Tharisa (JSE:THA) — Karo PGM Project

0:01 Good afternoon, and welcome to the THARISA PLC KERO PGM Project Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time via the Q and A tab situated in the right hand corner of your screen. Just click q and a, scroll to the bottom, type your question, and press end. The company may not be in a position to answer every question it receives during the meeting itself. Have the company review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Phebeos Polara, CEO Michael Jones,

0:32 CFO and Ilya Gurek, head of investor relations. Good afternoon. Good afternoon, everyone, and thank you for joining us, this afternoon for a very exciting development in the KARO PGM project, the development of a tier one asset. So if we look at what are the highlights of this project in Zimbabwe located on the Great Dike, it is truly a tier one world class PGM asset. It is fully licensed with a mining lease for the life of mine, not only for phase one, but for subsequent phases thereafter. I think we've been extremely pleased with the availability and the competency of skills within Zimbabwe. It is a mining jurisdiction. The Great Dyke is well known for some for some significant PGM projects.

1:23 I think this phase one that we are going to unpack and share with you today is very exciting in that it has many similarities to the THARISA mine and the long life that we have there. To that end, we have an open pit in phase one of twenty years. It is low risk in the sense that it is an open pit. It's quick to market. It's scalable, which gives us flexibility, low cost, and as mentioned, this is the first phase of potentially many phases. The technology and the processes that we've identified and are engineering as we speak are proven, tried, and tested. And so the risk around processing is known and, certainly is something that we are familiar with as a group.

2:10 The Karra project itself will yield on an annual basis a 150,000 ounces of PGMs. I think what's important about this project is we have very strong copper and nickel credits and even some cobalt credits.

2:25 By virtue of the fact that we are developing an open pit mine, we have an accelerated timeline to first production to be within twenty four months. And this is quite unique when we look at other projects in our industry and the time, and the capital that's required to to develop some of these deep level, shaft complexes. The team, the THARISA team, has a proven track record, and we've taken a greenfields project in the THARISA mine, into the success of what we see today and the product of, the THARISA mine. So so the team has that record and are excited to develop this next project. I think this is quite a significant milestone for THARISA, but equally for the Zimbabwean government who are shareholders at 15 and at the KARA Mining Zimbabwe level.

3:16 And the minister of mines, honorable minister Chitanda, has been very supportive of this project from the outset, and this really represents the first new large scale PGM mine on the Great Dyke. So so significant in terms of its impact, and the chairman has been working tirelessly over many years and decades to that end to secure and to get these mineral rights so that we are in a position to develop them as as the KARA project and the phase one that we are sharing with you today. I'd like to hand over to Michael now who will just run through the transaction for us. Thank you, Phevis, and good afternoon to the audience.

4:04 Before going through into the project details itself, I'd just like to give a brief overview of the transaction structure in terms of the formal arrangement that THARISA PLC has exercised. So THARISA has acquired or increased its shareholding in KARA Mining Holdings to 66.3%. The purchase price is being settled through the issue of new THARISA shares. It equates about 4.85% of the issued share capital, and with the current market price, it imputes a value of R27,000,000 to the purchase price. Now this purchase price was negotiated and agreed at a discount to the underlying net present value of the valuation metrics of the project and was really negotiated back in 2018 when THARISA acquired its first shareholding in Quara Mining Holdings, was 26.8%, and committed to providing funding for the exploration program.

4:57 If we just move to the diagram on the bottom right there, you'll see that Cora Zimbabwe Holdings owns 85% of Cora Platinum, Generation Minerals owns 15%. Now Generation Minerals is a special purpose vehicle. It is wholly owned by the Ministry of Finance in Zimbabwe. And just to note that that is a free funded carry. So, no, there's there's no funding obligations on Generation Minerals for that 15%.

5:24 As part of the transaction negotiations, the Zimbabwean government negotiated an option to increase its shareholding by a further 11% in Karo Platinum. It's a very limited option period. It's exercised after twenty four months, and that's after the build, but before thirty six months. And the price for that option is payable in cash based on today's net present value of the project. And that's a normal fully funded, shareholding that needs to follow any capital rights and own rights. So if it's a dilutive shareholding. If we have a look at the project itself, we have continued the project following through from the exploration stage, and this early works program has in fact commenced and continued through this period, and we have committed $25,000,000 to fund that particular project.

6:12 If we look at the KARA project itself, it is a high impact investment. As Phebe has mentioned, it's the first major investment, foreign direct investment into Zimbabwe, and it will be for the benefit and upliftment of all shareholders.

6:29 Okay. Alright. This really is an investment in a tier one asset in terms of Cora Platinum. One of the key risk mitigants, as Phoebus has already mentioned, is you've got the mining lease granted for the life of the mine over this prospecting area. Situated on the Great Dike, it is an open pit resource, and this is initial one of 152,000,000 tonnes containing 9,970,000 ounces of PGMs at just over two grams per tonne and that's on a 6E basis. The declared reserve, 35,500,000 tonnes containing 2,600,000 ounces at 2.3 grams per tonne. If we just look at the Pearl split itself, very strong both platinum and palladium, 4542% respectively, and as Fios also mentioned, very base metal rich, 0.1% copper and 0.12% nickel.

