Slide 1: A Half That Beats the Years
10 June 2021 A HALF THAT BEATS THE YEARS THS:LSE • THA:JSE Avior Corporate Summit Enriching lives through innovating the resources company of the future
Slide 2: Safety, Sustainability and ESG
LTIFR FATALITY FREE SHIFTS FATALITY FREE SAFETY, SUSTAINABILITY AND ESG 0.06 PER 200 000 HOURS 5 million (1 June 2021) +5y The safety and health of our people is a core value SAFETY We take responsibility for the effect that our operations may 0.4 have on the environment 0.35 0.36 We are takin
Slide 3: Caring Beyond the Mine Gate
CARING BEYOND THE MINE GATE AET LEARNERS LEARNERSHIPS INTERNSHIPS 35 28 55 Donation of blankets to pensioners in surrounding communities Replacement of broken windows and doors at Machadam School Community drivers licence programme to date, 15 community members Local SMME support COVID-19
Slide 4: FY2021 Interim Results Salient Features
FY2021 INTERIM RESULTS SALIENT FEATURES REEF MINED PGM PRODUCTION (5PGE+Au) CHROME CONCENTRATE PRODUCTION 2.5 Mt 75.1 koz 730.7 kt up 8.7% up 12.9% up 12.0% (2020: 2.3 Mt) (2020: 66.5 koz) (2020: 652.6 kt) REVENUE OPERATING PROFIT EBITDA US$313.6 m US$104.5 m US$124.2 m up 61.2% up 368.6% up 243.1%
Slide 5: Financial Metrics
FINANCIAL METRICS
Slide 6: Revenue and Gross Profit
PGM GROSS PROFIT MARGIN CHROME GROSS PROFIT MARGIN REVENUE AND GROSS PROFIT 49.9% 29.5% Agency and Gross profit margins improved to 41.0% (2020: 22.4%) Manufacturing Trading 3.3% 0.6% The major factors contributing: increased sale volumes Chrome 23.8% increase in the PGM basket price reduc
Slide 7: Costs
VOLUME OUTPUT COSTS REDUCES UNIT COSTS H1 H1 % ON MINE CASH COST OF SALES METRIC UNIT FY2021 FY2020 change Labour Cubes mined Mm3 8.8 8.2 +7.6 19.6% Overheads Cost per cube mined* US$/m3 8.6 8.6 - 15.0% Consumables Reef tonnes mined Mt 2.5 2.3 +8.5 4.4% Cost per reef tonne mined* US$/t 30.5 31.0 -1.
Slide 8: Cash Flow and Dividends
CASH GENERATION CASH FLOW AND DIVIDENDS REWARDING SHAREHOLDERS Operating cash flow of US$104.9 m Payment of interim dividend post COVID-19 ‒ Additions to property plant and equipment of US$39.5 m Ensuring returns for shareholders while pursuing growth opportunities ‒ Repayment of Senior Debt F
Slide 9: Balance Sheet and Capex
CONTINUOUS BALANCE SHEET AND CAPEX INVESTMENT AND HEALTHY BALANCE SHEET Cash and cash equivalents of US$72.8 m FY2021 sustaining capex US$54.4 m (excludes deferred stripping) ‒ Total debt of US$43.0 m ‒ Vulcan Plant US$46.4 m ‒ Positive net cash of US$29.8 m Spent to date US$25.6 m (net of def
Slide 10: Our Business
tharisa OUR BUSINESS
Slide 11: Vulcan Plant
VULCAN PLANT Proprietary fine chrome recovery plant Construction continues Construction completion expected before year end 484 days LTI free on site* *at H1 2021 Enriching lives through innovating the resources company of the future 11
Slide 12: Foundations of Sustainability
FOUNDATIONS OF SUSTAINABILITY OREBODY MINING PROCESSING VALUE DISCOVER DEVELOP DELIVER DIVERSIFY Tabular continuous orebody Mechanised modern fleet Innovation unlocking value Capturing the value stream Long life open pit Low energy exposure Tailored extraction plants Arxo Resources
Slide 13: Sustainable Long Term Returns
SUSTAINABLE LONG TERM RETURNS GROWTH C A P I TA L DISCIPLINE RETURNS Complete organic growth opportunities CAPITAL RETURNS TO SHAREHOLDERS Life of mine extension 21 20.5 20 0 00 19.2 Vulcan Plant – 2 million tonnes of chrome 18 0 00 17.8 17.1 18 214 16 0 00 16.3 16 Deliver on our 200 000 oun
Slide 14: Long Term Production and Pricing
PGM GUIDANCE CHROME GUIDANCE LONG TERM PRODUCTION AND PRICING 155 - 165 koz 1.45 – 1.55 Mt Long life asset PGM AND CHROME PRODUCTION (M000t, koz) Consensus forecast ‒ Increasing, stable production profile ‒ 14y open pit modelled 400 3300 3140 ‒ 40y underground planned 350 Prices 2800 PGM baske
Slide 15: Fundamentals Remain Strong - PGM
FOCUSING ON THE FUNDAMENTALS REMAIN STRONG - PGM RIGHT COMMODITIES 3PGM MARKET BALANCE (koz) 1878 935 201 -91 -423 -842 2020 2021 2022 2023 2024 2025 2030 Platinum Palladium Rhodium Some comments 5E PGM DEMAND Rhuthenium Iridium NOX emissions will not slacken 5% 1% Autocatalyst ~40% Jewellery ~2
Slide 16: Fundamentals Remain Strong - Chrome
FOCUSING ON THE FUNDAMENTALS REMAIN STRONG - CHROME RIGHT COMMODITIES STAINLESS STEEL MARKET 2020 Industrial and Others 2% heavy industry Automotive 7% and heavy transport 10% ABC and Infrastructure 15% Consumer goods and catering 51% Chemical, petrochemical and energy 16% MAIN CHROME EXPORTERS 2020
Slide 17: Questions?
