Tharisa : Production report for the First Quarter FY2021 Ended 31 December 2020 (688 Kb)

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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 FY20211 ENDED 31 DECEMBER 2020

Consistent production performance, in line with guidance, feeding into a strong PGM market

Tharisa, the leading integrated platinum and chrome producer with operations in South Africa, announces another strong quarter of production ended 31 December 2020. The consistent operational performance underpins the Company maintaining its annual guidance of platinum group metals (PGMs) and chrome concentrates production for FY2021.

Health & Safety

• Strong safety record maintained with an LTIFR of 0.08 per 200 000 man hours worked
• Globally economies have been placed at various levels of lockdown to limit the impact of the coronavirus, with South Africa being placed on a level 3 risk adjusted lockdown, however, operations at the Tharisa Mine continued throughout the period. The Company acknowledges the rapid rise in infections globally, and of concern is the increase in infections in South Africa, with 35 active cases at the Tharisa Mine at the time of reporting
• It is with great sadness that we report that a second employee has succumbed to COVID-19 and we pass our deepest condolences to his family, colleagues and friends

1 Tharisa's financial year begins 01 October each year, and finishes on 30 September.

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Key Operating Highlights

		Quarter	Quarter	Quarter	Quarter	Year on
		ended	ended	on quarter	ended	year
		31 Dec	30 Sep	movement	31 Dec	movement
		2020	2020	%	2019	%
Reef mined	kt	1 234.3	1 405.7	(12.2)	1 143.0	8.0
6E PGMs produced	koz	39.3	40.5	(3.0)	34.4	14.2
Chrome concentrates	kt	372.3	370.8	0.4	342.5	8.7
produced (excluding third
party)
Average PGM contained	US$/oz	2 399	1 951	22.9	1 406	70.6
metal basket price
Average metallurgical	US$/t	136	142	(4.2)	145	(6.2)
grade chrome
concentrate contract
price

Metal Pricing

• Average PGM basket price for the year increased to US$2 399/oz (ZAR37 410/oz) in Q1 FY2021 vs Q1 FY2020 and up 22.9% vs Q4 FY2020
• The current spot price basket price for Tharisa's prill split is US$2 995/oz with spot prices for the

major PGMs as follows
o	Platinum	US$1 108
o	Palladium	US$2 421
o	Rhodium	US$18 840

• Average metallurgical grade chrome price for Q1 FY2021 of US$136/t (ZAR2 114/t), vs Q1 FY2020 of US$145/t (ZAR 2 120/t) and Q4 FY2020 of US$142/t (ZAR2 376/t). The current market price is US$145/t to US$150/t

Operational Overview

• PGM production is up 14.2% year on year ('YoY') on a 6E basis to 39.3koz vs 34.4koz in Q1 FY2020 and in line with 40.5koz in Q4 FY2020
• Chrome concentrate production (excluding third party) is up 8.7% YoY to 372.3kt vs 342.5kt in Q1 FY2020 and marginally stronger versus 370.8kt in Q4 FY2020
• Speciality grade chrome production is up 15% YoY to 93.8kt vs 81.5kt in Q1 FY2020 and flat versus 93.2kt in Q4 FY2020 (25.2% of total chrome production vs 23.8% in Q1 FY2020 and 25.1% in Q4 FY 2020)
• The Company concluded a four-year Collective Wage Agreement with the main unions represented at the Tharisa Mine, effective from July 2020 until 30 June 2024

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Guidance for FY2021

• The Company remains on track for FY2021 production guidance of 155 koz to 165 koz PGMs (6E basis) and 1.45 Mt to 1.55 Mt of chrome concentrates
• COVID-19remains a risk to the Company and our forecasts and guidance are premised on the current level of economic activity being permitted by government regulations

Phoevos Pouroulis, CEO of Tharisa, commented:

"The first quarter provided a solid platform for Tharisa to meet its production guidance for the current financial year with all key metrics delivering strong growth versus the same period in FY2020. The consistent performance has been delivered in a strong spot market for PGMs in particular and stable chrome prices.

Construction of the Vulcan processing plant remains on schedule and on budget for commissioning at the end of this financial year, which will further boost Tharisa's chrome concentrate production from FY2022 onwards.

The significant progress made in optimising our mining operations during the course of 2019 and 2020 has been demonstrated by the consistent performance and availability of our operations over the last several quarters. We continue to invest in our assets and in our market leading research and development, which will contribute to further production growth from our long life Tharisa Mine.

The headwinds from the global COVID-19 pandemic continue to challenge the industry worldwide."

Investor relations contacts:

Ilja Graulich (Head of Investor Relations and Communications) [phone] [phone]

[e-mail]

Financial PR contacts:

Bobby Morse / Augustine Chipungu / James Husband [phone]

[e-mail]

Broker contacts:

Peel Hunt LLP (UK Joint Broker)

Ross Allister / David McKeown / Alexander Allen [phone]

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BMO Capital Markets Limited (UK Joint Broker) Thomas Rider / Pascal Lussier Duquette / Nick Macann [phone]

Berenberg (UK Joint Broker)

Matthew Armitt / Jennifer Wyllie / Detlir Elezi [phone]

Nedbank Limited (acting through its Corporate and Investment Banking division) (RSA Broker) Shabbir Norath

[phone]

About Tharisa

Tharisa is an integrated resource group incorporating mining, processing, exploration and the beneficiation, marketing, sales and logistics of PGMs and chrome concentrates. Its principle asset is the Tharisa Mine located in the South-Western Limb of the Bushveld complex, South Africa. The open pit, mechanised mine has a 14-year open pit life of mine (LOM) and the ability to extend operations underground by at least 40 years. Tharisa is listed on the Johannesburg Stock Exchange (JSE: THA) and the Main Market of the London Stock Exchange (LSE: THS).

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