7:25 When we started the exploration program, we're looking at a low risk entry and focused on an open pittable area. And I'm pleased to advise, we've got twenty years worth of open pit mine plan and that's an average grade of three grams per ton. It really is a large scale mine, targeting average production of 150,000 ounces of platinum group metals and concentrate, so very much in line with current production levels at Theresa Minerals. And very strong financials for this overall project. CapEx estimates at the moment and budget, $250,000,000 of CapEx with a peak funding requirements of $310,000,000, and that deals a project post tax NPV and reviews the discount rate of 12.9% and current spot prices, so it's internally generated, net present value just over $770,000,000.

8:16 All those projects economics and hurdles meet and, in fact, far exceed the minimum required of THARISA of 25%, hurdle rates. The project also benefits from such an especially economic zone. It's already been declared. We already got the benefits from those, and it typically relates to tax benefits. You'll see one that we've highlighted there, duty free importation of capital equipment, and that's a significant saving on the overall project spend going forward.

8:44 Moving from an exploration project to an actual project itself, we now qualify for national project status and that application is in fact pending. Thanks, Michael. So if we look at where we're situated, we're in the central portion of the Great Dike. Our neighbors to the South and to the North are the Ngezi Mine, Unki Mine, and Mimosa. So we're situated some 80 kilometers Southwest of Harari, 35 kilometers Southeast of Chigetu. It is a very large area, some 23,903 hectares, and the resource that we've declared is is really outlining the open pittable portion phase one, and the potential to grow is fairly significant when we look at the historical, resource declaration.

9:41 We are in the main sulfide zone, which typically is between two to three meters thick. We're targeting a wider cut in the open pit of some five meters, and that's really managing the grade and the strip ratio. And the length of the Great Dike running obviously north to south is some 550 kilometers in length and some 11 kilometers wide. So historically, Zemplatz had done exploration on this area,

10:15 and their resource yielded some 96,400,000 ounces on a four e basis. Now bear in mind that includes the whole extent of the 23,903 hectares. So you can see our open pittable resources, you know, close to 10% of what was declared historically. So lots of potential and opportunity for growth beyond the twenty years life. We've declared a SAMRIC compliant mineral resource and reserve, and Michael ran through those numbers earlier. Some are a 152,000,000 tons of of resource, 35,500,000 tons reserve, giving us that, twenty years open pit life.

11:00 I think the diagram on the right hand side really talks about the four open pits that we envisage and the strike length of some over 20 kilometers, so significant large scale open pits to a maximum depth of about a 100 meters. So you can see Caro Platinum Southwest being the open pittable resource on the Western side, and then majority of the open pit resources being on the Eastern side. We undertook an extensive exploration campaign to to get to this resource and reserve, some forty two two kilometers of meters drilled, 22,000 samples assayed, 315 boreholes. I think what's exciting to us and very complementary to the THARISA Prol split is what we find on the Great Dike with, on a six e basis now, not a four e, platinum at 42.1%, palladium 39.5%, rhodium at 4.1%, and some significant gold at 8.3%, iridium slightly lower at 1.9%, and ruthenium at 4.1%.

12:08 But we shouldn't forget this the material, copper and nickel credits that we'll generate from this project.

12:17 When we look at the mining, it differs considerably to the multi seam complexity of the THARISA Open Pit. This is a single seam mining. We're targeting three grams per ton on a 6E basis, And, as mentioned, we'll be developing four pits sequentially, to yield the 2,100,000 tons per annum call rate, and that's the run of mine, throughput rate for the for the concentrator. We will use a mining contractor strategy, and in fact, we've adjudicated that process already and in negotiations as we speak. We will keep the mineral resource management in house and grade, control oversight, within the owner's team.

13:03 The maximum pit depth of a 100 meters, I mentioned previously, but it yields a stripping ratio of 22.1 cube to cube. So fairly significant, but a very valuable PGM basket, as as illustrated on the previous slide of some $2,500 per ounce at at current spot prices.

13:24 You can see the ramp up of the mining volumes. We'll be building mine stocks ahead of the crusher. Very similar philosophy and, and principle as the Teresa mine just to manage a buffer for continuous operations of the concentrator. Speaking about the concentrator and the processing plant, it's a standard mill float two circuit, which will have a throughput of 2,100,000 tons per annum, a 175 kilotons per month throughput with an annual forecast production of a 150,000 ounces per annum. And that's calculated on an 82 recovery of PGMs, which is is quite important because the average in the Great Dyke is nearing closer to 87%.

