Tharisa Plc · JSE:THA
Tharisa — Investor Presentation (November 2022)
32 slides from Tharisa's investor presentation, November 2022
Slide 1: Tharisa plc
tharisa 7 @ THARISA PLC November 2022 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 ENVIRONMENT on the environment We are committed to reducing carbon emissions by 30% by 2030 CLIMATE CHANGE and have a plan in motion to be net carbon neut
Slide 3: Who We Are
854.4 Mt & 152.1 Mt 40.3 Moz & 10.0 Moz 171.1 Mt WHO WE ARE IN MINERAL RESOURCE * IN CONTAINED 6E* IN CONTAINED CR2O3* 1 2 3 4 5 6 INTEGRATED 20 YEAR GROWTH R&D PROFITABLE CONSISTENT PGM and chrome LOM open pit pipeline to double developing innovative throughout dividend payer co-producer located in
Slide 4: Corporate Structure
CORPORATE STRUCTURE Tharisa plc (Registered in Cyprus) Listed on JSE (THA) and LSE (THS) 70.00% 100% 100% 100% 100% 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
Slide 5: An Ethos of Innovation
AN ETHOS OF INNOVATION ▪ Innovation is at the core of Tharisa’s ethos ▪ Key strategic projects under R&D at AMBS ▪ Technology the key enabler for differentiation MAJOR MILESTONE HISTORY THARISA MINE CHALLENGER VOYAGER PLANT HIGH ENERGY DC SMELTER NEW MG reef open pit mine PLANT large scale PGM and F
Slide 6: FY2022 Production Results
PGM SPOT PRICE CHROME SPOT PRICE FY2022 PRODUCTION RESULTS US$2 248/oz* US$230/t* REEF MINED PGM PRODUCTION (5PGE+Au) CHROME CONCENTRATE PRODUCTION 5.5 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: 5.4 Mt) (2021: 157.8 koz) (20
Slide 7: Navigating Challenges
NAVIGATING CHALLENGES TRANSPORT ▪ Transnet challenges have meant shift from rail to road ▪ 75% road vs 75% rail previously ▪ Re-allocation of bulk via Richards Bay and Maputo POWER ▪ Maximum requirement of 25MW of power on site ▪ Stand by capacity to withhold Stage 4 ‘loadshedding’ ▪ Modular plants
Slide 8: Our Competitive Advantages
LOWEST COST OUR COMPETITIVE ADVANTAGES QUARTILE OPEN PIT ‒ Mechanised, shallow open pit ‒ Highly skilled labour force ‒ Close to infrastructure ‒ Low user of Eskom power LONG LIFE ‒ 20 year LOM open pit ‒ Extension of ~40 year underground ‒ Proven ore body FLEXIBLE ‒ Two processing plants PROCESSING
Slide 9: Our Commodities
OUR COMMODITIES
Slide 10: Platinum Group Metals
SPOT PGM BASKET* PLATINUM GROUP METALS US$2 248/oz Primary supply growth constraints PGM PRICE CHART Platinum Palladium Rhodium Pt, Pd Price Rh Price Deficits in Rh, Pd to remain, Pt heading towards a deficit 3000 30 000 ICE remains a major demand driver despite EV development 2500 25 000 2000
Slide 11: Chrome
SPOT CHROME PRICE* H1 FY2022 MET CHROME CHROME US$230/t US$175/t Chrome prices remain resilient due to growing stainless METALLURGICAL CHROME PRICE (US$/t) Low High Avg steel demand 300 280 South Africa supplies 80% of China’s chrome needs 260 240 China has no chrome resources 220 200 Tharis
Slide 12: Karo Investment Case
KARO INVESTMENT CASE “ Capital will need to be more patient, or willing to explore new regions. ” PHOEVOS POUROULIS CEO • THARISA Enriching lives through innovating the resources company of the future
Slide 13: Continuous Investment
CONTINUOUS INVESTMENT Investment to date of US$70.3 m: 70% 30% ‒ US$4.5 m cash - acquisition of 26.8% shareholding Tharisa plc Leto Settlement ‒ US$8.0 m Phase 1 exploration capital ‒ US$3.4 m Technical studies ‒ US$25.0 m early development funding (not fully drawn) Karo Mining ‒ US$29.4 m in shar
Slide 14: Locality & Geology
LOCALITY & GEOLOGY PROPERTY LOCATION PHASED DEVELOPMENT ▪ Located in the Mashonaland West district of Zimbabwe, NEXT PHASES WILL SCALE TO ACCESS THE VAST RESOURCE AREA approximately 80 km southwest of Harare and 35 km southeast of Chegutu ▪ The project area covers 23 903 ha located on the Great Dyke
Slide 15: Historic Timeline
HISTORIC TIMELINE INVESTMENT PROJECT FRAMEWORK EXPLORATION PROGRAMME EXPLORATION EXERCISE OF FARM-IN AGREEMENT SIGNED Drilling campaign continued PROGRAMME PHASE 2 OPTION Second drilling contractor RE-COMMENCES Tharisa plc becomes majority mobilised 77 diamond core holes shareholder in Karo, upping
Slide 16: Enhanced Phase One - Key Highlights
ENCHANCED PHASE ONE - KEY HIGHLIGHTS WORLD CLASS PGM ASSET LOM OPEN PIT ANNUAL PGM PRODUCTION (6E) Tier 1 +17 years 194 koz + 0.10% Cu + 0.12% Ni (Previous: +20 years) (Previous: 150 koz) MINING LEASE FOR LOM OPEN PIT, SCALABLE, LOW COST, PHASED DEVELOPMENT TIMELINE Licenced Low risk 24 months Enric
