Tharisa: Production Report for the First Quarter Fiscal 2022 Ended December 31, 2021

Production Report for the first quarter FY2022 ended 31 December 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 FIRST QUARTER FY2022(1) ENDED 31 DECEMBER 2021

Best quarter on record kicks off a transformative year

Tharisa, the platinum group metals (PGMs) and chrome co-producer listed on the Johannesburg and
London stock exchanges, announces production results for the first quarter of FY2022.

First quarter highlights
      -    Lost Time Injury Frequency Rate ('LTIFR') of 0.47 per 200 000 man hours worked
      -    Quarterly production records set for processing volumes, PGM and chrome concentrate
           production
               - Tonnes milled at 1.43 Mt with a 10.1% increase in PGM rougher feed grade at 1.75 g/t
                 and Cr2O3 ROM grade at 18.1%
               - PGM production of 47.7 koz, up 9.2% quarter on quarter ('QoQ'), at an average PGM
                 basket price of US$2 394/oz (ZAR36 897/oz)
               - Chrome production of 401.8 kt, up 1.5% QoQ, at an average metallurgical grade chrome
                 price of US$161/t (ZAR2 471/t)
      -    Vulcan Plant commissioning progressing well with hot tails feed from the Voyager Plant being
           processed, first production is expected in the second quarter as planned
      -    Cash balance of US$79.1 million and a positive net cash position of US$24.4 million

Guidance for FY2022 is maintained at 165 koz to 175 koz PGMs (6E basis) and 1.75 Mt to 1.85 Mt of
chrome concentrates.


                                                 Quarter     Quarter       Q on Q     Quarter         Year
                                                   ended       ended     movement       ended        ended
                                                  31 Dec      30 Sep           %       31 Dec      30 Sept
                                                    2021        2021                     2020         2021


Reef mined                           kt          1 413.9      1 404.7         0.7      1 234.3     5 379.9

PGMs produced (6E)                   koz            47.7        43.7          9.2        39.3        157.8

Chrome concentrates produced         kt            401.8       395.7          1.5       372.3      1 506.1
(excluding third party)

Average PGM basket price             US$/oz        2 394       2 854        (16.1)      2 399        3 074


Average metallurgical grade chrome   US$/t           161         167         (3.6)         136         154
concentrate contract price




Phoevos Pouroulis, CEO of Tharisa, commented:
"A great start to our new financial year, which will see the Company transform further with the
developments at our flagship asset, namely the integration of the Vulcan fine chrome recovery circuit at
the Tharisa Mine, enabling us to reach 2 Mt per annum of chrome production, reduce costs and carbon
emissions per unit. Our diversification and growth plan sees our projects in Zimbabwe becoming fully
integrated into the business within this financial year.
Our innovative and strategic initiatives continue to benefit the Tharisa Mine, with both PGM and chrome
concentrate output up quarter on quarter, and we see this trend continuing, as we work further on
improving our grade mix and upgrading our stockpile levels, not only in volume but in overall quality.
The commissioning of the Vulcan fine chrome recovery and beneficiation plant is nearly complete, with the
Voyager Plant throughput being fed into Vulcan, thus ensuring we will start with commercial production
from Vulcan in the second quarter as planned.
In Zimbabwe, mining on the high grade Salene Chrome operation is progressing well, with more than two
months of stockpile ahead of our mobile plant, which is being commissioned.
On Karo Platinum, we eagerly await the final regulatory sign off from our partners, the Zimbabwean
government, so that we can share the exciting plans we have made for the development of this world class
resource and project.
A strong start to the year, and I want to thank the Tharisa team for their continued focus and delivery.
We remain firmly on track to deliver, and hopefully exceed, our stated guidance of 165 koz to 175 koz
PGMs and 1.75 Mt to 1.85 Mt of chrome concentrates in the current financial year."
Health & Safety
   -   The health and safety of our stakeholders remains a core value and Tharisa continues to strive for
       zero harm at its operations
   -   LTIFR of 0.47 per 200 000 man hours worked
Market update
   -   The PGM spot markets were weaker than the past several quarters, but early indications are that
       the supply-demand balance is improving, with bottlenecks in the chip and motor industry abating,
       and stockpiles from some of the major producers being worked through the market. While
       COVID-19 seems to remain a short-term risk, global growth looks set to recover, with the
       increasing emissions standards underpinning prices. On the back of this, prices have risen in the
       early weeks of this calendar year, with the current spot basket price at around US$2 700/oz,
       versus prices received for the quarter of US$2 394/oz

