oz)
- Average metallurgical grade chrome concentrate prices held steady at US$291/t (Q4 FY2023:
US$291/t)
- Group cash on hand at US$221.5 million (30 September 2023: US$268.8 million), and debt of
US$126.6 million (30 September 2023: US$142.2 million), resulting in a net cash position of
US$94.9 million (30 September 2023: US$126.6 million)
- Production guidance for FY2024 remains between 145 koz and 155 koz PGMs (6E basis) and 1.7
Mt to 1.8 Mt of chrome concentrates
(1)Tharisa's financial year is from 01 October to 30 September
Key Operating Numbers
Quarter Quarter Quarter on Quarter Year
ended ended quarter ended ended
31 Dec 30 Sep movement 31 Dec 30 Sep
2023 2023 % 2022 2023
Reef mined kt 1 058.6 1 158.9 (8.7) 1 081.5 4 177.3
Reef milled kt 1 424.4 1 310.2 8.7 1 427.4 5 409.8
PGMs produced (6E) koz 35.7 30.7 16.3 42.7 144.7
Chrome concentrates produced kt 462.8 413.4 11.9 383.1 1 580.1
(excluding third party)
Average PGM basket price US$/oz 1 344 1 331 1.0 2 360 1 893
Average metallurgical grade US$/t 291 291 - 223 263
chrome concentrate price – 42%
basis
Phoevos Pouroulis, CEO of Tharisa, commented:
"A positive start to our new financial year in what is traditionally a tough quarter with the festive season
and inclement weather typically causing challenges to operations. We have made good operational
improvements, with waste mining advances leading to a better mining and plant performance, resulting
in record quarterly chrome production.
This performance is vital and underpins our development of the Karo Platinum Project and sets the
trajectory for the coming decades at our multi-generational Tharisa Mine.
PGM prices remain subdued, negatively affecting many of the PGM miners in South Africa, once again our
co-product business model continues to be operationally cash-generative, and the chrome market
continues to enjoy strong demand as we enter the Chinese New Year.
This year we will be expanding and rolling out our R&D projects in distinct stages of development and
commercialisation. With a solid foundation we can re-frame the operating context and re-focus our energy
on our key competencies ultimately unlocking value to all stakeholders."
Health & Safety
- The health and safety of our stakeholders remains a core value to the Group and Tharisa continues
to strive for zero harm at its operations
- LTIFR of
- 0.09 per 200 000-man hours worked at Tharisa Minerals
- 0.13 per 200 000-man hours worked at Karo Platinum
Market Update
- Continued strong demand was evident in the chrome market, particularly in the lead up to,
these days, a less disruptive Chinese New Year period (official start date 10 February 2024), with
demand underpinned by economic fundamentals and continued concerns about inland logistics
in South Africa. Freight rates are ticking up on the back of geo-political events impacting
maritime shipping routes
- The PGM market has continued to suffer from pricing pressure, however, a short-term reprieve
towards the end of the quarter, driven by technical short covering, saw some price spikes. The
effect of these low prices is evident on the PGM mines in South Africa, with shaft and even mine
closures underway. The major pressure on PGM prices remains the (perceived) excess inventory
in the PGM pipeline. We expect this to be balanced once the real demand we have seen from
end users becomes evident, in particular as further supply cuts are implemented and, on a
macro level, policy reduction of subsidies for EV vehicles influences demand
Operational Update
- Total reef mined slightly down at 1 058.6 kt (Q4 FY2023: 1 158.9 kt)
- Strategic ROM ore purchases supplemented own mine production with Q1 FY2024 milling at
1 424.4 kt (Q4 FY2023: 1 310.2kt)
- Quarterly chrome production at a record 462.8 kt (Q4 FY2023: 413.4 kt)
- Grade of 19.1% Cr2O3 (Q4 FY2023: 18.7%)
- Recovery at 70.3% (Q4 FY2023: 70.0%)
- Quarterly PGM production at 35.7 koz (Q4 FY2023: 30.7 koz)
- Rougher feed grade of 1.60 g/t (Q4 FY2023: 1.57 g/t)
- Recovery of 66.1% (Q4 FY2023: 62.7%)
Karo Platinum Update
- The previously announced review of the commissioning timeline of the Karo Platinum Project
remains on track for first ore in mill (FOIM) for June 2025
- Funding solutions ring fenced to Karo Platinum are being pursued in line with the revised
production timeline
Cash Balance and Debt Position
- Group cash on hand at US$221.5 million (30 September 2023: US$268.8 million), and debt of
US$126.6 million (30 September 2023: US$142.2 million), resulting in a net cash position of
US$94.9 million (30 September 2023: US$126.6 million)
Guidance
Production guidance for FY2024 is set between 145 koz and 155 koz PGMs (6E basis) and 1.7 Mt to 1.8 Mt
of chrome concentrates.
