Tharisa Plc · JSE:THA
Tharisa — Shares Investor Evening Webinar (AJ Bell) (October 2021)
21 slides from Tharisa's conference presentation, Oct 20, 2021
Slide 1: Innovative Investment into the Right Metals
20 OCTOBER 2021 INNOVATIVE INVESTMENT INTO THE RIGHT METALS THS:LSE • THA:JSE SHARES INVESTOR EVENING - WEBINAR Enriching lives through innovating the resources company of the future
Slide 2: Our Values
OUR VALUES 1 2 3 4 5 6 7 SAFETY AND HEALTH TAKE RESPONSIBILITY CONDUCT COMMITTED REDUCE CHALLENGE ACHIEVE of our people is a core for the effect we have on with integrity and to the upliftment of carbon footprint in convention using superior returns value our environment honesty local communities li
Slide 3: Who We Are
• 42.8 MOZ IN CONTAINED 859.6 MT IN MINERAL WHO WE ARE RESOURCE 6PGE+Au* • 172 MT IN CONTAINED Cr2O3* 1 2 3 4 5 6 Integrated 10 year 14 year +40 year Profitable Consistent PGM and chrome operational LOM open pit underground throughout dividend payer co-producer located in track record mechanised lif
Slide 4: ESG: Caring Beyond the Mine Gate
SAFETY AND ESG | CARING BEYOND THE MINE GATE • Community is 6% shareholder in Tharisa Minerals • 6 year fatality free • US$1m spent on community upliftment • 5 million fatality free shifts on June 2021 • Provide infrastructure services to the community • All employees on private medical aid and comp
Slide 5: FY2021 Production
LTIFR SPOT CHROME PRICE SPOT PGM BASKET PRICE FY2021 PRODUCTION 0.34 / 200 000 hours ~US$165/t* ~US$2 500/oz* • Achieved 5 million fatality free shifts, 6 year fatality free • Delivered record mining rates and tonnes processed • Leading to record quarterly PGM production of 43.7 koz and chrome conce
Slide 6: Vulcan Beneficiation Plant
VULCAN BENEFICIATION PLANT • Increase chrome recoveries from ~62% to ~82% • Innovative technology developed by Tharisa • Vulcan will further beneficiate chrome production while reducing unit output of carbon emissions • Internally funded from cash flow • ~US$55m capex − over 90% was procured in Sout
Slide 7: Long Term Production and Pricing
FY2022 PGM GUIDANCE FY2022 CHROME GUIDANCE LONG TERM PRODUCTION AND PRICING 165 koz-175 koz 1.75 Mt– 1.85 Mt CHROME PRODUCTION (Mt) AND REALISED PRICES (US$/t) • Long life asset Consensus Estimates 215 − Rising production profile 200 195 186 − 14 year open pit modelled 175 162 167 − 40 year undergro
Slide 8: Broker Summary Perspectives
BROKER SUMMARY PERSPECTIVES ANALYST PRICE TARGETS(1) EVOLUTION OF BROKER RECOMMENDATIONS Broker Date Target Price Peel Hunt 01-Oct-21 £2.50 Buy Hold Sell Unknown or No Rating Share Price (£) Median Target Price Nedbank Capital 30-Sep-21 £2.43 # of Analysts Berenberg 28-Sep-21 £1.90 4 3 4 5 4 4 6 6 5
Slide 9: Our Business
tharisa OUR BUSINESS
Slide 10: Discover, Develop, Deliver
FOUNDATIONS OF SUSTAINABILITY Long-life Mechanised modern fleet Maximum Recoveries Capturing the value stream DISCOVER DEVELOP DELIVER DIVERSIFY OREBODY MINING PROCESSING VALUE Enriching lives through innovating the resources company of the future 10
Slide 11: Sustainable Long Term Returns
