Tharisa Plc · JSE:THA
Tharisa — Investor Presentation (March 2021)
17 slides from Tharisa's investor presentation, Mar 10, 2021
Slide 1: This is Tharisa
THIS IS THARISA March 2021 INVESTING IN SUSTAINABILITY THS:LSE • THA:JSE Investormeet.com
Slide 2: Who We Are
• 6th LARGEST LISTED PGM • 42.79 MOZ IN CONTAINED PRODUCER 859.58 MT IN WHO WE ARE • TOP 4 GLOBAL CHROME MINERAL RESOURCE • 6PGE+Au* 172 MT IN CONTAINED Cr2O3* PRODUCER • Leading PGM and chrome co-producer • 14 year LOM open pit located in the heart of PGM and chrome country • 40 year underground me
Slide 3: Sustainable Low Cost Polymetallic Business Model
SUSTAINABLE LOW COST POLYMETALLIC BUSINESS MODEL Discover ‒ Large scale resources ‒ Complimentary opportunities in the resource portfolio Develop ‒ Innovative approach to mineral extraction ‒ New processes and technologies to enhance value further Deliver ‒ Safe production growth in both PGM a
Slide 4: Safety, Sustainability and ESG
LTIFR 0.08 / 200 000 hours REDUCE CARBON SAFETY, SUSTAINABILITY AND ESG (Q1 FY2021) 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 a
Slide 5: Positioning Tharisa: PGMs
SPOT PGM BASKET PRICE FY2021 guidance POSITIONING THARISA ~US$4 000/oz 155koz to 165koz • Sixth largest listed South African PGM producer RESOURCES PRILL SPLIT 4E % ‒ 142 100 ounces of PGMs FY2020 120 Tharisa position in terms of global demand 100 12 8 7 7 9 9 10 6 6 5 8 1 ‒ ~1.3% of platinum dema
Slide 6: Positioning Tharisa: Chrome
SPOT CHROME PRICE FY2021 guidance POSITIONING THARISA ~US$180/t 1.45Mt to 1.55Mt • Fourth largest South African Chrome Producer Chrome is what makes steel stainless ‒ 1 344 800 tonnes in FY2020 South Africa hosts 72% of the global chrome reserves ‒ Provides China with 10% of all its chrome conce
Slide 7: Growing Tharisa
GROWING THARISA Complete organic growth opportunities Life of mine extension Vulcan Plant Fulfill 200 000 ounces of PGM production target Expand and roll out our business sustainably Commercialise downstream opportunities Further optimise our existing operations PGM smelting and refi
Slide 8: Growing Tharisa
GROWING THARISA Optimising the Tharisa mine PGM PRODUCTION* (oz) 200 000 oz of PGM per annum 190 2 000 000 tonnes of chrome per annum 185 4% Capturing the downstream margin 180 175 PGM smelting and refining FY2023 onwards 170 11% 165 Beneficiating our chrome 160 155 150 145 FY2021 FY2022
Slide 9: 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 10: Projects Overview
PROJECTS OVERVIEW Tharisa owns 26.8% of Karo Platinum Snakes 2 phases of exploration have been completed and studies Head underway, due for completion end August 2021 Financing discussions have commenced Phased approach to ensure project build and cash flow development Special Economic Zon
Slide 11: Salene Manganese and Iron
SALENE MANGANESE AND IRON Tharisa has an option for 70% Salene’s principal activity is the mining of manganese and iron ore on a DSO basis Mine is in operation and is cash generative Current production on an annualised basis ‒ Manganese at 600kt ‒ Iron production at 600kt Second phase of r
Slide 12: 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 13: Our Commodity Prices
OUR COMMODITY PRICES 3E PGM CHART METALLURGICAL GRADE CHROME CHART ($/oz) ($/t) 35000 190 30000 180 2100 25000 170 20000 160 1600 15000 150 1100 10000 140 5000 130 600 0 120 110 100 PT PD RH 2E PGM CHART MANGANESE AND IRON CHART ($/oz) ($/dmtu) ($/t) 380 6000 5 160 360 340 5000 4.5 140 320 4 120 300
Slide 14: 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 15: Our Commodities: PGMs
OUR COMMODITIES PGMs WPIC PLATINUM ANALYSIS Structural deficit driven by supply constraint and real demand Demand continued to recover from the automotive, jewellery and industrial Timing of new projects sectors Pd and Pt substitution increasing, Rh extremely difficult to substitute Ro
Slide 16: Our Commodities: Chrome
OUR COMMODITIES CHROME MAIN CR ORE EXPORTERS 2020 Chrome is irreplaceable and makes steel stainless 9.5% 2.4% Concentrated supply with 80% from South Africa 3.6% Demand driven by Chinese domestic consumption and export 4.3% Global demand to increase post COVID-19 economic slow down 80.2% S
Slide 17: 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