Tharisa PLC First quarter FY2017 Production Report (8323T)
11 January 2017 - 6:00PM
UK Regulatory
TIDMTHS
RNS Number : 8323T
Tharisa PLC
11 January 2017
Tharisa plc
(Incorporated in the Republic of Cyprus with limited
liability)
(Registration number HE223412)
JSE share code: THA
LSE share code: THS
ISIN: CY0103562118
('Tharisa')
First quarter production report for the period ended 31 December
2016
Another quarter of solid production from Tharisa
Highlights for the three months ended 31 December 2016
-- Reef mined continues to exceed the required run rate of 4.8 Mtpa on an annualised basis
-- PGM production of 34.8 koz and chrome concentrate production of 322.2 kt
-- Specialty chrome production at 23.9% of total chrome production
-- PGM recoveries above target at 80.5% and chrome recoveries improve to 64.3%
-- Contracted metallurgical chrome prices up 59.2% quarter-on-quarter
Safety
Safety remains a top priority and Tharisa continues to strive
for zero harm at its operations. We are pleased to report that
there were no LTI's during the quarter.
Production update
The production update for the quarter ended 31 December 2016 is
as follows:
Quarter on Year
Quarter ended Quarter ended quarter ended
31 Dec 30 Sep movement Quarter ended 30 Sep
2016 2016 % 31 Dec 2015 2016
------------------- ----------------- ---------------- ---------------- --------------- --------------- --------
Reef mined kt 1 229.9 1 243.3 (1.1) 1 124.4 4 837.2
m(3) waste/m(3)
Stripping ratio reef 9.0 8.2 - 6.4 7.3
Reef milled kt 1 206.4 1 267.2 (4.8) 997.4 4 656.3
PGM flotation feed
tonnes kt 885.1 937.9 (5.6) 765.8 3 575.6
PGM rougher feed
grade g/t 1.52 1.61 (5.6) 1.61 1.65
6E PGMs produced koz 34.8 39.1 (11.0) 24.0 132.6
PGM recovery % 80.5 80.6 (0.1) 60.4 69.9
Average PGM
contained metal
basket price US$/oz 740 804 (8.0) 687 736
Average PGM
contained metal
basket price ZAR/oz 10 287 11 289 (8.9) 9 865 10 881
Cr O RoM grade % 17.5 17.5 - 18.5 18.0
Chrome recovery % 64.3 63.5 1.3 61.5 62.7
Chrome yield % 26.7 26.2 1.9 27.3 26.7
Chrome
concentrates
produced kt 322.2 332.2 (3.0) 272.1 1 243.7
---------------- ---------------- --------------- --------------- --------
Metallurgical
grade kt 245.1 250.1 (2.0) 238.7 974.3
Specialty
grades kt 77.1 82.1 (6.1) 33.4 269.4
---------------- ---------------- --------------- --------------- --------
Metallurgical
grade chrome
concentrate
contract price US$/t CIF China 250 157 59.2 124 120
Metallurgical
grade chrome
concentrate
contract price ZAR/t CIF China 3 488 2 193 59.1 1 777 1 751
Average exchange
rate ZAR:US$ 13.9 14.1 - 14.2 14.8
------------------- ----------------- ---------------- ---------------- --------------- --------------- --------
Mining
Tharisa's team mined consistently above the combined plant
processing capacity of 400 ktpm, bringing the total reef mined from
the open pit to 1 229.9 kt for the quarter. The focus remained on
grade control and the optimal blend of material ahead of the
operation's two plants. During the quarter a total of 3.0 Mm(3) of
waste (both interburden and overburden) was removed to expose ore
at a stripping ratio of 9.0 on a m(3) :m(3) (waste:reef) basis.
This is in line with the life of open pit average stripping ratio
of 8.9 on a m(3) :m(3) basis.
Processing
During the quarter 1 206.4 kt tonnes were milled notwithstanding
planned routine maintenance, including annual mill relining.
PGM recoveries at 80.5% remained well above the targeted
recovery of 70%, resulting in PGM production of 34.8 koz on a 6E
basis.
Total chrome concentrate production was 322.2 kt at a recovery
rate of 64.3%, edging closer to the targeted recovery of 65% for
chrome. Of that 322.2 kt, 77.1 kt was higher-value specialty grade
material. Specialty grade material typically fetches a premium to
metallurgical grade chrome.
Market update
The average PGM basket price for the three months ended December
2016 was US$740/oz (ZAR10 287/oz), which is US$64/oz lower than the
US$804/oz (ZAR11 289/oz) price achieved in the quarter ended
September 2016.
Metallurgical grade chrome prices have risen almost 60% over the
quarter with an average contract price of US$250/t CIF main ports
China achieved during the quarter. This represents an improvement
of US$93/t on the CIF contracted selling price concluded in the
September 2016 quarter. Current market prices are significantly
higher and while demand has eased ahead of the Chinese New Year
(end January 2017), market fundamentals and lower Chinese port
stocks should spur purchasing thereafter.
Outlook
PGM and chrome production remains on track to meet the FY2017
production guidance of 147.4 koz PGMs and 1.3 Mt chrome
concentrates, of which 300 kt will be specialty grade chrome
concentrates.
"We are positive about the prospects for the year ahead and
believe that, with the support of buoyant chrome prices, 2017 will
be a definitive year with reduced unit costs and increased
operating margins," said Tharisa CEO Phoevos Pouroulis.
The above information has not been reported on or reviewed by
Tharisa's auditors.
Paphos, Cyprus
11 January 2017
JSE Sponsor
Investec Bank Limited
Investor Relations contact:
Sherilee Lakmidas
+27 11 996 3538
+27 79 276 2529
slakmidas@tharisa.com
This information is provided by RNS
The company news service from the London Stock Exchange
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