Slide 1: Profitable Low Cost Co-Producer – PGMs and Chrome
PROFITABLE LOW COST CO-PRODUCER – PGMS AND CHROME OCTOBER 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: Tharisa Market Information
THARISA MARKET INFORMATION MID TIER OPEN PIT PGM AND CHROME CONCENTRATE CO-PRODUCER WITH AN INTEGRATED MARKETING, SALES, AND LOGISTICS PLATFORM ONE YEAR PERFORMANCE (4 OCTOBER 2018) JSE: THA LSE: THS THA Price ZAR17.50 GBp95.0 High ZAR24.00 GBp143.0 Low ZAR15.50 GBp86.00 Market capitalisation ZAR4.6
Slide 4: Tharisa – An Overview
THARISA – AN OVERVIEW THARISA MINERALS 74% Tharisa Minerals (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 ktpm) Tharisa plc 100%
Slide 5: Tharisa – An Overview
THARISA – AN OVERVIEW THARISA MINERALS 74% Tharisa Minerals (South Africa) RESOURCE PROCESSING MINING 867.5 Mt resource 400 ktpm nameplate capacity 17 year open pit LOM 97.0 Mt reserve of which 78.3 Mt Genesis Plant (100 ktpm) 40 year underground extension open pit Voyager Plant (300 ktpm) 100% 100%
Slide 6: Tharisa – An Overview
THARISA – AN OVERVIEW ARXO METALS ARXO RESOURCES / PROJECTS CUSTOMERS ARXO LOGISTICS MARKETING AND SALES Significant trader of chrome BENEFICIATION AGREEMENTS concentrates to China Production of specialty grade PGM offtake– Impala Platinum and Third party trading ZIMBABWE chrome concentrates Lonmin
Slide 7: H1 Financial and FY Production Highlights
SPECIALTY GRADE CHROME H1 FINANCIAL AND FY PRODUCTION FY2018 HIGHLIGHTS 367.7 kt (FY2017: 323.1 kt) ↑ 13.8% REEF MINED REEF MILLED PGM PRODUCTION CHROME PRODUCTION ↑ 3.9% ↑ 6.0% ↑ 8.8% 4.9 Mt 5.1 Mt 152.2 koz 1.4 Mt (FY2017: 5.0 Mt) (FY2017: 4.9 Mt) (FY2017: 143.6 koz) (FY2017: 1.3 Mt) REVENUE EBITD
Slide 8: Highlights
H1 AVERAGE PGM PRICE H1 42% CHROME PRICE (CIF CHINA) FY AVERAGE PGM PRICE FY 42% CHROME PRICE (CIF CHINA) HIGHLIGHTS US$909/oz ↑ 19.6% (H1 FY2017: US$760/oz) US$193/t ↓ 30.6% (H1 FY2017: US$278/t) US$923/oz (FY2017: US$786/oz) ↑ 17.4% US$186/t (FY2017: US$200/t) ↓ 7.0% ↑66.7% GROUP REVENUE EBITDA HE
Slide 9: Production Highlights
FY2019 PGM PRODUCTION FY2019 CHROME PRODUCTION PRODUCTION HIGHLIGHTS GUIDANCE 160.0 koz GUIDANCE 1.5 Mt PGM PRODUCTION PGM RECOVERIES kozpa 200.0 84.1% 85.0% 143.6 152.5 79.7% 132.6 69.9% 118.0 65.8% 78.2 FY2014 FY2015 FY2016 FY2017 FY2018 Vision 2020 FY2015 FY2016 FY2017 FY2018 Vision 2020 CHROME P
Slide 10: Growth Opportunities – Vision 2020 & Zimbabwe
GROWTH OPPORTUNITIES – VISION 2020 & ZIMBABWE Improvements in grade – Owner mining model FY2018 FY2019 2020 Crusher upgrade – Genesis Plant PGM flotation upgrade – Voyager Plant OPTIMISATION Actual – Guidance – NEW PLANTS Targeting – ROM of 4.9 Mtpa ROM of 5.2 Mtpa ROM of 5.9 Mtpa PGMs of 152.2 kozp
Slide 11: Growth Opportunities – Vision 2020 & Zimbabwe
GROWTH OPPORTUNITIES – VISION 2020 & ZIMBABWE Snakes Head DIVERSIFICATION PRODUCT FROM SINGLE ASSET EXPANSION HIGHLY FURTHER PROSPECTIVE GROWTH AREA Hartley Platinum Mine Resource of 28.2 Moz (4E) Harare OPPORTUNITIES 4E grade of 4.03 gpt Karo Platinum Estimated 96 Moz (4E) Karo Salene Ngezi Mine 4E
Slide 12: Balancing Growth Opportunities
BALANCING GROWTH OPPORTUNITIES PROVEN TRACK RECORD OF GREENFIELD DEVELOPMENT EXISTING OPERATIONS CAPITAL DISCIPLINE EXPLORATION Stability and productivity Dividend policy unchanged Replicate innovative Maximise value extraction Projects are assessed approach to Tharisa in a from existing a
Slide 13: Investment Case
LOW COST PROFITABLE RAND HEDGE INVESTMENT CASE CO-PRODUCER INVESTMENT UPSIDE VALUE GROWTH POTENTIAL PE RATIO (4 OCTOBER 2018) EV/EBITDA 20.7 39.8 19.4 19.8 18.8 13.1 13.0 9.4 11.3 8.5 8.1 7.7 6.9 5.5 4.6 5.1 3.2 Royal BHP Anglo Glencore South 32 Anglo Tharisa Pan Sibanye Assore Bauba Merafe Lonmin I
Slide 14: Capital Discipline
CAPITAL DISCIPLINE DIVIDEND POLICY TO DISTRIBUTE AT LEAST 15% OF ANNUAL NET PROFIT AFTER TAX DIVIDENDS DECLARED DIVIDEND YIELD (US cents per share) 10.9% 5 6.4% 5.5% 5.3% 5.0% 4.2% 3.9% 3.4% 2 1.6% 1 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Merafe Assore Pan African Tharisa BHP Biliton Glencore Anglo South 32
Slide 15: 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 Innovative research and Maximise value extraction Marketing, sales and logistics Dividend policy of minimum l