Tharisa Plc · JSE:THA
Tharisa — Investor Presentation (April 2024)
46 slides from Tharisa's investor presentation, April 2024
Slide 1: This is Tharisa
THIS IS THARISA APRIL 2024 tharisa® @.
Slide 2: Our Purpose Statement, Vision and Corporate Profile
OUR PURPOSE STATEMENT − Enriching lives through innovating the resources company of the future VISION − To generate value by becoming a globally significant low-cost producer of strategic commodities that are required to deliver a sustainable future CORPORATE PROFILE − Tharisa is an integrated resou
Slide 3: Our Values
OUR VALUES SAFETY & HEALTH The safety and health of our people is a core value We take responsibility for the effect that our operations may have on the ENVIRONMENT environment We are committed to reducing carbon emissions by 30% by 2030 and are developing CLIMATE CHANGE a roadmap to be net carbon n
Slide 4: Mining is not an option but the way we do it is
MINING IS NOT AN OPTION BUT THE WAY WE DO IT IS LOUCAS POUROULIS 4 enriching lives through innovating the resources company of the future
Slide 5: Why Mining, Why Now, Why Tharisa
WHY MINING • WHY NOW • WHY THARISA MINING NOW THARISA PRODUCTS Co-product commodities “If it is not grown it is OECD forecasts that global Mine builders and mined” materials demand will operators delivering into physical Critical to supply into the more than double in 2060 Multi-generati
Slide 6: Corporate Structure
CORPORATE STRUCTURE Tharisa plc (Registered in Cyprus) Listed on JSE (THA) and LSE (THS) 100% 100% 100% 100% 75% Karo Project Tharisa Minerals Arxo Resources Arxo Logistics Salene Chrome (Zimbabwe) (South Africa) (Cyprus) (South Africa) (Zimbabwe) 100% 100% Arxo Metals MetQ (South Africa) (South Afr
Slide 7: Portfolio Snapshot
PORTFOLIO SNAPSHOT Tharisa Mine: Vulcan Plant Salene Chrome Karo Platinum 13 year open pit LOM Fine chrome recovery Proposed new PGM mine OPERATIONS & PROJECTS Open pit chrome project ~150 koz PGM per annum ~400 ktpa met chrome On care and maintenance due Located on Great Dyke ~1.7 Mt chrome per ann
Slide 8: Q2 Production Statistics
0.05 LTIFR 0.11 LTIFR US$5m Redox One Q2 PRODUCTION STATISTICS Tharisa Minerals Karo Platinum buyback commenced officially launched REEF MILLED PGM PRODUCTION (6E) CHROME CONCENTRATE PRODUCTION 1 378.5 kt 35.3 koz 402.7 kt (Q1 2024: 1 424.4 kt) recovery of 62.9% recovery of 66.4% (Q1 2024: 35.7 koz)
Slide 9: Strategy
STRATEGY x on, 3 - See e ete
Slide 10: Vision 2025
VISION 2025 EXPANSION expand and roll out the business sustainably OPTIMISATION optimise existing operations INNOVATION continue to invest in innovative thinking DIVERSIFICATION become a globally diversified business INVESTMENT be the investment of choice in our chosen sector ENRICHMENT responsibly
Slide 11: Long Life Portfolio
39.4 Moz & 11.3 Moz 166.2 Mt LONG LIFE PORTFOLIO IN CONTAINED PGMS (6E) IN CONTAINED CHROME Karo Platinum SIGNIFICANT SHALLOW RESOURCES Redox One Tharisa Mine Arxo Metals Renewable Energy Centre 844.8 Mt at Tharisa Mine − 13 year open pit life at Tharisa Minerals, reduced by 4 years − >60 years un
Slide 12: Unlocking Strategic Flexibility and Value
UNLOCKING STRATEGIC FLEXIBILITY AND VALUE THARISA MINERALS Open pit life reduced due to constraints – increased costs, proximity of community and waste rock dump limitations Constraints derisked and operational flexibility with successful third party ROM sourcing Strategically adapting to envi
Slide 13: Our Commodities
OUR COMMODITIES ~ fe) hy
Slide 14: Commodities: PGMs
US$1 412/oz COMMODITIES SPOT PGM BASKET PRICE Ru Ir Ru 14,4% Ir 1,9% 4,2% Au 4,4% 8,0% Au Rh 0,2% 4,3% THARISA PGMS KARO Pt MINERALS Rh PLATINUM 42,0% Primary supply reduction should be main catalyst for PGM price increases 9,9% PRILL SPLIT Pt PRILL SPLIT 54,4% Recycling less of a supply contrib
Slide 15: Commodities: Chrome
US$305/t COMMODITIES SPOT MET GRADE PRICE METALLURGICAL GRADE PRICE AND PORT STOCKS (US$/t) and (Mt) 350 3,0 300 2,5 250 2,0 200 1,5 150 1,0 CHROME 100 No substitution for chrome in stainless steel production 50 0,5 Stainless steel demand growth for 2023 of 5% to 8% 0 0,0 Chrome prices rallyin