Any forward looking statements have not been reported on or reviewed by Tharisa's auditors.
Quarter Quarter Quarter Quarter Year
ended ended on ended ended
31 Dec 30 Sep quarter 31 Dec 30 Sep
2023 2023 movement 2022 2023
%
Reef mined kt 1 058.6 1 158.9 (8.7) 1 081.5 4 177.3
Stripping ratio m3: m3 12.0 14.0 (14.3) 10.6 12.8
Reef milled kt 1 424.4 1 310.2 8.7 1 427.4 5 409.8
PGM flotation feed kt 1 048.0 970.6 8.0 1 115.3 4 122.0
PGM rougher feed grade g/t 1.60 1.57 1.9 1.66 1.64
PGM recovery % 66.1 62.7 5.4 71.7 66.5
6E PGMs produced koz 35.7 30.7 16.3 42.7 144.7
Platinum koz 20.5 17.3 18.5 23.2 80.3
Palladium koz 5.2 5.2 - 7.5 24.8
Rhodium koz 3.3 3.0 10.0 4.2 13.5
Average PGM basket price US$/oz 1 344 1 331 1.0 2 360 1 893
Platinum US$/oz 914 940 (2.8) 967 981
Palladium US$/oz 1 090 1 227 (11.2) 1 952 1 594
Rhodium US$/oz 4 216 3 841 9.8 12 951 8 992
Average PGM basket price ZAR/oz 25 189 24 842 1.4 41 682 34 107
Cr2O3 ROM grade % 19.1 18.7 2.1 17.0 17.9
Chrome recovery % 70.3 70.0 0.4 65.7 67.6
Chrome yield % 32.5 31.6 2.8 26.8 29.2
Chrome concentrates produced kt 462.8 413.4 11.9 383.1 1 580.1
(excluding third party)
Metallurgical grade kt 389.9 338.4 15.2 347.2 1 356.9
Specialty grades kt 72.9 75.0 (2.8) 35.9 223.2
Third party chrome production kt 45.4 58.9 (22.9) 40.9 201.9
Average metallurgical grade US$/t 291 291 - 223 263
chrome concentrate contract CIF
price – 42% basis China
Metallurgical grade chrome ZAR/t 5 445 5 273 3.3 3 932 4 840
concentrate contract price CIF
China
Average exchange rate ZAR:US$ 18.7 18.7 - 17.6 18.2
Paphos, Cyprus
11 January 2024
JSE Sponsor
Investec Bank Limited
Connect with us on LinkedIn to get further news and updates about our business.
Investor Relations Contacts:
Ilja Graulich (Head of Investor Relations and Communications)
+27 11 996 3500
+27 83 604 0820
igraulich@tharisa.com
Broker Contacts:
Peel Hunt LLP (UK Joint Broker)
Ross Allister / Georgia Langoulant
+44 207 418 8900
BMO Capital Markets Limited (UK Joint Broker)
Thomas Rider / Nick Macann
+44 207 236 1010
Berenberg (UK Joint Broker)
Matthew Armitt / Jennifer Lee / Detlir Elezi
+44 203 207 7800
About Tharisa
Tharisa is an integrated resource group critical to the energy transition and decarbonisation of economies.
It incorporates exploration, mining, processing and the beneficiation, marketing, sales, and logistics of
PGMs and chrome concentrates, using innovation and technology as enablers. Its principal operating
asset is the Tharisa Mine, located in the south-western limb of the Bushveld Complex, South Africa. The
mine has a 13-year open pit life and is strategically advancing the vast mechanised underground resource
which extends for over 60 years. Tharisa is developing the Karo Platinum Project, a low-cost, open-pit
PGM asset located on the Great Dyke in Zimbabwe. The Company is committed to reducing its carbon
emissions by 30% by 2030 and the development of a roadmap to become net carbon neutral by 2050. As
part of this energy transition, the 40 MW solar project adjacent to the Tharisa Mine is well advanced.
Redox One is accelerating the development of a proprietary iron chromium redox flow long duration
battery utilising the commodities we mine. Tharisa plc is listed on the Johannesburg Stock Exchange (JSE:
THA) and the Main Board of the London Stock Exchange (LSE: THS).
Date: 11-01-2024 07:05:00
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