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

THARISA AT A GLANCE INNOVATIVE ▪ Strategically positioned as a co-producer of PGM and chrome ore concentrates ▪ Mine 5 MG chromitite reef layers ▪ Large scale open pit operation with 17 years open pit LOM + 40 year underground extension ▪ Benefit from controlling an integrated mine-to-market value chain ESTABLISHED ▪ 11 years old, listed on JSE and LSE ▪ One of the world’s single largest resources of chrome ore ▪ Produced 143.6 koz PGMs and 1.3 Mt chrome concentrates in 2017 ▪ The fifth largest producer of chrome concentrate ▪ Derisked with major mine development capital investment already complete FOCUSED ▪ Lowest cost quartiles in the PGM and chrome industry ▪ Cash generative, dividend payer ▪ A solid platform underpinned by an optimised operating model ▪ Profitable in all commodity environments 3

FY2017 PROCESSING ABOVE MINING AND PROCESSING NAMEPLATE CAPACITY 410 ktpm PROCESSING PLANTS RESOURCES AND RESERVES Steady state mining rate of 5.0 Mtpa with an average stripping ratio of 9.6 (m 3 :m 3 basis) GENESIS PLANT  Capacity: 100 ktpm ROM  Processes reef layers with lower PGM and higher East pit chromite grades Central East pit  Challenger Plant recovers Far East pit high value foundry grade West pit and chemical grade chrome concentrates Reef dip east: 9-12° Reef dip west: 14-18° 5.5 km strike length VOYAGER PLANT  Capacity: 300 ktpm ROM  Processes reefs with higher PGM and lower MINERAL RESOURCE MINERAL RESERVE OPEN PIT RESERVE chromite grades 867.5 Mt 97.0 Mt 78.3 Mt  Produces both metallurgical and 1.59 g/t 6PGE+Au 1.39 g/t 5PGE+Au 1.39 g/t 5PGE + Au chemical grade products 20.7% Cr 2 O 3 18.9% Cr 2 O 3 18.9% Cr 2 O 3 4

RECORD NPAT HIGHLIGHTS US$67.7 m REEF MINED PGM PRODUCTION CHROME CONCENTRATE SPECIALTY GRADE CHROME PRODUCTION PRODUCTION ↑ 3.9% ↑ 8.3% ↑ 7.0% ↑ 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) 5

SUSTAINABILITY ZERO HARM HEALTH AND SAFETY ▪ Two fatality free years ▪ LTIFR 0.07 per 200 000 hours worked LABOUR RELATIONS ▪ Tharisa Minerals total staff compliment ~1 700 (including mining contractors) TRAINING AND DEVELOPMENT ▪ On mine training centre ▪ Compliance to competency ENVIRONMENT ▪ Subscribe to the Equator Principles ▪ Environmental rehabilitation provision of US$13.7 m THUSANANG WELLNESS PROGRAMME ▪ Health and awareness programmes ▪ Wellness days ▪ Peer educator programme COMMUNITY PROJECTS ▪ Support of community SMME – Rocasize ▪ Retief Primary school food forest 6

PRODUCTION AND OPERATIONAL HIGHLIGHTS 7

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 8

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% 9

STRATEGY IMPLEMENTATION 10

ESTIMATED FLEET ESTIMATED LIFE OF NEW CASH CONSIDERATION OWNER MINING TRANSITION FLEET REPLACEMENT VALUE US$20.6 m ~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 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 6.6 6.4 6.5 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