Tharisa Plc · JSE:THA
Tharisa — AJ Bell Shares Investor Evening - Webinar (April 2021)
25 slides from Tharisa's conference presentation, Apr 13, 2021
Slide 1: This is Tharisa
THIS IS THARISA April 2021 INVESTING IN SUSTAINABILITY THS:LSE • THA:JSE AJ Bell Shares Investor Evening - Webinar
Slide 2: Investing in Tharisa
FY2020 EBITDA YTD PGM basket INVESTING IN THARISA margin 27.8% price growth 134% 1. Your London exposure to the world of Platinum Group Metals (PGMs) Unique PGM prill split, ~12% rhodium (4E basis) Profitable throughout the cycle 2. Sustainability Long life, large scale open pit mine Mechani
Slide 3: Who we are
• 42.79 MOZ IN CONTAINED 859.58 MT IN WHO WE ARE MINERAL RESOURCE • 6PGE+Au* 172 MT IN CONTAINED Cr2O3* Leading PGM and chrome co-producer 14 year LOM open pit located in the heart of PGM and chrome country +40 year underground mechanised life Close to infrastructure, road, rail and power
Slide 4: Sustainable low cost polymetallic business model
SUSTAINABLE LOW COST POLYMETALLIC BUSINESS MODEL Discover ‒ Large scale resources ‒ Complimentary opportunities in the resource portfolio Develop ‒ Innovative approach to mineral extraction ‒ New processes and technologies to enhance value further Deliver ‒ Safe production growth in both PGM a
Slide 5: Safety, sustainability and ESG
LTIFR 0.06 / 200 000 hours REDUCE CARBON SAFETY, SUSTAINABILITY AND ESG (Q2 FY2021) EMISSIONS BY 2030 LTFIR FATALITY FREE YEARS ENVIRONMENT 0.09 5+ Lost Time Injury Frequency Rate Achieved: 28 September 2020 30 September 2020 58 40 209 Engineering Learnerships Interns and Graduates Adult Education a
Slide 6: Positioning Tharisa: PGMs
SPOT PGM BASKET PRICE* FY2021 guidance POSITIONING THARISA ~US$4 000/oz 155koz to 165koz PGM producer RESOURCES PRILL SPLIT 4E % ‒ 142 100 ounces of PGMs FY2020 120 Tharisa position in terms of global demand 100 12 8 7 7 9 9 10 6 6 5 8 1 ‒ ~1.3% of platinum demand 80 21 28 28 29 30 30 31 42 40 4
Slide 7: Positioning Tharisa: Chrome
SPOT CHROME PRICE* FY2021 guidance POSITIONING THARISA ~US$160/t 1.45Mt to 1.55Mt Chrome Producer Chrome is what makes steel stainless ‒ 1 344 800 tonnes in FY2020 South Africa hosts 72% of the global chrome reserves ‒ Provides China with 10% of all its chrome concentrate GLOBAL STAINLESS STEE
Slide 8: FY2021 Q2 Production
SPOT CHROME PRICE SPOT PGM BASKET PRICE FY2021 Q2 PRODUCTION LTIFR 0.06 / 200 000 hours ~US$ 155/t* ~US$4 000/oz* Record PGM prices of US$3 290/oz PLATINUM (oz) PGM production up 11.5% YoY 160 000 140 000 Chrome concentrate production (excluding third party) up 15.5% YoY 120 000 On track for
Slide 9: Growing Tharisa
GROWING THARISA Complete organic growth opportunities Life of mine extension Vulcan Plant Fulfill 200 000 ounces of PGM production target Expand and roll out our business sustainably Commercialise downstream opportunities Further optimise our existing operations PGM smelting and refi
Slide 10: Growing Tharisa
GROWING THARISA Optimising the Tharisa mine PGM PRODUCTION* (oz) 200 000 oz of PGM per annum 190 2 000 000 tonnes of chrome per annum 185 4% Capturing the downstream margin 180 175 PGM smelting and refining FY2023 onwards 170 11% 165 Beneficiating our chrome 160 155 150 145 FY2021 FY2022
Slide 11: Karo and Salene Chrome Project Overview
KARO AND SALENE CHROME PROJECT OVERVIEW Great Dyke of Zimbabwe holds the world’s second largest deposits of PGMs and chrome Over 550km long and up to 11km wide Two Mineralised Horizons ‒ Main Sulphide Zone (‘MSZ’) ‒ Lower Sulphide Zone (‘LSZ’) Mining operations exploit MSZ while LSZ is large
Slide 12: Projects Overview
