A N N U A L R E S U LT S for the year ended 30 September 2017 - PowerPoint PPT Presentation

A N N U A L R E S U LT S for the year ended 30 September 2017

DISCLAIMER These Presentation Materials are for information purposes only and must not be used or relied upon for the purpose of making any investment decision or engaging in any investment activity. Whilst the information contained herein has been prepared in good faith, neither Tharisa plc (the “Company”), its subsidiaries (together, the “Group”) nor any of the Group’s directors, officers, employees, agents or advisers makes any representation or warranty in respect of the fairness, accuracy or completeness of the information or opinions contained in this presentation and no responsibility or liability will be accepted in connection with the same. The information contained herein is provided as at the date of this presentation and is subject to updating, completion, revision, verification and further amendment without notice. These Presentation Materials contain forward-looking statements in relation to the Group. By its very nature, such forward-looking information requires the Company to make assumptions that may not materialise or that may not be accurate. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this presentation should be construed as a profit forecast. Past share performance cannot be relied on as a guide to future performance. 2

RECORD NPAT HIGHLIGHTS US$67.7 m REEF MINED PGM PRODUCTION CHROME CONCENTRATE SPECIALTY GRADE CHROME PRODUCTION PRODUCTION ↑ 7.0% ↑ 3.9% ↑ 8.3% ↑ 19.9% 5.0 Mt 1.3 Mt 143.6 koz 323.1 kt (2016: 4.8 Mt) (2016: 1.2 Mt) (2016: 132.6 koz) (2016: 269.4 kt) REVENUE EBITDA HEPS PROPOSED DIVIDEND ↑ 59.1% ↑ 400.0% ↑ 168.7% ↑ 266.7% US$349.4m US$115.6m US$ 5 cents US$ 22 cents (2016: US$219.6m) (2016: US$43.0m) (2016: US$ 1 cent) (2016: US$ 6 cent) 3

SUSTAINABILITY ZERO HARM HEALTH AND SAFETY LTIFR ▪ Two fatality free years ▪ LTIFR 0.07 per 200 000 hours worked 0.07 ▪ Three safety awards: Best Safety Performance and Best Improved Performance awards at Mine Safe 2017, and an award from the Mine (FY2016: 0.36) Health and Safety Council for 2 000 fatality free production shifts LABOUR RELATIONS ▪ No labour disruptions during the year ▪ Transferred ~900 employees from previous mining contractor post the financial year end ▪ Tharisa Minerals total staff compliment ~1 700 (including mining contractors) BEST SAFETY PERFORMANCE TRAINING AND DEVELOPMENT BEST IMPROVED PERFORMANCE 2 000 FATALITY FREE PRODUCTION ▪ On mine training centre SHIFTS ▪ Learnerships, adult education and training ▪ Compliance to competency 4

SUSTAINABILITY ENVIRONMENT ▪ Subscribe to the Equator Principles ▪ Environmental monitoring plan ▪ Environmental rehabilitation provision of US$13.7 m THUSANANG WELLNESS PROGRAMME ▪ TB programme ▪ HIV/AIDS programme ▪ Cancer awareness programme ▪ Wellness days ▪ Peer educator programme COMMUNITY PROJECTS ▪ Support of community SMME – Rocasize ‒ Garden services ‒ Brick making ‒ Clothing and personal protective equipment ▪ Retief Primary school food forest 5

PRODUCTION AND OPERATIONAL HIGHLIGHTS 6

PGM RECOVERY CHROME RECOVERY ↑14.0% ↑2.2% HIGHLIGHTS 64.1% 79.7% (2016: 62.7%) (2016: 69.9%) ↑ 3.9% ↑ 8.3% ↑ 7.0% REEF MINED PGM PRODUCTION CHROME PRODUCTION Mtpa kozpa Mtpa 1.3 143.6 1400 50.0% 1.2 1.2 5.0 132.6 45.0% 4.8 1.1 1.1 1200 118.0 40.0% 4.2 3.9 1000 35.0% 3.3 30.0% 78.2 800 24.3% 25.0% 21.7% 57.4 600 20.0% 15.0% 13.7% 400 10.1% 10.0% 200 5.2% 5.0% 0.0% 0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017 Percentage specialty grade DELIVERING SUSTAINABLE VALUE 7

RECORD PRODUCTION PRODUCTION KEY OPERATIONAL METRICS FY2017 FY2016 Change Reef mined kt 5 025.1 4 837.2 3.9% Stripping ratio m 3 :m 3 7.5 7.3 PGM rougher feed grade g/t 1.56 1.65 (5.5%) Chrome grade % 17.8 18.0 (1.1%) ROM processed kt 4 916.2 4 656.3 5.6% PGM recovery % 79.7 69.9 14.0% PGM in concentrate produced koz 143.6 132.6 8.3% Chrome recovery % 64.1 62.7 2.2% Chrome concentrate produced kt 1 331.2 1 243.7 7.0% PGM basket price US$/oz 786 736 6.8% Chrome concentrate price US$/t 200 120 66.7% (42% CIF China) Average exchange rate ZAR:US$ 13.4 14.8 9.5% 8

