TIDMTHS
RNS Number : 6928F
Tharisa PLC
12 July 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 THIRD QUARTERED 30 JUNE 2023
Tharisa, the platinum group metals (PGMs) and chrome co-producer
dual-listed on the Johannesburg and London stock exchanges,
announces its production results for Q3 FY2023 [1] and cash balance
as at the quarter end.
Quarter highlights
-- Lost Time Injury Frequency Rate ('LTIFR') of 0.06 per 200 000-man hours worked
-- Processing capacity maintained
-- PGM output increased to 37.0 koz (Q2 FY2023: 34.3 koz) with
yield maintained and recoveries improving
-- Chrome output marginally lower at 378.8 kt (Q2 FY2023: 404.8
kt) on steady grades, yield, and recoveries
-- Mining volumes remain constrained
-- Metallurgical grade chrome concentrate prices up 7.8% quarter
on quarter averaging US$290/t (Q2 FY2023: US$269/t)
-- Karo Platinum Project remains on track with major milestones
of first concrete pour and pilot mining commenced
-- Cash on hand increased by US$36.8 million to US$242.6 million
(31 March 2023: US$205.8 million), resulting in a net cash position
of US$141.5 million (31 March 2023: US$101.1 million
-- Strong balance sheet to support the growth of the business
whilst providing returns to shareholders
Key Operating Numbers
Quarter Quarter Quarter Quarter Nine Nine
ended ended on quarter ended months months
30 June 31 March movement 30 June ended ended
2023 2023 % 2022 30 June 30 June
2023 2022
6E PGMs produced koz 37.0 34.3 7.9 42.1 114.0 133.9
-------- --------- ---------- ------------ --------- --------- ---------
Chrome concentrates
produced (excluding
third party) kt 378.8 404.8 (6.4) 389.7 1 166.7 1 166.4
-------- --------- ---------- ------------ --------- --------- ---------
Average PGM contained
metal basket price US$/oz 1 695 2 032 (16.6) 2 677 2 049 2 619
-------- --------- ---------- ------------ --------- --------- ---------
Metallurgical grade US$/t
chrome concentrate CIF
contract price China 290 269 7.8 247 258 201
-------- --------- ---------- ------------ --------- --------- ---------
Phoevos Pouroulis, CEO of Tharisa, commented:
"The unique co-product model was again highlighted with the
Company benefitting from continued favourable chrome pricing while
dealing with PGM pricing pressures, resulting in strong free cash
generation - ending the period with a further strengthened balance
sheet with net cash of over US$140m.
The quarter also allowed us to review our in-pit mining plan
with the appointment of a waste material contractor helping to
ensure sustainable access to the required reef horizons. Our output
will, however, remain subdued for the remainder of the year as we
focus on mining flexibility for sustainable reef operations.
At Karo, we remain on track with project construction,
completing our first concrete pour in June, with pilot mining
having commenced. The equity contribution by Tharisa of US$135
million is being drawn down to match capital requirements with cash
flow as we finalise the senior debt portion for this globally
strategic mine.
Domestic headwinds coupled with macro events and commodity price
uncertainty have pressured the business and led to a material
disconnect between equity valuations and intrinsic valuation
underpinned by cash generation. However, as we have shown in more
complex historical times, the nature of Tharisa with modern,
low-cost structures leaves us well positioned to weather the
environment and continue to provide returns to shareholders while
actively and sustainably growing the business."
