Tharisa Plc · JSE:THA
Tharisa — Investor Presentation (January 2016)
32 slides from Tharisa's investor presentation, January 2016
Slide 1: Profitable Low Cost Co-Producer – PGMs and Chrome
PROFITABLE LOW COST CO-PRODUCER – PGMS AND CHROME January 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: Agenda
AGENDA ① What will you hear today ② What makes us different ③ What we do ④ What you will see today ⑤ Why invest ⑥ Our future 3
Slide 4: What you will hear today
WHAT YOU WILL HEAR TODAY Tharisa is different… Innovative … We don’t only produce platinum … we are a co-producer of PGM and chrome concentrates We don’t mine just one mineral reef … we mine all 6 MG chromitite reef layers We don’t have underground mines … we run a large scale open pit operati
Slide 5: We are different
WE ARE DIFFERENT
Slide 6: Tharisa snapshot
THARISA SNAPSHOT Direct access to the only JSE Large scale Open pit operations with One of the world’s listed PGM and chrome (828 Mt resource) 20 year LOM and largest single chrome concentrate open pit co- mid-tier PGM and chrome 40 year LOM resource mines producer with an integrated concentrate co-
Slide 7: Who we are… meet the team
WHO WE ARE …MEET THE TEAM CORPORATE STRUCTURE EXECUTIVE MANAGEMENT Black Economic Tharisa plc Empowerment Cyprus (BEE) shareholders (2) (JSE:THA) Loucas Pouroulis Phoevos Pouroulis Michael Jones Michelle Taylor Executive Chairman CEO CFO COO 100% 100% 100% 74% Arxo Tharisa 26% Dinami Arxo Logistics
Slide 8: What we do
WHAT WE DO 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 74% 10
Slide 9: Welcome to our mine and operations
WELCOME TO OUR MINE AND OPERATIONS
Slide 10: Operational overview
OPERATIONAL OVERVIEW SPIRALS © =) DISPATCH FLOTATION <—_—_—__—. < 4 a eas J _ \ me ospares TAILINGS _ DISPATCH <— SECONDARY MILLING tharisa
Slide 11: Location
LOCATION Mining rights over 5 516 ha Neighbouring mining companies: – Anglo Platinum – Lonmin – Impala Platinum – Aquarius – Samancor Close proximity to national freeway and railway siding Neighbouring towns are Brits (45 km), Rustenburg (30 km), Mooinooi (10 km) and Marikana (5 km) 11
Slide 12: Mining all six MG chromitite layers
MINING ALL SIX MG CHROMITITE LAYERS GENERALISED CROSS SECTION SHOWING THE MG CHROMITITE LAYERS AND PLANNED PIT DEPTH Bench = 20m Steady state production of 4.8 MG4A Mtpa ROM average stripping ration of 8.5 (bcm:bcm) over MG4 LOM Reef dip east: 9-12° 200m MG4(0) Reef dip west: 14-18° 53 ° Strike leng
Slide 13: 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 14: Processing
PROCESSING KEY FACTS INDEPENDENT PROCESSING PLANTS GENESIS PLANT Process plants are owned and operated by Tharisa Capacity: 100 ktpm ROM Each plant operates independently, providing Processes reef layers with lower flexibility and limiting potential process disruptions PGM and higher chromit
Slide 15: Detailed process flow diagram
DETAILED PROCESS FLOW DIAGRAM 15
Slide 16: A secure value investment
A SECURE VALUE INVESTMENT
Slide 17: Operational highlights
PGM PRODUCTION CHROME CONCENTRATE (6E) PRODUCTION OPERATIONAL HIGHLIGHTS 118.0 koz ↑50.9% 1.122 Mt ↑3.4% (2014: 78.2 koz) (2014: 1.085 koz) KEY OPERATIONAL METRICS OPERATIONALLY CASH GENERATIVE for FY2015 Q1 FY2016 FY2015 FY2014 OPERATING CASH FLOW (US$m) ROM mined Mt 1.12 4.18 3.91 60 40 PGM roughe
Slide 18: 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 19: Balance sheet