14:13 So there's potentially upside to that number. So the mill float two circuit is proven, tried, and tested. There's a course or rough milling, fine milling, primary, secondary milling to maximize the recovery of the floatable particles, and we will be deploying our technology of the high energy flotation, which we've successfully deployed at the THARISA mine to look at maximizing that recovery. In terms of, infrastructure, we'll be sourcing 30 MVA, power from the Sulu Substation, which is a key strategic point in Zimbabwe and and is not subject to load shedding, which is key and critical. Could is it it is the main feed station for this zone of the Great Dyke, and we're we're busy with the

15:06 bringing the power lines to site, bulk water solutions from the Mungwana Dam as well as, borehole and ground, water, and all of this within proximity of the metallurgical for this facility. Again, very much like THARISA, we will construct our tailings storage facility from waste rock, and these are fully secure and fully contained tailings storage facility, so no risk in terms of dam wall failures. And key to any project is accessibility. There is a tar road from Harare straight through our site and to our complex, so very easily accessible in terms of logistics. Michael, would you like to touch on the history and the future programs?

15:54 Sure. Thank you. If we just look at the timeline from this project to to start to finish, we're gonna start with the investment framework agreement that was signed between Leto and the government of Zimbabwe back in 2018. Shortly after that, the special grant was awarded, in other words, for the mining. But if you just fast forward to that, to 2021, that very important milestone of getting the mining lease issued, which is then for the life of mine.

16:19 Shortly after being granted the special grants, we started with the phase one drilling, the geophysics, terrain mapping, followed thereafter by concept study. And then phase two drilling also being completed and that's part of that 40 yard kilometers that the drilling was undertaken, and then the implementation study. Implementation study, of course, now leading to the decision to commence the project construction.

16:47 If we just look at the timeline, timeline really we've indicated the $25,000,000 that we've allocated for the field work that's currently underway, so that's grade control infill drilling, surface geotechnical campaign, are we're completing some of the water studies necessary, and then of course detailed engineering design and process both for the concentrator, tally storage facilities, well as bulk power supply.

17:12 Procurements, we're looking at placing long lead items for that construction timeline down below. And as Phebe was mentioned earlier, we've already done the adjudication or completed adjudication for the mining contractor. That will be followed by a period of fabrication construction and a commissioning period ending Q4 twenty twenty three. So again, a very quick to market timeline and a low risk project open pittable.

17:40 But just moving then on to the project itself. Now, THARISA has got a it really focuses on zero harm to its employees, and I'm very pleased to report that the project has been LTI free to date, That's both the exploration and the early project activities.

17:58 If you look at the impact on the regional economy, mining contributes between 1014% of the Zimbabwean GDP. We're going to be employing about 400 people directly. Remember, that's just on the process and on the admin side. It's a mining contractor model. We estimate that they'll employ about 580 jobs for the mining contractors.

18:18 We've used a very conservative multiplier for the employment factor used by the Chamber of Mines. They've recommended four, so that gives you plus 3,900 indirect jobs. And then, of course, you've got the traditional jobs created to induce multipliers.

18:35 We remain committed to the communities in which we operate, in terms of youth and skills development, adult education training, and we will continue with our programs of internships and graduate programs going forward, and especially in this phase now, supportive informal enterprise development. THARISA as a group is committed to reducing its carbon emissions by 30% by the year 2030, and therefore we'll be looking at a very energy efficient plant, There's abundant renewable energy potential within Zimbabwe and recently improved regulations to allow self generation, and we'll be availing ourselves of those benefits. I'd just like to hand back to Fivas to touch on the market overview.

19:18 Yeah. So thanks, Michael. Mining contributes between 4060% of foreign exchange, and as Michael mentioned, a a key contributor to the GDP in Zimbabwe. So a project of this scale and this investment, will will have a material, positive impact on on the foreign exchange and foreign direct investment.

19:40 As as mentioned previously, the Great Dyke is the second largest geological, PGM geological formation after the Bushveld Complex in South Africa, but it remains the third largest producer of PGMs, after South Africa and Russia. And you can see the production profile in the bar chart on the top right hand side. There has been growth, but not significant over the last five odd years. Now we are aware that the three major

20:12 producers on the Great Dikes being Zemplatz, Impala Platinum currently producing 580,000 ounces per annum, Umki at a 190,000 ounces per annum, that's Anglo Platinum, Mimosa, the joint venture between Sibanye Stillwater and Impala producing around a 120,000 ounces. But what's encouraging is there continues to be investment in the Great Dyke. Zemplats have publicly announced the $1,800,000,000 investment campaign and the recommencing of one of the the mothballed shafts. Invested

20:48 already in terms of the smelter complex and and facilities, some $48,000,000 last year. And Mimosa are looking to expand their footprint in terms of production, expansion, and capacity. So be of South Africa, the Bushveld Complex,

21:05 the most logical place to source PGMs is the Great Dyke. And if you speak to any one of the majors that are operating there, they'll tell you that it is a a very friendly operating environment with a great skill set, great work ethic, and importantly, the lowest cost PGM answers in their portfolio, which is what we have outlined and modeled in terms of our

21:31 project. I think what's very interesting to me is when we look at the Cora Teresa combination, both projects have twenty years open pit life. If we combine the run of mine production over 7,000,000 tons per annum, And when we look at an annualized production rate within the twenty four month period in excess of 350,000 ounces from both operations, more than 2,000,000 tonnes of chrome concentrate, and a combined value using broker consensus on THARISA plus the attributable portion of the CARA NPV gets us to that $1,300,000,000 valuation on a on a project basis.