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 0.06 per 200 000-man hours worked
Market Update
-- The pressure seen in the PGM market manifested itself in some
unusual and often aggressive selling patterns, with renewed fears
of a macro economic slowdown, driven by China and the United
States, compounding price pressures. This despite car sales being
set to surpass production last year, which should underpin a demand
for all PGM metals. However, pipeline destocking meant that this
increased demand was satisfied by pipeline inventories. We maintain
that while prices are trading near 52-week lows, in the medium to
long-term, prices should rise, driven by supply complexities in the
major producing regions, with current pricing pressures leading to
increased challenges faced by some higher cost producers. While
most commentators have pulled back price forecasts in line with
recent events, the long-term outlook for even the most conservative
forecasts are indicating higher averages for PGMs than current spot
prices
-- The chrome market showed its ongoing resilience as solid
demand meant prices averaged well above those achieved in the
previous quarters. While port stocks, which were sitting at
multi-year lows have increased, the supply pipeline remains tight,
particularly as inland logistics in South Africa remain
challenging. In addition, there have been no major primary output
increases in the local market due to the lack of available
resources and power constraints for smaller producers unable to
access standby power. The chrome market looks set to continue its
strong performance for the remainder of the calendar year 2023,
particularly as new furnace commissioning continues to draw on
material demand
Operational Update
-- Total reef mined of 908.8 kt (Q2 FY2023: 1 028.0 kt) limited
by constrained in pit flexibility notwithstanding the increased
waste stripping at 14.2 m(3) : m(3) (Q2 FY2023: 12.6 m(3) : m(3)
)
-- Total reef tonnes milled for the quarter at 1 302.2 kt (Q2
FY2023: 1 370.0 kt), supplemented by strategic ROM ore
purchases
-- Quarterly PGM production at 37.0 koz (Q2 FY2023: 34.3 koz)
-- Rougher feed grade of 1.67 g/t (Q2 FY2023: 1.66 g/t)
-- Recovery of 69.0% (Q2 FY2023: 61.9%) as the plants processed more fresh material
-- Quarterly chrome production at 378.8 kt (Q2 FY2023: 404.8 kt)
-- Grade of 17.8% Cr(2) O(3) (Q2 FY2023: 18.4%)
-- Recovery at 67.9% (Q2 FY2023: 66.6%)
-- Speciality chrome production improving as spiral replacement program has been completed
Karo Platinum Update
-- No LTI recorded on the project to date
-- 540 people on site, of which 99 are Karo employees with the balance contractor employees
-- Concrete foundation pouring progressing well with earthworks nearing completion
-- Pilot mining commenced with contractor and staff onsite to commence operational tests
-- Long-lead items manufacturing progressing as planned with
first major deliveries schedule for Q4 calendar 2023
-- Powerline construction to commence this quarter
Cash Balance and Debt Position
Tharisa had a cash balance of US$242.6 million (31 March 2023:
US$205.8 million) at the end of the quarter, and debt of US$101.1
million (31 March 2023: US$99.0 million), resulting in a net cash
position of US$141.5 million (31 March 2023: US$101.1million).
These cash and debt numbers continue to exclude the recently
concluded US$130 million facilities which are undrawn at the
reporting period.
Production Numbers
Quarter Quarter Quarter Quarter Nine Nine
ended ended on quarter ended months months
30 June 31 March movement 30 June ended ended
2023 2023 % 2022 30 June 30 June
2023 2022
Reef mined kt 908.8 1 028.0 (11.6) 1 357.1 3 018.4 4 190.7
--------- --------- ---------- ------------ --------- --------- ---------
m(3)
Stripping ratio : m(3) 14.2 12.6 12.7 14.2 12.3 12.6
--------- --------- ---------- ------------ --------- --------- ---------
Reef milled kt 1 302.2 1 370.0 (4.9) 1 367.1 4 099.5 4 161.4
--------- --------- ---------- ------------ --------- --------- ---------
PGM flotation feed kt 996.5 1 039.6 (4.1) 1 051.4 3 151.4 3 166.4
--------- --------- ---------- ------------ --------- --------- ---------
PGM rougher feed
grade g/t 1.67 1.66 0.6 1.65 1.66 1.71
--------- --------- ---------- ------------ --------- --------- ---------
PGM recovery % 69.0 61.9 11.5 75.6 67.6 76.8
