Slide 1: A Half That Beats the Years: FY2021 Interim Results Presentation
27 May 2021 A HALF THAT BEATS THE YEARS THS:LSE • THA:JSE FY2021 Interim Results Presentation Enriching lives through innovating the resources company of the future
Slide 2: Safety, Sustainability and ESG
LTIFR FATALITY FREE SHIFTS SAFETY, SUSTAINABILITY AND ESG 0.06 PER 200 000 HOURS 6 030 The safety and health of our people is a core value SAFETY We take responsibility for the effect that our operations may 0.4 have on the environment 0.35 0.36 We are taking steps to reduce our carbon footpri
Slide 3: Caring Beyond the Mine Gate
CARING BEYOND THE MINE GATE AET LEARNERS LEARNERSHIPS INTERNSHIPS 35 28 55 Donation of blankets to pensioners in surrounding communities Replacement of broken windows and doors at Machadam School Community drivers licence programme to date, 15 community members Local SMME support COVID-19
Slide 4: FY2021 Interim Results in Review
FY2021 INTERIM RESULTS IN REVIEW UNIT COST CONTROL DIGGING DEEP reef tonnes mined costs down 1.6%, reef tonnes milled costs down 5.1% resilience of employees, four year wage agreement signed with all unions RALLY IN PGM PRICES, INCREASE IN INCREASED MINING AND PRODUCTION TAILWINDS CHROME PRICES incr
Slide 5: FY2021 Interim Results Salient Features
FY2021 INTERIM RESULTS SALIENT FEATURES REEF MINED PGM PRODUCTION (5PGE+Au) CHROME CONCENTRATE PRODUCTION 2.5 Mt 75.1 koz 730.7 kt up 8.7% up 12.9% up 12.0% (2020: 2.3 Mt) (2020: 66.5 koz) (2020: 652.6 kt) REVENUE OPERATING PROFIT EBITDA US$313.6 m US$104.5 m US$124.2 m up 61.2% up 368.6% up 243.1%
Slide 6: Financial Metrics
FINANCIAL METRICS
Slide 7: Revenue and Production History; Commodity Pricing
PGM GUIDANCE CHROME GUIDANCE REVENUE 155 - 165 koz 1.45 – 1.55 Mt REVENUE AND PRODUCTION HISTORY COMMODITY PRICING 350 000 1 500 (REBASED TO 100 – MAY 2016) 1 448.0 1 331.2 1 344.8 600 5 000 300 000 1 243.7 1 290.0 1 300 4 500 1 100 500 250 000 4 000 Commodity index 900 3 500 200 000 400 730.7 3 000
Slide 8: Revenue and Gross Profit
PGM GROSS PROFIT MARGIN CHROME GROSS PROFIT MARGIN REVENUE AND GROSS PROFIT 49.9% 29.5% Agency and Gross profit margins improved to 41.0% (2020: 22.4%) Manufacturing Trading 3.3% 0.6% The major factors contributing: increased sale volumes Chrome 23.8% increase in the PGM basket price reduc
Slide 9: Profitable Through the Cycle
PROFITABLE THROUGH THE PROFITABILITY CYCLE METRIC UNIT H1 FY2021 H1 FY2020 % change Revenue US$ m 313.6 194.6 +61.2 EBITDA US$ m 124.2 36.2 +243.1 Profit before tax US$ m 104.6 17.5 +497.7 Earnings per share US cents 21.4 3.6 +494.4 Dividend per share US cents 4.0 - Return on invested capital* % 35.
Slide 10: Costs
VOLUME OUTPUT COSTS REDUCES UNIT COSTS H1 H1 % ON MINE CASH COST OF SALES METRIC UNIT FY2021 FY2020 change Labour Cubes mined Mm3 8.8 8.2 +7.6 19.6% Overheads Cost per cube mined* US$/m3 8.6 8.6 - 15.0% Consumables Reef tonnes mined Mt 2.5 2.3 +8.5 4.4% Cost per reef tonne mined* US$/t 30.5 31.0 -1.
