Tharisa Plc · JSE:THA
Tharisa — Investor Presentation (March 2023)
37 slides from Tharisa's investor presentation, March 2023
Slide 1: Tharisa plc Corporate Presentation March 2023
tharisa THARISA PLC Corporate Presentation March 2023 enriching lives through innovating the resources company of the future
Slide 2: Our Values
OUR VALUES ——, SAFETY & HEALTH |» ——————* The safety and health of our people is a core value We take responsibility for the effect that our operations may have on the — ENVIRONMENT ——* . environment We are committed to reducing carbon emissions by 30% by 2030 and have a CLIMATE CHANGE plan in motio
Slide 3: Our Positive Impact
OUR POSITIVE IMPACT JOB CREATION - 3.965 employees at end September (Group employees and contractors) — +100 jobs created in Zimbabwe and 100 contractors on site — +22% female employees — No days lost to industrial action — Four year wage agreement ends in June 2024 Ae EDUCATION AND WELLNESS 7 a — A
Slide 4: Strategy
tharisa STRATEGY
Slide 5: Tharisa plc (Registered in Cyprus)
Tharisa plc (Registered in Cyprus) Listed on JSE (THA) and LSE (THS) 100% 100% 100% 100% 70% Karo Project Tharisa Minerals Arxo Resources Arxo Logistics Salene Chrome (Zimbabwe) (South Africa) (Cyprus) (South Africa) (Zimbabwe) 100% 100% Arxo Metals MetQ (South Africa) (South Africa)
Slide 6: Long Life Portfolio
LONG LIFE PORTFOLIO 849.6 Mt & 40.5 Moz & IN MINERAL RESOURCE IN CONTAINED PGMS (6E)” 170.3 Mt IN CONTAINED CR,O3~ a Ww INTEGRATED PGM and chrome co-producer - assets located in prime geological areas +17 YEAR LOM open pits +40 YEAR underground GROWTH R&D PROFITABLE pipeline to double PGM developing
Slide 7: An Ethos of Innovation
AN ETHOS OF INNOVATION + Greenfield discovery to mine development + Pit to port strategy + Disciplined, sustainable growth Innovation is at the core of Tharisa’s ethos Key strategic projects under R&D at AMBS Technology the key enabler for differentiation Energy storage solutions THARISA MINE . MG r
Slide 8: FY2022 - The Vital Numbers
FY2022 - THE VITAL NUMBERS tharisa REEF MINED 5.50 Mt up 2.3% stripping ratio of 12.8 m3:m3 (2021: 5.38 Mt) REVENUE US$686.0 m up 15.0% (2021: US$596.3 m) PROFIT BEFORE TAX US$220.2 m up 18.9% (2021: US$185.3 m) US 53.8 cents up 44.1% (2021: US 37.4 cents) PGM PRODUCTION (6E) 179.2 koz up 13.6% ecov
Slide 9: FY2022 - Highlights
FY2022 - HIGHLIGHTS tharisa SAFETY IS A CORE VALUE — Achieved seven fatality free years and six million fatality free shifts, with a LTIFR of 0.40 per 200 000 man hours worked — Legohu Raymond Mothapo lost his life on 21 October 2022 following a very serious accident in the open pit on the evening o
Slide 10: Commodities: PGM and chrome market
USD1 980/oz USD295/t COMMODITIES SPOT PGM BASKET PRICE SPOT MET GRADE PRICE PGMS - Primary supply growth constraints 14.4% - Deficits in Rh, Pd to remain, Pt heading towards a deficit = ICE remains a major demand driver despite EV development - Hydrogen economy to supplement ICE demand ——+ THARISA M
Slide 11: Navigating Challenges
NAVIGATING CHALLENGES yo77-@ TRANSPORT =--2--22200-2 22 2oo2 ne eooneeeccneseccnneecccnes : | = Transnet challenges have meant shift from rail to road H ' =® 75% road vs 75% rail previously ' ® Re-allocation of bulk via Richards Bay and Maputo yoo7-@ POWER -- ' = Maximum requirement of 25MW of power
Slide 12: Diversify: Karo Phase One - Key Highlights
