Slide 1: Media Visit January 2018
tharisa MEDIA VISIT January 2018
Slide 2: 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
Slide 3: Welcome
WELCOME ① Welcome ② Introduction ③ Mining ④ Processing ⑤ Markets ⑥ Outlook ⑦ Sustainability 3
Slide 4: Introduction
Sd thar INTRODUCTION
Slide 5: Tharisa's Journey
THARISA’S JOURNEY DISCOVERING DEVELOPING DELIVERING 2004 2006 2008 2009 2011 2012 2013 2014 2016 2017 PROSPECTING PROSPECTING MINING FIRST GENESIS VOYAGER CHALLENGER LISTED ON JSE LISTED ON LSE RECORD RIGHTS RIGHTS RIGHTS CHROME PLANT PLANT PLANT FINANCIAL AND APPLICATIONS GRANTED GRANTED CONCENTRAT
Slide 6: The Group at a Glance
THE GROUP AT A GLANCE THARISA MINERALS 74% Tharisa BEE Minerals 26% (South Africa) (South Africa) RESOURCE MINING PROCESSING 867.5 Mt resource 17 year open pit LOM 400 ktpm nameplate capacity Arxo Resources Arxo Metals 97.0 Mt reserve of which 78.3 Mt 40 year underground extension Genesis Plant (100
Slide 7: FY2017 Highlights
Chrome concentrate PGM basket price FY2017 HIGHLIGHTS US$786 price (42% CIF China) US$200 REEF MINED PGM PRODUCTION CHROME CONCENTRATE SPECIALTY GRADE CHROME PRODUCTION PRODUCTION ↑3.9% ↑8.3% ↑7.0% ↑19.9% 5.0 Mt 143.6 koz 1.3 Mt 323.1 kt (2016: 4.8 Mt) (2016: 132.6 koz) (2016: 1.2 Mt) (2016: 269.4 k
Slide 8: Safety
SAFETY SAFETY AND HEALTH A PRIORITY COMPARATIVE LTIFR RATE Safety remains a priority of management and all employees 25.00 – we strive for zero harm As at 31 December, Tharisa Minerals achieved 15 156 588 20.00 fatality free hours and 1 714 765 fatality free shifts During 2017 Tharisa Minerals
Slide 9: Mining
tharisa MINING
Slide 10: Mining
MINING LOCATED IN THE MAIN PGM AND CHROME PRODUCING AREA IN SOUTH AFRICA ▪ Mining rights over 5 475 ha ▪ Adjacent to Sibanye Platinum, Lonmin, Impala Platinum, Samancor Chrome ▪ Well serviced by road, rail, power and other services ▪ Neighbouring towns are Brits (45 km) and Rustenburg (35 km) 10
Slide 11: Mining: Resources and Reserves
MINING RESOURCES AND RESERVES GENERALISED CROSS SECTION SHOWING THE MG CHROMITITE LAYERS AT PLANNED DEPTH Mining rate of 5.0 Mtpa with an average Bench = 20m stripping ratio of 9.6 (m3:m3 basis) MINERAL RESOURCE 200m ▪ 867.5 Mt Reef dip east: 9-12° Reef dip west: 14-18° 53 ° ▪ 1.59 g/t 6PGE+Au 5.5 k
Slide 12: Stratigraphy of Bushveld Complex
STRATIGRAPHY OF BUSHVELD COMPLEX 200m 53 ° 12
Slide 13: Geology
GEOLOGY GEOLOGY MG REEF STRATIGRAPHY The MG reef package is classified into six chromitite layers – MG0, MG1, MG2, MG3, MG4, MG4A Partings are generally anorthosite, pyroxenite or norite Reef package varies from 50 m in the west to 74 m in the east (incl. partings) PGMs are concentrated in t
Slide 14: Owner Mining Transition
Targeting rougher feed OWNER MINING TRANSITION grade of 1.7 g/t INSOURCING INHOUSE effective 1 October 2017 Mining Expertise Drilling Plant and Skills equipment Purchased yellow fleet, infrastructure and Transferred Mine management components ~900 mining employees Geologists Estimated fleet replacem
Slide 15: Mining Highlights
LOM ↑2.2% MINING HIGHLIGHTS 17 years open pit 40 year u/g extension LOM stripping ratio 9.6 KEY OPERATIONAL METRICS REEF MINED Mtpa 4.8 5.0 Q1 FY2018 FY2017 FY2016 4.2 3.9 Reef mined kt 1 245.3 5 025.1 4 837.2 3.3 Stripping ratio m3:m3 7.8 7.5 7.3 PGM rougher feed grade g/t 1.49 1.56 1.65 Chrome gra