22:17 So when we look at the comparison between the two projects, this is Cora phase one, and we and I think we need to remind ourselves that there's potential here to to expand this significantly beyond the 150,000 ounce phase one project. So the reserves at Caro, some 35,500,000

22:34 tons. Teresa opened at 94,000,000 tons. But look at the grade differences. This is a high grade deposit compared to our Teresa mine, which is at 2.18 grams per ton on a four e basis compared to one point o eight grams per ton. And then the reserve ounces, two point five million and three point three million, respectively. And then we look at the THARISA growth in PGM production, within the next eighteen months targeting that 200,000 ounce. As you're aware, this year's guidance is between

23:06 a 165 and a 175,000 ounces. And based on our q one performance, we're well on track to achieving that. Importantly, we always speak about costs and being at the lowest end of the cost curve, and both projects fit squarely in that quadrant or that quartile. And this is an online cash cost in rand per ton milled. So it's a very exciting expansion and combination of assets for the group.

23:37 Michael, do wanna touch on the economics? Sure. Thank you. If you look at the economics, and I know we've already

23:45 presented these numbers, but I do believe they're important enough to reemphasize. So really strong, robust project economics, a project post tax NPV at a 12.9% discount rate, just over $707,000,000, and that's at spot pricing, resulting in a yielding internal rate of return of 47.6% and return on invested capital of 47%. If we look at the funding, the peak funding requirement is some $310,000,000. We are advanced discussions on finalizing external funding, with a strong focus here on export import financing in terms of importation of the capital plants, for the, construction of the concentrators, and that will get benefits such as both political and commercial risk insurance for the funders participating in the project.

24:34 I think in terms of sensibility, we had a at a capital intensity. Capital intensity of $1,800 per ounce versus an average for startup projects in South Africa of just under $2,200 per ounce. So it compares very favorably in terms of capital intensity. And where are we spending the money? If we just highlight some of those, the concentrator just under a $130,000,000, and infrastructure just under $65,000,000 in terms of that spend. Yeah. So if we look at our current experience in Zimbabwe, you may recall that we own Celine Chrome, a wholly owned subsidiary, and we've developed and commissioned a chrome project adjacent to the Caro concessions on the outcrop of the chrome seams on on the Great Dyke.

25:28 We have a team on-site that have commenced a contractor mining model with a chrome spiral plant that has been commissioned on-site. We've benefited from the special economic zone incentives, and we've tested particularly the importation, the duty free importation of goods, and that has worked successfully. So so, really, the intent of Celine complementing our current chrome book from THARISA with some very high grade, high quality chrome concentrate, but importantly, getting boots on the ground in ZIM, getting that experience, operational experience on a much smaller scale, much lighter CapEx profile. But being within the proximity of the Cara project gives us a great sense of logistics and and opportunities and challenges. So so really pleased that we're able to start the journey in Zimbabwe with the saline chrome.

26:24 I think also to mitigate a number of metallurgical challenges and and opportunities, we've constructed a pilot PGM concentrator, and that really allows us to start with some early operations. It's a one ton per hour plant, so very, very small, but it gives us the opportunity to optimize metallurgically in terms of reagent mixes, flocculent mixes, and so forth in terms of the, PGM, process. Importantly, in our phase one CapEx, we've included a pilot smelter on-site. And, again, this is to prove the viability of beneficiation of these PGM ounces in Zimbabwe. It is the intention for us to go downstream with with from the outset, but with the knowledge from both pilot projects as mentioned here. So this allows us really to get prepared for the operations on-site campsites and really gives us that that base from which to grow into the Karo project.

27:31 We've selected industry best partners. There's a list of of the names that we've been working with that have been involved in the various resource reserve declarations, engineering, power studies, environmental studies, water studies, etcetera, you name it. And we continue to work with, with these blue chip companies, and we've we have a a very strong working relationship with them. Importantly, these meet international standards and meet the requirement of, various funders and their particular standards that they apply to investment in projects. So if we just take a step back and and focus on the THARISA strategy, and we've got these six pillars that that we refer to.