KARO PHASE ONE - KEY HIGHLIGHTS WORLD CLASS PGM ASSET LOM OPEN PIT ANNUAL PGM PRODUCTION (6E) Tier 1 +17 years 190 koz couse’ MINING LEASE FOR LOM OPEN PIT, SCALABLE, LOW COST, PHASED DEVELOPMENT TIMELINE Licenced Low risk 17 months to go (First ore in mill July 2024) DISCOVER t h arisa enriching li
Slide 13: Karo Project
KARO PROJECT tharisa KARO PLATINUM RESOURCES PRILL SPLIT + STRONG BASE METAL CREDITS IMPACT — Four years LTI free — IFC compliant ESIA approved — mining and processing — Prioritising local recruitment and skill development — Total Eren wheeling agreement to support development of 300 MW solar capaci
Slide 14: Karo Mining Holdings
tharisa KARO MINING HOLDINGS
Slide 15: Karo Project Update
KARO PROJECT UPDATE 66 Developing a tier one project in this unique geological setting comes once in a lifetime 9 BERNARD PRYOR MD * KARO MINING HOLDINGS
Slide 16: Continuous Investment
CONTINUOUS INVESTMENT = Investment preconstruction commencement of US$70.3 m: [— s0% 30% [— ~ US$4.5 m cash - acquisition of 26.8% shareholding fo Tharisa ple +——-——-——" Leto Settlement ~ US$8.0 m Phase 1 exploration capital — US$3.4 m Technical studies ~ US$25.0 m early development funding (not ful
Slide 17: Locality & Geology
LOCALITY & GEOLOGY yvv--@ PROPERTY LOCATION -------------------------------0---= . ' = Located in the Mashonaland West district of Zimbabwe, H approximately 80 km southwest of Harare and 35 km southeast of Chegutu * The project area covers 23 903 ha located on the Great Dyke NEXT PHASES WILL SCALE T
Slide 18: Historic Timeline
HISTORIC TIMELINE INVESTMENT PROJECT :XPLORATION EXPLORATION, EXERCISE OF FARMIN FRAMEWORK AGREEMENT PROGRAMME PROGRAMME + option SIGNED Drilling campaign contin PHASE 2 RE- Tharisa pic becomes majo illing COMMENCES shareholder in Karo, upping diamond core GROUND BREAKING holes totalling ~ 7 kn epu
Slide 19: Project Capital Cost
PROJECT CAPITAL COST First Ore In Mill (FOIM) is scheduled for July 2024 Increased PGM production output of 22.7% to 194 kozpa The revised capital cost reflects actual price estimates as at H1 2022, which includes higher steel and transportation costs A 15% project contingency is included as calcula
Slide 20: Project Economics
PROJECT ECONOMICS THE 22.7% INCREASED PGM OUTPUT IS FURTHER VALUE ACCRETIVE FOR THE THARISA GROUP Throughput Production LOM (Reserves M&l) ROM grade Strip ratio Recovery Tax holiday PGM basket price Base metal blended price Cash cost Total cost to FOIM tharisa 205 ktpm 194 kozpa 17 years 3.0 6E g/t
Slide 21: FY2022 Operating and Financial Highlights
tharisa FY2022 OPERATING AND FINANCIAL HIGHLIGHTS
Slide 22: Mining and Production
MINING AND PRODUCTION 5.5 Mt Reef mining increased by 2.3% Forecast reef mining of ~5.6 Mt for FY2023 LOM stripping ratio of 9.8 m?:m3 5.6 Mt Reef milled PGM production increased by 13.6% Chrome recovery increased by 7.9%. tharisa MINING AND STRIPPING RATIO. (Mt) and (m3:m3) FY2018 FY2019 FY2020 FY2
Slide 23: Positioned for Delivering on Strategy
POSITIONED FOR DELIVERING ON STRATEGY DELIVERY ON OPERATIONAL PERFORMANCE + MULTI OFFSETTING INFLATIONARY PRESSURES COMMODITIES = RECORD REVENUE — Increased production volumes tharisa ~ Low cost chrome units from Vulcan Plant — Weakening ZAR to US$ exchange rate of 6.8% + ACCOUNTING FOR VALUE ACCRET
Slide 24: Revenue