BALANCE SHEET CAPITAL AND FUNDING MAJOR CAPITAL INVESTMENT PROGRAMME COMPLETE US$m FY2015 FY2014 Debt to total equity ratio adjusted for fully funded DSRA 36.3% Total capital spend* 403.0 378.4 – Optimisation projects to be funded from operational cash flows and debt may increase ratio in the shor
Slide 20: Segmental analysis
SEGMENTAL ANALYSIS PGM AND CHROME REVENUE AND COSTS OPERATING COST ANALYSIS – EX-WORKS FY2015* FY2014 US$m PGMs Chrome Total PGMs Chrome Total Overheads 13% Revenue 83.1 163.7 246.8 70.4 170.3 240.7 Cost of sales Diesel 63.7 80.8 144.5 53.4 91.9 145.3 (excluding selling expenses) 15% Selling expense
Slide 21: Commodity prices
COMMODITY PRICES PLATINUM PRICE IN ZAR vs ZAR/US$ EXCHANGE RATE CHROME PRICE IN ZAR vs US$ Source: Johnson Matthey Source: FerroAlloyNet 21
Slide 22: Why we stand out from other investments
WHY WE STAND OUT FROM OTHER INVESTMENTS UNIQUE MINING APPROACH Mining all 6 MG chromitite layers – access to both PGMs and chrome resources LOWEST QUARTILE COST CURVE One of the PGM and chrome industry’s lowest cost producers – with more room to cut costs INNOVATIVE PROCESSING Allows us to process b
Slide 23: Outlook
OUTLOOK FY2015 PGM production of 118.0 koz and 1.1 Mt of chrome concentrates PGM recoveries exceeded plan, annualised steady state production of 144 kozpa targeted for FY2016 Chrome concentrate annualised steady state production of 1.5 Mtpa targeted for FY2016 Impact of commodity prices – Ch
Slide 24: Strategy
STRATEGY LEADING NATURAL RESOURCES COMPANY PGM, chrome and steel raw materials LEADING NATURAL Large scale, low cost projects that are in or close to production RESOURCES COMPANY PGM, CHROME AND INNOVATION OPTIMISATION INITIATIVES Growth through innovative research Maximise value extraction
Slide 25: Annexures
t a a rl SQ ANNEXuRES
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: Operating cost analysis – ex-works
OPERATING COST ANALYSIS – EX-WORKS PGM CASH COST OF SALES CHROME CASH COST OF SALES Overheads 9% Overheads 16% Diesel 16% Diesel 15% Mining * Labour 49% 5% Mining * 55% Steelballs Labour 2% 9% Reagents Steelballs 7% 5% Utilities Utilities 6% 6% * Including contractor labour * Including contractor la
Slide 28: PGMs products and end uses
PGMS PRODUCTS AND END USES PGM MARKETS PRIMARY USES OF PGMS GLOBALLY Ir Ru 4.4% 13.7% Pt Platinum Automotive catalytic Jewellery Largest deposits of PGMs are found Au converters in South Africa, Zimbabwe, Russia 0.2% Bushveld Complex is the largest Rh 9.3% Pd Palladium Automotive catalytic conve
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 Foundry Chemical extracted from the ore grade grade 0.4% 9.6% Chrome ore is mined from primary chromite deposits Metallurgical •Cr2O3 – >46% •Cr2O3 – 45% to Chrome concent
Slide 30: Sustainability
SUSTAINABILITY INTERNAL EXTERNAL HEALTH AND SAFETY STAKEHOLDER RELATIONSHIPS Zero tolerance policy on unsafe conditions Engagement with regional and local government LTIFR at 31 December 2015 of 0.17 (per 200 000 man hours worked) Relations and ongoing engagement with local community represe
Slide 31: Shareholder analysis
SHAREHOLDER ANALYSIS MARKET STATISTICS TOP 10 SHAREHOLDERS** 25 January 2016 Shareholder % Share price ZAR 4.00 Medway Developments Ltd 46.5% Number of shares m 255.9 LCC Pershing 15.8% Market capitalisation ZAR m 1 023.6 Fujian Wuhang Stainless Steel 11.0% HSBC Private Bank (Suisse) Sa 4.3% Phillip
Slide 32: 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