Tharisa Plc · JSE:THA
Tharisa — Investor Presentation (January 2019)
30 slides from Tharisa's investor presentation, Jan 30, 2019
Slide 1: Analyst Presentation January 2019
A N A LYS T P R E S E N TAT I O N JANUARY 2019 Discover Develop Deliver
Slide 2: Safety and Sustainability
TWO YEAR WAGE AGREEMENT BEST IN CLASS AWARD AT 4 000 FATALITY FREE SAFETY AND SUSTAINABILITY CONCLUDED WITH AMCU MINESAFE PRODUCTION SHIFTS 0.17 3 2 LTIFR YEARS FATALITY FREE SAFETY AWARDS LOST TIME INJURY FREQUENCY RATE 31 December 2018 4 21 82 ENGINEERING LEARNERSHIPS INTERNS AND GRADUATES ADULT E
Slide 3: Tharisa – An Overview
THARISA – AN OVERVIEW THARISA MINERALS PROCESSING RESOURCE MINING 400 ktpm nameplate capacity 860.6 Mt resource 15 year open pit LOM Genesis Plant (100 ktpm) 92.9 Mt reserve of which 74.2 Mt open pit 40 year underground extension Voyager Plant (300 ktpm) LARGE SCALE MECHANISED DERISKED Mechanised op
Slide 4: Tharisa – Adding Value Beyond Mining
THARISA – ADDING VALUE BEYOND MINING ARXO METALS ARXO RESOURCES / PROJECTS CUSTOMERS ARXO LOGISTICS BENEFICIATION MARKETING AND SALES Production of specialty grade Significant trader of chrome AGREEMENTS chrome concentrates concentrates to China PGM offtake– Impala Platinum and Third party trading Z
Slide 5: Mining
MINING Discover Develop Deliver
Slide 6: Mining
MINING RESOURCES AND RESERVES GENERALISED CROSS SECTION SHOWING MG CHROMITITE LAYERS (AT PLANNED DEPTH) Mining rate of 5.2 Mtpa with an average Bench = 20m stripping ratio of 9.5 (m3:m3 basis) MINERAL RESOURCE 200m ▪ 860.7 Mt Reef dip east: 9-12° Reef dip west: 14-18° 53 ° ▪ 1.54 g/t 5PGE+Au 5.5 km
Slide 7: Mine Plan – Current Position
MINE PLAN – CURRENT POSITION 7
Slide 8: Mine Plan - 2020
MINE PLAN - 2020 8
Slide 9: Production - Mining
LOM OPEN PIT STRIPPING RATIO PRODUCTION - MINING 9.5 m3:m3 (LOM FY2017: 9.6 m3:m3) REEF MINED [Mtpa] ▪ Reef mined decreased by 7.6% quarter on quarter 5.6 15 ▪ Comprehensive maintenance programme implemented to return 5.6 fleet to OEM standards, which reduced availability in FY2018 and in Q1 FY2019
Slide 10: Fleet Capacity
FLEET CAPACITY DRILL BLAST LOAD HAUL 13 OB drill rigs Blasting is outsourced 10 excavators and 1 55 haul trucks 12 IB/reef drill rigs face shovel CAT777 for IB/reef Capable of drilling Capable of loading CAT785/789 for OB +100 km pm +1.8 Mm3 pm Capable of hauling +1.7 Mm3 pm Curr
Slide 11: Opening of the Western Corner of the East Pit
OPENING OF THE WESTERN CORNER OF THE EAST PIT February 2018 January 2019 11
Slide 12: Changing of In Pit Haul Roads
CHANGING OF IN PIT HAUL ROADS July 2018 January 2019 12
Slide 13: Processing
P RO C ES S I N G Discover Develop Deliver
Slide 14: Innovative Approach
INNOVATIVE APPROACH SPIRALS 4 (@) DISPATCH FLOTATION oi OS TAILINGS \ DISPATCH <— SECONDARY I MILLING tharisa 14
Slide 15: Processing
PROCESSING GENESIS PLANT VOYAGER PLANT Nameplate capacity: 100 ktpm ROM Nameplate capacity: 300 ktpm ROM Processes reef layers with lower Processes reefs with higher PGM PGM and higher chromite grades and lower chromite grades Challenger Plant recovers high value Produces both metallurgi
Slide 16: Production - PGM
PRODUCTION - PGM PGM PRODUCTION [kozpa] 200 ▪ PGM production decreased by 5.9% quarter on quarter to 33.6 koz 200.0 110.0% 180 ▪ PGM rougher feed grade of 1.59 g/t (Q4 FY2018: 1.48 g/t) 90.0% 160 79.7% 84.1% 76.5% 85.0% ▪ Reduced recoveries by 9.0% to 76.5%, due to processing of commissioning tailin
Slide 17: Production - Chrome
