Tharisa Plc · JSE:THA

Tharisa — FY2024 Earnings Presentation

29 slides from Tharisa's earnings presentation, Nov 28, 2024

  1. Slide 1: FY2024 Results Presentation

    FY2024 RESULTS PRESENTATION 28 NOVEMBER 2024

  2. Slide 2: FY2024 in Review

    FY2024 IN REVIEW DELIVERING THROUGH THE CYCLE − LTI free year − Five year wage agreement concluded − Record chrome production while meeting PGM guidance − Further progress on beneficiation strategy: − Commercial chrome alloy production − Testing of upscaled batteries at Redox One − Strong operationa

  3. Slide 3: The Vital Numbers

    US$1 362/oz US$299/t THE VITAL NUMBERS down 28.1% PGM BASKET PRICE up 13.7% MET GRADE PRICE REVENUE EBITDA NET PROFIT AFTER TAX US$721.4 m US$177.6 m US$82.6 m up 11.0% up 29.8% down 4.8% (FY2023: US$649.9 m) (FY2023: US$136.8 m) (FY2023: US$86.8 m) NET CASH FROM OPERATING ACTIVITIES CAPITAL EXPENDI

  4. Slide 4: Value Sharing

    VALUE SHARING GROUP EMPLOYEES AND CONTRACTORS FEMALE EMPLOYEES* AET, BURSARS, INTERNS + LEARNERS* 4 879 ~26% 73 CURRENCY INFLOWS INTO SOUTH AFRICA GLOBAL DIRECT, INDIRECT TAXES + AMOUNT SPENT ON BEE, HDP, WOMEN (DIRECT + INDIRECT) ROYALTIES + BBBEE COMPLIANT PROCUREMENT* US$466.5 m US$33.0 m US$323.

  5. Slide 5: Job Creation, Education and Wellness, Environment

    JOB CREATION 4 879 Group employees and contractors Stable work environment in challenging sector Five year wage agreement concluded EDUCATION AND WELLNESS Learnerships, bursaries, study assistance, internships and skills and enterprise development training - 111 Math and science programmes Thusanang

  6. Slide 6: Commodities: PGMs

    US$1 405/oz COMMODITIES SPOT PGM BASKET PRICE 26 NOVEMBER 2024 Ru Ir Ru 13.6% 1.9% 4.2% Ir Au 4.4% 8.0% Rh Au 4.3% PGMS 0.2% THARISA KARO Pt − Primary supply reduction should be the main catalyst for PGM price Rh MINERALS PLATINUM 42.0% 9.5% PRILL SPLIT PRILL SPLIT increases Pt 56.2% − Recycling red

  7. Slide 7: Commodities: Chrome

    US$255/t COMMODITIES SPOT MET GRADE PRICE 26 NOVEMBER 2024 (FAN) CHROME METALLURGICAL GRADE PRICE AND PORT STOCKS − No substitution for chrome in stainless steel production (US$/t) and (Mt) − Global stainless steel production increased for the first half of 2024 by 6.3% to 30.4 Mt 350 319 319 3.5 28

  8. Slide 8: Strategy

    STRATEGY

  9. Slide 9: Vision 2025

    VISION 2025 EXPANSION expand and roll out the business sustainably OPTIMISATION optimise existing operations enriching lives through innovating INNOVATION continue to invest in innovative thinking the resources company of the future DIVERSIFICATION become a globally diversified business INVESTMENT b

  10. Slide 10: Security of Raw Material Supply Through Shallow Multigenerational Mineral Assets

    39.1 Moz & 11.3 Moz 165.6 Mt IN CONTAINED PGMS (6E) IN CONTAINED CHROME Karo Platinum SECURITY OF RAW MATERIAL Redox One Tharisa Mine Arxo Metals Renewable Energy Centre SUPPLY THROUGH SHALLOW MULTIGENERATIONAL MINERAL ASSETS, ENABLED BY Dortmund Victoria Falls Harare TECHNOLOGY AND INNOVATION Arxo

  11. Slide 11: Tharisa Minerals

    THARISA MINERALS CO-PRODUCTION CREATES MULTI GENERATIONAL FLEXIBILITY − LTI free year − Reef tonnes mined 4.6 Mt, up 11.1% − Reef milled 5.6 Mt, up 3.4% − PGM production 145.1 koz, up 0.3% − Chrome production 1.7 Mt, up 7.8% − Open pit has a minimum remaining life of 11 years − Underground studies p

  12. Slide 12: Karo Project

    KARO PROJECT LONG TERM STRATEGIC VIEW THROUGH THE CYCLE − LTI free year − Continued value engineering during the year − Bulk earthworks completed with civils for the concentrator halfway completed − Major mechanicals have been fabricated including mills and transformers − Constrained project debt ca

  13. Slide 13: An Ethos of Innovation

    AN ETHOS OF INNOVATION BACKED BY PURPOSEFUL CAPITAL INVESTMENT − Rooted in the development of the unique co-product Tharisa Mine − Arxo Metals successfully demonstrates novel downstream beneficiation technologies – commercial production of PGM and chrome alloys − Redox One launched at AEI in March 2

