GROUP
PROFILE
Integrated co-producer of PGM and chrome concentrates
-
Discover
- Large scale open pit resource mining five MG chromitite layers
- Long life, low-cost co-producer of PGM and chrome concentrates
- Highly prospective exploration projects in Zimbabwe
-
Develop
- Innovative approach to viable mineral extraction and beneficiation
- Independent processing plants providing operational flexibility at the Tharisa Mine
- Sustainable polymetallic business model
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Deliver
- Safe production, strive for zero harm
- Integrated marketing, sales and logistics platforms
- Disciplined capital allocation = growth + dividends
- Cash generative through commodity cycles
Introduction
Tharisa is an integrated resource group incorporating exploration, mining, processing, and the beneficiation, marketing, sales and logistics of platinum group metals (‘PGM’) and chrome concentrates. The Group is targeting production of 200 koz of PGMs and 2.0 Mt of chrome concentrates in 2020, on an annualised basis
VIEW GROUP PROFILEStrategic initiatives
- Discovering next generation low-cost, large-scale operations through exploration of multicommodities with geographic diversity
- Developing into a globally significant low-cost producer of strategic commodities
- Delivering from an established platform while maximising value extraction
- Disciplined capital distribution with an annual dividend policy of at least 15% of net profit after tax (‘NPAT’) and capital allocation to low-risk projects
FINANCIAL AND
NON-FINANCIAL HIGHLIGHTS
REEF MINED
4.9 Mt
down 3.0%
(2017: 5.0 Mt)
PGM PRODUCTION
(5PGE + Au)
152.2 koz
up 6.0%
(2017: 143.6 koz)
CHROME CONCENTRATE PRODUCTION
1.4 Mt
up 8.8%
(2017: 1.3 Mt)
REVENUE
US$406.3 m
up 16.3%
(2017: US$349.4 m)
OPERATING PROFIT
US$72.5 m
down 26.3%
(2017: US$98.4m)
EBITDA
US$101.9 m
down 11.8%
(2017: US$115.6 m)
VIEW HIGHLIGHTS
GROSS PROFIT MARGIN
(%)
CHROME PRODUCTION
(kt)
INVESTMENT
CASE
Positioned for value creation
The Tharisa Mine produced 152.2 koz of PGMs and 1.4 Mt of chrome concentrates in FY2018 and has provided FY2019 production guidance of 160 koz of PGMs and 1.5 Mt of chrome concentrates, of which 375 kt will be specialty grade chrome concentrates.
The Group is targeting annual production of 200 koz of PGMs and 2.0 Mt of chrome concentrates by 2020.
VIEW INVESTMENT CASE- Tharisa is the only JSE and LSE listed co-producer of PGM and chrome concentrates
- It is the seventh largest South African PGM producer
- South Africa’s fourth largest chrome producer and the largest producer from a single resource
- In FY2018, Tharisa accounted for 10.4% of China’s chrome ore and concentrate imports, and 14.4% of South Africa’s chrome ore and concentrate exports to China
- One of the world’s largest producers of specialty grade chrome concentrates
COMPETITIVE
STRENGTHS
VISION
- Shallow and large scale PGM and chrome resource, one of the world’s single largest chrome resources, enabling Tharisa to be a large scale producer for several decades
- Mining of five MG Chromitite Layers allowing for the co-production of PGM and chrome concentrates
- Extensive research and development programmes developing new technologies and beneficiation capabilities
- Independent processing plants providing operational flexibility
- Direct relationships with South African and international customers
- Capacity to produce metallurgical and higher margin chemical and foundry grade concentrates for different markets