REVENUE US$686.0 m Revenue increase of 15.0% Agency and trading 43% Benefits of co-production model PGM sales of 168.3 koz Average PGM basket price of US$2 564/oz Metallurgical grade chrome sales of 1.2 Mt Average chrome price of US$209/t tharisa PGM REVENUE (%) enriching lives through innovating th
Slide 25: Unit Costs
UNIT COSTS Units FY2022.-FY2021 % change Overheads Cubes mined Mm3 20.9 19.2 8.9 14.4% Cost per cube mined” US$/m3 8.5 8.9 (4.5) Labour 19.7% Reef tonnes mined Mt 5.5 5.4 2.3 ° Cost per reef tonne mined US$/t 32.4 31.9 1.5 IN MINE CASH Tonnes milled Mt 5.6 5.6 01 ° “nec ° On mine cash cost per tonne
Slide 26: Record Gross Profit
RECORD GROSS PROFIT US$245.7 m Gross profit an increase of 18.4% Record gross profit margins despite input cost pressures*: — Explosives +49.1% Diesel +37.3% Electricity +2.7% Land side logistics +21.9% Sea freight +38.6% ‘in USS terms ~ZAR unit costs benefitting from weaker exchange rate GROSS PROF
Slide 27: Value Accretive Transaction — Executing on Strategy
VALUE ACCRETIVE TRANSACTION — EXECUTING ON STRATEGY US$201.8 m Mineral right - asset value increase US$16.8 m Finance liability - Zimbabwe Gov option tharisa Favourable net effect of US 16.1 centson e—— Reconcili earnings per share Initial investment of 28.38% was accounted for under equity method —
Slide 28: Consistent Dividend Payer
CONSISTENT DIVIDEND PAYER US 7 cents Total annual dividend for FY2022 17.7% of adjusted NPAT Policy minirnum of 15% of NPAT Total annual dividend of US$21.0 m ° n 2 ~ Cumulative distributions to shareholders over 7 years FY2016 FY2017 FY2018 FY2019 FY2020 —-FY2021 FY2022 mmm Dividend (US cents) —@—=
Slide 29: Balance Sheet
BALANCE SHEET US$143.3 m Cash and cash equivalents Net cash flow from operations of US$173.7 m Net cash of US$80.4 m US$62.9 m Total debt Short term of US$39.8 m Unwind of limited recourse disclosed PGM discounting facility (U$33 m) Current ratio of 2.2 Net debt to EBITDA of (0.3) Net debt to equity
Slide 30: Capex
CAPEX US$105.0 m Capex spent Continued to invest in asset base = sustainable operations US$79.8 m Budgeted capex for FY2023 excluding Karo Platinum ~US$260 m Budgeted capex for FY2023 for Karo Platinum Fast track project Karo Platinum total capital of US$391 m Other Manufacturing US$15.5m US$1.7m BU
Slide 31: Value Proposition
tharisa VALUE PROPOSITION
Slide 32: Karo + Tharisa = Key Future Supply
KARO + THARISA = KEY FUTURE SUPPLY KARO THARISA COMPARISON UNIT PHASE 1* OPEN PIT** LOM OPEN PIT FROM EACH OPERATION + 1 7 yea rs Open pit LOM years 7 18 Resource ounces 4E Moz 96.4 31.3 REEF MINED PER ANNUM Reserve Mt 35.5 88.2 +7 . 5 Mt Reserve ounces 4E Moz 25 3.1 PGM production kozpa 194 200 PGM
Slide 33: Delivering on Our Strategy
DELIVERING ON OUR STRATEGY Expand and roll out the business sustainably Optimise existing operation Continuing to invest in innovative thinking Become a globally diversified business Be the investment of choice in our chosen sector wy —+ Responsibly enrich the lives of all our stakeholders tharisa =
Slide 34: Questions
QUESTIONS tharisa erviching lives th
Slide 35: Appendix
APPENDIX tharisa 35
Slide 36: 2022 Chrome Industry Data - ICD
2022 CHROME INDUSTRY DATA - ICD. Yearly am South Africa & China focus South Africa & China focus industry ees higher energy costs and inflationary pressures, ‘weighed on demand from the FeCrinductry in ‘CRORE EXPORTS TO (%) ‘CRORE EXPORTS TO (%) Europe and China, with China turning to port stocks fa
Slide 37: 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