Tharisa Plc · JSE:THA
Tharisa — ShareSoc Webinar (June 2023)
29 slides from Tharisa's conference presentation, Jun 8, 2023
Slide 1: Corporate Presentation – ShareSoc Webinar
8 June 2023 CORPORATE PRESENTATION ShareSoc Webinar enriching lives through innovating the resources company of the future
Slide 2: Long Life Portfolio
tharisa LONG LIFE PORTFOLIO
Slide 3: Long Life Portfolio
40.3 Moz & 10.0 Moz 171.1 Mt LONG LIFE PORTFOLIO IN CONTAINED PGMS (6E) IN CONTAINED CHROME Karo Platinum SIGNIFICANT SHALLOW RESOURCES − 849.6 Mt at Tharisa Mine − 18 year open pit life at Tharisa Minerals − +40 years underground LOM potential − 152.1 Mt at Karo Platinum Tharisa Mine − 17 year open
Slide 4: Profitable, Investing, Paying Dividends, Delivering Vision 2025
PROFITABLE • INVESTING • PAYING DIVIDENDS • DELIVERING VISION 2025 PROFITABLE − Co-product commodities delivering into demand − Profitable since 2015 INVESTING − Invested US$530 m in our operations in the last decade − Ensuring optimum resource extraction through innovative processes PAYING DIVIDEND
Slide 5: Vision 2025
VISION 2025 EXPANSION Expand and roll out the business sustainably OPTIMISATION Optimise existing operations enriching lives through INNOVATION innovating the resources Continue to invest in innovative thinking company of the future DIVERSIFICATION Become a globally diversified business INVESTMENT B
Slide 6: Safety Is a Core Value
FAITH MEMORIAL GARDEN SAFETY IS A CORE VALUE − Tharisa Mine – LTIFR of 0.27 per 200 000 man hours worked − Overall improved safety performance, post fatality at Tharisa Mine in October 2022 − Karo Platinum – project remains LTI free “Faith is the strength by which a shattered world shall emerge into
Slide 7: Delivering Value in Challenging Environment
DELIVERING VALUE IN CHALLENGING ENVIRONMENT SAFETY IS A CORE VALUE SUSTAINABLE MINING OF OUR LONG LIFE TIER ONE ASSETS − Tharisa Mine – LTIFR of 0.27 per 200 000 man hours worked − Reef mined of 2.1 Mt − Overall improved safety performance, post fatality at Tharisa Mine in October − PGM production o
Slide 8: The Vital Numbers
US$2 216/oz US$247/t THE VITAL NUMBERS down 14.5% up 41.1% PGM BASKET PRICE MET GRADE PRICE REEF MINED PGM PRODUCTION (6E) CHROME CONCENTRATE PRODUCTION 2.1 Mt 77.0 koz 787.9 kt down 25.6% down 16.1% up 1.4% stripping ratio of 11.5 m3:m3 recovery of 67.0% recovery of 66.2% (HY2022: 2.8 Mt) (HY2022:
Slide 9: Maximising Our Output
tharisa MAXIMISING OUR OUTPUT
Slide 10: An Ethos of Innovation
AN ETHOS OF INNOVATION ARXO METALS BENEFICIATION SITE − Commercial operations for PGM smelting − Demonstration scale testing of other initiatives ARXO METALS TECHNOLOGY DEVELOPMENT CENTRE − Facility to run laboratory and pilot scale test work − Focus on downstream beneficiation of PGMs and chrome te
Slide 11: Karo Project
KARO PROJECT PROJECT METRICS − Tier 1 asset − First phase open pit of 17 years − Producing ~190 kozpa with significant base metal credits − First ore in mill July 2024 − Commencement of construction ceremony – 7 December 2022 − Earthworks completion, trial open pit mining and first concrete June 202
Slide 12: The Right Commodity Mix
tharisa THE RIGHT COMMODITY MIX
Slide 13: Commodities
US$/ZAR 19.30 US$1 818/oz US$300/t COMMODITIES SPOT EXCHANGE RATE SPOT PGM BASKET PRICE SPOT MET GRADE PRICE PGMS Au − Primary supply growth constraints Ru 14,4% 0,2% − Deficits in Rh, Pd to remain, Pt heading towards a record deficit Ir 4,4% − ICE remains a major demand driver with Tier 4 and Euro
Slide 14: Successfully Navigating Uncertainty
SUCCESSFULLY NAVIGATING UNCERTAINTY TAILWINDS HEADWINDS COMMODITIES ELECTRICITY − Maximum requirement of 27 MW of electricity at Tharisa Mine − Co-product business model − Stand by diesel generators capacity to withstand load curtailment − Buoyant chrome commodity market − Plant configuration allows
Slide 15: Caring Beyond the Mine Gate
tharisa CARING BEYOND THE MINE GATE
