Tharisa
plc
(Incorporated in the Republic of Cyprus with
limited liability)
(Registration number HE223412)
JSE share code: THA
LSE share code: THS
A2X share code: THA
ISIN: CY0103562118
LEI: 213800WW4YWMVVZIJM90
('Tharisa' or the 'Company')
PRODUCTION REPORT FOR THE FIRST QUARTER
FY2025 ENDED 31 DECEMBER 2024
Tharisa, the mining, metals, and
innovation company dual-listed on the Johannesburg and London stock
exchanges, announces its production results for Q1
FY2025[1] and cash
balance as at 31 December 2024.
Highlights
‒ Lost
Time Injury Frequency Rate ('LTIFR') per 200 000 man hours
worked of
‒ 0.02
at Tharisa Minerals
‒ 0.08
at Karo Platinum
‒ PGM
production of 29.9 koz (Q4 FY2024: 37.1
koz)
‒
Chrome production of 374.4 kt (Q4 FY2024: 426.8 kt)
‒ PGM
prices averaging at US$1 381/oz for the quarter (Q4 FY2024:
US$1 370/oz)
‒
Average metallurgical grade chrome concentrate
prices at US$271/t for the quarter (Q4 FY2024:
US$314/t)
‒
Group cash on hand of US$175.1 million (30 September 2024: US$217.7
million), and debt of US$86.1 million (30 September 2024:
US$108.8 million), resulting in a net cash position of
US$89.0 million (30 September 2024: US$108.9
million)
|
|
|
Quarter ended 31 Dec
2024
|
Quarter
ended 30 Sep 2024
|
Quarter on quarter movement
%
|
Quarter ended 31 Dec
2023
|
Year ended
30 Sep 2024
|
|
Reef
mined
|
kt
|
1 291.0
|
1 286.5
|
0.3
|
1 058.6
|
4 641.9
|
|
Reef
milled
|
kt
|
1 377.6
|
1 394.9
|
(1.2)
|
1 424.4
|
5 593.8
|
|
6E PGMs
produced
|
koz
|
29.9
|
37.1
|
(19.4)
|
35.7
|
145.1
|
|
Chrome
concentrates produced
|
kt
|
374.4
|
426.8
|
(12.3)
|
462.8
|
1 702.6
|
|
Average PGM
contained metal basket price
|
US$/oz
|
1 381
|
1
370
|
0.8
|
1
344
|
1
362
|
|
Average
metallurgical grade chrome concentrate price - 42% basis
|
US$/t
|
271
|
314
|
(13.7)
|
291
|
299
|
Phoevos Pouroulis, CEO of
Tharisa, commented:
"Undoubtedly a tough start to the new year impacted by
drilling equipment availability, as a consequence thereof we mined
sub optimal oxidised reef horizons. This yielded lower ROM grades
and therefore lower recoveries. We have subsequently improved the
drilling rates and equipment availability. The focus this quarter
will be on optimising the feed grade and improving our recoveries
to previous levels.
While we have seen a drop in the chrome price due to slowing
stainless steel demand, we remain of the view that these price
levels are unsustainable and will need to correct to meet expected
demand. The PGM pricing environment remains stubbornly weak
notwithstanding sound demand fundamentals.
The cybersecurity incident we experienced during the quarter
did not directly impact physical operations, but rather the
administrative, accounting and support services with work-around
solutions being implemented to minimise any disruptions. Good
progress has been made in bringing the affected systems back
online. "
Health & Safety
‒ The
health and safety of our stakeholders remains a core value to the
Group and Tharisa continues to strive for zero harm at its
operations
‒
LTIFR per 200 000 man hours worked of
‒ 0.02
at Tharisa Minerals
‒ 0.08
at Karo Platinum
Market
Update
‒ PGM
prices remain subdued despite continued forecasts for deficits in
the various PGMs. The price weakness is compounded by a visible
lack of investor interest, despite the supply demand evidence. The
low pricing environment will lead to growing deficits as output
continues to decline, particularly in marginal deep level mines,
with capital spend constrained.
‒
Chrome prices retreated in the quarter as uncertainty over
stainless steel demand drove a price reduction. Physical demand
remains at normal levels with port stocks approximating one month
supply to ferrochrome demand. Disruptions at the Mozambique border
with lockdowns impacted road transport to the port of Maputo,
impacting the delivery of cargoes to end use customers.
Operational
Update
‒
Steady quarter on quarter reef mining at 1 291.0 kt (Q4
FY2024: 1 286.5 kt)
‒
Quarter on quarter reef milled at 1 377.6 kt (Q4 FY2024:
1 394.9 kt) supplemented by reduced ROM
purchases
‒
Quarterly PGM production at 29.9 koz (Q4 FY2024: 37.1
koz)
‒
Rougher feed grade of 1.39 g/t (Q4 FY2024: 1.56 g/t)
‒
Recovery of 61.7% (Q4 FY2024: 70.6%)
‒
Quarterly chrome production of 374.4 kt (Q4 FY2024: 426.8
kt)
‒
Grade of 16.9% Cr2O3 (Q4 FY2024: 18.2%)
‒
Recovery at 65.7% (Q4 FY2024: 68.8%)
‒
Underground definitive feasibility study progressing well with
early works capital being deployed
‒ Karo
Platinum continues to evaluate value engineering opportunities in a
difficult PGM pricing environment. Work packages are progressing in
line with existing funding.
