Tharisa Plc · JSE:THA
Tharisa — Proactive One2One Virtual Forum (February 2021)
18 slides from Tharisa's conference presentation, Feb 18, 2021
Slide 1: This is Tharisa
THIS IS THARISA February 2021 INVESTING IN SUSTAINABILITY THS:LSE • THA:JSE Proactive One2One Virtual Forum
Slide 2: Who We Are
859.58 Mt in • 42.79 Moz in contained WHO WE ARE mineral resource* • 6PGE+Au* 172 Mt in contained Cr2O3* • Leading PGM and chrome co-producer • 14 year LOM open pit located in the heart of PGM and chrome country • Close to infrastructure, road, rail and power • Tharisa is a product of the new mining
Slide 3: Safety and Sustainability
SAFETY AND SUSTAINABILITY LTFIR FATALITY FREE YEARS ACHIEVEMENTS 0.09 5+ 4 million Fatality Free Shifts Tharisa Minerals - achieved: 19 June 2020 Lost Time Injury Frequency Rate Achieved: 28 September 2020 30 September 2020 365 days LTI free Mining Production and Genesis Plant 5 years LTI free Thari
Slide 4: Positioning Tharisa
POSITIONING THARISA • Sixth largest listed South African PGM producer • Fourth largest South African Chrome Producer ‒ 142 100 ounces per annum of PGM ‒ 1 344 800 tonnes of chrome per annum Tharisa position in terms of global demand ‒ Provides China with 10% of all its chrome concentrate ‒ ~1.3% o
Slide 5: FY2020 Highlights
FY2020 CHROME PRICE FY2020 PGM BASKET PRICE SPOT CHROME PRICE SPOT PGM BASKET PRICE FY2020 HIGHLIGHTS US$140/t US$1 704/oz ~US$165/t ~US$3 500/oz REEF MINED PGM PRODUCTION CHROME CONCENTRATE PRODUCTION (5PGE+Au) 4.97 Mt 142.1 koz 1.34 Mt up 7.6% up 1.7% up 3.9% (2019: 4.62 Mt) (2019: 139.7 koz) (201
Slide 6: FY2021 Q1 Production
SPOT CHROME PRICE SPOT PGM BASKET PRICE FY2021 Q1 PRODUCTION LTIFR 0.08 / 200 000 hours ~US$ 165/t ~US$3 500/oz Concluded a four-year Collective Wage Agreement until 30 June 2024 PRODUCTION 1 500 000 PGM production up 14.2% YoY 1 340 000 Chrome concentrate production (excluding third party) up
Slide 7: Sustainable Business
SUSTAINABLE BUSINESS CO-PRODUCT AND HEALTHY CASH CONTINUED ROBUST BALANCE LIQUIDITY EXCHANGE RATE GENERATION INVESTMENT SHEET MANAGEMENT BENEFITS Multiple revenue streams Exposure to the right Investment in SHE, Low gearing Capital discipline coupled with US$ commodities coupled people, infrastructu
Slide 8: Committed to Dividends
COMMITTED TO DIVIDENDS Committed to capital discipline CONSISTENT DIVIDEND PAYER (US$ m) Dividend of US 3.5 cents per share = 17.1% of NPAT 20.5% Minimum of 15% of annual NPAT 7 19.2% 17.8% 17.1% Capex commitments taken into considerations 6 16.3% 5 5.0 4 4.0 3.5 3 2 0.75 1 1.0 0 -5.0% FY201
Slide 9: Positioning Tharisa
POSITIONING THARISA
Slide 10: Prill Split Value on a 4E Basis
PRILL SPLIT VALUE ON A 4E BASIS Source: Investec, (1) Jan22, 2021 (2) Based on analyst estimates as of Q4 2020 Enriching lives through innovating the resources company of the future 10
Slide 11: Turning Production into Cash Flow
TURNING PRODUCTION INTO CASH FLOW FREE CASH FLOW YIELD EBITDA MARGIN (%) 50 45 43.5 40 41 35 30 25 20 20.4 15 13.9 13.3 10 5 5.3 3.7 2.7 1.5 0 2015 2016 2017 2018 2019 2020 2021/Spot 2022 2023 SA PGM peers Avg 2005-2020 Tharisa • Rising exposure to FCF yield over next 3 years • Strong EBITDA margins
Slide 12: A Look at Valuation
A LOOK AT VALUATION POTENTIAL SHARE PRICE UPSIDE AT SPOT EARNINGS GROWTH CY20-21E 250% 250% 234% 200% 191% 200% 165% 160% 157% 148% 140% 150% 138% 150% 125% 107% 100% 87% 100% 78% 65% 48% 50% 50% 0% 0% Tharisa Amplats Northam RBPlat Nornickel Sibanye Implats Sibanye Tharisa RBPlat Nornickel Northam
Slide 13: Our Commodities
OUR COMMODITIES PGMs CHROME Structural deficit driven by supply constraint and real demand Chrome is irreplaceable and makes steel stainless Timing of new projects Concentrated supply with 80% from South Africa Pd and Pt substitution increasing, Rh extremely difficult to substitute D
Slide 14: Headwinds from Deep Mines to Meet Growing Rhodium Demand
HEADWINDS FROM DEEP MINES TO MEET GROWING RHODIUM DEMAND PRIMARY DEMAND OUTSTRIPPED BY PRIMARY SUPPLY RHODIUM AUTOCATALYST DEMAND Source: HSBC, JM Enriching lives through innovating the resources company of the future 14
Slide 15: Palladium and Platinum Outlook
PALLADIUM AND PLATINUM OUTLOOK PALLADIUM PLATINUM GROSS DEMAND (2020) GROSS DEMAND (2020) Autocatalyst Jewellery Industrial Autocatalyst Jewellery Industrial Investment 85.8% 0.9% 15.1% 32.1% 22.5% 31.9% 13.1% 2020 net demand 6 773oz 2020 primary supply 6 176oz Continuing shortages filled by r
Slide 16: Chrome – Vital for Stainless Steel
CHROME – VITAL FOR STAINLESS STEEL Chrome is what makes steel stainless South Africa hosts 72% of the global chrome reserves Assuming a 5% CAGR in stainless steel: GLOBAL STAINLESS STEEL CAGR +5.0% ADDITIONAL STAINLESS STEEL 2.7 Mtpa ADDITIONAL FERROCHROME Roskill ores and concentrates price f
Slide 17: Questions and Answers
QUESTIONS AND ANSWERS Expand and roll out our business sustainably Further optimise our existing operations Continue to invest in innovative thinking Become a global and diversified business Be the investment of choice in our chosen sector Responsibly enriching the lives of all of our st
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
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