PRODUCTION - CHROME CHROME PRODUCTION [Mtpa] ,2.0 ▪ Chrome concentrate production decreased by 10.0% quarter on 2.0 ,1.8 150.0% quarter to 305.4 kt ,1.6 130.0% ▪ Cr2O3 ROM grade of 18.5% (Q4 FY2018: 18.3%) ,1.4 110.0% ▪ Chrome recoveries reduced by 8.7% quarter on quarter to 58.9%, 1.4 due to the pr
Slide 18: Market Review
MARKET REVIEW Discover Develop Deliver
Slide 19: Chrome Market
CHROME MARKET DEMAND AND SUPPLY MARKET PRICES AVERAGE MONTHLY FY2018 FY2019 ▪ Demand for metallurgical grade chrome concentrate is mainly 250 4 000 driven by its use in the manufacture of stainless steel 3 500 200 ▪ China is wholly dependent on imports of chrome ores 3 000 ▪ Spot chrome prices trade
Slide 20: PGM Market
PGM MARKET PGM DEMAND AND SUPPLY MARKET PRICES FY2018 FY2019 3 000 ▪ Vital industrial metals largely used in automotive catalytic converters, other drivers of demand include jewellery, industrial 2 500 uses and investment 2 000 ▪ Platinum demand is expected to marginally weaken in 2018, while 1 500
Slide 21: Strategy Implementation
ST R AT EGY I M P L E M E N TAT I O N Discover Develop Deliver
Slide 22: Exploration Projects
EXPLORATION PROJECTS DISCOVER Snakes Head DIVERSIFICATION PRODUCT FROM SINGLE ASSET EXPANSION HIGHLY FURTHER Salene GROWTH PROSPECTIVE AREA Hartley Platinum Mine Harare Chrome OPPORTUNITIES Resource of 28.2 Moz (4E) 4E grade of 4.03 gpt Karo Platinum Karo Estimated 96 Moz (4E) 4E grade of 3.2 gpt Pl
Slide 23: Karo Platinum
KARO MINING HOLDINGS KARO PLATINUM 26.8% shareholding PROJECT PROGRESS ▪ Development permit awarded ▪ DTM and geophysics completed ▪ First 50 boreholes have been drilled, totaling over 7 600 m ▪ Almost all holes have intersected the Main Sulphide Zone ▪ Samples to be independently assayed ▪ Competen
Slide 24: Salene Chrome
SALENE CHROME OPTION SALENE CHROME 90% shareholding PROJECT PROGRESS ▪ Development permit awarded ▪ DTM and geophysics completed ▪ First 10 trenches have been completed, totaling 3 000 m ▪ Sampling has commenced ▪ Samples to be independently assayed ▪ Competent person appointed ▪ Pitting targets ide
Slide 25: Research and Development
RESEARCH AND DEVELOPMENT DEVELOP ▪ Successfully increasing the metal recoveries at the Genesis and Voyager Plants through continuous improvement ▪ The development of the Challenger Plant to recover specialty grade chrome concentrates ▪ Commissioning of 1 MW PGM DC smelter and first production of PGM
Slide 26: Smelting Plant
SMELTING PLANT ▪ Demonstration scale plant to prove downstream beneficiation process ▪ Currently operating at 100 tpm ▪ Producing PGM alloy ▪ Developing converting process and PGM refining process 26
Slide 27: Vision 2020
VISION 2020 DEVELOP 2020 TA R G E T ROM of 5.6 Mtpa PGMs of 200 kozpa Chrome concentrates of 2.0 Mtpa FY2019 GUIDANCE ROM of 5.2 Mtpa PGMs of 150 to 160 kozpa Chrome concentrates of 1.4 to 1.5 Mtpa FY2018 ACTUAL ROM of 4.9 Mtpa PGMs of 152.2 kozpa Chrome concentrates of 1.4 Mtpa
Slide 28: Delivering Vision 2020
DELIVERING VISION 2020 DELIVER GRADE IMPROVEMENT PGM OPTIMISATION FOURTH STAGE CRUSHING VULCAN PLANT Opening full mining strike Improving PGM recoveries Additional crushing circuit Fine chrome recovery length at Voyager Plant by at Genesis Plant to plant Maintain correct multi- upgrading c
Slide 29: Delivering on Our Strategy
DELIVERING ON OUR STRATEGY DELIVER LEVERAGING LEADING NATURAL OPTIMISATION INNOVATION EXISTING CAPITAL DISCIPLINE RESOURCES GROUP INITIATIVES PLATFORMS Globally significant, Innovative research and Maximise value Marketing, sales and Annual dividend policy of diversified low cost development feeding
Slide 30: 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