Tharisa Plc · JSE:THA

Tharisa — Corporate Update (February 2017)

44 slides from Tharisa's corporate update, February 2017

1. Slide 1: Profitable Low Cost Co-Producer – Site Visit February 2017

   PROFITABLE LOW COST CO-PRODUCER SITE VISIT FEBRUARY 2017 1

2. Slide 2: 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

3. Slide 3: Discussion Outline

   DISCUSSION OUTLINE ① Welcome ② Mining ③ Processing ④ Mine to Market ⑤ Operational Performance ⑥ Financial Performance ⑦ Closing 3

4. Slide 4: Welcome

   WELCOME 4

5. Slide 5: Corporate Structure

   CORPORATE STRUCTURE T H A R I S A I S A E U R O P E A N H E A D Q U A R T E R E D I N T E G R AT E D R E S O U R C E G R O U P We are uniquely positioned incorporating mining, processing, beneficiation, marketing, sales and logistics. Tharisa is a low cost producer of PGM and chrome concentrates res

6. Slide 6: Corporate Structure

   CORPORATE STRUCTURE ONE YEAR LSE TOP SHAREHOLDINGS JSE % INFORMATION PRIMARY LISTING STANDARD LISTING MAIN (31 January 2017) (31 JANUARY 2017) BOARD Short name THA THS Medway Developments 46.3 Price ZAR22.80 GBp137.50 15.8 Rance Holdings High – 52 week ZAR28.75 GBp165.00 Fujian Wuhang Stainless Stee

7. Slide 7: The Group's Key Differentiators

   THE GROUP’S KEY DIFFERENTIATORS INITIATED IN 2006, THROUGH THE IDENTIFICATION OF UNIQUE ORE INNOVATIVE DEVELOPMENT OF DEVELOPMENT FINANCIAL AND ENERGY CRISIS BODY PROCESSING PLANTS MINING OF FIVE MG CHROMITITE CO-PRODUCTION OF PGM AND UNIQUE CHROME CONCENTRATES MINE TO MARKET MODEL LAYERS LARGE SCAL

8. Slide 8: Mining

   MINING 8

9. Slide 9: Safety

   SAFETY SAFETY AND HEALTH A PRIORITY COMPARATIVE LTIFR RATE (January 2017) Per million hours worked  Safety remains the number one priority of management and 25.00 all employees - we strive for zero harm 20.00  On 19 January 2017, Tharisa Minerals achieved the milestone of one million fatality free

10. Slide 10: Overview of the Tharisa Mine

    OVERVIEW OF THE THARISA MINE LOCATED IN THE MAIN PGM AND CHROME PRODUCING AREA IN SOUTH AFRICA  Mining rights over 5 475 ha  Adjacent to Anglo Platinum, Lonmin, Impala Platinum, Eastern Platinum  Well serviced by road, rail, power and other services  Neighbouring towns are Brits (45 km) and Rust

11. Slide 11: Mining

    MINING RESOURCES AND RESERVES GENERALISED CROSS SECTION OF THE MG CHROMITITE LAYERS AT PLANNED DEPTH  Steady state mining rate of 5.0 Mtpa with an average open pit stripping Bench = 20m ratio of 9.7 (m3:m3 basis) MINERAL RESOURCE 200m  877.7 Mt Reef dip east: 9-12°  1.58 g/t 6PGE + Au Reef dip we

12. Slide 12: 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

13. Slide 13: Processing

    PROCESSING 13

14. Slide 14: Innovative Approach

    INNOVATIVE APPROACH CRUSHING PRIMARY MILLING FLOTATION = SPIRALS ey SJ ————— ciel TAILINGS thar’sa an HE om @ SECONDARY MILLING 14

15. Slide 15: Detailed Process Flow Diagram

    DETAILED PROCESS FLOW DIAGRAM 15

16. Slide 16: Processing

    PROCESSING KEY FACTS INDEPENDENT PROCESSING PLANTS  Process plants are owned and operated by Tharisa GENESIS PLANT  Each plant operates independently,  Capacity: 100 ktpm ROM providing flexibility and limiting potential  Processes reef layers with lower process disruptions PGM and higher chromit

17. Slide 17: Mine to Market

    MINE TO MARKET 17

18. Slide 18: Value Chain

    VALUE CHAIN THARISA MINERALS RESOURCE MINING PROCESSING 877.7 Mt resource 18 year open pit LOM 400 ktpm nameplate capacity MID TIER OPEN PIT PGM AND 98.9 Mt reserve of which 80.2 Mt 40 year underground extension Genesis Plant (100 ktpm) CHROME CONCENTRATE CO- open pit Voyager Plant (300 ktpm) PRODUC

19. Slide 19: Global Distribution

    GLOBAL DISTRIBUTION LSE: THS Specialty chrome concentrate Specialty chrome concentrate Metallurgical grade HQ chrome concentrate Specialty chrome concentrate Specialty chrome concentrate PGM concentrate Tharisa Minerals Specialty chrome concentrate JSE: THA RBDBT 19

