Slide 1: Your London Exposure to the Platinum Group Metals Market
THARISA (THS:LSE) YOUR LONDON EXPOSURE TO THE PLATINUM GROUP METALS MARKET 22 October 2020 Proactive One2One Virtual Forum Enriching lives through innovating the resources company of the future
Slide 2: Why Buy Tharisa?
WHY BUY THARISA? • Exposure to growing demand in PGM and chrome market, driven by high palladium and rhodium values • Leading producer: peer leading safety record and asset sustainability • Committed to strong returns to shareholders through capital discipline • Healthy balance sheet the back bone o
Slide 3: Our Operation
OUR OPERATION THARISA IS THE SIXTH LARGEST SOUTH AFRICAN PGM PRODUCER AND FOURTH LARGEST SOUTH AFRICAN CHROME PRODUCER Enriching lives through innovating the resources company of the future 3
Slide 4: Our Operation
OUR OPERATION THARISA IS THE SIXTH LARGEST SOUTH AFRICAN PGM PRODUCER AND FOURTH LARGEST SOUTH AFRICAN CHROME PRODUCER Enriching lives through innovating the resources company of the future 4
Slide 5: Tharisa plc (THS:LSE) Consistent Dividend Payer
THARISA PLC (THS:LSE) CONSISTENT DIVIDEND PAYER KEY MARKET DATA 20 OCTOBER 2020 22% 20.5% 19.2% Shares in issue million 269 17.8% 16.3% Share price GBP 0.78 17% 15% Market capitalisation GBP million 209 12% KEY SHAREHOLDERS HOLDING 7% Medway 40.8% 2% Rance – (New World Securities) 15.1% -3% FY2016 F
Slide 6: FY2020 Production Report
FY2020 PRODUCTION REPORT REEF MINED PGM PRODUCTION (5PGE+Au) CHROME CONCENTRATE PRODUCTION 4.97 Mt 142.1 koz 1.34 Mt up 7.4% up 1.78% up 4.2% (2019: 4.62 Mt) (2019: 139.7 koz) (2019: 1.29 Mt) STRIP RATIO PGM PRICE CHROME CONCENTRATE PRICE 12.1 m3:m3 US$1 704/oz US$140/t up 45.7% up 57.6% down 13.5%
Slide 7: What the Analysts Had to Say After the Results
WHAT THE ANALYSTS HAD TO SAY AFTER THE RESULTS ANALYSTS FORECAST A B C D E EBITDA US$ m 95 88 97.5 102 110 EPS US cents 13 12 3 15.4 16 Dividend US cents 2 2 - 3.1 - Target Price GBp 160 120 140 195 84 Enriching lives through innovating the resources company of the future 7
Slide 8: Located in the Main PGM and Chrome Producing Areas
LOCATED IN THE MAIN PGM AND CHROME PRODUCING AREAS • In the heart of the PGM and chrome country, host to over two thirds of the world’s PGMs and chrome • Close to infrastructure, road, rail and power • Tharisa a product of the new mining code - fully compliant • Mechanised, open pit operation with a
Slide 9: Reasons to Be Bullish on Tharisa Commodity Basket
REASONS TO BE BULLISH ON THARISA COMMODITY BASKET PGMs are the 'catalyst' for a sustainable future The PGM industry has persisted for the past century, against a backdrop of political upheaval and technological revolution. Today, the unique chemical and physical properties of PGMs mean they are idea
Slide 10: Why Do We Need PGMs
WHY DO WE NEED PGMs • Known for their purity, high melting points and unique catalytic properties • Extremely resistant to corrosion • Play a critical role in autocatalysis and pollution control in the automotive sector • Used in a number of industrial applications from flat screens to medical • Str
Slide 11: Headwinds from Deep Mines to Rhodium Supply Growth
HEADWINDS FROM DEEP MINES TO RHODIUM SUPPLY GROWTH PRIMARY DEMAND OUTSTRIPPED BY PRIMARY SUPPLY Supply ‘000 oz 2017 2018 2019 South Africa 611 618 624 Russia 78 69 68 Others 70 70 65 Total primary supply 759 757 757 Gross demand ‘000 oz 2017 2018 2019 Autocatalyst 834 883 1 008 Other 207 170 137 Tot
Slide 12: What About Palladium
WHAT ABOUT PALLADIUM • Critical component in auto catalytic converters • Reduced output from RSA should ensure at least a balanced market in 2020 • Car sales in China are picking up Source: BMO, HSBC, Macquarie Enriching lives through innovating the resources company of the future 12
Slide 13: Platinum – Soon to Soar Again
PLATINUM – SOON TO SOAR AGAIN Source: SFA Oxford Enriching lives through innovating the resources company of the future 13
Slide 14: Chrome – Vital for Stainless Steel
CHROME – VITAL FOR STAINLESS STEEL • Chrome is what makes steel stainless • South Africa hosts 72% of the global chrome reserves • Assuming a 5% CAGR in Stainless Steel: GLOBAL STAINLESS STEEL CAGR +5.0% ADDITIONAL STAINLESS STEEL 2.7 Mtpa ADDITIONAL FERROCHROME Ores and concentrates 0.7 Mtpa Turkis
Slide 15: How Is Tharisa Positioned
HOW IS THARISA POSITIONED • Sixth largest South African PGM producer • Fourth largest South African Chrome Producer ‒ 142 100 ounces per annum of PGM ‒ 1 344 800 tonnes of chrome per annum • Tharisa position in terms of global demand ‒ One third specialty and foundry grade chrome ‒ ~1.3% of platinum
Slide 16: Sustainable Business Even in Times of COVID-19
SUSTAINABLE BUSINESS EVEN IN TIMES OF COVID-19 CO-PRODUCT AND HEALTHY CASH CONTINUED LIQUIDITY ROBUST BALANCE EXCHANGE RATE GENERATION INVESTMENT MANAGEMENT SHEET BENEFITS • Exposure to • Exposure to the • Investment in • Proactive • Low gearing multiple right people, fleet management and a dividend
Slide 17: Value Potential
VALUE POTENTIAL • Exposure to growing demand in PGM and chrome EV/EBITDA (2021E) market, driven by high palladium and rhodium values 8 6.7 7 6 5.2 4.8 4.9 • Leading producer: peer leading safety record and 5 asset sustainability 4 2.8 2.9 3.1 3 2.6 2.6 2 1.6 • Committed to strong returns to sharehol
Slide 18: 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