Slide 1: FY2023 results presentation
FY2023 results presentation 14 DECEMBER 2023
Slide 2: 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 3: 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 3 enriching lives through innovating the resources company of the future ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 4: Resilient business model: 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 5: FY2023 Highlights: Safety is a core value
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 5 enriching lives through innovating the resources company of the future
Slide 6: FY2023 Highlights: Sustainable extraction - long life assets
FY2023 HIGHLIGHTS SUSTAINABLE EXTRACTION - LONG LIFE ASSETS Tharisa Minerals Reef tonnes mined of 4.2 Mt, down 24.1% Reef milled of 5.4 Mt, down 3.5% PGM production of 144.7 koz, down 19.3% Chrome production of 1 580.1 kt, down 0.2% Karo Platinum Pilot mining commenced in June 2023, which
Slide 7: 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 8: 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 8 enriching lives through innovating the resource
Slide 9: The Vital Numbers
US$1 893/oz US$263/t THE VITAL NUMBERS 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 ACTIVIT
Slide 10: Strategy
STRATEGY x on, 3 - See e ete
Slide 11: 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 12: 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 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: Commodities: PGMs
US$1 404/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 21: Commodities: Chrome
US$285/t COMMODITIES SPOT MET GRADE PRICE METALLURGICAL GRADE PRICE AND PORT STOCKS (US$/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 22: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 23: 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 24: 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$1 893/oz grade 8,4% 1,5% 14,1% Metal
Slide 25: Unit Costs
UNIT COSTS % Units FY2023 FY2022 change Overheads 12,6% Cubes mined Mm3 15.6 20.9 (25.2) Labour Cost per cube mined* US$/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$/t 38.8 32.4 19.9 ON MINE CASH 24,6% Consumables COSTS Tonnes milled Mt 5.4 5.6 (3.
Slide 26: Robust Gross Profit
ROBUST GROSS PROFIT GROSS PROFIT AND MARGIN (US$ 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 27: Earnings Stack Up
EARNINGS STACK UP 27 enriching lives through innovating the resources company of the future ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 28: 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 29: 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$148.3 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 30: 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 31: Guidance & Value Proposition
GUIDANCE & VALUE PROPOSITION
Slide 32: 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 32 enriching lives through innovating the resources
Slide 33: Comparable
COMPARABLE P/E EV/EBITDA 18,0 8,2 13,9 12,2 4,1 6,8 3,3 5,6 4,6 2,1 2,9 2,0 0,9 1,5 Tharisa SSW SPL APL IMP JLP NTH Tharisa IMP SLP SSW NTH APL JPL P/Book value 2,1 1,4 1,1 0,9 0,7 0,4 0,5 Tharisa IMP SSW JPL SLP NTH APL Source: CapIQ 33 enriching lives through innovating the resources company of th
Slide 34: 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 35: Questions
QUESTIONS Kgopotso Mashiane Junior Operations Metallurgist
Slide 36: 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