20. Slide 20: Commodity Markets – PGMs and Chrome

    COMMODITY MARKETS – PGMS AND CHROME 20

21. Slide 21: PGM Market

    PGM MARKET DEMAND AND SUPPLY PLATINUM AND PALLADIUM MARKET PRICE 1 200  Demand is driven by the autocatalyst, jewellery, industrial and investment sectors 1 000 800  In 2017 platinum to remain in deficit by 100 koz 600  Palladium to remain in deficit for 2017 400 200 US$ - Jan-16 Mar-16 Apr-16 Ju

22. Slide 22: Chrome Market

    CHROME MARKET DEMAND AND SUPPLY METALLURGICAL GRADE CHROME CONCENTRATE PRICE  Demand for metallurgical grade chrome concentrate is driven 450 by its use in the manufacture of stainless steel 400 350  China is wholly dependent on imports of chrome ore/alloy 300  Current port stocks are 1.5 Mt (as

23. Slide 23: Operational Performance

    OPERATIONAL PERFORMANCE 23

24. Slide 24: Operational Highlights

    OPERATIONAL HIGHLIGHTS QUARTERLY PERFORMANCE ANNUAL PERFORMANCE Q4 Q1 % change FY2015 FY2016 % change FY2016 FY2017 ROM mined kt 1 243.3 1 229.9 (1.1) ROM mined Mt 4.2 4.8 15.6 PGM rougher feed grade g/t 1.61 1.52 (5.6) PGM rougher feed grade g/t 1.62 1.65 1.9 Chrome grade % 17.5 17.5 - Chrome grade

25. Slide 25: Highlights

    HIGHLIGHTS REEF MINED ↑15.6% PGM PRODUCTION ↑12.4% CHROME PRODUCTION ↑10.8% Mtpa 5PGE + Au kozpa Mtpa 1.3 4.8 5.0 1.2 1.2 4.2 147.4 1.1 1.1 3.9 132.6 3.3 118.0 78.2 1.4 57.4 0.3 1.2 8.0 34.8 0.3 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 (F) FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 (F) FY2012 FY2013

26. Slide 26: Mining and Plant Feed

    MINING MINING PLANT FEED 5.0 6.0 12.0 5.0 10.0 4.0 4.0 8.0 Stripping ratio [m3: m3] Plant feed volume [Mtpa] Mining volume [Mtpa] 3.0 3.0 6.0 2.0 2.0 4.0 1.0 2.0 1.0 - 0.0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 - Mining 678.3 1 433.1 3 305.6 3 908.5 4 183.2 4 837.2 5 040.0 FY2011 FY2012 FY

27. Slide 27: Production

    PRODUCTION PGM PRODUCTION CHROME PRODUCTION 160.0 80.0 1 400.0 70.0 140.0 70.0 1 200.0 60.0 120.0 60.0 1 000.0 50.0 Chrome yield [%] 100.0 50.0 PGM recovery [%] 800.0 40.0 PGM production [kozpa] Chrome production [ktpa] 80.0 40.0 600.0 30.0 60.0 30.0 400.0 20.0 40.0 20.0 200.0 10.0 20.0 10.0 - 0.0 F

28. Slide 28: Financial Performance

    FINANCIAL PERFORMANCE 28

29. Slide 29: Group Financial Highlights

    GROUP FINANCIAL HIGHLIGHTS HEADLINE EARNINGS GROUP REVENUE ↓11.0% EBITDA ↑48.3% PER SHARE ↑200% 30.00% 25.0 US$ millions 300 .0 50.00% US$ millions 45.0 43.0 28.00% US$ cents 26.00% 20.0 24.00% 45.00% 240.7 246.8 35.0 22.00% 29.0 19.6% 250 .0 20.00% 15.0 219.6 40.00% 18.00% 215.5 16.00% 25.0 10.0 6.

30. Slide 30: Group Summary of Results

    GROUP SUMMARY OF RESULTS INCOME STATEMENT HIGHLIGHTS SEGMENTAL ANALYSIS FY2016 FY2015 US$ millions FY2016 FY2015 % change US$ millions PGMs Chrome PGMs Chrome Revenue 219.6 246.8 (11.0%) Gross profit 24.2 30.3 19.2 23.9 Gross profit 54.5 43.1 26.5% Gross profit percentage 29.7% 21.9% 23.1% 14.6% Gro

31. Slide 31: Segmental Analysis

    SEGMENTAL ANALYSIS PGM REVENUE AND GROSS PROFIT MARGIN CHROME REVENUE AND GROSS PROFIT MARGIN US$ millions 90.0 83.1 40.00% US$ millions 180 .0 170.3 163.7 40.00% 81.5 161.2 160 .0 80.0 35.00% 35.00% 70.4 140 .0 138.1 70.0 29.7% 30.00% 30.00% 120 .0 54.3 60.0 25.00% 25.00% 24.0% 23.1% 50.0 100 .0 21

