Tharisa Plc · JSE:THA
Tharisa — H1 FY2022 Earnings Presentation
19 slides from Tharisa's earnings presentation, May 26, 2022
Slide 1: FY2022 Interim Results Presentation
FY2022 INTERIM RESULTS PRESENTATION Strategic growth diversification supported by strong operating and financial performance 26 May 2022
Slide 2: H1 FY2022 Highlights
tharisa H1 FY2022 HIGHLIGHTS
Slide 3: Highlights
HIGHLIGHTS OPERATIONAL PERFORMANCE LEADS TO STRONG CASH GENERATION LTIFR of 0.72 per 200 000 man hours worked Continued growth in PGM and quality chrome production Vulcan Plant ramping up to nameplate capacity EBITDA of US$111.3 m Positive net cash position of US$26.9 m; cash on hand US$10
Slide 4: The Vital Numbers
THE VITAL NUMBERS REEF MINED PGM PRODUCTION (5PGE+Au) CHROME CONCENTRATE PRODUCTION 2.83 Mt 91.8 koz 776.7 kt up 14.6% up 22.2% up 6.3% stripping ratio of 11.9 m3:m3 recovery of 77.4% recovery of 66.7% (2021: 2.47 Mt) (2021: 75.1 koz) (2021: 730.7 kt) REVENUE EBITDA PROFIT BEFORE TAX US$334.0 m US$1
Slide 5: Our Commodities
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Slide 6: Sustainable Commodities into the Future
SUSTAINABLE COMMODITIES INTO THE FUTURE Long-term fundamentals of the Hydrogen economy continues Global stainless steel market Active R&D projects have PGM industry remain robust to advance and see continued demand continues and there are advanced underpinning growth driven by continued demand inves
Slide 7: Operating and Financial Highlights
OPERATING AND FINANCIAL HIGHLIGHTS
Slide 8: Mining and Production
MINING AND PRODUCTION Mining volume increased 12.0% to 2.8 Mt ROM Reef milled 2.8 Mt Planned stripping ratio continues to provide pit flexibility Strong focus on feed grade improvements ‒ PGM rougher feed grade up 22.5% to 1.74 g/t ‒ PGM output up 22.2% to 91.8 koz Vulcan Plant to benefit
Slide 9: Revenue and Gross Profit
REVENUE AND GROSS PROFIT Agency and trading Manufacturing Revenue up 6.5% to US$334.0 m and consulting 4.2% 0.7% ‒ PGM sales volumes at 86.5 koz ‒ PGM basket price down 8.2% to US$2 592/oz H1 FY2022 ‒ Chromes sales volumes at 816.4 kt FCA REVENUE*(%) ‒ Met chrome price up 20.7% to US$175/t Gross
Slide 10: Unit Costs
UNIT COSTS Overheads 11.7% Labour Units H1 FY2022 H1 FY2021 % change 19.5% Cubes mined Mm3 10.3 8.8 +17.3 H1 FY2022 ON Cost per cube mined* US$/m3 8.7 8.6 +1.2 MINE CASH Consumables COSTS Reef tonnes mined Mt 2.8 2.5 +14.8 3.8% (%) Mining Cost per reef tonne mined US$/t 31.7 30.5 +3.9 31.9% Tonnes m
Slide 11: Strong GP Margins Despite Cost Pressures
US$:ZAR STRONG GP MARGINS DESPITE COST PRESSURES 15.3 Mining volume increased by 17.3% to 10.3 Mm3 Brent FOB price Brent Futures 140.00 Mining output increased by 12% to 2.8 Mt ROM 130.00 Vulcan Plant Commissioning 120.00 USD per barrel 110.00 ‒ Created 96 permanent new jobs 100.00 Salene Ch
Slide 12: EPS and HEPS - Benefitting from Discounted Farm-in Option
EPS AND HEPS - BENEFITTING FROM DISCOUNTED FARM-IN OPTION Profit attributable to ordinary US$88.9 m shareholders EPS and HEPS Gain on acquisition – fair value (US$33.5 m) remeasurement of 28.38% EPS HEPS shareholding 35 32.7 Gain on acquisition – gain on bargain (US$15.1) 30 purchase 25 Write-off pr
Slide 13: Cash Flow and Dividends
CASH FLOW AND DIVIDENDS Net cash flow from operations US$49.1 m Interim dividend for H1 FY2022 of US 3 cents ‒ Cash flow pre working capital movements US$121.2 m ‒ NPAT adjusted for gain on acquisition of subsidiary ‒ Increase in trade and other receivables of US$45.2 m Policy remains minimum
Slide 14: Balance Sheet and Capex
BALANCE SHEET AND CAPEX Cash and cash equivalents of US$101.5 m Funding our sustainable growth profile ‒ Increase in Caterpillar facility to US$35 m Budgeted capex for FY2022 of US$80.8 m ‒ Undrawn overdraft facility of ZAR150 m Additions to property plant & equipment US$51.1 m Total debt
Slide 15: Outlook
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Slide 16: Building on Our Foundation
BUILDING ON OUR FOUNDATION VULCAN PLANT The focus on safety and ESG remains core Technology is our enabler and our differentiator Our six strategic pillars will ensure sustainable growth KARO PLATINUM & SALENE CHROME The metals we mine will play a role in the global energy transition Delivering on o
Slide 17: Karo + Tharisa Combination
KARO + THARISA COMBINATION LOM OPEN PIT FROM EACH OPERATION KARO THARISA COMPARISON UNIT PHASE 1* OPEN PIT** 20 years Open pit LOM years 20 20 Reserve# Mt 35.5 94.2 REEF MINED PER ANNUM Reserve grade# 4E g/t 2.18 1.08 +7 Mt Reserve ounces 4E Moz 2.5 3.3 PGM production^ kozpa 150 200 PGMS PRODUCED PE
Slide 18: Optimisation and Innovation Growth Drivers
OPTIMISATION AND INNOVATION GROWTH DRIVERS Karo Platinum will double PGM output of Tharisa plc Innovation is at the core of Tharisa’s ethos Key strategic projects under R&D at AMBS Technology the key enabler for differentiation Major milestones in Tharisa’s history ‒ Tharisa Mine - MG reef
Slide 19: 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