09 Jul - 7 min read

Production report for the third quarter FY2021 ended 30 June 2021

Production report for the third quarter FY2021  ended 30 June 2021

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 THIRD QUARTER FY2021(1)ENDED 30 JUNE 2021

Highlights
    - Achieved 5 million fatality free shifts
    - Delivered record mining rates and tonnes processed
    - Record quarterly chrome concentrate output and increased PGM production supported by
        stronger pricing
    - Balance sheet strengthened with cash increasing to US$80.5 million post US$10.8 million interim
        dividend payment
    - FY2021 guidance maintained

Key Operating Numbers
                                                           Quarter            Quarter   Quarter on     Quarter     Year on
                                                          ended 30          ended 31      quarter     ended 30        year
                                                         June 2021         March 2021   movement     June 2020   movement
                                                                                                %                        %

    Reef mined                            kt                1 507.8           1 233.2         22.3     1 291.3        16.8

    PGMs produced (6E)                    koz                   39.0             35.8          8.9        35.0        11.4

    Chrome concentrates produced          kt                  379.7             358.4          5.9       321.4        18.1
    (excluding third party)

    Average PGM basket price              US$/oz              3 804             3 290         15.6       1 593       138.8

    Average metallurgical grade           US$/t                 160              155           3.2        143         11.9
    chrome concentrate contract
    price




(1) Tharisa’s financial year is from 1 October 2020 to 30 September 2021

Phoevos Pouroulis, CEO of Tharisa, commented:

“Operationally, the third quarter was one of the strongest in the Company’s history, with record mining
and processing rates, supported by strong PGM and chrome pricing. Combined with reaching 5 million
fatality free shifts and another excellent LTFIR, Tharisa remains on track to deliver safe and sustainable
returns for all of our stakeholders.

Revenues and margins continue to be healthy as the combination of our favourable PGM basket saw
record prices, in addition to a steady increase in the pricing of our chrome concentrates. These price
increases are a direct result of the increase in demand for our critical metals as economies focus on
rebuilding post the global pandemic. Moreover, given the rapid adoption of decarbonisation initiatives,
we see these prices being sustainable for the foreseeable future.

Despite the headwinds of South Africa being placed on Alert Level 4 in its fight against the COVID-19
pandemic, with its impact on our employees and stakeholders, our operational performance continues to
benefit from the ongoing optimisation programmes, underpinned by the robustness and consistency of
the Tharisa Mine with 14 years of open pit and 40 years underground mine life.

Our growth projects remain on track, with the construction of the proprietary Vulcan fine chrome
recovery plant on schedule for commissioning by year end, adding an additional 20% chrome to our
current production levels and these at very low operating costs. Our new development project in
Zimbabwe, Salene Chrome, is progressing well and is planned to be in production start-up before the end
of the calendar year.

The continued improvement in our mining, underpinned by the consistency of the Tharisa Mine, provides
Tharisa with confidence in delivering on our guidance for the full year.”



Health & Safety
   - Safety is a core value and Tharisa continues to strive for zero harm at its operations
   - Achieved 5 million fatality free shifts on 1 June 2021
   - Industry-leading safety record with a LTIFR of 0.12 per 200 000 man hours worked
   - South Africa is at an adjusted Alert Level 4 as Wave 3 reaches peak
   - Tharisa has recorded an increase in active COVID-19 cases from prior waves

Market Update
   -   Tharisa’s PGM basket price was 15.6% higher quarter on quarter (Q3 2021 vs Q2 2021) and
       remains above US$3 000/oz at the time of writing, despite the recent decline in the rhodium price,
       highlighting the unique prill split benefits. The use of PGMs in the hydrogen economy has not
       been fully recognised as the market is focused on the premature decline of the internal
       combustion engine. PGMs play a vital role not only in emission control in traditional drive engines
       but a major role in hydrogen fuel cells, the greening of the economy and PGMs continue to be a
       critical component of the changing drive train make-up. We remain confident that the unique and
       flexible PGM metal properties will have a robust outlook, being evident in the demand for the
       precious metals in a number of growing diversified industries, while PGM production increases
       across the industry remain limited, therefore supporting stronger long-term prices

   -   Higher chrome ore prices were achieved in the quarter despite subdued demand owing to a
       reduction of ferrochrome production in China, caused by electricity control measures. Stainless
       steel producers are operating at historic high levels, creating robust demand for ferrochrome,
       resulting in tightness of supply and consequently increasing the price of ferrochrome at the end
       of the quarter, which bodes well for the current and future chrome ore price. The Company was
       successful in meeting its delivery obligations, despite continued inland logistical challenges in
       South Africa and limited shipping availabilities. Sea borne logistics costs continued to trend
       upwards


Operational Update
   -   Record reef mined at 1.5 Mt, up 22.3% QoQ and 16.8% YoY
   -   Record tonnes processed at 1.4 Mt, up 5.0% QoQ and 15.8% YoY
   -   PGM production up 8.9% QoQ to 39.0 koz (up 11.4% YoY) as rougher feed grade improved by 7.8%
       to 1.52 g/t
   -   Record chrome concentrate tonnes produced at 379.7 kt, up 5.9% QoQ and 18.1% YoY
   -   Stripping ratio 10.9 m3: m3 ahead of LOM requirements
   -   PGM recoveries impacted by now resolved secondary mill motor issues
   -   Optimisation programmes remain on track, with Vulcan construction completion by end
       September 2021

