Slide 1: FY2022 Annual Results Presentation
FY2022 ANNUAL RESULTS PRESENTATION GROWING SUSTAINABLY FROM A ROBUST OPERATIONAL BASE DRIVING RECORD FINANCIAL PERFORMANCE 5 December 2022 enriching lives through innovating the resources company of the future
Slide 2: Highlights: Safety is a core value
HIGHLIGHTS 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 of Tuesday 18 Octo
Slide 3: Sustainable mining of our long life tier one assets
HIGHLIGHTS SUSTAINABLE MINING OF OUR LONG LIFE TIER ONE ASSETS − Annual PGM production up 13.6% at 179.2 koz - PGM basket price of US$2 564/oz − Annual chrome production up 5.1% at 1.6 Mt - metallurgical grade chrome price of US$209/t − 19 year open pit life of mine – Tharisa Minerals FY2023 guidanc
Slide 4: Simplification of structure benefitting all of our stakeholders
HIGHLIGHTS SIMPLIFICATION OF STRUCTURE DISCOVER, DEVELOP, DELIVER, BENEFITTING ALL OF OUR DIVERSIFY STAKEHOLDERS − Acquisition of 26% minority shareholding in − Acquired controlling interest in Karo Mining Tharisa Minerals in a landmark BEE Holdings - 70% transaction − Karo Platinum Project construc
Slide 5: Capital discipline
HIGHLIGHTS CAPITAL DISCIPLINE − US$105.0 m spent on capex − US$80.4 m of net cash − Total dividend of US 7 cents per share − US$21.0 m enriching lives through innovating the resources company of the future 5
Slide 6: FY2023 production guidance
HIGHLIGHTS FY2023 PRODUCTION GUIDANCE − 175 koz to 185 koz PGMs (6E basis) − 1.75 Mt to 1.85 Mt of chrome concentrates enriching lives through innovating the resources company of the future 6
Slide 7: Highlights
HIGHLIGHTS SAFETY IS A CORE VALUE SUSTAINABLE MINING OF OUR LONG LIFE TIER ONE ASSETS − Achieved seven fatality free years and six million fatality free shifts, with a − Annual PGM production up 13.6% at 179.2 koz - PGM basket price of LTIFR of 0.40 per 200 000 man hours worked US$2 564/oz − Legohu
Slide 8: Our positive impact
OUR POSITIVE IMPACT JOB CREATION − 3 965 employees at end September (Group employees and contractors) − +100 jobs created in Zimbabwe and 100 contractors on site − +22% female employees − No days lost to industrial action − Four year wage agreement ends in June 2024 EDUCATION AND WELLNESS − AET prog
Slide 9: The vital numbers (US$)
THE VITAL NUMBERS REEF MINED PGM PRODUCTION (6E) CHROME CONCENTRATE PRODUCTION 5.50 Mt 179.2 koz 1.58 Mt up 2.3% up 13.6% up 5.1% stripping ratio of 12.8 m3:m3 recovery of 76.6% recovery of 68.3% (2021: 5.38 Mt) (2021: 157.8 koz) (2021: 1.51 Mt) REVENUE OPERATING PROFIT EBITDA US$686.0 m US$184.5 m
Slide 10: The vital numbers (ZAR)
THE VITAL NUMBERS REEF MINED PGM PRODUCTION (6E) CHROME CONCENTRATE PRODUCTION 5.50 Mt 179.2 koz 1.58 Mt up 2.3% up 13.6% up 5.1% stripping ratio of 12.8 m3:m3 recovery of 76.6% recovery of 68.3% (2021: 5.38 Mt) (2021: 157.8 koz) (2021: 1.51 Mt) REVENUE OPERATING PROFIT EBITDA ZAR10.9 bn ZAR2.9 bn Z
Slide 11: Strategy
tharisa STRATEGY
Slide 12: An ethos of innovation
AN ETHOS OF INNOVATION + Greenfield discovery to mine development THARISA MINE MG reef open pit mine extraction of lower grade commodities + Pit to port strategy = optimised mineral extraction + Disciplined, sustainable growth CHALLENGER PLANT Increase specialty chrome production VOYAGER PLANT Large
Slide 13: Long life portfolio
854.4 Mtt& 152.1 Mt 40.3 Moz & 10.0 Moz 171.1 Mt LONG LIFE PORTFOLIO IN MINERAL RESOURCE * IN CONTAINED PGMS (6E)* IN CONTAINED CR2O3* 1 2 3 4 5 6 INTEGRATED +17 YEAR GROWTH R&D PROFITABLE CONSISTENT PGM and chrome LOM open pits pipeline to double PGM developing innovative end throughout dividend pa
Slide 14: 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 + 0.10% Cu + 0.12% Ni MINING LEASE FOR LOM OPEN PIT, SCALABLE, LOW COST, PHASED DEVELOPMENT TIMELINE Licenced Low risk 21 months (First ore in mill July 2024) DIVERSIFY enriching li
Slide 15: Karo project
KARO PROJECT 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 capacity to supply national grid CAPITAL COST − Total cost to first ore in mil
Slide 16: Commodities
USD2 312/oz USD220/t COMMODITIES SPOT PGM BASKET PRICE SPOT MET GRADE PRICE PGMS Ru Au 0.2% − Primary supply growth constraints 14.4% Ir − Deficits in Rh, Pd to remain, Pt heading towards a deficit 4.4% − ICE remains a major demand driver despite EV development − Hydrogen economy to supplement ICE d
Slide 17: Operating and financial highlights
OPERATING AND FINANCIAL HIGHLIGHTS
Slide 18: Mining and production