Slide 16: Processing
tharisa PROCESSING
Slide 17: Innovative Approach
INNOVATIVE APPROACH SPIRALS 4 (@) DISPATCH CRUSHING FLOTATION oi aS ON TAILINGS \ DISPATCH <— SECONDARY er MILLING tharisa D
Slide 18: Processing Plants
PROCESSING PLANTS GENESIS PLANT EXTRACTING MORE OUT OF EACH TONNE Capacity: 100 ktpm ROM 84.30% 79.70% Processes reef layers with lower 65.80% 69.90% PGM and higher chromite grades Challenger Plant recovers high value foundry grade and chemical grade chrome concentrates PGM Recoveries FY2015 F
Slide 19: Processing Highlights
↑2.2% PROCESSING HIGHLIGHTS KEY OPERATIONAL METRICS PGM PRODUCTION CHROME PRODUCTION kozpa Mtpa 1.3 143.6 50.0% Q1 FY2018 FY2017 FY2016 140 0 132.6 1.2 1.2 118.0 120 0 1.1 1.1 45.0% ROM processed kt 1 310.2 4 916.2 4 656.3 100 0 40.0% 35.0% 78.2 30.0% PGM recovery % 84.3 79.7 69.9 800 57.4 24.3% 25.
Slide 20: Markets
MARKETS
Slide 21: PGM Market
PGM MARKET PLATINUM DEMAND AND SUPPLY PLATINUM, PALLADIUM AND RHODIUM MARKET PRICES [US$/oz] ▪ Demand driven by the auto catalyst, jewellery, industrial and 2000 1800 investment sectors 1600 1400 ▪ Both primary and secondary sources of supply seen decreasing 1200 1000 ▪ Primary supply weaker in 2017
Slide 22: Chrome Market
THARISA PROPORTION OF SOUTH SPECIALTY CIF EQUIVALENT BASIS CHROME MARKET +US$50/t premium AFRICAN EXPORTS TO CHINA ~10.9% DEMAND AND SUPPLY METALLURGICAL GRADE CHROME PRICE / PORT STOCK ▪ Demand for metallurgical grade chrome concentrate is driven by its 450 300 400 use in the manufacture of stainle
Slide 23: Chrome Market Fundamentals
CHROME MARKET FUNDAMENTALS TRENDS DRIVING STAINLESS STEEL DEMAND GLOBAL CRUDE STAINLESS STEEL PRODUCTION [Mt] URBANISATION 47.6 Sustainability Urbanisation DRIVING 45.8 DEMAND Energy and climate 41.6 Clean water STAINLESS STEEL 2015 2016 2017(f) GLOBAL FERROCHROME PRODUCTION GLOBAL CHROME PRODUCTION
Slide 24: Stainless Steel
STAINLESS STEEL DEMAND CORRELATION TO PRODUCE ONE TONNE OF FERROCHROME CHROME ORE FERROCHROME STAINLESS STEEL 2.5 tonnes 1 tonne 4 tonnes TO PRODUCE ONE TONNE OF STAINLESS STEEL STAINLESS CHROME ORE FERROCHROME STEEL 0.6 tonnes 0.25 tonne 1 tonne TYPICAL STAINLESS STEEL COMPOSITION USES OF STAINLESS
Slide 25: Outlook
OUTLOOK
Slide 26: Value Add Initiatives FY2017
VALUE ADD INITIATIVES FY2017 SUPPLYING TISCO JV THIRD PARTY CHROME PGM RICH ALLOY One of the largest stainless steel producers Arxo Metals entered into an Commissioned 1 MW DC furnace to Five year strategic cooperation agreement with Western Platinum produce PGM rich alloy on a pilot agreeme
Slide 27: Our Strategic Plan
OUR STRATEGIC PLAN Medium Longer term Short term term Improved quality mining Grow production profile Greenfields opportunities volumes and grades Vision 2020 = Value-accretive Maintaining and increasing 200 kozpa of PGMs + acquisitions PGM and chrome recoveries 2 Mtpa of chrome concentrates Seek va
Slide 28: Vision 2020
VISION 2020 Improvements in grade – Owner mining model FY2018 FY2017 2020 Crusher upgrade – Genesis Plant PGM flotation upgrade – Voyager Plant OPTIMISATION Actual – Guidance – ROM of 5.0 Mtpa ROM of 5.0 Mtpa NEW PLANTS Targeting – PGMs of 143.6 PGMs of 150.0 ROM of 5.9 Mtpa kozpa kozpa Vulcan plant
