Tharisa: PGM Q2 FY2024 output consistent at 35.3 koz

Tharisa, the mining, metals, and innovation company announces its production results for Q2 FY2024 and cash balance as at quarter end.

Quarter highlights

• PGM output consistent at 35.3 koz (Q1 FY2024: 35.7 koz)
• PGM basket price at US$1 343/oz (6E basis) (Q1 FY2024: US$1 344/oz)
• Chrome output lower than previous quarter record production at 402.7 kt (Q1 FY2024: 462.8 kt)
• Average metallurgical grade chrome concentrate price held steady at US$286/t (Q1 FY2024: US$291/t)
• Cash of US$184.6 million (31 December 2023: US$221.5 million), and debt of US$114.0 million (31 December 2023: US$126.6 million), resulting in a net cash position of US$70.6 million (31 December 2024: US$94.9 million)
• Announced US$5 million share repurchase on 26 March 2024
• Official launch of Redox One at the Africa Energy Indaba
• Production guidance for FY2024 remains between 145 koz and 155 koz PGMs (6E basis) and 1.7 Mt to 1.8 Mt of chrome concentrates

Market Update

PGM prices have stabilised after a pricing correction driven in the main by negative sentiment around long-term demand drivers. The chrome market remained robust with continued tight supply-demand fundamentals. Chrome output by the major UG2 PGM producers has further tightened. We see continued strong demand by ferrochrome and downstream stainless steel producers in China and, while port stocks have risen marginally this calendar year, most of these stocks are already accounted for and the market remains tight.

Operational Update

• Total reef mined marginally lower at 1 035.0 kt (Q1 FY2024: 1 058.6 kt)
• Milling throughput was also slightly lower at 1 378.5 kt (Q1 FY2024: 1 424.4kt)
• Quarterly PGM production at 35.3 koz (Q1 FY2024: 35.7 koz)
• Rougher feed grade of 1.66 g/t (Q1 FY2024: 1.60g/t)
• Recovery of 62.9% (Q1 FY2024: 66.1%)
• Quarterly chrome production of 402.7 kt (Q1 FY2024: 462.8kt)
• Grade of 18.1% Cr2O3 (Q1 FY2024: 19.1%)
• Recovery at 66.4% (Q1 FY2024: 70.3%)

Guidance

Production guidance for FY2024 remains between 145 koz and 155 koz PGMs (6E basis) and 1.7 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.