Tharisa Plc · JSE:THA
Tharisa — BMO 30th Global Metals and Mining Conference (March 2021)
22 slides from Tharisa's conference presentation, Mar 2, 2021
Slide 1: This is Tharisa
THIS IS THARISA March 2021 INVESTING IN SUSTAINABILITY THS:LSE • THA:JSE BMO 30th Global Metals and Mining Conference
Slide 2: Who We Are
• 42.79 MOZ IN CONTAINED 859.58 MT IN 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 • Mechanised, with a highly skilled workf
Slide 3: Safety, Sustainability and ESG
REDUCE CARBON SAFETY, SUSTAINABILITY AND ESG EMISSIONS BY 2030 LTFIR FATALITY FREE YEARS ENVIRONMENT 0.09 5+ Lost Time Injury Frequency Rate Achieved: 28 September 2020 30 September 2020 58 40 209 Engineering Learnerships Interns and Graduates Adult Education and Training learners Enriching lives th
Slide 4: Positioning Tharisa
POSITIONING THARISA • Sixth largest listed South African PGM producer Prill split and basket price ‒ 142 100 ounces per annum of PGM Tharisa position in terms of global demand ‒ ~1.3% of platinum demand ‒ ~0.3% of palladium demand ‒ ~2% of rhodium demand THARISA PRILL SPLIT 6E 26.9 koz 18.9% 13.5
Slide 5: Positioning Tharisa
POSITIONING THARISA • Fourth largest South African Chrome Producer Chrome is what makes steel stainless ‒ 1 344 800 tonnes of chrome per annum South Africa hosts 72% of the global chrome reserves ‒ Provides China with 10% of all its chrome concentrate Assuming a 5% CAGR in stainless steel: ‒ O
Slide 6: 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$180/t ~US$3 900/oz REEF MINED PGM PRODUCTION CHROME CONCENTRATE PRODUCTION (5PGE+Au) 4.97 Mt 142.1 koz 1.34 Mt up 7.6% up 1.7% up 3.9% (2019: 4.62 Mt) (2019: 139.7 koz) (201
Slide 7: FY2021 Q1 Production
SPOT CHROME PRICE SPOT PGM BASKET PRICE FY2021 Q1 PRODUCTION LTIFR 0.08 / 200 000 hours ~US$ 180/t ~US$3 900/oz Concluded a four-year Collective Wage Agreement until 30 June 2024 PLATINUM (oz) PGM production up 14.2% YoY 180 000 160 000 Chrome concentrate production (excluding third party) up
Slide 8: Sustainable Business
SUSTAINABLE BUSINESS CO-PRODUCT AND HEALTHY CASH CONTINUED ROBUST BALANCE LIQUIDITY EXCHANGE RATE GENERATION INVESTMENT SHEET MANAGEMENT BENEFITS Multiple revenue streams Exposure to the right Investment in SHE, Low gearing Capital discipline coupled with US$ commodities coupled people, infrastructu
Slide 9: Balance Sheet and Capex (FY2020)
BALANCE SHEET AND CAPEX (FY2020) Total debt of US$70.4 m FY2020 Capex US$70.6 m ‒ Trade finance amounted to US$17.3 m ‒ US$24.7 m mining fleet ‒ Debt to total equity ratio of 21.9% ‒ US$22.7 m deferred stripping ‒ Cash and cash equivalent of US$49.3 m ‒ US$11.4 m related to other mining assets ‒
Slide 10: Committed to Dividends
COMMITTED TO DIVIDENDS Committed to capital discipline CONSISTENT DIVIDEND PAYER (US$ m) Dividend of US 3.5 cents per share = 17.1% of NPAT 20.5% Minimum of 15% of annual NPAT 7 19.2% Capex commitments taken into considerations 6 17.8% 17.1% 16.3% 5 5.0 4 4.0 3.5 3 2 1 1.0 0.75 0 -5.0% FY201
Slide 11: More Than a Resources Company
MORE THAN A RESOURCES COMPANY Complete organic growth opportunities LOM extension Vulcan Plant Fulfill 200 000 ounces of PGM production target Expand and roll out our business sustainably Consolidate external opportunities Further optimise our existing operations Salene Chrome (Great
Slide 12: Positioning Tharisa
POSITIONING THARISA
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: 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 2.7 3.7 0 1.5 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 17: 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 18: Appendix
APPENDIX
Slide 19: Karo and Salene Chrome Project Overview
KARO AND SALENE CHROME PROJECT OVERVIEW Great Dyke of Zimbabwe holds the world’s second largest deposits of PGMs and chrome Over 550km long and up to 11km wide Two Mineralised Horizons ‒ Main Sulphide Zone (‘MSZ’) ‒ Lower Sulphide Zone (‘LSZ’) Mining operations exploit MSZ while LSZ is large
Slide 20: Projects Overview
PROJECTS OVERVIEW Tharisa owns 26.8% of Karo Platinum and runs the exploration and development program Snakes 2 phases of exploration have been completed and studies underway, Head due for completion end August 2021 Financing discussions have commenced Phased approach to ensure project build
Slide 21: Salene Manganese
SALENE MANGANESE Tharisa has an option for 70% Salene Manganese’s principal activity is a manganese and iron exploration and mining company The Mining Right is for the mining of manganese and iron ore Mine is in operation and produces both manganese and iron ore Second phase of resource dr
Slide 22: 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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