Slide 11: Cash Flow and Dividends
CASH GENERATION CASH FLOW AND DIVIDENDS REWARDING SHAREHOLDERS Operating cash flow of US$104.9 m Payment of interim dividend post COVID-19 ‒ Additions to property plant and equipment of US$39.5 m Ensuring returns for shareholders while pursuing growth opportunities ‒ Repayment of Senior Debt F
Slide 12: Balance Sheet and Capex
CONTINUOUS BALANCE SHEET AND CAPEX INVESTMENT AND HEALTHY BALANCE SHEET Cash and cash equivalents of US$72.8 m FY2021 sustaining capex US$54.4 m (excludes deferred stripping) ‒ Total debt of US$43.0 m ‒ Vulcan Plant US$46.4 m ‒ Positive net cash of US$29.8 m Spent to date US$25.6 m (net of def
Slide 13: Our Business
tharisa OUR BUSINESS
Slide 14: Vulcan Plant
VULCAN PLANT Proprietary fine chrome recovery plant Construction continues Construction completion expected before year end 484 days LTI free on site Enriching lives through innovating the resources company of the future 14
Slide 15: Foundations of Sustainability
FOUNDATIONS OF SUSTAINABILITY OREBODY MINING PROCESSING VALUE DISCOVER DEVELOP DELIVER DIVERSIFY Tabular continuous orebody Mechanised modern fleet Innovation unlocking value Capturing the value stream Long life open pit Low energy exposure Tailored extraction plants Arxo Resources
Slide 16: Sustainable Long Term Returns
SUSTAINABLE LONG TERM RETURNS GROWTH C A P I TA L RETURNS DISCIPLINE Complete organic growth opportunities CAPITAL RETURNS TO SHAREHOLDERS Life of mine extension 21 20.5 20 0 00 19.2 Vulcan Plant – 2 million tonnes of chrome 18 0 00 17.8 17.1 18 214 16 0 00 16.3 16 Deliver on our 200 000 oun
Slide 17: Questions?
QUESTIONS? Enriching lives through innovating the resources company of the future 17
Slide 18: Appendix
tharisa APPENDIX
Slide 19: Corporate Profile (THS:LSE THA:JSE)
CORPORATE PROFILE (THS:LSE THA:JSE) CAPITAL STRUCTURE DIRECTORS OF THARISA SHAREHOLDER SPREAD Loucas Christos Pouroulis (Executive Chairman) 1.42 Strategic Issued shares 269.1 million 1.27 Phoevos Pouroulis (Chief Executive Officer) 1.31 Investors Market capitalisation* GBP379.4m ZAR7.8bn 1.70 M
Slide 20: Corporate Structure
CORPORATE STRUCTURE Tharisa plc (Registered in Cyprus) Listed on LSE (THS) and JSE (THA) BEE 20% Thari Resources 100% 100% 26.8% 100% 74% 6% Tharisa Community trust 26% Karo Project Tharisa Minerals Arxo Resources Arxo Logistics Salene Chrome (Zimbabwe) (South Africa) (Cyprus) (South Africa) (Zimbab
Slide 21: Tharisa's Journey
THARISA’S JOURNEY 2009 2012 2017 2018 • Acquired 74% • Secured project • Agreement entered into for • Shareholding shareholding in finance facility of the purchase of mining fleet acquired in Karo Tharisa Minerals ZAR1 billion 2014 and transfer of employees Holdings 2006 • Commenced • First bulk rai
Slide 22: Commitment to R&D and Investment
COMMITMENT TO R&D AND INVESTMENT Since the initiation, Tharisa has been committed to the beneficiation of its mineral products as well as the development and deployment of innovative processing and technology US$504 m THARISA GROUP TOTAL INVESTMENT The R&D department of Tharisa has been developi
Slide 23: R&D to Commercialisation
R&D TO COMMERCIALISATION 1MW SMELTER PGM OPTIMISATION CHALLENGER PLANT FOURTH STAGE VULCAN PLANT PROJECTS CRUSHING Producing PGM alloy and Successfully increasing Production of higher Increased the capacity for In house developed to develop further the PGM recoveries at value chemical and production
Slide 24: Innovative Approach
INNOVATIVE APPROACH Enriching lives through innovating the resources company of the future 24
Slide 25: Processing
PROCESSING GENESIS PLANT VOYAGER PLANT VULCAN PLANT • Nameplate capacity: 100 ktpm ROM • Nameplate capacity: 300 ktpm ROM • Under construction • Processes reef layers with lower PGM and • Processes reefs with higher PGM and • Nameplate capacity: 340 ktpm tailings higher chromite grades lower chromit
Slide 26: 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