Tharisa Plc · JSE:THA
Tharisa — Unlock the Stock July 2024
40 slides from Tharisa's conference presentation, Jul 25, 2024
Slide 1: This is Tharisa
THARISA oy ms eriansa ° tharisa? Uniaeck 8. e the Stock a
Slide 2: Why Mining, Why Now, Why Tharisa
WHY MINING • WHY NOW • WHY THARISA NOW THARISA MINING OECD forecasts that global materials Mine builders and operators “If it is not grown it is mined” demand will more than double in 2060 Multi-generational assets of strategic Critical to supply into the clean energy Significant global
Slide 3: Continued Macro Adversity
CONTINUED MACRO ADVERSITY HEADWINDS TAILWINDS COMMODITIES MACRO Co-product business model Electricity constraints in South Africa Buoyant chrome commodity market Transport infrastructure challenges Counter cyclical commodities in basket Geopolitical complexities Fundamentals for both c
Slide 4: 10 Years Listed on the JSE
10 YEARS LISTED ON THE JSE 4 enriching lives through innovating the resources company of the future
Slide 5: Q3 Production Statistics
0.03 LTIFR 0.1 LTIFR Successful US$5m Redox One Q3 PRODUCTION STATISTICS Tharisa Minerals Karo Platinum share buyback commercialisation on track REEF MILLED PGM PRODUCTION (6E) CHROME CONCENTRATE PRODUCTION 1 396.1 kt 36.9 koz 410.7 kt (Q2 2024: 1 378.5 kt) recovery of 67.3% recovery of 68.5% (Q2 20
Slide 6: 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 7: Security of Raw Material Supply Through Shallow Multigenerational Mineral Assets
39.4 Moz & 11.3 Moz 166.2 Mt IN CONTAINED PGMS (6E) IN CONTAINED CHROME Karo Platinum SECURITY OF RAW MATERIAL SUPPLY Redox One Tharisa Mine Arxo Metals Renewable Energy Centre THROUGH SHALLOW MULTIGENERATIONAL MINERAL ASSETS, ENABLED BY TECHNOLOGY AND Dortmund Victoria Falls Harare INNOVATION Arxo
Slide 8: Commodities: Chrome
US$318/t COMMODITIES SPOT MET GRADE PRICE CHROME METALLURGICAL GRADE PRICE AND PORT STOCKS (US$/t) and (Mt) No substitution for chrome in stainless steel production 310 3,5 Stainless steel demand growth for 2023 of ~5%, Chinese 3,0 300 production increased 12.6% for 2023 2,5 290 Chrome prices
Slide 9: Commodities: PGMs
US$1 381/oz COMMODITIES SPOT PGM BASKET PRICE Ru Ir Ru 14,4% 1,9% 4,2% Au PGMS Ir 4,4% 8,0% Rh Primary supply reduction should be main catalyst for PGM price Au 4,3% 0,2% increases THARISA KARO Pt MINERALS PLATINUM 42,0% Rh Recycling less of a supply contributor as vehicle ownership periods 9,9%
Slide 10: Tharisa Minerals
THARISA MINERALS UNLOCKING STRATEGIC VALUE AND FLEXIBILITY Mechanised, utilising highly skilled labour Independent chrome plants Genesis and Voyager, and ultra fine Vulcan chrome plant Accelerating underground strategy and studies, ensuring sustainable multigenerational operations >60y LOM O
Slide 11: Karo Project
KARO PROJECT MULTIGENERATIONAL PGM DEVELOPMENT ASSET LONG TERM STRATEGIC POSITION THROUGHOUT THE CYCLE Construction continues steadily with value engineering running in parallel Current development aligned with capital availability Balance of funding required for project completion underway 11
Slide 12: Karo Video
KARO VIDEO enriching lives through innovating the resources company of the future 12
Slide 13: An Ethos of Innovation
AN ETHOS OF INNOVATION ARXO METALS BENEFICIATION SITE Commercial pyrometallurgical site – producing novel alloys Unique PGM refining process proven ARXO METALS TECHNOLOGY DEVELOPMENT CENTRE Facility to run laboratory and pilot scale test work – downstream focus ARXO METALS RENEWABLE ENERGY CEN
Slide 14: Redox One Video