28:18 The first being the expansion and rollout of our business sustainably, and I think this really talks to the expansion by developing a second large scale, PGM mine, open pittable, low risk as mentioned previously. This project gives us the potential to grow beyond the 150,000 ounces beyond the twenty years. It gives us flexibility in accelerating the open pit mine, and, with Celine Chrome, bring giving us some of the operational, experience on ground. We we're looking at investing in innovative thinking. The fast tracking of development timelines, I think it's part of our our strength, the agility, and the ability to to move, quickly, with the concentrators that, that we've sent up, plus the test work that we're doing at our pilot's melt at our beneficiation site here in South Africa, replicating that in Zimbabwe.

29:21 Part of our strategy was always to look at diversification, and this ticks that box for us from a geography point of view as well as a complementary basket of products. While we're in PGMs and chrome, they're different. The the concentrations are different. And more importantly, we get access to base metals, which we have limited access to right now in the form of copper and nickel. The the financial metrics speak for themselves, and one of our our key objective is to become the investment of choice in our sector. And, hopefully, as we roll out, the the project, we will become, exactly that. And then to speak to our, our mission statement to responsibly enrich the lives of our stakeholders, this is impact investment at its best. You know, we we can see the impact of a very small project like Celine Chrome in Zimbabwe with employment, the multiplier effects that it has on the environment, on the community, and the goodwill that it brings and the support, not only from a governmental level, but on the ground, regionally, as well. And, we we've seen those benefits at THARISA as well where we've been able to create, you know, 3,000 sustainable jobs, and that that impact it's had on the broader community, is quite quite material.

30:46 Then looking forward in terms of PGMs and and the the demand supply side of the equation, we certainly think supply is challenge challenged and will be constrained for a number of years, for various factors, least of which is the South African PGM industry is getting deeper, as we speak, and and replacement answers are becoming more and more valuable. And we've seen, the scramble and the fight for resources, and the premiums that they command. So I think having this, resource in our portfolio really provides us with that growth opportunity, at a very low cost and a low entry point. So with that in mind, it's been a great pleasure, sharing this exciting development with you all, and I believe I will hand over now to Paul and Ilya for q and a.

31:37 This is a three d model of the mill float circuit. You can see the two mills on the flotation circuits in the PGM concentrator in Zimbabwe. So thank you again all for your time. Fantastic. VIVOS, Michael, thank you indeed for the update, and congratulations on announcement today. Ladies and gentlemen, please continue to submit your questions using the q and a tab situated in the top right hand corner of your screen. But while the company take a few moments to review those questions submitted today, I would like to remind you the recording of this presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard. As Feels has rightly said, Ilya, we've had a number of questions come through. If I may just ask you just to click on that q and a tab where appropriate to do so. If you could just read out the question, even who it's from, and just direct it to either Phevis or Michael, that'd be wonderful. Thank you.

32:25 Certainly. Thank you for handing that over. I'm gonna try and group these questions. I've been looking through them. I'm gonna try and group them. The the most important one from an operating point of view, we've got quite a few questions around how do mining costs relate, where do we stand on on operating costs, where do we stand on processing costs? And let me just look at some can you look at that sort of on a per ounce basis, on a per ton basis, and what are we looking at from a G and A perspective? So quite a broad range on the operating costs, which I'll hand over, and then I'll get on to the other financial questions for us. Yes. So so while we've generated the model in terms of the operating costs, we don't we're not sharing the exact detail at this point in time as cost per ounce. Safe to say that we're in the lowest cost quartile, and we can take reference from from other producers on the Great Dyke. We will be providing more detail on that in in due course.

33:24 The the beauty of this deposit being an open pit, the mining cost is is low by comparison, and we also have a higher grade throughput when compared to the THARISA project. So on an operating cost per ton milled, you can see here slightly higher than THARISA, and this is really a function of the higher stripping ratio that we're seeing at 22 cube. But there is opportunity to optimize this. So this is the initial implementation study. Mukwazi, who are our reserve engineers and professional engineers, declared the reserve of busy running Whittle optimizations on a on a my optimized mine plan. So we're looking at ways of fine tuning the the mine plan and the costs around that. But safe to say that we are certainly positioned in that lower cost component without sharing the the exact details from the model, which will be which will be shared in due course. Eli, I don't know if you want to comment from your side.

34:38 I've been giving a very fairly general answer to that. No. I think you you've addressed the issue, and we certainly have been committed to to providing those those answers. Safe to say that we've run the models backwards and forwards on the mining costs. I think importantly, which we may have addressed in the presentation, is that we are looking initially at outsourcing the mining to a mining contractor, and those discussions are well advanced. And the mining contractor that we are looking at has certainly got experience in the industry. So we're not too stressed around the numbers that we've put forward from a mining cost point of view. I think in line with this, there's quite a few questions around where do we stand. Let me group them into three. One is what are we looking at from a sustaining capital point of view over the life of mine?