  14. Slide 14: Mine to Megawatt

    SUSTAINABLE MINING PRACTICES Vertical integration to deliver from extraction to electricity Sustainable energy integration through long term renewable PPAs - wheeling signed MINE TO MEGAWATT Mineral tenure security provides secure sources TECHNOLOGY AND INNOVATION Deployment of novel technology, imp

  15. Slide 15: Financial Highlights

    FINANCIAL HIGHLIGHTS

  16. Slide 16: Investing Through the Commodity Cycle

    INVESTING THROUGH THE COMMODITY CYCLE MULTI COMMODITIES CASH FLOW GENERATIVE CAPITAL DISCIPLINE − Co-production model − Net cash flows from operations − Prioritisation of capital aligned to − Polymetallic basket of strategic of US$204.6 m strategic initiatives and metals − Net cash of US$117.5 m ava

  17. Slide 17: Multi Commodity Revenue Stream

    MULTI COMMODITY REVENUE STREAM Agency and Manufacturing and trading consulting 8.9% 1.2% FCA REVENUE* PGM Chrome 27.0% 62.9% US$721.4 m Revenue increase of 11.0% Benefits of co-production model PGM sales of 141.8 koz Average PGM basket price of US$1 362/oz Au Ni Cu Specialty Ru 1.4% grade Metallurgi

  18. Slide 18: EBITDA Waterfall

    EBITDA WATERFALL 180.0% 160.0% 140.0% 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% FY2023 PGM Chrome PGM Chrome Mining Mining Processing State Selling Operating Other FY2024 EBITDA volumes volumes prices prices cost commodities cost royalties expenses expenses EBITDA 18

  19. Slide 19: Unit Costs

    UNIT COSTS % Units FY2024 FY2023 change Overheads 11.5% Cubes mined Mm3 17.0 15.6 8.5 Labour 14.5% Cost per cube mined* US$/m3 11.0 10.4 4.8 Reef tonnes mined Mt 4.6 4.2 11.1 Mining Cost per reef tonne mined* US$/t 40.0 39.1 2.3 Consumables ON MINE CASH 26.5% 3.7% COSTS Tonnes milled Mt 5.6 5.4 3.4

  20. Slide 20: Resilient Gross Profit

    RESILIENT GROSS PROFIT GROSS PROFIT AND MARGIN 300.0 (US$ m) 40.0% 34.8% 35.8% 35.0% 32.1% 250.0 245.7 30.0% 25.6% US$184.6 m 200.0 207.4 25.0% 23.6% Gross profit increase of 20.4% 184.6 150.0 20.0% 153.3 130.4 15.0% 100.0 10.0% 50.0 5.0% 0.0 0.0% FY2020 FY2021 FY2022 FY2023 FY2024 PGM price 1 704 3

  21. Slide 21: Investing in the Future

    INVESTING IN THE FUTURE Land and buildings Other US$2.8 m US$3.2 m Mining fleet US$24.2 m US$196.8 m FY2024 Total capital spent CAPITAL SPENT* Cash generative operations enabled continued investment in the asset base Assets and Includes: Deferred stripping infrastructure US$65.8 m US$16.7 m - US$84.

  22. Slide 22: Balance Sheet

    BALANCE SHEET FREE CASH FLOW (US$ m) US$223.7 m Cash and cash equivalents* (45.1) (65.8) Cash generative despite PGM pricing environment 204.6 Net cash flow from operations of US$204.6 m 93.7 (87.8) Net cash of US$117.5 m* 5.8 Net cash Capital Deferred FCF Capital FCF from sustaining stripping susta

  23. Slide 23: Returns to Shareholders

    US 3 cents 5.2% RETURNS TO SHAREHOLDERS FINAL DIVIDEND DIVIDEND YIELD (TTM) US 4.5 cents Annual dividend 20.0 16.1% of NPAT 18.0 23.0% Policy minimum of 15% of NPAT 16.0 20.5% 14.0 19.2% 17.8% 18.5% 12.0 17.1% 17.7% 17.3% 18.0% 16.3% 16.1% US$5 m 10.0 13.0% Share repurchase programme 8.0 9.0 6.0 7.0

  24. Slide 24: Guidance & Value Proposition

    GUIDANCE & VALUE PROPOSITION

  25. Slide 25: FY2025 Guidance

    FY2025 GUIDANCE − PGMs (6E basis) of 140 koz to 160 koz − Chrome concentrates of 1.65 Mt to 1.8 Mt CUMULATIVE PERFORMANCE US$ m 25

  26. Slide 26: Long Term Value Play

    LONG TERM VALUE PLAY CRITICAL COMMODITIES DIVERSIFICATION, BENEFICIATION AND ENERGY TRANSITION Co-producer of PGMs and chrome concentrates, mine two commodities critical to a sustainable future Maximising the value of our commodities by using innovation and technology OUTPUT TO DOUBLE AT MULTI INTEG

  27. Slide 27: Tharisa Is an End to End Critical Metals and Energy Solution Provider

    THARISA IS AN END TO END CRITICAL METALS AND ENERGY SOLUTION PROVIDER INNOVATING THE RESOURCES COMPANY OF THE FUTURE 16 years 11 years 10 years ~US$112 m ~US$780 m operations cash generative profitable returned to capital invested shareholders

  28. Slide 28: Questions

    é enriching lives through innovating the resources company of the future QUESTIONS DEVELOP DELIVER DIVERSIFY

  29. Slide 29: 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

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