Slide 1: Profitable Low Cost Co-Producer – PGMs and Chrome
PROFITABLE LOW COST CO-PRODUCER – PGMS AND CHROME PLATINUM WEEK 2016
Slide 2: Disclaimer
DISCLAIMER This document has been compiled by Tharisa plc (“Tharisa”). While the information contained herein is believed to be accurate, no representation or warranty, express or implied is or will be given by Tharisa or its respective directors, employees or advisors or any other person as to the
Slide 3: No Ordinary Mining Company
t a AL! Sa NO oRDINARY MINING COMPANY
Slide 4: Tharisa at a Glance
THARISA AT A GLANCE 828 ZAR1.7 billion REVENUE MARKET CAPITALISATION US$246.8m Mtpa ROM EBITDA US$ 2 cents Mt RESOURCE TONNAGE 144 1.5 PLATINUM 5.5 km METALS GROUP koz pa Mtpa US$29.0m CHROME CONCENTRATES STRIKE LENGTH OF 2 056 20 INAUGURAL HEPS PER ALL 6 MG CHROMITITE LAYERS 4.8 ESTIMATED YEARS OPE
Slide 5: Corporate Overview
CORPORATE OVERVIEW CORPORATE STRUCTURE TOP 10 SHAREHOLDERS Shareholder % Black Economic Tharisa plc Medway Developments Ltd 46.5 Empowerment Cyprus (BEE) shareholders (2) (JSE:THA) LCC Pershing 15.8 Fujian Wuhang Stainless Steel 11.0 HSBC Private Bank (Suisse) Sa 4.3 100% 100% 74% Phillip Ventures E
Slide 6: Management Team
MANAGEMENT TEAM EXECUTIVE MANAGEMENT Over 50 years of experience in Over 15 years of experience in Over 18 years of investment Over 8 years of experience at mining company exploration, project management in the mining banking experience in corporate the Tharisa Group project management, fina
Slide 7: Tharisa Snapshot
THARISA SNAPSHOT Tharisa plc is the only JSE listed Large scale Open pit operations with One of the world’s PGM and chrome concentrate (828 Mt resource) 20 year LOM and largest single chrome open pit co-producer with an mid-tier PGM and chrome 40 year LOM resource mines integrated marketing, sales a
Slide 8: Our Value Chain
OUR VALUE CHAIN THE FULL VALUE CHAIN IS CAPTURED THROUGH THE CO-EXTRACTION OF PGM AND CHROME AND IN-HOUSE MARKETING, SALES AND LOGISTICS Mining and processing Beneficiation Marketing and sales Logistics Our customers (Tharisa Minerals) (Arxo Metals) (Arxo Resources) (Arxo Logistics) and agreements 7
Slide 9: Location of Tharisa Mine
LOCATION OF THARISA MINE LOCATED IN THE MAIN PGM AND CHROME PRODUCING AREA IN SOUTH AFRICA Mining rights over 5 475 ha Adjacent to Anglo Platinum, Lonmin, Impala Platinum, Eastern Platinum Well serviced by road, rail, power and other services Neighbouring towns are Brits (45 km) and Rustenbu
Slide 10: Mining All Six MG Chromitite Layers
MINING ALL SIX MG CHROMITITE LAYERS GENERALISED CROSS SECTION SHOWING THE MG CHROMITITE LAYERS AND PLANNED PIT DEPTH Steady state Bench = 20m MG4A production of 4.8 Mtpa ROM MG4 Reef dip east: 9-12° 200m MG4(0) Reef dip west: 14-18° 53 ° Strike length: 5.5 km Average stripping ratio: 8.5 (bcm:bcm) o
Slide 11: Operational Overview
Total capacity of 400 ktpm ROM Processing flexibility provided Voyager – 300 ktpm OPERATIONAL OVERVIEW through owner operated Voyager and Genesis standalone Genesis – 100 ktpm Operationally de-risked concentrator plants. co-producer 11
Slide 12: Key Operational Metrics
PGM RECOVERY CHROME RECOVERY KEY OPERATIONAL METRICS Target – 70% Target – 65% H1 Q2 Q1 PLATINUM PRICE FY2016 FY2016 FY2016 FY2015 ROM mined Mt 2.36 1.23 1.12 4.18 1800 18 000 Platinum price [US$/oz] Platinum price [ZAR/oz] 1600 16 000 PGM rougher feed grade g/t 1.68 1.74 1.61 1.62 14 000 1400 Chrom
Slide 13: Mine to Market
ARXO RESOURCES ARXO LOGISTICS MINE TO MARKET 100% 100% PGM off-take 10.1% of China’s chrome agreement with ore/concentrate imports Impala Refinery and 14.2% of South Africa’s Services chrome ore/concentrate exports for FY2015 50 ktpm chrome concentrate agency agreement with the Noble Group Agency ag
Slide 14: Income Statement
REVENUE OPERATING PROFIT NET PROFIT AFTER TAX INCOME STATEMENT US$246.8m ↑2.5% US$18.4m ↑211.9% US$6.0m (2014: US$240.7m) (2014: US$5.9m) (2014: loss US$54.9m) INCOME STATEMENT HIGHLIGHTS INCREASED PROFITABILITY US$m % change FY2015 FY2014 Revenue increased marginally partly as a result of signifi
Slide 15: Segmental Analysis
SEGMENTAL ANALYSIS PGM AND CHROME REVENUE AND COSTS OPERATING COST ANALYSIS – EX-WORKS FY2015* FY2014 US$m PGMs Chrome Total PGMs Chrome Total Revenue 83.1 163.7 246.8 70.4 170.3 240.7 Cost of sales 63.7 80.8 144.5 53.4 91.9 145.3 (excluding selling expenses) Selling expenses 0.2 59.0 59.2 0.1 62.7
Slide 16: Balance Sheet
TOTAL INTEREST BEARING DEBT BALANCE SHEET US$75.6m Down 35% (2014: US$116m) CAPITAL AND FUNDING MAJOR CAPITAL INVESTMENT PROGRAMME COMPLETE US$m FY2015 FY2014 Debt to total equity ratio adjusted for fully funded DSRA 36.3% Total capital spend* 403.0 378.4 – Optimisation projects to be funded from
Slide 17: Cash Flow
NET CASH FLOWS FROM OPERATING CASH FLOW ACTIVITIES US$41.4m ↑84.8% (2014: US$22.4m) SUMMARISED CASH FLOW STATEMENT OPERATIONALLY CASH GENERATIVE US$m FY2015 FY 2014 Net cash flows before working capital requirements of US$34.2m Cash flow from operating activities 41.4 22.4 – Depreciation of US$10.