35:29 That's the one. Secondly, from the current capital is the development capital tax deductible. And then being in line with that, given that we will pay royalties in Zimbabwe, what are the royalties over project? Quite a broad range and with regards to to taxes and and capital. Michael, do you wanna deal with it? Alright. Yeah. I'm gonna come back on quite a few of these in terms of detail because we're not sharing the detail with the market as a whole on some of those items. But, yes, there are mining royalties in normal course, as published by the government of Zimbabwe, we will continue to do those. So if you have a look at it, especially economic zones, national project status typically don't preclude the payments of those, royalties. That's in terms of the existing legislation.

36:17 So that's the one. I'm just reading through some of the other ones we've got here where they'd asked about the project economics. Of course, we've run, sensitivities throughout this. We've looked at both historic commodity prices. We've looked at long term price and analyst forecasts, and in almost all of those scenarios, we exceed the minimum requirements of THARISA, which is minimum return of 25%, on the IRR. So I think the robust the economics are very robust, if you stress test particularly regarding the, the pricing scenarios, going forward. What proportion of 310,000,000 of CapEx do we expect to come from THSRS resources? If we have a look at typical funding models, and I'll talk about really typically, you'd expect to have sixty forty on a debt to equity ratio for a project.

37:08 So we'd be looking at being required to source, that 40% of the total 310,000,000 from our internally generated sources or available facilities to ourselves, going forward. So all the discussions of the finances to date, very much in line, with standard project financing, types of debt, requirements. So you mentioned quite a few there. Which ones of those have I left out? Sustaining forward? Yes. We'll have to give some more detail on that. The real focus, there is a provision. It's the standard provision made for for mining companies, remembering, of course, that is a mining fleet that is not our fleet. So we're just looking at the standing CapEx on the plant itself. The current focus, of course, is on building the plant over this next two year period.

37:59 Thank you. Quite a a broad range questions with regards to project implementation, and let me try and group them together. It's one is on the regulatory side. Quite a few questions with regards to what regulatory approvals do we still need with regards to beginning the project. And in line with that, how comfortable are we with the program start and the timeline to first production that we are looking at? Yep. So the the project has started. We we have commenced detailed engineering. We have teams on-site in Zoom, and we're confident that we'll start breaking ground, at least on the mining side, with early early pit development this this calendar year in line with the program.

38:46 Early procurement has started on long lead items. We've gone out on tender for mills as an example, typically being the longest lead item, motors, etcetera. And and I think what's important there is is making sure we secure and lock in the prices to avoid some of the potential inflationary issues that we may may see creeping into the cost of raw materials in the future. So, yeah, we're we're we're on track. The in terms of the approvals, we've got the most important one, which is the mining lease. So we can we can start mining tomorrow. The ESIA has has been finalized for final approval, but we've consulted the whole way through. We don't foresee any issues on that front, and that's really for full scale mining and the and the footprint.

39:36 So so everything is in hand, and and we've had the the benefit of starting really in October last year with with those early works program programs that Michael outlined earlier. And so this allows us now to to kick start, you know, the the more capital intensive component of the of the project, which is, you know, putting deposits down on long lead items, signing the mining contracts, etcetera. So, yeah, I'd we don't see any any real issue with with commencing the project. Now, you know, whether whether there are certain delays around weather issues and so forth, one can't tell. But I think we've given ourselves ample time to complete the construction within this twenty four month period.

40:27 Okay. Two questions that shoot across the Q and A. One is, again, on electricity supply. If you can just outline again where we stand on electricity and how we plan to ensure that we have consistent supply. And on the other end of the spectrum is what discussions have you had with regards to offtake of the PGM concentrate? Sure. So so as mentioned, we will be drawing 30 MVA for phase one from the Sulu Power Station. It's an existing pass substation on the national grid in Zimbabwe. It's located in Sulu, 40 odd kilometers north from the concentrator site.

41:13 So we've got approval, and part of the EIA is running the power lines and included in that CapEx infrastructure. CapEx cost is running the power lines from that substation in Sulu to our project substation where we can draw the power. I think what's key about the Sulu substation is a key critical supply of electricity in the country. So it is not subject to the load shedding that the country is well known for, and it supplies smelters and it supplies the industrial complex on the Great Dike. And as we know, we we shouldn't interrupt smelting processes for various reasons, most importantly safety.

41:58 So that was a key negotiation and a key contract secured through that substation. In terms of offtake of PGMs, yes, we have existing relationships and we have been discussing opportunities with with multiple parties and multiple outlets. And, unfortunately, due to the confidentiality around that, we cannot disclose where where we are with that at this stage. But there's certainly no no shortage of appetite for for additional PGM answers. Bearing in mind that it is our intention to construct a smelter to handle this full volume. So at the very least, we would get to a converter mat in in ZIM, and then we would look at downstream beneficiation in terms of BMR, BMR. But we're running it sequentially, and the pilot smelter is part of the process to get us to that investment decision to process these answers. And, also, it depends on whether we we look at expanding the second phase and and the scope around that and the extent in terms of downstream beneficiation.