SUSTAINABLE LONG TERM RETURNS CAPITAL DISCIPLINE VALUE OREBODY PROCESSING MINING GROWTH CONTINUOUS INVESTMENT RETURNS • Complete organic growth opportunities 100 • Capital appreciation • Commercialise downstream opportunities • Dividend US$ 48.5 million in last 6 years 100.4 US$c %NPAT Dividend poli
Slide 12: Portfolio Snapshot
PORTFOLIO SNAPSHOT Tharisa Mine*: Vulcan Plant Salene Chrome Karo Platinum OPERATIONS & PROJECTS 14 year open pit LOM Fine chrome recovery Open pit chrome mine Proposed new PGM mine ~170 koz PGM per annum ~400 ktpa met chrome ~60 ktpa of concentrated Located on Great Dyke ~1.8 Mt chrome per annum (C
Slide 13: Tharisa Overview – Diversification Initiatives
THARISA OVERVIEW – DIVERSIFICATION INITIATIVES KARO HOLDINGS SALENE CHROME SALENE MANGANESE METQ • Tharisa acquired a 26.8% shareholding in • Tharisa has a 100% shareholding in Salene • Tharisa has an option to acquire 70% of • METQ is a South-African based Karo Mining Holdings in 2018 Chrome, a chr
Slide 14: Karo Project Overview
KARO PROJECT OVERVIEW • Located on the second biggest known PGM deposit in the world* • Surrounded by some of the lowest cost PGM mines on record • Zimplats had previously declared an indicated and inferred mineral resource over the area of ~96 Moz (4E PGM basis) • Project area has been declared a S
Slide 15: Industry Overview
tharisa INDUSTRY OVERVIEW
Slide 16: Platinum Group Metals Supply and Demand
CONCENTRATED UNIQUE PLATINUM GROUP METALS SUPPLY APPLICATIONS Platinum − Six elements known for their unique properties and used in 5E PGM DEMAND Autocatalyst ~40% RhutheniumIriIridium industrial, medical, and electronic applications 5% dium Jewellery ~24% 1% Chemical ~9% Rhodium Glass ~7% − Highly
Slide 17: Positioning Tharisa in the PGM World
SPOT PGM BASKET PRICE FY2022 GUIDANCE POSITIONING THARISA IN THE PGM WORLD ~US$2 500/oz^ 165 koz to 175 koz • 42.8 Moz in contained 6PGE+Au* PRILL SPLIT 2021 4E RESOURCES PRILL SPLIT % • Unique prill exposure 4.63% 120 • PGM producer 100 12 7 7 9 8 9 10 6 6 5 8 1 14.65% 80 − ~158 koz of PGMs FY2021
Slide 18: Chrome Market: South Africa - China Nexus
SOUTH AFRICA - CHINA CHROME MARKET NEXUS GLOBAL FeCR PRODUCTION • Chrome is what makes steel stainless • South Africa hosts 72% of the global chrome reserves − 75% of supply comes from primary producers − 25% as a by product of platinum producers STAINLESS STEEL MARKET 2020 MAIN CHROME EXPORTERS 202
Slide 19: Positioning Tharisa in the Chrome World
SPOT CHROME BASKET PRICE FY2022 GUIDANCE POSITIONING THARISA IN THE CHROME WORLD ~US$165/t* 1.75 Mt – 1.85 Mt • 1.5 Mt in FY2021 GLOBAL STAINLESS STEEL CAGR ADDITIONAL STAINLESS STEEL • Provides China with ~10% of all its chrome concentrate +5.0% 2.7 Mtpa • 25% specialty and foundry grade chrome • O
Slide 20: Conclusion
CONCLUSION • The safety and health of our people is a core value • Striving for global best practice • Modern beneficiation operations • Sustainable growth profile • Technology is the enabler @tharisa_sa #proudlytharisa Enriching lives through innovating the resources company of the future 20
Slide 21: 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
Tharisa — Shares Investor Evening Webinar (AJ Bell) (October 2021) on 6ix