   -   Chrome prices remained steady quarter on quarter but have seen an uptick to around US$175/t
       at the end of the quarter owing to increased consumption of chrome concentrates in China, as
       power restrictions eased in many of the major industrial production hubs resulting in an increase
       in ferrochrome output supported by stainless steel demand. Coupled with this increased
       consumption was a significant destocking of port stocks, reducing from a quarter start of 4.0 Mt
       to around 2.7 Mt presently, a level not seen since Q1 CY2018. Tharisa continues to deliver chrome
       concentrates into the market notwithstanding logistical challenges, both inland and sea freight
Operational update
   -   Strong operational performance from mining through to processing, with several initiatives, such
       as the water management projects ensuring delivery during this rainy quarter
   -   Total reef mined steady at 1 413.9 kt (Q4 FY2021: 1 404.7 kt)
   -   Record tonnes milled at 1 432.1 kt (Q4 FY2021: 1 428.1 kt)
   -   Improvement in PGM rougher freed grade at 1.75 g/t (Q4 FY2021: 1.59 g/t)
   -   Chrome yield improving to 28.1% (Q4 FY2021: 27.7%), up 1.4% QoQ
   -   Output in both PGM and chrome concentrate reached record quarterly levels
           - PGM production of 47.7 koz, up 9.2% QoQ
           - Chrome output of 401.8 kt, up 1.5% QoQ
   -   PGM recoveries were slightly lower at 79.3% (vs 80.0% QoQ) due to the feeding of more oxidised
       material to improve the future stockpile mix ahead of the plant, which remains at 2-months ROM
Zimbabwe update
   -   Mining is progressing well at Salene Chrome with two months of ROM stockpile ahead of the
       plant, which is being commissioned
   -   Karo Platinum is awaiting final approvals from the government, which are anticipated during the
       current quarter
Cash balance and debt position
   -   Tharisa had a cash balance of US$79.1 million (30 September 2021 US$83.4 million) at the end of
       the quarter and debt of US$54.7 million (30 September 2021 US$35.5 million), the increased debt
       levels attributable to short term trade financing flows relating to the timing of chrome
       concentrate shipments resulting in a positive net cash position of US$24.4 million (30 September
       2021 US$47.9 million)
Guidance
   -   FY2022 production guidance of 165 koz to 175 koz PGMs (6E basis) and 1.75 Mt to 1.85 Mt of
       chrome concentrates is maintained. COVID-19 remains a risk to the Company, and guidance is
       premised on the current level of economic activity being maintained



                                                     Quarter      Quarter   Quarter on    Quarter            Year
                                                       ended        ended      quarter      ended           ended
                                                      31 Dec       30 Sep     movement     31 Dec         30 Sept
                                                        2021         2021            %       2020            2021

   Reef mined                           kt           1 413.9     1 404.7         0.7      1 234.3         5 379.9

   Stripping ratio                      m3: m3         11.2         12.3        (8.9)        11.3            11.6

   Reef milled                          kt           1 432.1     1 428.1         0.3      1 413.7         5 600.0

   PGM flotation feed                   kt           1 069.3     1 071.6        (0.2)     1 080.3         4 248.2

   PGM rougher feed grade               g/t            1.75         1.59        10.1         1.43            1.49

   PGM recovery                         %              79.3         80.0        (0.9)        78.9            77.6

   6E PGMs produced                     koz            47.7         43.7         9.2         39.3           157.8

       Platinum produced                koz            26.5         23.6        12.3         21.5            86.7

       Palladium produced               koz             7.5          7.2         4.2          6.8            24.9

       Rhodium produced                 koz             4.6          4.3         7.0          3.7            15.4

   Average PGM contained metal basket   US$/oz         2 394       2 854       (16.1)        2 399          3 074
   price

       Platinum price                   US$/oz           997        1 016       (1.9)          946           1 080

       Palladium price                  US$/oz         1 941        2 295      (15.4)        2 349           2 513

       Rhodium price                    US$/oz        13 522       16 721      (19.1)       14 621          18 860

   Average PGM contained metal basket   ZAR/oz        36 897       41 727      (11.6)       37 410          45 336
   price

   Cr2O3 ROM grade                      %               18.1         17.9         1.1         17.7            17.9

   Chrome recovery                      %               65.6         65.0         0.9         62.8            63.3

   Chrome yield                         %               28.1         27.7         1.4         26.3            26.9
  Chrome concentrates produced          kt             401.8        395.7         1.5        372.3         1 506.1
  (excluding third party)

    Metallurgical grade                 kt             305.3        309.3        (1.3)       278.5         1 141.5

    Specialty grades                    kt              96.5         86.4        11.7         93.8           364.6

  Third party chrome production         kt              49.2         52.4        (6.1)        62.9           223.0

  Metallurgical grade chrome concentrate   US$/t         161          167        (3.6)         136             154
  contract price                           CIF
                                           China

  Metallurgical grade chrome concentrate   ZAR/t       2 471        2 435         1.5        2 114           2 284
  contract price                           CIF
                                           China

  Average exchange rate                    ZAR:US$     15.4          14.6         5.5         15.6            14.8


Footnotes:
(1) Tharisa's financial year begins 01 October and ends on 30 September
    Key operating numbers

Paphos, Cyprus
13 January 2022
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 / Ariadna Peretz / 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 critical to the energy transition and decarbonisation of
economies. It incorporates mining, processing, exploration, and the beneficiation, marketing, sales, and
logistics of PGMs and chrome concentrates, using innovation and technology as enablers. Its principal
asset is the Tharisa Mine located in the south-western limb of the Bushveld Complex, South Africa. The
mechanised mine has a 20-year open-pit life and the ability to extend operations underground by at
least an additional 40 years. Tharisa also owns Salene Chrome, a development stage, low-cost, open-pit
asset, located adjacent to the Great Dyke in Zimbabwe. Tharisa plc is listed on the Johannesburg Stock
Exchange (JSE: THA) and the Main Board of the London Stock Exchange (LSE: THS).

Date: 13-01-2022 07:05:00
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Tharisa plc published this content on January 13, 2022 and is solely responsible for the information contained therein. Distributed by public, unedited and unmodified, on January 13, 2022 05:20:14 UTC.

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2022 sales 677 million

2022 net income 127M

Net cash 2022 98.9 million

PER 2022 ratio 4.62x
2022 return 6.22%
Capitalization 493M
494M
EV / Sales 2022 0.58x
EV / Sales 2023 0.42x
# of employees 3,000
Floating 30.3%

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