Cash Balance and Debt Position
   -   Tharisa had a cash balance of US$80.5 million (31 March 2021 US$72.8 million) at the end of the
       quarter and debt of US$38.7 million (31 March 2021 US$43.0 million) resulting in a positive net
       cash position of US$41.8 million (31 March 2021 US$29.8 million). The Company paid out an
       interim dividend of US$10.8 million on 30 June 2021

Guidance for FY2021
   -   Guidance is maintained at 155 koz to 165 koz PGMs (6E basis) and 1.45 Mt to 1.55 Mt of chrome
       concentrates
   -   COVID-19 remains a risk to the Company and guidance is premised on the current level of
       economic activity being maintained

 Paphos, Cyprus

 9 July 2021

 JSE Sponsor
 Investec Bank Limited

Connect with us on LinkedIn and Twitter 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


Financial PR contacts:
Bobby Morse / Augustine Chipungu / James Husband
+44 207 466 5000
tharisa@buchanan.uk.com
Broker contacts:
Peel Hunt LLP (UK Joint Broker)
Ross Allister / David McKeown / Alexander Allen
+44 207 7418 8900
BMO Capital Markets Limited (UK Joint Broker)
Thomas Rider / Pascal Lussier Duquette / Nick Macann
+44 207 236 1010
Berenberg (UK Joint Broker)
Matthew Armitt / Jennifer Wyllie / Varun Talwar / Detlir Elezi
+44 203 207 7800
Nedbank Limited (acting through its Corporate and Investment Banking division) (RSA Broker)
Carlyle Whittaker
+27 11 294 0061
About Tharisa

Tharisa is an integrated resource group incorporating mining, processing, exploration and the
beneficiation, marketing, sales and logistics of PGMs and chrome concentrates. Its principal asset is the
Tharisa Mine located in the South-Western Limb of the Bushveld complex, South Africa. The mechanised
mine has a 14-year open pit life of mine (LOM) and the ability to extend operations underground by at
least an additional 40 years. Tharisa also owns the Salene Chrome project, a development stage, low
cost, open pit asset, located in the Great Dyke in Zimbabwe. Tharisa is listed on the Johannesburg Stock
Exchange (JSE: THA) and the Main Market of the London Stock Exchange (LSE: THS).

                                            Quarter   Quarter   Quarter on   Quarter   Nine months
                                             ended     ended      quarter     ended          ended
                                             30 Jun   31 Mar    movement      30 Jun         30 Jun
                                              2021      2021            %      2020           2021

Reef mined                      kt          1 507.8   1 233.2        22.3    1 291.3        3 975.3

Stripping ratio                 m3: m3         10.9      11.8        (7.6)      12.0          11.3

Reef milled                     kt          1 413.1   1 345.2         5.0    1 220.2        4 171.9

PGM flotation feed              kt          1 072.3   1 023.9         4.7      909.9        3 176.5

PGM rougher feed grade          g/t            1.52      1.41         7.8       1.52          1.46

PGM recovery                    %              74.4      77.1        (3.5)      78.7          76.8

6E PGMs produced                koz            39.0      35.8         8.9       35.0         114.1

    Platinum produced           koz            21.8      19.8        10.1       19.6          63.1

    Palladium produced          koz             5.5       5.4         1.9        5.6          17.7

    Rhodium produced            koz             3.9       3.5        11.4        3.4          11.1

Average PGM contained metal     US$/oz        3 804     3 290        15.6      1 593         3 159
basket price

    Platinum price              US$/oz        1 185     1 164         1.8       751          1 105

    Palladium price             US$/oz        2 794     2 399        16.5      1 975         2 588

    Rhodium price               US$/oz       24 232    21 521        12.6      7 401        19 999

Average PGM contained metal     ZAR/oz       53 801    49 273         9.2     29 266        46 733
basket price

Cr2O3 ROM grade                 %              18.0      18.0           -       18.2          17.9

Chrome recovery                 %              63.0      62.4         1.0       61.1          62.8

Chrome yield                    %              26.9      26.6         1.1       26.3          26.6

Chrome concentrates produced    kt            379.7     358.4         5.9      321.4        1 110.4
(excluding third party)

  Metallurgical grade           kt            280.8     272.8         2.9      250.9         832.2

  Specialty grades              kt             98.9      85.6        15.5       70.5         278.2

Third party chrome production   kt             59.0      49.5        19.2          -         170.6

Metallurgical grade chrome      US$/t CIF      160       155          3.2       143            149
concentrate contract price      China

Metallurgical grade chrome      ZAR/t CIF     2 274     2 304        (1.3)     2 560         2 220
concentrate contract price      China

Average exchange rate           ZAR:US$        14.1      15.0        (6.0)      18.0          14.9

Date: 09-07-2021 07:05:00
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