Slide 16: The Past Year
THE PAST YEAR sr)
Slide 17: FY2023 Highlights
FY2023 HIGHLIGHTS SAFETY IS A CORE VALUE Tharisa Minerals – LTIFR of 0.13 per 200 000 man hours worked Karo Platinum – LTIFR of 0.26 per 200 000 man hours worked Overall improved safety performance, committed to zero harm 17 enriching lives through innovating the resources company of the futur
Slide 18: Continue to Navigate Uncertainty
CONTINUE TO NAVIGATE UNCERTAINTY HEADWINDS TAILWINDS ELECTRICITY COMMODITIES Maximum requirement of 27 MW of electricity at Tharisa Mine Co-product business model Stand by diesel generators capacity to withstand load curtailment Buoyant chrome commodity market Plant configuration allows fl
Slide 19: Strength of Our Co-Product Strategy
STRENGTH OF OUR CO-PRODUCT STRATEGY MULTI COMMODITIES CASH FLOW GENERATIVE NEW DEBT FACILITIES CONTINUED INVESTMENT Investment for the future – Co-production model Net cash flows from Successfully concluded US$130 m debt facility capital spent US$97.1 m Polymetallic basket of operations of
Slide 20: The Vital Numbers FY2023
US$1 893/oz US$263/t THE VITAL NUMBERS FY2023 down 26.2% PGM BASKET PRICE up 25.8% MET GRADE PRICE REVENUE OPERATING PROFIT EBITDA US$649.9 m US$94.7 m US$136.8 m down 5.3% down 48.7% down 42.4% (FY2022: US$686.0 m) (FY2022: US$184.5 m) (FY2022: US$237.3 m) PROFIT BEFORE TAX NET CASH FROM OPERATING
Slide 21: Value Sharing
VALUE SHARING JOB CREATION TWO GENERATIONS AT THARISA 5 263 Group employees and contractors at end September 2023 − Tharisa Minerals: 1 927 Liana Omphile Masilo is a 23 − Karo Project: 135 year old Electrical Engineer − Contractors: 2 886 from the Mmadithlokwa community in Marikana. Her ~26% fem
Slide 22: Value Sharing This Year
VALUE SHARING THIS YEAR GROUP EMPLOYEES AND CONTRACTORS FEMALE EMPLOYEES MULTIPLIER EFFECT 5 236 ~26% >50 000 CURRENCY INFLOWS INTO SOUTH AFRICA GLOBAL DIRECT TAXES AND ROYALTIES GLOBAL INDIRECT TAXES (DIRECT + INDIRECT) US$451.6 m US$58.6 m US$5.6 m 22 enriching lives through innovating the resourc
Slide 23: Multi Commodity Revenue Stream
MULTI COMMODITY REVENUE STREAM Agency and Manufacturing and trading consulting… 8,1% FCA REVENUE Chrome PGM 53,1% US$649.9 m 37,7% Revenue decrease of 5.3% Benefits of co-production model PGM sales of 144.0 koz Ir Au Ni Cu Specialty Average PGM basket price of US$1 893/oz grade 8,4% 1,5% 14,1% Metal
Slide 24: Unit Costs
UNIT COSTS % Units FY2023 FY2022 change Overheads 12,6% Cubes mined Mm3 15.6 20.9 (25.2) Labour Cost per cube mined* US$/m3 10.4 8.5 22.1 16,5% Reef tonnes mined Mt 4.2 5.5 (24.1) Mining Cost per reef tonne mined* US$/t 38.8 32.4 19.9 ON MINE CASH 24,6% Consumables COSTS Tonnes milled Mt 5.4 5.6 (3.
Slide 25: Robust Gross Profit
ROBUST GROSS PROFIT GROSS PROFIT AND MARGIN (US$ m) 34,8% 35,8% 35,0% 250 ,0 32,1% US$153.3 m 245,7 23,6% 25,0% 200 ,0 Gross profit decrease of 37.6% 207,4 17,7% 15,0% 150 ,0 153,3 Weakening ZAR to US$ exchange rate of 15.2% partially offset 130,4 5,0% 100 ,0 inflation Robust gross profit margins de
Slide 26: Earnings Stack Up
EARNINGS STACK UP 26 enriching lives through innovating the resources company of the future
Slide 27: Investing in the Future
INVESTING IN THE FUTURE Other Land and buildings US$2,2 m US$1,6 m R+D and innovation US$3,5 m US$97.1 m Total capital spent Deferred stripping US$4,4 m Sustainable operations enabled by continued investment in asset base FY2023 CAPITAL Includes US$46.3 m capital spent on Karo Platinum for FY2023 SP
Slide 28: Balance Sheet
14.1% BALANCE SHEET NAV GROWTH US$269.0 m Leases Cash and cash equivalents* 1,9% Cash generative despite inflationary pressures Bond 19,5% Net cash flow from operations of US$142.6 m Net cash of US$129.4 m* DEBT US$139.7 m Asset backed Total debt facilities 23,0% Short term US$63.3 m Term loan 55,6%
Slide 29: Returns to Shareholders
6.5% RETURNS TO SHAREHOLDERS DIVIDEND YIELD 20,5% 15, 0 US 5 cents 20,0% 19,2% 18,5% 13, 0 Proposed total annual dividend 17,8% 17,7% 17,3% 18,0% 17,1% 16,3% 11, 0 16,0% 9,0 17.3% of NPAT 14,0% 9,0 Policy minimum of 15% of NPAT 7,0 12,0% 7,0 5,0 10,0% 5,0 5,0 4,0 3,0 US$97.6 m 8,0% 1,0 3,5 0,8 1,0 6