--------- --------- ---------- ------------ --------- --------- ---------
6E PGMs produced koz 37.0 34.3 7.9 42.1 114.0 133.9
--------- --------- ---------- ------------ --------- --------- ---------
Platinum produced koz 20.9 19.7 6.1 23.1 63.8 73.9
--------- --------- ---------- ------------ --------- --------- ---------
Palladium produced koz 6.6 6.1 8.2 7.2 20.1 22.1
--------- --------- ---------- ------------ --------- --------- ---------
Rhodium produced koz 3.4 3.0 13.3 4.0 10.6 12.8
--------- --------- ---------- ------------ --------- --------- ---------
Average PGM contained
metal basket price US$/oz 1 695 2 032 (16.6) 2 677 2 049 2 619
--------- --------- ---------- ------------ --------- --------- ---------
Platinum price US$/oz 1 034 1 004 3.0 958 994 994
--------- --------- ---------- ------------ --------- --------- ---------
Palladium price US$/oz 1 441 1 563 (7.8) 2 100 1 664 2 117
--------- --------- ---------- ------------ --------- --------- ---------
Rhodium price US$/oz 6 959 10 812 (35.6) 15 755 10 467 15 370
--------- --------- ---------- ------------ --------- --------- ---------
Average PGM contained
metal basket price ZAR/oz 31 544 35 801 (11.9) 41 531 36 671 40 299
--------- --------- ---------- ------------ --------- --------- ---------
Cr(2) O(3) ROM grade % 17.8 18.4 (3.3) 17.0 17.7 17.4
--------- --------- ---------- ------------ --------- --------- ---------
Chrome recovery % 67.9 66.6 2.0 70.2 66.7 67.8
--------- --------- ---------- ------------ --------- --------- ---------
Chrome yield % 29.1 29.5 (1.4) 28.5 28.5 28.0
--------- --------- ---------- ------------ --------- --------- ---------
Chrome concentrates
produced (excluding
third party) kt 378.8 404.8 (6.4) 389.7 1 166.7 1 166.4
--------- --------- ---------- ------------ --------- --------- ---------
Metallurgical grade kt 306.0 365.3 (16.2) 307.0 1 018.5 907.3
--------- --------- ---------- ------------ --------- --------- ---------
Specialty grades kt 72.8 39.5 84.3 82.7 148.2 259.1
--------- --------- ---------- ------------ --------- --------- ---------
Third party chrome
production kt 56.2 45.8 22.7 47.4 143.0 150.0
--------- --------- ---------- ------------ --------- --------- ---------
Metallurgical grade US$/t
chrome concentrate CIF
contract price China 290 269 7.8 247 258 201
--------- --------- ---------- ------------ --------- --------- ---------
Metallurgical grade ZAR/t
chrome concentrate CIF
contract price China 5 519 4 827 14.3 3 900 4 680 3 112
--------- --------- ---------- ------------ --------- --------- ---------
Average exchange
rate ZAR:US$ 18.7 17.8 5.1 15.6 18.0 15.4
--------- --------- ---------- ------------ --------- --------- ---------
Paphos, Cyprus
12 July 2023
JSE Sponsor
Investec Bank Limited
Connect with us on LinkedIn and Twitter to get further news and
updates about our business.
Investor Relations Contacts:
Ilja Graulich (Head of Investor Relations and
Communications)
+27 11 996 3500
+27 83 604 0820
igraulich@tharisa.com
Financial PR Contacts:
Bobby Morse / Oonagh Reidy
+44 207 466 5000
tharisa@buchanan.uk.com
Broker Contacts:
Peel Hunt LLP (UK Joint Broker)
Ross Allister / Georgia Langoulant
+44 207 7418 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
Nedbank Limited (acting through its Corporate and Investment
Banking division) (RSA Broker)
Carlyle Whittaker
+27 11 294 0061
About Tharisa
Tharisa is an integrated resource group critical to the energy
transition and decarbonisation of economies. It incorporates
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 mechanised mine has an 18 year
pit life and can extend operations underground by at least 40
years. Tharisa also owns Karo Platinum, a low-cost, open-pit PGM
asset under construction and 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 is continuing to be net
carbon neutral by 2050. Tharisa plc is listed on the Johannesburg
Stock Exchange (JSE: THA) and the Main Board of the London Stock
Exchange (LSE: THS).
[1] Tharisa's financial year is from 01 October to 30
September
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DRLNKDBDQBKDAOD
(END) Dow Jones Newswires
July 12, 2023 02:00 ET (06:00 GMT)
Tharisa (LSE:THS)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Tharisa (LSE:THS)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
