Slide 1: Tharisa Strategic Update August/September 2017
THARISA STRATEGIC UPDATE August/September 2017
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
Slide 3: Markets
—o MARKETS
Slide 4: PGM Market
PGM MARKET PLATINUM DEMAND AND SUPPLY 2017 PGM BASKET PRICES Demand driven by the autocatalyst, jewellery, industrial and PGM market heading for three-way price parity with platinum investment sectors and palladium edging closer towards the price of iridium Both primary and secondary sources of
Slide 5: Chrome Lifecycle
CHROME LIFECYCLE Global Chrome Production Global Crude Stainless Steel Production [Mt] [Mt] GLOBAL 10.2% CHINA CHINA 35 50 15.7% ~3% 28.88 29.02 30 MINING 40 25 20 30 13.97 15 20 10 5 10 0 FERROCHROME 0 2015 2016 H1 2017e 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(f) Global Ferrochrome Produc
Slide 6: Chrome Market
CHROME MARKET DEMAND AND SUPPLY 2017 CHROME PRICES Demand for metallurgical grade chrome concentrate is driven 450 US$/t by its use in the manufacture of stainless steel, the 400 production of which is estimated to grow at between 3% to 4% in 2017 350 300 China is wholly dependent on imports of
Slide 7: Ferrochrome
FERROCHROME LATEST TRENDS FERROCHROME PRICES Most smelters are profit making at current input prices with various factors (primarily good underlying demand for stainless steel in China and the existence of sizeable chrome ore stocks) making market conditions less volatile than they have been so fa
Slide 8: Stainless Steel
STAINLESS STEEL STAINLESS STEEL RAW MATERIAL TRENDS STAINLESS STEEL RAW MATERIAL TRENDS Prices of other stainless steel raw materials such as nickel 400 have also been climbing with the 3-month nickel price on the US$/t LME reaching US$11 825 per tonne on 23 August – the 350 highest level since De
Slide 9: Stainless Steel by End Use Segment
STAINLESS STEEL BY END USE SEGMENT Automotive & Heavy Transport • Truck exhaust systems Industrial & Heavy Industry • Fuel lines • Recovery in pulp and paper industry • Sensors DrillingOther Plant & Equipment • Seawater desalination 3% Industrial & Heavy Industry 8% Automotive & Heavy Consumer Goods
Slide 10: Operational Update
OPERATIONAL UPDATE 10
Slide 11: YTD Operational Highlights
SPECIALTY CHROME YTD OPERATIONAL HIGHLIGHTS PRODUCTION ↑27.9% 239.6 kt (*2016: 187.3 kt) REEF MINED PGM PRODUCTION CHROME CONCENTRATE PRODUCTION ↑3.6% ↑11.9% ↑6.5% 3 724.3 kt 104.6 koz 970.7 kt (*2016: 3 594.0 kt) (*2016: 93.5 koz) (*2016: 911.5 kt) REEF MILLED PGM RECOVERY CHROME RECOVERY ↑ 6.7% ↑1
Slide 12: YTD Operational Performance
YTD OPERATIONAL PERFORMANCE Quarter on quarter Nine months Quarter ended Quarter ended movement Quarter ended ended 30 Jun 2017 31 Mar 2017 % 30 Jun 2016 30 Jun 2017 Reef mined kt 1 275.2 1 219.2 4.6 1 235.4 3 724.3 Stripping ratio m³ waste/m³ reef 6.9 7.5 7.4 7.8 Reef milled kt 1 199.1 1 211.3 (1.0
Slide 13: Strategic Update
STRATEGIC UPDATE 13
Slide 14: Transition to Owner Mining
TRANSITION TO OWNER MINING PLAN STATUS GOAL Tharisa Minerals moves from contract to Conditions fulfilled, funding in place Smooth transition with no operational impact owner mining operating model Conditions, including regulatory approval, Transaction effective 1 October 2017 Tharisa Minerals
Slide 15: Regulatory Review
REGULATORY REVIEW THE NOISE THARISA FACTS Tharisa’s Black Economic Empowerment (BEE) partners, Tharisa Resources and the local community, own 20% and 6% respectively at the mine level. It would be relatively simple to upscale ownership levels if required. Certain of new targets set out in Mining Cha
Slide 16: Strategic Developments
STRATEGIC DEVELOPMENTS SUPPLYING TISCO JV THIRD-PARTY CHROME PGM R&D Five-year strategic co-operation Arxo Metals agreement with Western Arxo Metals commissioning a 1MW DC agreement Platinum furnace to produce PGM-rich metal Minimum of 240 ktpa at market prices Operate the K3 UG2 plant, as
Slide 17: Delivering on Our Promises
DELIVERING ON OUR PROMISES • Ore mined up 3.6% IMPROVED • PGM concentrate produced 11.9% higher VOLUMES • Chrome concentrate produced 6.5% higher RECOVERIES • PGM recovery improved to 79.3% UP • Chrome recovery improved to 64.3% • No fatalities SAFETY • LTIFR at 0.06 per 200 000 man hours worked • C
Slide 18: Contact Details
CONTACT DETAILS Investor Relations Joint Broker Joint Broker Financial PR Sherilee Lakmidas Peel Hunt BMO Capital Markets Buchanan D: +2711 996 3538 T: +44 207 7418 8900 T: +44 020 7236 1010 D: +44(0) 20 7466 5000 slakmidas@tharisa.com tharisa@buchanan.uk.com