Tharisa PLC Debt finance project completion tests achieved (1828P)
November 15 2016 - 3:00AM
UK Regulatory
TIDMTHS
RNS Number : 1828P
Tharisa PLC
15 November 2016
Tharisa plc
(Incorporated in the Republic of Cyprus with limited
liability)
(Registration number HE223412)
JSE share code: THA
LSE share code: THS
ISIN: CY0103562118
('Tharisa')
Tharisa announces project completion, which will reduce the
group's cost of debt
Tharisa is pleased to announce that the project completion test
in respect of the ZAR1 billion senior debt finance facility has
been successfully completed. As a result of project completion, the
facility's interest rate will reduce from JIBAR + 490 bps pa to
JIBAR + 340 bps pa. In addition, the guarantee provided by the
holding company to its subsidiary will lapse.
The achievement of this milestone proves Tharisa's business
model to economically mine at the required run rate of at least 400
ktpm, the technical ability of the plants to process this material
at the nameplate capacity of 400 ktpm and to produce in
specification PGM and chrome concentrates.
The facility, which was raised to fund the expansion of Tharisa
Minerals' mining footprint and for the construction of the Voyager
Plant, was raised in February 2012 and was utilised in full. As at
30 September 2016, the balance outstanding on the facility was
ZAR502.2 million (USD36.5 million), with a final scheduled
repayment date of 31 March 2019. The group holds a cash amount of
ZAR135.3 million (USD9.8 million) as a debt service reserve account
resulting in a net amount of ZAR366.9 million (USD26.7 million)
owing on the facility at 30 September 2016.
The loan was provided by HSBC Bank Plc Johannesburg Branch,
Nedbank Corporate and Investment Banking (a division of Nedbank
Limited) and Absa Bank Limited (acting through its corporate and
investment banking division). The independent technical consultant
to the lenders was Snowden Mining Industry Consultants Proprietary
Limited.
The group targets a debt to equity ratio of 15% and as at 30
September 2016, the total debt to equity ratio (off-setting the
debt service reserve account against the debt), was approximately
17.5%.
"While commodity prices have recorded a recovery from recent
lows, the commodity markets remain volatile and to further de-risk
the business the group will continue to reduce its debt levels. I
would like to give recognition to the teamwork that was required to
ensure the successful conclusion of the project completion tests
and to thank the management of Tharisa Minerals for achieving this
milestone achievement," said Tharisa CFO Michael Jones.
The above information has not been reported on or reviewed by
Tharisa's auditors.
Paphos, Cyprus
15 November 2016
JSE Sponsor
Investec Bank Limited
Investor Relations contact:
Tharisa plc
Sherilee Lakmidas
+27 11 996 3538
+27 79 276 2529
slakmidas@tharisa.com
Broker contacts:
Peel Hunt LLP (Joint Broker)
Matthew Armitt / Ross Allister
+44 207 7418 8900
BMO Capital Markets Limited (Joint Broker)
Jeffrey Couch/Neil Haycock/Thomas Rider
+44 020 7236 1010
This information is provided by RNS
The company news service from the London Stock Exchange
END
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