Slide 30: Karo Mining Holdings
KARO MINING HOLDINGS
Slide 31: Karo Locality
KARO LOCALITY Hartley Platinum Zimplats 589 kozpa Karo Platinum Resource of 9.97 Moz (6E) 6E grade of 2.04 g/t Ngezi Mine 194 kozpa Unki Mine 205 kozpa Mimosa Mine 246 kozpa 31 enriching lives through innovating the resources company of the future
Slide 32: Karo Project
KARO PROJECT CYPRUS PROJECT METRICS Tharisa Tier one asset, first phase under construction 75% First phase are open pits, producing ~200 kozpa with significant base metal credits Earthworks complete, pilot open pit mining and first concrete June 2023 IMPACT 25% Medway Developments One LTI to
Slide 33: Karo Project Update
KARO PROJECT UPDATE Macro and PGM price environment necessitated a review of project timeline with first ore in mill planned for June 2025 Extended programme has allowed for technical enhancements, plant optimisation and value engineering Increased throughput of plant by ~10% Additional base
Slide 34: Innovation
INNOVATION sr)
Slide 35: An Ethos of Innovation
US$12.8 m AN ETHOS OF INNOVATION PPE INVESTED TO DATE ARXO METALS BENEFICIATION SITE Commercial operations for PGM smelting Feasibility of full scale operations Demonstration scale testing of other initiatives ARXO METALS TECHNOLOGY DEVELOPMENT CENTRE Facility to run laboratory and pilot sca
Slide 36: Decarbonisation
DECARBONISATION COMMITMENT Reduction of 30% in carbon footprint by 2030 Carbon net neutral by 2050 BUFFELSPOORT SOLAR PROJECT 40 MW of solar energy for Tharisa Minerals operations Reducing Scope 2 emissions by +30% (+80 000 tCO2e per year) Developing with partners TotalEnergies, Chariot Tr
Slide 37: Mine to Megawatt
MINE TO MEGAWATT DECARBONISATION CIRCULAR ECONOMY PGMS CHROME PATHWAYS Producing lower carbon Catalytic properties Stainless steel requirement in Electrification (solar renewable energy generation minerals Slower BEV uptake, hybrid project) All metals will be in demand solutions increase
Slide 38: Redox One
REDOX ONE PIONEERING SUSTAINABLE ENERGY SOLUTIONS Safe, innovative, cost-effective power storage solutions Iron chromium redox flow battery technology Mine to megawatt strategy PROVEN TRACK RECORD Refined and proven over time, pioneered by NASA in 1970s Technology is proven and demonstrate
Slide 39: Guidance & Value Proposition
GUIDANCE & VALUE PROPOSITION
Slide 40: Guidance
GUIDANCE FY2024 GUIDANCE PGMs (6E basis) of 145 koz to 155 koz Chrome concentrates of 1.7 Mt to 1.8 Mt Karo Platinum − Project extended by 12 months FOIM June 2025* − ECIC supported funding in process *subject to funding and market conditions 40 enriching lives through innovating the resources
Slide 41: Value Proposition
0.3 x 2.9 x VALUE PROPOSITION P/NAV P/E Strategic commodities Diversification, beneficiation and energy transition Co-producer of PGMs and chrome concentrates, With the construction of our newest PGM asset at Karo mine two strategic commodities with diversified Platinum, diversifying the Company’s p
Slide 42: Corporate Insight
CORPORATE INSIGHT ~ fe) ey
Slide 43: Corporate Profile (THS:LSE THA:JSE)
CORPORATE PROFILE (THS:LSE THA:JSE) DIRECTORS OF THARISA CAPITAL STRUCTURE ANALYST COVERAGE − Loucas Christos Pouroulis (Executive Chairman) Issued shares 300.0 million Berenberg Richard Hatch BMO Raj Ray − Phoevos Pouroulis (Chief Executive Officer) Market capitalisation GBP155.2m ZAR3.9bn Investec
Slide 44: Top 20 Ultimate Parent Holders
Top 20 Ultimate Parent Holders % Shares Change in % Shares In Issue 50 Top 20 Shares Held May-23 Oct-23 In Issue % Shares In Issue May-23 40 Medway Developments Limited 123,320,006 40.75 0.00 - 40.75 % Shares In Issue 30 Rance Holdings Ltd. 38,526,509 12.73 0.00 - 12.73 20 Fujian Wuhang Stainless St
Slide 45: Questions
QUESTIONS Kgopotso Mashiane Junior Operations Metallurgist
Slide 46: Disclaimer
DISCLAIMER These Presentation Materials are for information purposes only and must not be used or relied upon for the purpose of making any investment decision or engaging in any investment activity. Whilst the information contained herein has been prepared in good faith, neither Tharisa plc (the ‘C