43:09 Thank you. Something more on the people side. Question around what consultation was done with regards to the people on land and local community? What consultation have we done? And obviously, in the context of the ESIA. And secondly, what kind of arrangements are we looking at with regards to the mining staff? Are we looking at bringing them in from outlying layers or areas? Are we looking at bringing them from local areas? Are we looking constructing an entire mining campaign? Yep. So in in terms of engagement, there's been extensive engagement with the district leaders as well as the communities, farmers, and and inhabitants on the great guy. And and without exception, everybody is extremely supportive of any opportunity for employment and upliftment of the community, bearing in mind that this will create an economic hub of support services from from a to z in terms of what what a new project in a remote district can provide.

44:22 In terms of the second part of the question, Ilya, which was to staffing and how we're dealing with staffing and site money. Yeah. So so we've built a a site camp for our existing staff at Celine, and we're intending on doing a a similar site establishment for for our staff on-site on a rotation basis. So, yes, we will be building accommodation on-site. Alright. Two questions. I'll let you breathe a little bit. I'll get to Michael first. Question is around on the on the capital side, Michael. Will the capital be spent equally? How are you looking at spending the $250,000,000 of CapEx over the next two years? And then, Felix, then I'll get back to you on some of the other questions. And Michael, also, again, in line with that, what tax allowances do we have for the capital and when do we start paying tax?

45:20 Okay. Good. Alright. So the first one is on the capital profile. We do have a detailed s curve of the capital profile. It's not spent smoothly over the the two year period. We can perhaps share with that with you in more detail later when you go into some the project economics, at a further future presentation on that that particular profile. It's relatively low spend to to start with and has a very steep curve as you pass along lead items and then you get to do the construction program. So it's really probably a typical, capital spend program. That was the first one. The the next one was on the capital. Yes. Get a deduction for the capital. We are in a zero tax paying environment in terms of special economic zone, and we will negotiate further tax benefits and tax holidays going forward on the national project status.

46:18 So I'm just trying to find that question again, Ilya. No. That was that was something that came through independently. I'm I'm balancing a couple of questions here. So it really is, can can you claim tax allowance for CapEx and when do you start paying tax? Okay. Yes. We can claim for the tax. Yes. We have a tax holiday and special especially economic zone till 2029, and I would expect us to negotiate a favorable tax rate going thereafter in terms of national project status. Thank you. Alright. Few of us, there's some questions being raised around the evaluation that we did. Have we done sensitivity? What prices did we use for for the calculations and why did we use the prices that we have? And how robust is the financial model generally?

47:07 Yeah. So the model is robust. We used spot prices for March, and it was really just an indication of the the evaluation at this point in time. It is not sensitive to CapEx, highly insensitive. It is sensitive to PGM prices as as is any project. It is sensitive to recovery and and output. So what one would expect, there was a question on the discount rate. Michael, I think, touched on that. It's a it's a blend between equity and debt rates at 12.9%, you know, a little bit higher than what we see in South Africa. It does take into account some country risk, and and that has been calculated using the the normal betas and metrics on that front.

47:56 So, yes, we we will be sharing more detail at a later presentation around the cost structure because, really, it boils about it boils down to the costs per PGM ounce. The pricing, you know, is margin, but ultimately, it's about that cost and and the ability to withstand the volatility and the cyclicality of the PGM basket price. Thank you. Michael, question for you. What led to the decision of funding the initial $27,000,000 to increase our stake by share placing as opposed to use of existing cash resources or debt? Okay. Right. A very good question. If we have a look at the structure of a farm and option, the structure of that includes a, let's call it, healthy or significant discount to valuation metrics that we agreed back in 2018.

48:51 And if we move forward to the discussions we had with Leto as the seller, they really believe in the project, they believe there's a lot of project upside, and therefore, a share placement to them enables them to participate going forward in the upside of this project, which they've effectively, because of the funding arrangements we had, would have been sold at discount. So that's really the reason behind it and the other reason as to why our preference to issue shares, and this is almost the first time, I think it's the first time we've issued shares for a transaction in history, is really to also conserve our cash to be able to fund the our share of the capital expenditure on this project going forward. So really two in summary. Two, it allows the selling vendors to participate in the upside of this project going forward, and they believe in the project.

49:44 And the other one is to ensure that we have the not insured, but to support the cash that we have to fund the project. Alright. Thank you. Phoebus, back to you. There's a question around the life of mine strip ratio of 22 to one. Can you give some more details on that? Is there a large pre strip? Is waste stripping evenly distributed throughout the life of mine? So being a sequential open pit mine, there are four pits as we mentioned. So each mine has a different profile, in terms of the dip, on the one hand, and then secondly, in terms of the the strike length. So it will vary, and part of the optimization study that's being undertaken with the mine plan right now is to look at balancing that strip between short dated and long dated. This resource outcrops to surface, but we will only start mining from 25 meters below surface.

