Tharisa PLC Second quarter FY2017 Production Report (9731B)
April 10 2017 - 2:00AM
UK Regulatory
TIDMTHS
RNS Number : 9731B
Tharisa PLC
10 April 2017
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')
Second quarter production report for the period ended 31 March
2017
Another quarter of steady production
Highlights for the three months ended 31 March 2017
-- Reef mined of 1 219.2 kt continues to exceed the required run
rate of 4.8 Mtpa on an annualised basis
-- PGM production of 34.3 koz and chrome concentrate production of 314.6 kt
-- Specialty chrome production of 75.4 kt, 24.0% of total chrome production
-- PGM recoveries at 76.2% and chrome recoveries at 62.5%
-- Average per ounce PGM basket price of US$783, US$43 an ounce higher quarter-on-quarter
-- Average contracted metallurgical chrome prices at US$338/t, up 35.2% quarter-on-quarter
"Tharisa is proud to have performed at consistent levels for the
fifth consecutive quarter. With substantially increased chrome
concentrate prices achieved during the first half of FY2017,
together with solid operational performance, we continue to deliver
on our low cost, profitable co-product business model," said
Tharisa CEO Phoevos Pouroulis.
Safety
Safety remains a top priority and Tharisa continues to strive
for zero harm at its operations. We recorded an improved LTIFR of
0.11 per 200 000 man hours worked.
Production update
The production update for the quarter ended 31 March 2017 is as
follows:
Quarter on Half year
Quarter ended Quarter ended quarter ended
31 Mar 31 Dec movement Quarter ended 31 Mar
2017 2016 % 31 Mar 2016 2017
------------------- ---------------- --------------- ---------------- --------------- --------------- ----------
Reef mined kt 1 219.2 1 229.9 (0.9) 1 234.2 2 449.1
m(3) waste/m(3)
Stripping ratio reef 7.5 9.0 - 7.1 8.4
Reef milled kt 1 211.3 1 206.4 0.4 1 199.6 2 417.7
PGM flotation feed
tonnes kt 897.9 885.1 1.4 942.3 1 783.0
PGM rougher feed
grade g/t 1.56 1.52 2.6 1.74 1.54
6E PGMs produced koz 34.3 34.8 (1.4) 36.0 69.1
PGM recovery % 76.2 80.5 (5.3) 68.5 78.3
Average PGM
contained metal
basket price US$/oz 783 740 5.8 685 760
Average PGM
contained metal
basket price ZAR/oz 10 355 10 287 0.7 10 849 10 306
Cr O ROM grade % 17.5 17.5 - 18.3 17.5
Chrome recovery % 62.5 64.3 (2.8) 63.9 63.4
Chrome yield % 26.0 26.7 (2.6) 27.7 26.3
Chrome
concentrates
produced kt 314.6 322.2 (2.4) 332.3 636.8
--------------- ---------------- --------------- --------------- ----------
Metallurgical
grade kt 239.2 245.1 (2.4) 259.9 484.3
Specialty
grades kt 75.4 77.1 (2.2) 72.4 152.5
--------------- ---------------- --------------- --------------- ----------
Metallurgical
grade chrome
concentrate
contract price US$/t CIF China 338 250 35.2 81 278
Metallurgical
grade chrome
concentrate
contract price ZAR/t CIF China 4 430 3 488 27.0 1 262 3 783
Average exchange
rate ZAR:US$ 13.2 13.9 5.0 15.8 13.6
------------------- ---------------- --------------- ---------------- --------------- --------------- ----------
Mining
Reef mined from the open pit totalled 1 219.2 kt for the quarter
notwithstanding mining operations being affected by unusually high
seasonal rainfall. Total waste of approximately 2.5 Mm(3) was moved
during the quarter (33% of which was interburden) at a stripping
ratio of 7.5 on a m(3) :m(3) basis. The life of open pit average
stripping ratio is 8.9. The ROM stockpile ahead of the processing
plants was 230.2 kt as at 31 March 2017.
Given the long life of the open pit of 18 years, Tharisa has
embarked on the transition to an owner mining operating model.
Tharisa has engaged with its current contractor, MCC Contracts
Proprietary Limited ("MCC"), to purchase the requisite fleet from
MCC and to employ the employees currently in service at the Tharisa
Mine. Tharisa expects the transition in operating model to be
completed in FY2017.
Processing
During the quarter 1 211.3 kt were milled, resulting in PGM
production of 34.3 koz on a 6E basis and chrome production of 314.6
kt, 75.4 kt (24.0%) of which are specialty grade concentrates.
PGM recoveries at 76.2% and chrome recoveries at 62.5% were
expected to be marginally lower than the recoveries of the previous
quarter mainly due to the weathered ore delivered to the processing
plants from the open-pit extension in the central pit and new areas
mined within the West pit. Recoveries are planned to return to
previous levels in Q3 and this improvement was evidenced in March
2017.
Market update
The average per ounce PGM basket price for the three months
ended March 2017 was US$783 (ZAR10 355), which is US$43 an ounce
higher than the US$740 (ZAR10 287) price achieved in the quarter
ended December 2016.
Contracted metallurgical grade chrome concentrate prices
increased by 35.2% compared to the previous quarter with an average
contract price of US$338 per tonne CIF main ports China achieved
during the quarter. Specialty chrome concentrates continue to
attract a premium above the contracted metallurgical chrome
concentrate prices. The metallurgical grade chrome concentrate
market remains robust with prices maintaining current levels in
spite of lower liquidity in the Chinese market. Chinese port stocks
continued to be restocked from critically low levels seen in August
2016 and reached levels of approximately 2.0 Mt in February 2017
but have systematically been drawn down to approximately 1.6 Mt.
The fundamentals of the global stainless steel market remain sound
with continued growth expected in 2017, further supporting strong
demand for chrome units in the form of ferrochrome and chrome
ores.
Outlook
PGM and chrome production remains on track to meet the FY2017
production guidance of 147.4 koz PGMs on a 6E basis and 1.3 Mt
chrome concentrates, of which 300 kt will be specialty grade chrome
concentrates.
The half year financial results for FY2017 will be released on
or about 16 May 2017.
The above information has not been reported on or reviewed by
Tharisa's auditors.
Paphos, Cyprus
10 April 2017
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
Financial PR contacts:
Bobby Morse/Anna Michniewicz
+44(0) 20 7466 5000
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDIRMITMBTMBMR
(END) Dow Jones Newswires
April 10, 2017 02:00 ET (06:00 GMT)
Tharisa (LSE:THS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Tharisa (LSE:THS)
Historical Stock Chart
From Sep 2023 to Sep 2024