PROJECTS OVERVIEW Tharisa owns 26.8% of Karo Platinum Snakes 2 phases of exploration have been completed and studies Head underway, due for completion end August 2021 Financing discussions have commenced Phased approach to ensure project build and cash flow development Special Economic Zon
Slide 13: Salene Manganese and Iron
SALENE MANGANESE AND IRON Tharisa has an option for 70% Salene’s principal activity is the mining of manganese and iron ore on a DSO basis Mine is in operation and is cash generative Current production on an annualized basis ‒ Manganese at 600kt ‒ Iron production at 600kt Second phase of r
Slide 14: Turning production into cash flow
TURNING PRODUCTION INTO CASH FLOW FREE CASH FLOW YIELD EBITDA MARGIN (%) 50 45 43.5 40 41 35 30 25 20 20.4 15 13.9 13.3 10 5 5.3 2.7 3.7 0 1.5 2015 2016 2017 2018 2019 2020 2021/Spot 2022 2023 SA PGM peers Avg 2005-2020 Tharisa • Rising exposure to FCF yield over next 3 years • Strong EBITDA margins
Slide 15: A look at valuation
A LOOK AT VALUATION POTENTIAL SHARE PRICE UPSIDE AT SPOT EARNINGS GROWTH CY20-21E 250% 250% 234% 200% 191% 200% 165% 160% 157% 148% 140% 150% 138% 150% 125% 107% 100% 87% 100% 78% 65% 48% 50% 50% 0% 0% Tharisa Amplats Northam RBPlat Nornickel Sibanye Implats Sibanye Tharisa RBPlat Nornickel Northam
Slide 16: Our Commodities: PGMs
OUR COMMODITIES PGMs WPIC PLATINUM ANALYSIS Structural deficit driven by supply constraint and real demand Demand continued to recover from the automotive, jewellery and industrial Timing of new projects sectors Pd and Pt substitution increasing, Rh extremely difficult to substitute Ro
Slide 17: Our Commodities: Chrome
OUR COMMODITIES CHROME MAIN CR ORE EXPORTERS 2020 Chrome is irreplaceable and makes steel stainless 9.5% 2.4% Concentrated supply with 80% from South Africa 3.6% Demand driven by Chinese domestic consumption and export 4.3% Global demand to increase post COVID-19 economic slow down 80.2% S
Slide 18: 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 19: Appendix
APPENDIX
Slide 20: FY2020 Highlights
FY2020 CHROME PRICE FY2020 PGM BASKET PRICE SPOT CHROME PRICE SPOT PGM BASKET PRICE FY2020 HIGHLIGHTS US$140/t US$1 704/oz ~US$160/t ~US$4 000/oz REEF MINED PGM PRODUCTION CHROME CONCENTRATE PRODUCTION (5PGE+Au) 4.97 Mt 142.1 koz 1.34 Mt up 7.6% up 1.7% up 3.9% (2019: 4.62 Mt) (2019: 139.7 koz) (201
Slide 21: Sustainable business
SUSTAINABLE BUSINESS CO-PRODUCT AND HEALTHY CASH CONTINUED ROBUST BALANCE LIQUIDITY EXCHANGE RATE GENERATION INVESTMENT SHEET MANAGEMENT BENEFITS Multiple revenue streams Exposure to the right Investment in SHE, Low gearing Capital discipline coupled with US$ commodities coupled people, infrastructu
Slide 22: Balance sheet and capex (FY2020)
BALANCE SHEET AND CAPEX (FY2020) Total debt of US$70.4 m FY2020 Capex US$70.6 m ‒ Trade finance amounted to US$17.3 m ‒ US$24.7 m mining fleet ‒ Debt to total equity ratio of 21.9% ‒ US$22.7 m deferred stripping ‒ Cash and cash equivalent of US$49.3 m ‒ US$11.4 m related to other mining assets ‒
Slide 23: Positioning Tharisa
POSITIONING THARISA
Slide 24: Headwinds from deep mines to meet growing rhodium demand
HEADWINDS FROM DEEP MINES TO MEET GROWING RHODIUM DEMAND PRIMARY DEMAND OUTSTRIPPED BY PRIMARY SUPPLY RHODIUM AUTOCATALYST DEMAND Source: HSBC, JM Enriching lives through innovating the resources company of the future 24
Slide 25: Palladium and platinum outlook
PALLADIUM AND PLATINUM OUTLOOK PALLADIUM PLATINUM GROSS DEMAND (2020) GROSS DEMAND (2020) Autocatalyst Jewellery Industrial Autocatalyst Jewellery Industrial Investment 85.8% 0.9% 15.1% 32.1% 22.5% 31.9% 13.1% 2020 net demand 6 773oz 2020 primary supply 6 176oz Continuing shortages filled by r
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