MINING AND PRODUCTION MINING AND STRIPPING RATIO (Mt) and (m3:m3) 8.0 15 12.8 5.5 Mt 12.1 11.6 7.0 10 Reef mining increased by 2.3% 7.9 8.3 6.0 5.5 5.0 5.4 5 5.0 4.9 4.7 4.0 0 Forecast reef mining of ~5.6 Mt for FY2023 3.0 LOM stripping ratio of 9.8 m3:m3 2.0 -5 1.0 0.0 -10 FY2018 FY2019 FY2020 FY20
Slide 19: Positioned for delivering on strategy
POSITIONED FOR DELIVERING ON STRATEGY DELIVERY ON OPERATIONAL PERFORMANCE + MULTI COMMODITIES = RECORD REVENUE enriching lives through innovating the resources company of the future 19
Slide 20: Offsetting inflationary pressures
POSITIONED FOR DELIVERING ON STRATEGY OFFSETTING INFLATIONARY PRESSURES −Increased production volumes − Low cost chrome units from Vulcan Plant −Weakening ZAR to US$ exchange rate of 6.8% enriching lives through innovating the resources company of the future 20
Slide 21: Accounting for value accretive Karo transaction
POSITIONED FOR DELIVERING ON STRATEGY ACCOUNTING FOR VALUE ACCRETIVE KARO TRANSACTION enriching lives through innovating the resources company of the future 21
Slide 22: Positioning for sustainable growth
POSITIONED FOR DELIVERING ON STRATEGY POSITIONING FOR SUSTAINABLE GROWTH −Net cash flows from operations – US$173.7 m −Investment for the future – capex spend of US$105.0 m −Deleveraging of the balance sheet – net cash of US$80.4 m enriching lives through innovating the resources company of the futu
Slide 23: Positioned for delivering on strategy
POSITIONED FOR DELIVERING ON STRATEGY DELIVERY ON OPERATIONAL PERFORMANCE + MULTI OFFSETTING INFLATIONARY PRESSURES COMMODITIES = RECORD REVENUE + − Increased production volumes − Low cost chrome units from Vulcan Plant − Weakening ZAR to US$ exchange rate of 6.8% + ACCOUNTING FOR VALUE ACCRETIVE KA
Slide 24: Revenue
REVENUE Agency and Manufacturing trading and consulting 4.3% 0.7% FCA REVENUE* (%) Chrome PGM US$686.0 m 32.5% 62.4% Revenue increase of 15.0% Benefits of co-production model PGM sales of 168.3 koz Ru Ir Specialty Average PGM basket price of US$2 564/oz 1.8% 4.8% Au Ni Cu grades Metallurgical grade
Slide 25: Unit costs
UNIT COSTS % Units FY2022 FY2021 change Overheads Cubes mined Mm3 20.9 19.2 8.9 14.4% Cost per cube mined* US$/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 ON MINE CASH Tonnes milled Mt 5.6 5.6 0.1 COSTS (%) On mine cash cost per tonne
Slide 26: Record gross profit
RECORD GROSS PROFIT US$245.7 m GROSS PROFIT AND MARGIN Gross profit an increase of 18.4% (US$ m) 34.8% 35.8% 35.0% 250.0 32.1% 26.7% 245.7 25.0% Record gross profit margins despite input cost pressures*: 200.0 207.4 17.7% − Explosives +49.1% 15.0% − Diesel +37.3% 150.0 − Electricity +2.7% 130.4 5.0%
Slide 27: Value accretive transaction – executing on strategy
VALUE ACCRETIVE TRANSACTION – EXECUTING ON STRATEGY Favourable net effect of US 16.1 cents on Reconciliation of EPS to HEPS Units FY2022 earnings per share Weighted number of shares in issue million 285.8 US$201.8 m Earnings per share US cents 53.8 Mineral right - asset value increase Initial invest
Slide 28: Consistent dividend payer
CONSISTENT DIVIDEND PAYER US 7 cents 15.0 25.0% Total annual dividend for FY2022 13.0 20.5% 20.0% 11.0 19.2% 18.5% 17.8% 17.1% 17.7% 16.3% 17.7% of adjusted NPAT 9.0 15.0% 9.0 Policy minimum of 15% of NPAT 7.0 Total annual dividend of US$21.0 m 7.0 10.0% 5.0 5.0 4.0 3.0 1.0 3.5 0.8 5.0% US$82.9 m 1.
Slide 29: Balance sheet
BALANCE SHEET US$143.3 m Cash and cash equivalents Leases Property loans 5.7% 0.9% Net cash flow from operations of US$173.7 m Net cash of US$80.4 m Asset backed facilites DEBT 55.6% POSITION US$62.9 m (%) Total debt Bank credit facilities 37.9% Short term of US$39.8 m Unwind of limited recourse dis
Slide 30: Capex
CAPEX US$105.0 m Capex spent Other Manufacturing US$15.5 m US$1.7 m Continued to invest in asset base = sustainable operations US$79.8 m BUDGETED Budgeted capex for FY2023 excluding Karo Platinum CAPEX (US$ m) Mining ~US$260 m US$38.3 m Budgeted capex for FY2023 for Karo Platinum Processing US$24.3
Slide 31: Value proposition
tharisa VALUE PROPOSITION
Slide 32: Investment of choice
GBP2.40 23.5% INVESTMENT OF CHOICE CONSENSUS TARGET PRICE RETURN ON INVESTED CAPITAL P/E NAV GROWTH 12.9 2.1 CAGR 14.8% 1.7 7.8 7.6 6.8 1.2 1.1 1.1 1.1 5.5 0.8 2.8 THA IMP SSW NTH AMS RBP FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 EV/EBITDA (2022E) P/NAV 6.0 1.6 1.5 4.3 3.9 1.0 0.9 2.7 2.5 0.7
Slide 33: Questions
QUESTIONS enriching lives through innovating the resources company of the future 33
Slide 34: 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