Tharisa Plc · JSE:THA
Tharisa — Merger or Acquisition (March 2022)
20 slides from Tharisa's merger presentation, Mar 31, 2022
Slide 1: Karo PGM Project: Development of Tier 1 PGM Asset
KARO PGM PROJECT DEVELOPMENT OF TIER 1 PGM ASSET 31 MARCH 2022 enriching lives through innovating the resources company of the future
Slide 2: Phase One - Key Highlights
PHASE ONE - KEY HIGHLIGHTS WORLD CLASS PGM ASSET LOM OPEN PIT ANNUAL PGM PRODUCTION (6E) Tier 1 20 years 150 koz + 0.10% Cu + 0.12% Ni MINING LEASE FOR LOM OPEN PIT, SCALABLE, LOW COST, PHASED DEVELOPMENT TIMELINE Licenced Low risk 24 months AVAILABLE IN COUNTRY TECHNOLOGY AND PROCESS PROJECT DEVELO
Slide 3: Statements from Tharisa Chairman and Zimbabwe Minister of Mines
“ “ I salute the Tharisa team who relentlessly Zimbabwe is open for business and we do welcome Karo and pursued this project during extraordinary times. its partner, Tharisa to our wonderful country. We are proud of The socio-economic impact we will make as we our rich endowment of natural resources
Slide 4: Transaction Summary
TRANSACTION SUMMARY EXERCISE OF OPTION 66.3% 33.7% Tharisa plc Leto Settlement Tharisa acquires increased shareholding in Karo Mining Holdings ('KMH') at a discount to valuation ‒ Issue of 4.85% Tharisa shares ~USD27.0 million Tharisa shareholding increased to 66.3% Karo Mining Early works pro
Slide 5: Investment in Tier One Asset
INVESTMENT IN TIER ONE ASSET MINING LEASE GRANTED FOR LOM OREBODY Initial Great Dyke open pit resource: 152 Mt containing 9.97 Moz at 2.04 g/t (6E) Declared reserve: 35.5 Mt containing 2.6 Moz at 2.3 g/t (6E) ‒ Optimised mine plan at 3.0 g/t (6E) DISCOVER 3PGE+Au (Pt 45.0%, Pd 42.0% Rh 4.0% an
Slide 6: Locality & Geology
LOCALITY & GEOLOGY PHASED DEVELOPMENT PROPERTY LOCATION EXECUTION OF PHASE 1 - NEXT PHASES WILL SCALE TO EXTRACT ADDITIONAL RESOURCES ▪ Located in the Mashonaland West district of Zimbabwe, approximately 80 km southwest of Harare and 35 km southeast of Chegutu ▪ The project area covers 23 903 ha loc
Slide 7: Resource & Reserves
+42 KM RESOURCE & RESERVES 315 DRILL HOLES TOTAL METERS DRILLED + 22 000 SAMPLES ASSAYED Mineral Resource Declaration (March 2022) SAMREC Code (2016) Tonnage Pt Pd Rh Au 4E Ru Ir 6E Cu Ni Co Thick (m) Density (t/m3) (Mt) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (g/t) (%) (%) (%) Inferred Indicated
Slide 8: Mining
>20 KM MINING STRIKE LENGTH Optimised mine plan – 3.0 g/t (6E) – single seam mining Open pit mining for Phase 1 - four open pits to be developed sequentially Contractor mining strategy Owner MRM team for oversight and grade control Mining will build up to a steady-state ROM production rate
Slide 9: Processing Plant & Infrastructure
PROCESSING PLANT & INFRASTRUCTURE PROCESSING PLANT INFRASTRUCTURE Processing 2.1 Mtpa of ROM (175 ktpm) Bulk power supply solution secured to provide 30 MVA Annual production of 150 kozpa Bulk water solution from Mangwana Dam and boreholes, in proximity MF2 circuit – proven technology and
Slide 10: Milestones
Farm-In option exercised MILESTONES MARCH 2022 2018 2019 2020 2021 Investment Framework Agreement Signed Karo Platinum Special Grant Awarded EMA Exploration Licence Special Economic Zone declared Mining Lease gazetted Mining Lease issued Geophysics Digital terrain mapping Phase 1 drilling Concept st
Slide 11: Indicative Project Execution Timeline
INDICATIVE PROJECT EXECUTION TIMELINE PROJECT INITIATION Q4 2021 Q2 2022 Q4 2022 Q2 2023 Q4 2023 FIELDWORK UNDERWAY ‒ Grade control infill drilling ‒ Surface geotechnical campaign ‒ Detailed ground water campaign ‒ Detailed surface water campaign ENGINEERING DESIGN INITIATED ‒ Concentrator ‒ Tailing
Slide 12: Karo Impact
KARO IMPACT SAFETY AND ENVIRONMENTAL ▪ Project LTI free – exploration and early project activities ▪ IFC compliant ESIA submitted BOOSTING THE REGIONAL ECONOMY ▪ Mining contributes 10%-14% of Zimbabwean GDP ▪ c. 400 direct jobs created and further 580 jobs for mining contractors ▪ +3 900 indirect jo
Slide 13: Zimbabwe PGM Market Overview
ZIMBABWE PGM MARKET OVERVIEW Mining contributes between 40%-60% of foreign exchange 600 ZIMBABWE SUPPLY (koz) and contributes between 10%-14% of GDP 500 497 Zimbabwe hosts the second largest deposit of PGMs globally 482 474 466 451 after the Bushveld Complex 400 412 410 393 386 379 Third large
Slide 14: Karo + Tharisa Combination
KARO + THARISA COMBINATION LOM OPEN PIT FROM EACH OPERATION KARO THARISA COMPARISON UNIT PHASE 1* OPEN PIT** 20 years Open pit LOM years 20 20 Reserve# Mt 35.5 94.2 REEF MINED PER ANNUM Reserve grade# 4E g/t 2.18 1.08 +7 Mt Reserve ounces 4E Moz 2.5 3.3 PGM production^ kozpa 150 200 PGMS PRODUCED PE
Slide 15: Phase 1 Economics
PHASE 1 ECONOMICS PHASE 1 OUTCOMES ▪ Strong project valuation results ▪ Project post- tax NPV12.9 USD770.4 million at spot pricing ▪ IRR of 47.6% ▪ ROIC of 47.0% FUNDING ▪ Peak funding requirement of ~USD310 million ▪ Advanced discussions on finalising external funding ▪ Capital intensity of ~USD1 8
Slide 16: Zimbabwe Experience
ZIMBABWE EXPERIENCE SALENE CHROME EXPERIENCE SALENE CHROME Project developed and being commissioned In country operations Operational experience on Great Dyke SEZ incentives successfully used for project PGM PILOT CONCENTRATOR AND PREPARATION Pilot concentrator constructed for early operat
Slide 17: Experienced Project Partners
EXPERIENCED PROJECT PARTNERS RESOURCE ESTIMATE PROCESS AND BULK POWER SUPPLY GEOTECHNICAL STUDIES ESIA CONSULTANTS CONCENTRATOR RESERVE ESTIMATE AND TECHNOLOGY PROVIDER WATER INFRASTRUCTURE DTH GEOPHYSICS PEER REVIEW MINE DESIGN AND SCHEDULE PROCESS TESTWORK TAILINGS STORAGE FACILITY HYDROLOGY / CON
Slide 18: 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 152.07 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 ▪ Pr
Slide 19: Tharisa Karo
tharisa KARO
Slide 20: 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