32. Slide 32: Group Cost Analysis

    GROUP COST ANALYSIS UNIT COSTS OPERATING COST ANALYSIS – EX WORKS FY2016 FY2015 % change All in cost per Pt ounce sold US$438 US$615 (28.8%) Overheads 11.7% All in cost per 42% chrome tonne sold US$85 US$136 (37.5%) Diesel 13.9% CONSOLIDATED CASH COST PER TONNE MILLED Mining * Labour 51.3% US$/tonne

33. Slide 33: Balance Sheet

    BALANCE SHEET FUNDING SENIOR DEBT FINANCE FACILITY ZAR millions US$ millions FY2016 FY2015 600 Total interest bearing debt 67.1 75.6 500 Long term 24.0 36.3 400 Short term* 43.1 39.3 300 Debt service reserve account 9.8 10.6 200 Pro forma interest bearing debt 57.3 65.0 100 Pro forma debt to total e

34. Slide 34: Peer Analysis

    PEER ANALYSIS CASH COST PER TONNE MILLED (US$) EV/EBITDA 800.0 23.4 748.0 704.0 700.0 600.0 16.0 15.2 500.0 400.0 9.9 10.0 300.0 245.0 7.8 6.2 6.2 6.7 200.0 US$1104 174.0 US$1103 US$885 US$736 US$1132 4.6 3.9 4.1 73.0 79.0 3.0 3.0 100.0 38.0 - Tharisa Northam RB Stillwater Impala Amplats Lonmin Thar

35. Slide 35: Closing

    CLOSING 35

36. Slide 36: Outlook

    OUTLOOK FY2016  Record financial and operational year for Tharisa, notwithstanding commodity price volatility  Maiden distribution to shareholders FY2017 GUIDANCE  147.4 koz of PGM concentrates  1.3 Mt of chrome concentrates, including 300 kt of specialty products COMMODITY MARKETS  Platinum pr

37. Slide 37: Strategy

    STRATEGY LEVERAGING LEADING NATURAL OPTIMISATION INNOVATION MARKETING AND CAPITAL DISCIPLINE RESOURCES GROUP INITIATIVES LOGISTICS PLATFORM Globally significant diversified Growth through innovative Maximise value extraction Marketing, sales and logistics Dividend policy of 10% of NPAT low cost oper

38. Slide 38: Apotheosis

    APOTHEOSIS SECURE VALUE INVESTMENT UNIQUE GROWTH MINING OPPORTUNITIES APPROACH INTEGRATED VALUE INNOVATION ACCRETION MINE TO INNOVATIVE MARKET PROCESSING LOWEST COST QUARTILE 38

39. Slide 39: Annexures

    ANNEXURES 39

40. Slide 40: History and Milestones

    HISTORY AND MILESTONES THARISA PLC PRIOR TO ACQUISITION OF THARISA MINERALS AUG 2011 NOV 2016 Genesis Plant Maiden distribution to APR 2008 is commissioned at shareholders proposed Consent received to acquire 100 ktpm capacity SEP 2014 JAN 2011 FEB 2012 Commissioning of high a 74% shareholding in US

41. Slide 41: Resource and Reserve Statement

    RESOURCE AND RESERVE STATEMENT DECLARATION AT 30 SEPTEMBER 2016 Tonnes 6PGE+ Au grade 3PGE + Au grade Cr2O3 grade Contained 3PGE + Au Contained Cr2O3 MINERAL RESOURCE [Mt] [g/t] [g/t] [%] [Moz] [Mt] Measured 72.6 1.78 1.32 23.7 3.1 17.2 Indicated 112.1 1.72 1.26 22.8 4.5 25.5 Inferred 693.0 1.54 1.1

42. Slide 42: Sustainability

    SUSTAINABILITY HEALTH AND SAFETY  Fatality free year achieved  There were no lost time injuries in Q1 FY2017 LTIFR  Best Safety Performance in class award at MineSAFE 2016 LABOUR RELATIONS 0.29 (FY2016: 0.36)  No labour disruptions during the year  522 direct employees and 1 773 contractors  I

43. Slide 43: Sustainability

    SUSTAINABILITY ENVIRONMENT  Subscribe to the Equator Principles  Environmental monitoring plan THUSANANG WELLNESS PROGRAMME  TB programme  HIV/AIDS programme  Wellness days  Peer educator programme – currently 46 peer educators COMMUNITY PROJECTS  Support of community SMME – Rocasize ─ Garden

44. Slide 44: Contact Details

    CONTACT DETAILS Investor Relations Public Relations Sherilee Lakmidas Buchanan D: +2711 996 3538 D: +44(0) 20 7466 5146 slakmidas@Tharisa.com annam@buchanan.uk.com 44

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