50:48 And the reason for that is we're avoiding the oxidized zone. On the metallurgical test work we've done, the recoveries are very poor on on the main sulfide zone when it's oxidized and friable, and we hit competent ore fresh ore at 25 meters below surface. So so there will be some pre stripping, to get, access to the 25 meters, and then we're on on reef. And then we would, pre strip and then access access the reef. Now, again, the economics today have have sort of dictated that we we have a high wall of a 100 meters. This may change over time. I I mean, some of the first Whittle studies that came out had a 200 meter high wall. So we've scaled back considerably in terms of, the the open pit profiles, but it it it's subject to optimization and adaptation as we develop from from the first open pit through to the fourth open pit.

51:52 Quite a few questions coming through with regards to we spoke a lot about the PGMs. How do we look at recovering the cobalt and nickel and copper? What's the strategy around that? Yeah. So so we've been doing extensive test work with various institutions, universities around base metal refining, and and we are looking at let's call it a a different approach to to recovering the base metals than conventional BMRs that we've seen deployed. And so, yes, it is our intention to to recover the the copper, nickel, and hopefully, the cobalt. We do have, you know, positive results for it. Even though the concentrations are very small, you know, the value is fairly significant. So so it is the r and d's team part of their process flow as the PMR, BMR in in post the PGM smelting.

52:51 The PGM PGM smelting is known technology. It's being done relatively easily, across across the Great Daikan in South Africa, and there's not much, cutting edge technology there. Where there may be, some new processes and new thinking is on the downstream hydromet work, and we're and we're busy as we speak now with some extensive pilot test programs. But these will be longer dated. So so beyond, you know, within this two year period, we'll get certainty around the processes and then look at, pilot BMR pilot, PMR, linked to that pilot smelter. So very similar process, to what we've done at THARISA where we've incrementally, looked at the value stream and the down downstream value opportunities.

53:47 Sorry. I'm I'm conscious of of time and our our timetable. I know there's a couple of questions, and I will endeavor to answer them as soon as they come through from investor meet. There's one important question still outstanding. There's a couple of them flowing across here. And in regards to the ownership structure, could you explain the ownership structure again, who has a free carry, who does not have a free carry? And as a second part of that question, the 11% that generation has who potentially increase their stake, what valuations are being used for for that, and and how would that be be exercisable? K. Perhaps I can address that question. I just pulled up the slide again, I hope. There we go. Right. So if we have a look at that structure, I'll walk away through it then. So THARISA owns a 66.3%.

54:35 Cora Mining Holdings, a separate intermediate holding company running to Cora Zimbabwe, a separate a Zimbabwean holding company, and then the 85% flowing into Cora Platinum. The 15% halber generation minerals, that is a free carry throughout the life of the mine. So there is no dilution of that or it's not converted to a, normal shareholding on the exercise of the option. The option itself is one where they've got to pay cash for, so Generation Minerals would pay cash for that option to the extent they exercise it. I did see a question to say it's based on the current NPV of the of of the project. And to the extent that we've derisked it, we've spent the capital and so forth, is there any adjustment to that price? The answer to that is no.

55:23 The option is exercisable at the NPV of the project as of today's date, irrespective of the developments and the progress made. And that's really part of the negotiations we enter with government. To give some of the background to this, historically, the platinum industry required a high level of indigenization. The Zimbabwean government, when it said we are open for business, removed most of those restrictions, and this is a favorable outcome for us from those discussions where they're having that 50¢ free carry, but still wish to be able to participate in the project going forward, but on a paying basis. So that's a background to to to that particular change to the 15% and the, and the option.

56:15 Elias, I just wanna check to answer all those questions in one. Yep. I think we I think we've gone through through the understanding of of the structure. Fivas, any closing remarks, and then I'll hand back to the to the organizers. Thank you, Ilya. And just again to thank everyone for their their time and attention today. This really marks a milestone for THARISA with our our next flagship project being developed and and real intent in terms of impact investing in a great geological formation known as the Great Dike. Throughout my experiences and and travels to Zimbabwe, we've been welcomed by our partners, the Zimbabwean government, and they've really created an enabling environment for us to get to this point for us to be able to make an informed investment decision to build the next major PGM mine on the Great Dike in Zimbabwe. So we're extremely excited.

57:17 We will be building out the team and sharing some of those members with you in due course that will be running on the ground with this project, and seeing it to its success and continued production and operations. So with that, I'd like to thank you again and wish you all well. That's fantastic. Phevis, Michael, Ilya, thank you indeed for updating, today on the great news that you've had. Could I please ask investors not to close the session as you'll be automatically redirected for your views and aspirations post this meeting? If you could please complete that, would only take a few moments. On behalf of the management team of THARISA PLC, we'd like to thank you very much for attending today's presentation. That concludes today's session. Thank you, and good afternoon to you all.

58:03 Hi.