TIDMTHS
RNS Number : 0264M
Tharisa PLC
10 October 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 or the Company)
Tharisa Minerals achieves record Q4 production, delivers on
FY2016 targets and looks to an even better 2017
Tharisa reports an excellent Q4 production performance by
achieving and, in some cases, exceeding production guidance for
FY2016. Tharisa Minerals achieved record milling (1.27 Mt), PGM
production (39.1 koz) and PGM recoveries (80.6%), demonstrating
increased momentum at the end of the financial year. The open pit
co-producer has also benefitted from improved commodity prices,
particularly higher chrome prices, in Q4 FY2016.
Highlights for the financial year ended 30 September 2016
-- Fatality free year with a Lost Time Injury Frequency Rate
(LTIFR) of 0.36 per 200 000 man hours worked, safety remains a
priority
-- PGM production exceeds guidance at 132.6 koz (up 12.4%)
-- Chrome concentrate production achieves guidance at 1.24 Mt (up 10.8%)
-- Specialty chrome concentrate production more than doubles to
269.4 kt year on year (up 138.8%)
-- Record annual ROM reef mined at 4.837 Mt with milling for the
quarter at a new high of 1.267 Mt
-- PGM prices stable, chrome prices rebound during the year to above US$165/t
"Tharisa achieved its best ever production quarter and reached
its targeted guidance for FY2016. This is a real testament to the
teamwork, dedication and commitment that makes Tharisa a world
class company. FY2017 is set to be the year that Tharisa reaches
its full potential and delivers exceptional value to all
stakeholders," said Tharisa CEO Phoevos Pouroulis.
Safety
The safety of all of Tharisa's employees is a priority for the
Company. On 29 September 2016, Tharisa Minerals achieved the
milestone of one fatality free year. There was only one Lost Time
Injury in Q4 and the LTIFR for FY2016 was 0.36 per 200 000 man
hours worked. In recognition of these achievements, Tharisa
Minerals was awarded the Best Safety Performance in Class award at
Mine Safe 2016.
Production update
The production update for the quarter ended 30 September 2016 is
as follows:
Year Year on
Quarter Quarter Quarter Year ended year
ended 30 Sep ended 30 Jun ended 30 ended 30 Sep movement
2016 2016 Sep 2015 30 Sep 2015 2016 %
------------------- -------------- ------------- ------------- ------------ ------------- -------- ------------
Reef mined kt 1 243.3 1 235.4 1 102.2 4 183.2 4 837.2 15.6
m(3)
waste/m(3)
Stripping ratio reef 8.2 7.4 12.2 10.7 7.3 -
Reef milled kt 1 267.2 1 192.2 1 096.7 4 400.4 4 656.3 5.8
PGM flotation feed
tonnes kt 937.9 929.6 853.4 3 446.2 3 575.6 3.8
PGM rougher feed
grade g/t 1.61 1.64 1.52 1.62 1.65 1.9
6E PGMs produced koz 39.1 33.5 27.1 118.0 132.6 12.4
PGM recovery % 80.6 68.5 65.1 65.8 69.9 6.2
Average PGM
contained metal
basket price US$/oz 804 745 754 885 736 (16.8)
Average PGM
contained metal
basket price ZAR/oz 11 289 11 162 9 801 10 593 10 881 2.7
Cr O ROM grade % 17.5 17.7 18.4 18.3 18.0 (1.6)
Chrome recovery % 63.5 61.6 61.1 58.0 62.7 8.1
Chrome yield % 26.2 25.8 26.9 25.5 26.7 4.7
Chrome
concentrates
produced kt 332.2 307.1 295.2 1 122.2 1 243.7 10.8
------------- ------------- ------------ ------------- -------- ------------
Metallurgical
grade kt 250.1 225.6 252.6 1 009.4 974.3 (3.5)
Specialty
grades kt 82.1 81.5 42.6 112.8 269.4 138.8
------------- ------------- ------------ ------------- -------- ------------
Metallurgical
grade chrome
concentrate US$/t CIF
contract price China 157 105 159 158 120 (24.1)
Metallurgical
grade chrome
concentrate ZAR/t CIF
contract price China 2 193 1 589 2 065 1 903 1 751 (8.0)
Average exchange
rate ZAR:US$ 14.1 15.0 13.0 12.0 14.8 -
------------------- -------------- ------------- ------------- ------------ ------------- -------- ------------
Mining
Tharisa's mining operations performed particularly well in Q4
FY2016 with 1.243 Mt of reef mined in the quarter. The focus
remains on grade control to improve the plant feed grades
particularly for chrome. Reef mining met the required call rates
and to ensure access to the correct reef horizons, the waste
stripping has increased to align with the life of open pit average
ratio of 8.9 on a m(3) basis. With throughput into the plant
exceeding nameplate capacity during the quarter, the current ROM
stockpile ahead of the processing plants is 165 kt. Tharisa aims to
maintain a 200 kt ROM stockpile ahead of processing to ensure
optimal reef layer blending and feed grade consistency into the
plants.