REDOX ONE VIDEO 14
Slide 15: Mine to Megawatt
MINE TO MEGAWATT DECARBONISATION CIRCULAR ECONOMY PGMS CHROME PATHWAYS Producing lower carbon Catalytic properties Stainless steel requirement in Electrification (solar project) renewable energy generation minerals Slower BEV uptake, hybrid Circularity (use of our (solar, wind, nuclear,
Slide 16: Returns to Shareholders
RETURNS TO SHAREHOLDERS US 1.5 cents Interim dividend 15, 0 24,5%* 24.5%* of NPAT including share repurchase programme underway 13, 0 22,0% Policy minimum of 15% of NPAT 20,5% 19,2% 18,5% 11, 0 17,8% 17,1% 17,7% 17,3% 16,3% 17,0% 9,0 US$5 m 12,0% 9,0 7,0 Share repurchase programme 7,0 7,0% 5,0 5,0 5
Slide 17: Long Term Value Play
LONG TERM VALUE PLAY Critical commodities Diversification, beneficiation and energy transition Co-producer of PGMs and chrome concentrates, mine two commodities critical to a sustainable future Maxmising the value of our commodities by using innovation and technology 1 6 OUR Output to double at Inte
Slide 18: Tharisa is an End to End Critical Metals and Energy Solution Provider
THARISA IS AN END TO END CRITICAL METALS AND ENERGY SOLUTION PROVIDER INNOVATING THE RESOURCES COMPANY OF THE FUTURE 15 years 10 years 9 years ~US$100 m ~US$695 m operations cash generative profitable returned to capital invested shareholders
Slide 19: Questions
QUESTIONS Kgopotso Mashiane Junior Operations Metallurgist
Slide 20: Some Detail on Chrome
SOME DETAIL ON CHROME CHROME Chromium is the 14th most abundant metal in the lithosphere Other Finland 9% Chromite or chrome ore is the commercial name of iron chromium 2% oxide Kazakhstan Global chromite resources are estimated at over 12 billion tonnes 5% with reserves estimated at 470 milli
Slide 21: Supply
SUPPLY Finland Other Zimbabwe 2% 8% 3% Global chrome production in 2023 was 39.7 Mt Turkey 4% Over the last 15 years, on average South Africa has accounted for more than 55% of global production India 8% South Africa is the largest producer reporting 25.8 Mt in 2023 South Africa exported ove
Slide 22: Chrome Concentrate Products
CHROME CONCENTRATE PRODUCTS 94.7% Metallurgical grade: characterised by a Cr2O3 content of 42% to 46%, this type of chrome ore is METALLURGICAL GRADE used primarily in metallurgical applications and more specifically to create ferrochrome, which is in turn is used to produce stainless steel and ot
Slide 23: Demand
DEMAND Demand for chrome concentrates is dominated by its in metallurgical applications being ~95% 0.6 t CHROME ORE > 0.25 t FERROCHROME > 1t STAINLESS Stainless steel is the largest demand from metallurgical STEEL applications, and as such the dynamics of the stainless steel industry heavily im
Slide 24: Ferrochrome Production
FERROCHROME PRODUCTION 9 China is the largest global ferrochrome producer, having taken Millions over from South African in 2012 and since then China has 8 doubled its ferrochrome output capacity 7 Ferrochrome production is centred from Asia other regions 6 include India and Indonesia 5 4 In 2
Slide 25: Stainless Steel
STAINLESS STEEL Applicances Stainless steel demand has been driven by China, accounting & electronics for more than 60% of global production, with global 9% production being reported at 58.5 Mt for 2023 Metal goods Stainless steel is produced from processing ferrochrome and 37% nickel Industrial
Slide 26: Stainless Steel Growth Projection
STAINLESS STEEL GROWTH PROJECTION Source SMR enriching lives through innovating the resources company of the future 26
Slide 27: Stainless Steel Growth Projection