Slide 16: Our Positive Impact
OUR POSITIVE IMPACT JOB CREATION − 4 594 employees at end March 2023 (Group employees and contractors) − 440 employees and contractors on site in Zimbabwe − +25% female employees − No days lost to industrial action − Four year wage agreement ends in June 2024 − Employee engagement through various HR
Slide 17: H1 FY2023 Financial Highlights
H1 FY2023 FINANCIAL HIGHLIGHTS
Slide 18: Delivering on Growth Strategy
DELIVERING ON GROWTH STRATEGY MULTI COMMODITIES − Robust co-production model − Polymetallic basket of strategic minerals − Low cost producer STRONG CASH FLOW GENERATION − Net cash flows from operations – US$97.1 m − Enabling continuous investment through the cycle − Consistent dividend policy NEW DE
Slide 19: Multi Commodity Revenue Stream
MULTI COMMODITY REVENUE STREAM Agency and Manufacturing trading and consulting 5,8% 0,7% FCA REVENUE* (%) Chrome PGM 48,0% 45,5% US$335.3 m Revenue Benefits of co-production model PGM sales of 76.8 koz Average PGM basket price of US$2 216/oz Ru Ir Specialty Metallurgical grade chrome sales of 712.9
Slide 20: Healthy Gross Profits
HEALTHY GROSS PROFITS GROSS PROFIT AND MARGIN (US$ m) US$93.6 m 34,8% 35,8% 35,0% Gross profit a decrease of 23.7% 250 ,0 32,1% 27,9% 245,7 25,0% 200 ,0 207,4 Weakening ZAR to US$ exchange rate of 15.7% partially offset 17,7% 15,0% inflation 150 ,0 Healthy gross profit margins despite input cost pre
Slide 21: Disciplined Capital Allocation
6.2% DISCIPLINED CAPITAL ALLOCATION DIVIDEND YIELD US 3 cents 15, 0 20,5% 20,0% Interim dividend for HY2023 19,2% 18,5% 13, 0 17,8% 17,7% 18,0% 17,1% 16,4% 11, 0 16,3% 16,0% 9,0 16.4% of NPAT 14,0% 9,0 Policy minimum of 15% of NPAT 7,0 12,0% 7,0 5,0 10,0% 5,0 4,0 3,0 8,0% 1,0 0,8 3,5 US$91.6 m 3,0 1
Slide 22: Investing in Our Business
INVESTING IN OUR BUSINESS Land and buildings Other US$0,9 m assets US$2,6 m US$49.3 m Total capex spent Continued to invest in asset base = sustainable operations Karo Platinum CAPEX US$18,3 m (US$ m) Tharisa to spend $48.8 m in H2 excluding deferred stripping Mining assets and Mining US$18.3 m infr
Slide 23: Positioned for Strategic Growth
POSITIONED FOR STRATEGIC GROWTH CAPITAL ALLOCATION (%) 100% Strong cash flow generation 90% 80% − Deleveraging of the balance sheet 70% − Investment in existing operations and growth 60% − Adherence to dividend policy 50% 40% 30% 20% 10% 0% FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 HY2023 Div
Slide 24: Robust Balance Sheet
ROBUST BALANCE SHEET US$205.7 m Leases Cash and cash equivalents Property loans 4,2% 0,6% Bond Cash generative despite inflationary pressures 23,5% Net cash flow from operations of US$97.1 m Asset backed Net cash of US$112.7 m facilites 39,3% DEBT POSITION US$93.0 m (%) Total debt Short term of US$4
Slide 25: Value Proposition
tharisa VALUE PROPOSITION
Slide 26: Investment of Choice – Value and Growth
GBP2.20 INVESTMENT OF CHOICE – VALUE AND GROWTH CONSENSUS TARGET PRICE P/E EBITDA MARGIN (%) 400 ,0 40 37,6 350 ,0 34,6 35 12,6 300 ,0 30 27,9 250 ,0 25,1 24,2 25 237,3 20 224,3 200 ,0 6,9 15 15 6,3 150 ,0 5,7 10 4,8 100 ,0 113,4 101,9 81,2 51,6 50, 0 5 2,2 0,0 0 THA IMP NTH AMS SSW RBP FY2018 FY201
Slide 27: Questions
QUESTIONS enriching lives through innovating the resources company of the future 27
Slide 28: Disclaimer
DISCLAIMER These Presentation Materials are for information purposes only and must not be used or relied upon for the purpose of making any investment decision or engaging in any investment activity. Whilst the information contained herein has been prepared in good faith, neither Tharisa plc (the ‘C
Slide 29: Active Unit Cost Management
ACTIVE UNIT COST MANAGEMENT % Units HY2023 HY2022 change Overheads Cubes mined Mm3 7.3 10.3 (29.1) 15,0% Cost per cube mined* US$/m3 10.4 8.5 22.4 Labour Reef tonnes mined Mt 2.1 2.8 (25.6) 20,4% Cost per reef tonne mined* US$/t 36.0 31.0 16.4 Tonnes milled Mt 2.8 2.8 0.1 ON MINE CASH COSTS On mine