Tharisa Plc · JSE:THA
Tharisa — Corporate Update (October 2022)
18 slides from Tharisa's corporate update, Oct 12, 2022
Slide 1: Karo Platinum
KARO PLATINUM Wednesday 12 October 2022 Phoevos Pouroulis – CEO Tharisa plc Bernard Pryor – MD Karo Mining Holdings plc
Slide 2: FY2022 Production Results
PGM SPOT PRICE CHROME SPOT PRICE FY2022 PRODUCTION RESULTS US$2 398/oz US$215/t REEF MINED PGM PRODUCTION (5PGE+Au) CHROME CONCENTRATE PRODUCTION 5.5 Mt 179.2 koz 1.58 Mt up 2.3% up 13.6% up 5.1% stripping ratio of 12.8 m3:m3 recovery of 76.6% recovery of 68.3% (2021: 5.4 Mt) (2021: 157.8 koz) (2021
Slide 3: Karo Investment Case
KARO INVESTMENT CASE “ Capital will need to be more patient, or willing to explore new regions. ” PHOEVOS POUROULIS CEO • THARISA Enriching lives through innovating the resources company of the future
Slide 4: Continuous Investment
CONTINUOUS INVESTMENT Investment to date of US$70.3 m: 70% 30% ‒ US$4.5 m cash - acquisition of 26.8% shareholding Tharisa plc Leto Settlement ‒ US$8.0 m Phase 1 exploration capital ‒ US$3.4 m Technical studies ‒ US$25.0 m early development funding (not fully drawn) Karo Mining ‒ US$29.4 m in shar
Slide 5: Locality & Geology
LOCALITY & GEOLOGY PROPERTY LOCATION PHASED DEVELOPMENT ▪ Located in the Mashonaland West district of Zimbabwe, NEXT PHASES WILL SCALE TO ACCESS THE VAST RESOURCE AREA approximately 80 km southwest of Harare and 35 km southeast of Chegutu ▪ The project area covers 23 903 ha located on the Great Dyke
Slide 6: Historic Timeline
HISTORIC TIMELINE INVESTMENT PROJECT FRAMEWORK EXPLORATION PROGRAMME EXPLORATION EXERCISE OF FARM-IN AGREEMENT SIGNED Drilling campaign continued PROGRAMME PHASE 2 OPTION Second drilling contractor RE-COMMENCES Tharisa plc becomes majority mobilised 77 diamond core holes shareholder in Karo, upping
Slide 7: Enhanced Phase One - Key Highlights
ENCHANCED PHASE ONE - KEY HIGHLIGHTS WORLD CLASS PGM ASSET LOM OPEN PIT ANNUAL PGM PRODUCTION (6E) Tier 1 +17 years 194 koz + 0.10% Cu + 0.12% Ni (Previous: +20 years) (Previous: 150 koz) MINING LEASE FOR LOM OPEN PIT, SCALABLE, LOW COST, PHASED DEVELOPMENT TIMELINE Licenced Low risk 24 months Enric
Slide 8: Karo Project Update
KARO PROJECT UPDATE “ Developing a tier one project in this unique geological setting comes once in a lifetime ” BERNARD PRYOR MD • KARO MINING HOLDINGS Enriching lives through innovating the resources company of the future
Slide 9: ESG: Impact Investing
VALUE CONTRIBUTION ESG: IMPACT INVESTING ~2% GDP SAFETY AND ENVIRONMENTAL ▪ Four years LTI free ▪ IFC compliant ESIA approved (mining & processing) ▪ Structurally safer waste rock contained TSF independently designed KARO IN THE COMMUNITY ▪ Prioritising local recruitment and skill development ▪ Dedi
Slide 10: Project Execution
POWER AND WATER PROJECT EXECUTION BULK SUPPLY CONFIRMED ESTABLISHED ▪ Exploration completed, engineering design on schedule ▪ Pilot PGM concentrator fully operational TIMING ▪ 24-month design and construction schedule - started 1 July 2022 ▪ Mine groundbreaking planned December 2022 ▪ First ore in m
Slide 11: Project Capital Cost
PROJECT CAPITAL COST First Ore In Mill (FOIM) is scheduled for July 2024 Increased PGM production output of 22.7% to 194 kozpa The revised capital cost reflects actual price estimates as at COST TO FOIM (US$ m) H1 2022, which includes higher steel and transportation costs A 15% project conti
Slide 12: Project Economics
PROJECT ECONOMICS THE 22.7% INCREASED PGM OUTPUT IS FURTHER VALUE ACCRETIVE FOR THE THARISA GROUP Throughput 205 ktpm PROJECT VALUE INCLUDING IN SITU INFERRED RESOURCE Production 194 kozpa LOM 17 years US$686 m (Reserves M&I) ROM grade 3.0 6E g/t (average)* NET PRESENT VALUE10% EXCLUDING IN SITU INF
Slide 13: Karo Platinum Funding
KARO PLATINUM FUNDING “ Price is what you pay, value is what you get. WARREN BUFFET ” Enriching lives through innovating the resources company of the future
Slide 14: Karo Platinum Funding
KARO PLATINUM FUNDING Multiple funding streams with different timing requirements Partial leverage of existing assets – ~US$130 m Syndicated Loan with senior project finance facility with a political and commercial insurance wrap (ECIC) – ~US$260 m VFEX bond listing – targeting US$50 m ‒ Tha
Slide 15: Karo + Tharisa = Key Future Supply
KARO + THARISA = KEY FUTURE SUPPLY KARO THARISA COMPARISON UNIT LOM OPEN PIT FROM EACH OPERATION PHASE 1* OPEN PIT** +17 years Open pit LOM years 17 20 Resource ounces 4E Moz 96.4 31.1 REEF MINED PER ANNUM Reserve Mt 35.5 94.2 +7.5 Mt Reserve ounces 4E Moz 2.5 3.3 PGM production^ kozpa 194 200 PGMS
Slide 16: Delivering on Our Strategy
DELIVERING ON OUR STRATEGY ▪ Strategic second Tier 1 PGM resource for Tharisa Group Expand and roll out ▪ Initial open pit resource of 152.1 Mt and 9.97 Moz (6E) and reserve of 35.5 Mt and 2.6 Moz (6E) the business sustainably ▪ Phase 1 operations planned with ability to increase scale further ▪ Pro
Slide 17: Questions
QUESTIONS Enriching lives through innovating the resources company of the future 17
Slide 18: 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