Slide 17: Karo Project Update
KARO PROJECT UPDATE “ Developing a tier one project in this unique geological setting comes once in a lifetime ” BERNARD PRYOR MD • KARO MINING HOLDINGS Enriching lives through innovating the resources company of the future
Slide 18: ESG: Impact Investing
VALUE CONTRIBUTION ESG: IMPACT INVESTING ~2% GDP SAFETY AND ENVIRONMENTAL ▪ Four years LTI free ▪ IFC compliant ESIA approved (mining & processing) ▪ Structurally safer waste rock contained TSF independently designed KARO IN THE COMMUNITY ▪ Prioritising local recruitment and skill development ▪ Dedi
Slide 19: Project Execution
POWER AND WATER PROJECT EXECUTION BULK SUPPLY CONFIRMED ESTABLISHED ▪ Exploration completed, engineering design on schedule ▪ Pilot PGM concentrator fully operational TIMING ▪ 24-month design and construction schedule - started 1 July 2022 ▪ Mine groundbreaking planned December 2022 ▪ First ore in m
Slide 20: 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 COST TO FOIM (US$ m) H1 2022, which includes higher steel and transportation costs A 15% project conti
Slide 21: Project Economics
PROJECT ECONOMICS THE 22.7% INCREASED PGM OUTPUT IS FURTHER VALUE ACCRETIVE FOR THE THARISA GROUP Throughput 205 ktpm PROJECT VALUE INCLUDING IN SITU INFERRED RESOURCE Production 194 kozpa LOM 17 years US$686 m (Reserves M&I) ROM grade 3.0 6E g/t (average)* NET PRESENT VALUE10% EXCLUDING IN SITU INF
Slide 22: Karo Platinum Funding
KARO PLATINUM FUNDING “ Price is what you pay, value is what you get. WARREN BUFFET ” Enriching lives through innovating the resources company of the future
Slide 23: Karo Platinum Funding
KARO PLATINUM FUNDING Multiple funding streams with different timing requirements Partial leverage of existing assets – ~US$130 m Syndicated Loan with senior project finance facility with a political and commercial insurance wrap (ECIC) – ~US$260 m VFEX bond listing – targeting US$50 m ‒ Tha
Slide 24: The Offering
THE OFFERING ISSUER – KARO MINING HOLDINGS PLC GUARANTOR – THARISA PLC US$50 m bond by private placement Listed on the JSE and LSE ‒ Three year tenor Established PGM and chrome miner with an 11 year ‒ 9.5% fixed coupon, interest paid semi annually operating track record ‒ US$ bond in minimum d
Slide 25: Corporate Structure
CORPORATE STRUCTURE FY2022 INTERIM RESULTS FY2023 PRODUCTION GUIDANCE REVENUE: US$334.0 m PGMS (5E+AU): 30% 70% Tharisa plc 175 koz – 185 koz Leto Settlement (Cyprus) EBITDA: US$111.3 m CHROME CONCENTRATES: NPAT: US$101.6 m 1.75 Mt – 1.85 Mt Rand weakness relative to prior years offers a buffer to i
Slide 26: Karo Platinum Funding
INVESTMENT TO DATE KARO PLATINUM FUNDING US$36.4 m MULTIPLE FUNDING STREAMS WITH SYNCHRONISED TIMING REQUIREMENTS PROJECT S CURVE & FUNDING FLOWS 1 Early development funding Q2/22 US$25 m Tharisa equity 2 VFEX bond listing Q4/22 ~US$50 m Tharisa commitment of US$10 m 4 3 Tharisa equity Q4/22 - Q1/23
Slide 27: VFEX Bond – Indicative Summary Terms
VFEX BOND – INDICATIVE SUMMARY TERMS ISSUER Karo Mining Holdings plc (Cyprus) VFEX SPECIAL ECONOMIC ZONE ▪ Excon permission not required to move funds US$50 m senior notes; minimum raise US$25 m ISSUE ▪ Protection against nationalisation and Minimum subscription and allotment amount: US$2 500 exprop
Slide 28: A Unique Investment Opportunity
A UNIQUE INVESTMENT OPPORTUNITY Invest in a long life, world class dollar-based mining asset in Zimbabwe ‒ Located in the Great Dyke – one of the premier destinations for PGMs Solid industry fundamentals ‒ Historic under investment in new supply to meet demand for the product both from current u
Slide 29: Karo + Tharisa = Key Future Supply
KARO + THARISA = KEY FUTURE SUPPLY KARO THARISA COMPARISON UNIT LOM OPEN PIT FROM EACH OPERATION PHASE 1* OPEN PIT** +17 years Open pit LOM years 17 20 Resource ounces 4E Moz 96.4 31.1 REEF MINED PER ANNUM Reserve Mt 35.5 94.2 +7.5 Mt Reserve ounces 4E Moz 2.5 3.3 PGM production^ kozpa 194 200 PGMS
Slide 30: Delivering on Our Strategy
DELIVERING ON OUR STRATEGY ▪ Strategic second Tier 1 PGM resource for Tharisa Group Expand and roll out ▪ Initial open pit resource of 152.1 Mt and 9.97 Moz (6E) and reserve of 35.5 Mt and 2.6 Moz (6E) the business sustainably ▪ Phase 1 operations planned with ability to increase scale further ▪ Pro
Slide 31: Questions
QUESTIONS Enriching lives through innovating the resources company of the future 31
Slide 32: 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