STRATEGY IMPLEMENTATION 9

ESTIMATED FLEET ESTIMATED LIFE OF NEW OWNER MINING TRANSITION FLEET REPLACEMENT VALUE ~8 years ~US$145.0 m INSOURCING INHOUSE effective 1 October 2017 Mining Expertise Skills Drilling Plant and equipment Mine management Purchased yellow Transferred fleet, ~900 mining Geologists infrastructure and employees components In-pit supervisors Surveyors Optimised primary mining fleet Benefits   19 drill rigs Safety culture alignment Engineers   11 excavators Greater control over stripping rates   46 trucks Quality and grade control Capable of moving 17 Mm 3 per annum   Maintenance Unit cost reduction through efficiency   ~85 support vehicles Preventative maintenance Blasting is outsourced 10

PRODUCTION FLEET TARGET PRODUCTION FLEET TARGET OWNER MINING TRANSITION UTILISATION AVAILABILITY 75.0% 85.0% IMPROVEMENTS INTEGRATION ▪ Compliance to mine plan ▪ Implemented asset management and maintenance tool for the mining fleet and integrated into the Tharisa ERP ▪ During the transition to owner mining – increased management and oversight resulted in availabilities and utilisations improving ▪ Fully integrated with Tharisa’s SHE and HR systems with compliance reporting ▪ Focus on: ▪ Commitment to technical competence and culture of continuous ‒ Improving availability and utilisation improvement and innovation ‒ Drill efficiencies and effectiveness ‒ Fragmentation 11

VALUE ADD INITIATIVES SUPPLYING TISCO JV THIRD PARTY CHROME PGM RICH ALLOY  One of the largest stainless steel   producers Arxo Metals entered into an Commissioning of 1 MW DC furnace  Five year strategic cooperation agreement with Western Platinum to produce PGM rich alloy on a pilot  agreement Operates the K3 UG2 plant and scale   Minimum of 240 ktpa chrome markets and sells UG2 chrome Further beneficiation capability  concentrate at market prices produced On sale and further beneficiation of   Represents ~25% of Tharisa’s Approximately 200 ktpa of chrome PGM rich alloy with Lonmin under metallurgical grade chrome concentrates PGM research and development  concentrate September production of 20 kt cooperation agreement  Effective September 2017 12

COMMODITY MARKETS 13

PGM MARKET PLATINUM DEMAND AND SUPPLY PLATINUM, PALLADIUM AND RHODIUM MARKET PRICES [US$/oz] ▪ Demand driven by the auto catalyst, jewellery, industrial and investment sectors 1 400 ▪ Both primary and secondary sources of supply seen decreasing 1 200 ▪ Primary supply weaker in 2017 due to supressed average prices, 1 000 with lower capital investment and cost increases 800 ▪ In 2017 platinum market expected to be close to balance 600 ▪ WPIC forecast deficit in 2018 of 250 koz 400 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Platinum Palladium Rhodium PLATINUM DEMAND AND SUPPLY [Moz] PALLADIUM DEMAND AND SUPPLY [Moz] 8.6 Ir Au 10.7 8.3 8.2 8.1 10.1 7.6 9.5 4.7% 0.2% 9.4 9.2 Rd 1.9 1.7 1.9 9.5% 2.0 2.1 2.5 2.7 2.5 2.4 2.7 Ru 6.1 6.1 6.0 5.8 THARISA 5.1 6.8 6.5 6.6 6.4 6.1 14.3% Pt PRILL SPLIT 55.2% 2013 2014 2015 2016 2017 (f) 2013 2014 2015 2016 2017 (f) Primary supply Recycling Demand Pd Primary supply Recycling Demand 16.1% Source: Johnson Matthey, 23 Nov ‘17 14

THARISA PROPORTION OF SOUTH CHROME MARKET AFRICAN EXPORTS TO CHINA ~10.9% DEMAND AND SUPPLY METALLURGICAL GRADE CHROME PRICE / PORT STOCK Price [US$/t] 450 3 000 Stocks [kt] ▪ Demand for metallurgical grade chrome concentrate is driven by its 400 use in the manufacture of stainless steel, the production of which is 2 500 estimated to grow at between 3% to 4% in 2017 350 300 2 000 ▪ China is wholly dependent on imports of chrome ore 250 1 500 ▪ Chrome prices were volatile during 2017, peaking at US$390 and 200 dipping to US$130 then recovery above US$200/t 150 1 000 100 ▪ Now holding between US$165/t to US$170/t 500 50 ▪ Chrome stocks at Chinese ports are at 2.4 Mt – just over two - - Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 month’s worth of supply to the ferrochrome and stainless steel industry 42% Market price Port stocks THARISA PRODUCT MIX THARISA AVG MET PRICE FY2017 CHEMICAL GRADE FOUNDRY GRADE US$200/t 21.7% 24.3% Cr 2 O 3 – 45% to 47% Cr 2 O 3 - >46% SiO 2 - <1.2% SiO 2 - <1.0% SPECIALTY CIF EQUIVALENT BASIS 78.3% 75.7% Used to produce sodium Used in moulds for metal +US$50/t premium dichromate used in leather castings and nozzle sands tanning, pigments, plating FY2017 FY2016 Metallurgical grade Specialty grade Source: Ferroalloynet, ICDA, 23 Nov ‘17 15

FINANCIAL RESULTS 16