Cash Balance and Debt
Position
‒
Group cash on hand of US$175.1 million (30 September 2024: US$217.7
million), and debt of US$86.1 million (30 September 2024:
US$108.8 million), resulting in a net cash position of
US$89.0 million (30 September 2024: US$108.9
million)
Guidance
‒
Production guidance for FY2025 is set at between 140 koz and 160
koz PGMs (6E basis) and 1.65 Mt to 1.8 Mt of chrome
concentrates
The above forward-looking statements
have not been reported on or reviewed by Tharisa's auditors and is
the responsibility of the directors.
|
|
|
Quarter ended 31 Dec
2024
|
Quarter
ended 30 Sep 2024
|
Quarter on quarter movement
%
|
Quarter ended 31 Dec
2023
|
Year ended
30 Sep 2024
|
|
Reef
mined
|
kt
|
1 291.0
|
1 286.5
|
0.3
|
1 058.6
|
4 641.9
|
|
Stripping
ratio
|
m3: m3
|
12.4
|
11.3
|
9.7
|
12.0
|
12.5
|
|
Reef
milled
|
kt
|
1 377.6
|
1 394.9
|
(1.2)
|
1 424.4
|
5 593.8
|
|
PGM
flotation feed
|
kt
|
1 082.7
|
1 049.6
|
3.2
|
1 048.0
|
4 218.0
|
|
PGM rougher
feed grade
|
g/t
|
1.39
|
1.56
|
(10.9)
|
1.60
|
1.60
|
|
PGM
recovery
|
%
|
61.7
|
70.6
|
(12.6)
|
66.1
|
67.0
|
|
6E PGMs
produced
|
koz
|
29.9
|
37.1
|
(19.4)
|
35.7
|
145.1
|
|
Platinum
produced
|
koz
|
16.2
|
22.3
|
(27.4)
|
20.5
|
81.6
|
|
Palladium
produced
|
koz
|
5.1
|
6.0
|
(15.0)
|
5.2
|
23.4
|
|
Rhodium
produced
|
koz
|
2.8
|
3.9
|
(28.2)
|
3.3
|
13.8
|
|
Average PGM
contained metal basket price
|
US$/oz
|
1 381
|
1
370
|
0.8
|
1
344
|
1
362
|
|
Platinum
price
|
US$/oz
|
966
|
963
|
0.3
|
914
|
942
|
|
Palladium
price
|
US$/oz
|
1 011
|
970
|
4.2
|
1
090
|
1
002
|
|
Rhodium
price
|
US$/oz
|
4 577
|
4
616
|
(0.8)
|
4
216
|
4
467
|
|
Cr2O3 ROM grade
|
%
|
16.9
|
18.2
|
(7.1)
|
19.1
|
18.4
|
|
Chrome
recovery
|
%
|
65.7
|
68.8
|
(4.5)
|
70.3
|
68.3
|
|
Chrome
yield
|
%
|
27.2
|
30.6
|
(11.1)
|
32.5
|
30.4
|
|
Chrome
concentrates produced
|
kt
|
374.4
|
426.8
|
(12.3)
|
462.8
|
1 702.6
|
|
Metallurgical grade
|
kt
|
317.7
|
355.8
|
(10.7)
|
389.9
|
1 421.2
|
|
Specialty
grades
|
kt
|
56.7
|
71.0
|
(20.1)
|
72.9
|
281.4
|
|
Average
metallurgical grade chrome concentrate contract price - 42%
basis
|
US$/t CIF
China
|
271
|
314
|
(13.7)
|
291
|
299
|
|
Average
exchange rate
|
ZAR:US$
|
17.9
|
18.0
|
(0.6)
|
18.7
|
18.2
|
Paphos, Cyprus
13 January 2025
JSE
Sponsor
Investec Bank Limited
Connect with us on
LinkedIn to get further news and updates
about our business.
Investor
Relations Contacts:
Ilja Graulich (Head of Investor
Relations and Communications)
+27 11 996 3500
+27 83 604 0820
igraulich@tharisa.com
Broker
Contacts:
Peel Hunt LLP (UK Joint Broker)
Ross Allister / Georgia
Langoulant
+44 207 418 8900
BMO Capital Markets Limited (UK Joint
Broker)
Thomas Rider / Nick
Macann
+44 207 236 1010
Berenberg (UK Joint Broker)
Matthew Armitt / Jennifer Lee /
Detlir Elezi
+44 203 207 7800
About Tharisa
Tharisa is an integrated resource
group critical to the energy transition and decarbonisation of
economies. It incorporates exploration, mining, processing and the
beneficiation, marketing, sales, and logistics of PGMs and chrome
concentrates, using innovation and technology as enablers. Its
principal operating asset is the multi-generational Tharisa Mine,
located in the south-western limb of the Bushveld Complex, South
Africa. Tharisa is also developing the Karo Platinum Project, a
low-cost, open-pit PGM asset located on the Great Dyke in Zimbabwe,
while simultaneously focusing on beneficiation in the form of
chrome and PGM alloys. A 15-year Power Purchase Agreement with
Etana for the procurement of wheeled renewable energy and a 40 MW
solar project under construction will ensure that Tharisa Minerals'
drive to reduce its carbon footprint by 30% by 2030 is well within
reach, forming a major part of a roadmap to become net carbon
neutral by 2050. Redox One is accelerating the development of a
proprietary iron chromium redox flow long-duration battery
utilising the commodities we mine. Tharisa plc is listed on the
Johannesburg Stock Exchange (JSE: THA) and the Main Board of the
London Stock Exchange (LSE: THS).