Slide 29: Optimisation Projects
OPTIMISATION PROJECTS CRUSHER UPGRADE – GENESIS Upgrade of crushing stage at Genesis Plant PGM OPTIMISATION - VOYAGER Increase Genesis Plant throughput by 15%, Additional flash flotation and scavenger with high ~180 ktpa energy mechanisms to improve recovery at the Potential to increase chem
Slide 30: New Plants
NEW PLANTS APOLLO CHROME AND PGM PLANT Design and build an independent chrome plant VULCAN FINE CHROME RECOVERY PLANT with PGM flotation plant aimed at production of Additional recovery of fine chrome from tailings chrome concentrate from UG1 ore and streams additional MG reef horizons Proprie
Slide 31: Vision 2020
VISION 2020 PGM % contribution 2020 3.6 FY2017 FY2018 22.7 Adding 64.0 9.7 61.8 kozpa Crusher Upgrade Chrome % contribution PGM Optimization 7.0 Apollo Plant Actual – Guidance - 29.9 Targeting - ROM of ROM of Improved Mining Grades Adding ROM of 5.0 Mtpa 5.0 Mtpa 602.0 ktpa 5.9 Mtpa PGMs of PGMs of
Slide 32: Delivering on Our Strategy
DELIVERING ON OUR STRATEGY LEVERAGING LEADING NATURAL OPTIMISATION INNOVATION MARKETING AND CAPITAL DISCIPLINE RESOURCES GROUP INITIATIVES LOGISTICS PLATFORM Globally significant diversified Growth through innovative Maximise value extraction Marketing, sales and logistics Dividend policy of 15% NPA
Slide 33: Sustainability
S U S TA I N A B I L I T Y
Slide 34: Sustainability
SUSTAINABILITY THUSANANG WELLNESS PROGRAMME ▪ TB programme ▪ HIV/AIDS programme ▪ Cancer awareness programme ▪ Wellness days ▪ Peer educator programme COMMUNITY PROJECTS ▪ Support of community SMME – Rocasize ‒ Garden services ‒ Brick making ‒ Clothing and personal protective equipment ▪ Retief Prim
Slide 35: Sustainability
SUSTAINABILITY ENVIRONMENT ▪ Subscribe to the Equator Principles ▪ Environmental monitoring plan ▪ Environmental rehabilitation provision of US$13.7M LABOUR RELATIONS ▪ No labour disruptions during the year ▪ Transferred ~900 employees from previous mining contractor post the financial year end ▪ Th
Slide 36: HIV/AIDS in South Africa
HIV/AIDS IN SOUTH AFRICA • South Africa has the highest HIV epidemic profile in the world, with an estimated 7.1 million people living with HIV in 2016. One third of all new infections in 2016 were in one country: South Africa. • In the same year, there were 270 000 new infections while 110 000 Sout
Slide 37: Thusanang Wellness Programme
THUSANANG WELLNESS PROGRAMME The Employee Wellness Programme recognises that short-term personal psychological related problems that may adversely affect an employee’s wellbeing and ability to function at work. Involvement in the program will not jeopardise an employee’s job security, compensation,
Slide 38: Successful Wellness Intervention
SUCCESSFUL WELLNESS INTERVENTION Fun Run and Walk World AIDS Day Fun Run and Walk Wellness Day Prostate and Cervical Cancer screening CANSA Relay Cup Soup Day Biggest Loser Challenge 38
Slide 39: Thank You
THANK YOU tharisa
Slide 40: Contact
CONTACT Investor Relations contact: Sherilee Lakmidas D: +27 11 996 3547 M: +27 76 276 2529 slakmidas@tharisa.com Financial PR contacts: Buchanan +44(0) 20 7466 5000 tharisa@buchanan.uk.com 40