Slide 18: Share Statistics
SHARE STATISTICS SIX MONTH VIEW GENERAL SHARE INFORMATION (1 YEAR) (AS AT 5 MAY 2016) Short name Tharisa (THA) Long name Tharisa plc JSE sector Mining (1770) Price ZAR7.50 High ZAR9.40 Low ZAR4.00 ONE YEAR VIEW Market cap ZAR1.9 billion 1 year return 42.86% PE Ratio 25.06 EPS 0.27 18
Slide 19: THA vs Peers (Relative): 1 Year
THA VS PEERS (RELATIVE): 1 YEAR 19
Slide 20: We Are Different
WE ARE DIFFERENT WE STAND OUT FROM OTHER INVESTMENTS UNIQUE MINING APPROACH We believe Tharisa is one of the few resources Mining all 6 MG chromitite layers – access to both PGMs and chrome resources companies in South Africa that is profitable, cash generative, low cost and well placed to capitalis
Slide 21: Strategy
STRATEGY LEADING NATURAL RESOURCES COMPANY PGM, chrome and steel raw materials Large scale, low cost projects that are Tharisa is focused on in or close to production becoming a leading natural resources INNOVATION OPTIMISATION INITIATIVES company focused on Growth through innovative research
Slide 22: Annexures
t a a rl Sq ANNEXuRES
Slide 23: History and Milestones
HISTORY AND MILESTONES THARISA PLC PRIOR TO ACQUISITION OF THARISA MINERALS BY THARISA PLC POST ACQUISITION OF THARISA MINERALS BY THARISA PLC JAN 2011 FEB 2008 FEB 2012 APR 2008 US$95 million investment by Fujian Tharisa Limited (subsequently Wuhang and Hong Kong HeYi Secured project finance facili
Slide 24: Safety
SAFETY INDUSTRY LTIFR* FOCUS ON SAFETY Safety remains the number one priority of management COMPARATIVE RATE PER MILLION HOURS WORKED and all employees - we strive for zero harm 25.00 Tharisa’s LTIFR continues to remain amongst the lowest 20.00 within the South African PGM and chrome mining 15.0
Slide 25: Sustainability
SUSTAINABILITY INTERNAL EXTERNAL HEALTH AND SAFETY STAKEHOLDER RELATIONSHIPS Zero tolerance policy on unsafe conditions Engagement with regional and local government LTIFR of 0.06 for FY2015 Relations and ongoing engagement with local community representatives ENVIRONMENTAL MANAGEMENT Perm
Slide 26: Resource and Reserve Statement
RESOURCE AND RESERVE STATEMENT DECLARATION AS AT 30 SEPTEMBER 2015 MINERAL RESOURCE Tonnes 6E + Au grade 4E grade Cr2O3 grade Contained 4E Contained 6E Contained Cr2O3 Mt g/t g/t % Moz Moz Mt Measured 48.59 1.53 1.14 21.39 1.78 2.39 10.39 Indicated 129.53 1.68 1.24 22.24 5.16 7.00 28.81 Inferred 650
Slide 27: Geology
GEOLOGY GEOLOGY MG REEF STRATIGRAPHY The MG reef package is classified into six chromitite layers – MG0, MG1, MG2, MG3, MG4, MG4A Partings are generally anorthosite, pyroxenite or norite Reef package varies from 50 m in the west to 74 m in the east (incl. partings) PGMs are concentrated in t
Slide 28: PGMs Products and End Uses
PGMS PRODUCTS AND END USES PGM MARKETS PRIMARY USES OF PGMS GLOBALLY Pt Platinum Automotive catalytic Jewellery Largest deposits of PGMs are found converters in South Africa, Zimbabwe, Russia Bushveld Complex is the largest Pd Palladium Automotive catalytic converters Jewellery platinum resource
Slide 29: Chrome Products and End Uses
CHROME PRODUCTS AND END USES CHROME ORE/CONCENTRATE MARKETS USE OF CHROME ORE/CONCENTRATE GLOBALLY Chromite is the mineral extracted from the ore Chrome ore is mined from primary chromite deposits •Cr2O3 – >46% •Cr2O3 – 45% to Chrome concentrates can be •Cr2O3 – 30% to 45% •SiO2 - <1% 47% •Cr2
Slide 30: Contact Details
CONTACT DETAILS Investor Relations contact: Sherilee Lakmidas D: +27 11 996 3547 M: +27 76 276 2529 slakmidas@tharisa.com www.tharisa.com