STAINLESS STEEL GROWTH PROJECTION Source SMR enriching lives through innovating the resources company of the future 27
Slide 28: Stainless Steel Growth Projection
STAINLESS STEEL GROWTH PROJECTION Source SMR enriching lives through innovating the resources company of the future 28
Slide 29: Pricing and Port Stocks
enriching lives through innovating the resources company of the future at at 2.4 Mt of chrome concentrates This equates to less than 6 weeks of supply PRICING AND PORT STOCKS Spot pricing at US$315/t – US$320/t CIF China Port stocks remain at lower levels compared to previous years 0 50 100 15
Slide 30: Tharisa in Context
THARISA IN CONTEXT Total resource of 844.8 Mt containing 166.2 Mt of Cr2O3 Total reserve of 85.1 Mt containing 15.1 Mt of Cr2O3 Fourth largest chrome producer in South Africa 1.6 Mtpa of chrome products Provides China and Indonesia with ~10% of its chrome requirements One quarter of spec
Slide 31: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 32: Financial Resilience Through Our Co-production Model
FINANCIAL RESILIENCE THROUGH OUR CO-PRODUCTION MODEL MULTI COMMODITIES CASH FLOW GENERATIVE CAPITAL DISCIPLINE CONTINUED INVESTMENT Share repurchase programme Technology and downstream Co-production model Net cash flows from operations of US$5 m beneficiation investment Polymetallic basket
Slide 33: The Vital Numbers
US$1 344/oz US$288/t THE VITAL NUMBERS down 39.3% PGM BASKET PRICE up 16.9% MET GRADE PRICE REVENUE EBITDA NET PROFIT AFTER TAX US$369.1 m US$79.6 m US$38.8 m up 10.1% down 2.0% down 29.1% (HY2023: US$335.3 m) (HY2023: US$81.2 m) (HY2023: US$54.7 m) NET CASH FROM OPERATING ACTIVITIES CAPITAL EXPENDI
Slide 34: Multi Commodity Revenue Stream
MULTI COMMODITY REVENUE STREAM Agency and Manufacturing and trading consulting… 9,8% FCA REVENUE* PGM Chrome 26,0% 63,2% US$369.1 m Revenue increase of 10.1% Benefits of co-production model PGM sales of 70.6 koz Average PGM basket price of US$1 344/oz Au Ni Cu Ru Specialty 1,5% 3,2% grade Metallurgi
Slide 35: EBITDA Waterfall
EBITDA WATERFALL 35 enriching lives through innovating the resources company of the future
Slide 36: Unit Costs
UNIT COSTS % Units HY2024 HY2023 change Overheads 10,4% Labour Cubes mined Mm3 8.7 7.3 19.2 13,6% Cost per cube mined* US$/m3 10.6 10.9 (2.8) Reef tonnes mined Mt 2.1 2.1 Consumables Mining Cost per reef tonne mined* US$/t 44.1 37.7 17.0 3,6% ON MINE CASH 24,8% COSTS Tonnes milled Mt 2.8 2.8 Electri
Slide 37: Resilient Gross Profit
RESILIENT GROSS PROFIT GROSS PROFIT AND MARGIN 300 ,0 (US$ m) 40,0% 34,8% 35,8% 35,0% 32,1% 250 ,0 245,7 30,0% US$81.4 m 200 ,0 207,4 25,0% Gross profit decrease of 13.0% 23,6% 22,1% 150 ,0 20,0% 153,3 130,4 15,0% Weakening ZAR to US$ exchange rate of 6.3% partially offset inflation 100 ,0 Stable gr
Slide 38: Investing in the Future
INVESTING IN THE FUTURE Land and buildings Other US$0,6 m US$1,8 m R+D and innovation US$2,3 m Mining fleet US$10,4 m US$114.1 m Assets and Total capital spent HY2024 CAPITAL infrastructure SPENT* US$4,3 m Sustainable operations enabled by continued investment in asset base Includes: Deferred stripp
Slide 39: Balance Sheet
BALANCE SHEET FREE CASH FLOW (US$ m) US$198.5 m Cash and cash equivalents* Cash generative despite PGM pricing environment and inflationary pressures Net cash flow from operations of US$86.2 m Net cash of US$86.3 m* US$112.3 m Leases 1,9% Total debt Bond 24,3% Short term US$49.4 m 89.4% US$ denomina
Slide 40: 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