Tharisa mined 4.837 Mt of reef in FY2016, which is 15.6% higher
than the reef mined in FY2015.
Processing
It was an exceptional quarter for Tharisa with tons milled
reaching an all-time high of 1.267 Mt. Records were also achieved
for PGM production at 39.1 koz and PGM recoveries of 80.6%, which
is well above the target recovery of 70%.
Total chrome concentrate production was 332.2 kt, an 8.2%
increase from Q3, at a recovery rate of 63.5%. Of that production,
82.1 kt was specialty grade material, which typically fetches a
pricing premium to metallurgical grade products.
Tharisa's Voyager Plant chrome processing circuit was modified
in H1 FY2016 to facilitate an increase in the production of higher
value specialty grade chrome concentrates on the back of the then
depressed metallurgical grade chrome concentrate prices. While
metallurgical grade chrome prices have more than doubled since,
this product diversification has enabled chrome production to be
distributed to more globally diversified markets.
A total of 4.656 Mt of reef was milled in FY2016, representing a
5.8% increase year on year. PGM production was 12.4% higher at
132.6 koz at an average recovery rate of 69.9%. Chrome production
at 1.244 Mt was up 10.8% despite marginally lower feed grades.
Chrome recovery averaged 62.7% in FY2016. Optimisation initiatives
planned should ensure that Tharisa achieves its targeted recovery
of 65% for chrome concentrates.
Market update
The average PGM basket price for the three months ended
September 2016 at US$804 (ZAR11 289) an ounce showed a US$59 an
ounce improvement on the US$745 (ZAR11 162) price achieved in the
quarter ended June 2016.
Metallurgical grade chrome prices have risen approximately 50%
over the quarter with an average contracted selling price of US$157
per tonne CIF main ports China achieved during the quarter. This
marked improvement on the US$105 per tonne CIF contracted selling
price concluded in the June 2016 quarter is attributed to the
rebuilding of stockpiles by Chinese ferrochrome producers and is
driven by stronger stainless steel demand growth in China resulting
in increased demand for South African ore.
Contracts for delivery in November 2016 have been concluded at
selling prices exceeding
US$200 per tonne CIF main ports China.
Outlook
Tharisa has provided FY2017 production guidance of 147.4 koz
PGMs and 1.3 Mt chrome concentrates, of which 300 kt will be
specialty grade chrome concentrates.
Tharisa continues to focus on improving the ROM feed grades and
plant recoveries for both PGM and chrome concentrates.
The above information has not been reported on or reviewed by
Tharisa's auditors.
Paphos, Cyprus
10 October 2016
Sponsor
Investec Bank Limited
An analyst call to discuss Tharisa's Q4 and FY2016 production
results will be held today, Monday, 10 October 2016 at 09:00 BST
and 10:00 South Africa time (UTC +2). Tharisa's CEO Phoevos
Pouroulis, CFO Michael Jones and operational management team will
be on the call to take you through our achievements and answer
production and market related questions.
LIVE CALL ACCESS NUMBERS FOR PARTICIPANTS
---------------------------------------------------
Country Access Number
--------------------------------- ----------------
Other Countries - International +27 11 535 3600
--------------------------------- ----------------
Other Countries - International +27 10 201 6800
--------------------------------- ----------------
South Africa - Johannesburg
Telkom 011 535 3600
--------------------------------- ----------------
South Africa - Johannesburg
Neotel 010 201 6800
--------------------------------- ----------------
South Africa - Secunda 017 815 0499
--------------------------------- ----------------
UK - Toll-Free 0808 162 4061
--------------------------------- ----------------
USA and Canada - Toll Free 1 855 481 5362
--------------------------------- ----------------
PLAYBACK ACCESS NUMBERS - Playback Code: 53691
---------------------------------------------------
Country Access Number
--------------------------------- ----------------
Other Countries - International +27 11 305 2030
--------------------------------- ----------------
South Africa 011 305 2030
--------------------------------- ----------------
UK - Toll Free 0 808 234 6771
--------------------------------- ----------------
USA and Canada - Toll Free 1 855 481 5363
--------------------------------- ----------------
Investor Relations contacts:
Tharisa plc
Sherilee Lakmidas
+27 11 996 3538
+27 79 276 2529
slakmidas@tharisa.com
Bell Pottinger
Daniel Thöle/Anna Legge
+44 20 3772 2500
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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