QUESTIONS? Enriching lives through innovating the resources company of the future 17
Slide 18: Appendix
tharisa APPENDIX
Slide 19: Corporate Profile (THS:LSE THA:JSE)
CORPORATE PROFILE (THS:LSE THA:JSE) CAPITAL STRUCTURE DIRECTORS OF THARISA SHAREHOLDER SPREAD Loucas Christos Pouroulis (Executive Chairman) 1.42 Strategic Issued shares 269.1 million 1.27 Phoevos Pouroulis (Chief Executive Officer) 1.31 Investors Market capitalisation* GBP379.4m ZAR7.8bn 1.70 M
Slide 20: Corporate Structure
CORPORATE STRUCTURE Tharisa plc (Registered in Cyprus) Listed on LSE (THS) and JSE (THA) BEE 20% Thari Resources 100% 100% 26.8% 100% 74% 6% Tharisa Community trust 26% Karo Project Tharisa Minerals Arxo Resources Arxo Logistics Salene Chrome (Zimbabwe) (South Africa) (Cyprus) (South Africa) (Zimbab
Slide 21: Tharisa's Journey
THARISA’S JOURNEY 2009 2012 2017 2018 • Acquired 74% • Secured project • Agreement entered into for • Shareholding shareholding in finance facility of the purchase of mining fleet acquired in Karo Tharisa Minerals ZAR1 billion 2014 and transfer of employees Holdings 2006 • Commenced • First bulk rai
Slide 22: Commitment to R&D and Investment
COMMITMENT TO R&D AND INVESTMENT Since the initiation, Tharisa has been committed to the beneficiation of its mineral products as well as the development and deployment of innovative processing and technology US$504 m THARISA GROUP TOTAL INVESTMENT The R&D department of Tharisa has been developi
Slide 23: R&D to Commercialisation
R&D TO COMMERCIALISATION 1MW SMELTER PGM OPTIMISATION CHALLENGER PLANT FOURTH STAGE VULCAN PLANT PROJECTS CRUSHING Producing PGM alloy and Successfully increasing Production of higher Increased the capacity for In house developed to develop further the PGM recoveries at value chemical and production
Slide 24: Rhodium Charts
RHODIUM CHARTS Based on 4E basis RESOURCES PRILL SPLIT % Chart on the right shows prill split and associated pricing when 120 looking at the below chart spot pricing 100 12 7 7 9 8 9 10 6 6 5 8 1 Below chart shows Tharisa basket at Spot and at various 80 21 28 28 29 30 30 31 42 40 45 45 rhodiu
Slide 25: Salene Chrome
SALENE CHROME Salene Chrome East covering 11 900 ha Salene Chrome West covering 12 400 ha to the west of the Great Dyke Purchase consideration (100%) – cash of US$3.0 m Capital requirement of US$5.0 m OPEN PIT Shallow chrome seams that outcrop Strategic second chrome resource for Tharisa
Slide 26: Innovative Approach
INNOVATIVE APPROACH Enriching lives through innovating the resources company of the future 26
Slide 27: Processing
PROCESSING GENESIS PLANT VOYAGER PLANT VULCAN PLANT • Nameplate capacity: 100 ktpm ROM • Nameplate capacity: 300 ktpm ROM • Under construction • Processes reef layers with lower PGM and • Processes reefs with higher PGM and • Nameplate capacity: 340 ktpm tailings higher chromite grades lower chromit
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