Tharisa PLC Third Quarter Production Report (9639D)
July 12 2016 - 8:00AM
UK Regulatory
TIDMTHS
RNS Number : 9639D
Tharisa PLC
12 July 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')
Another quarter of solid production from Tharisa Minerals large
scale open pit mine
Tharisa today reported another quarter of solid mining and
production performance, with its strategy of increasing specialty
grade chrome production coming to fruition.
Highlights for the three months ended 30 June 2016
-- Significant recovery in commodity prices
- Average PGM basket price US$745/oz (Q2 FY2016: US$ 685/oz), an increase of 9%
- Average metallurgical grade chrome concentrate price US$105/t
(Q2 FY2016: US$81/t), an increase of 30%
-- Specialty chrome production increases to 27%
-- Reef mined continues to exceed the required run rate of 4.8 Mtpa
-- Processing performance in line with previous quarter
-- PGM production of 33.5 koz
-- Chrome production of 307.1 kt
Phoevos Pouroulis, CEO said:
"This quarter's production is further evidence that Tharisa has
evolved from a development asset to a stable producer and its
continued solid mining and processing performance positions it for
a year of record delivery into an improving commodities market. We
will continue to focus on optimising our operations and delivering
profitable production as we target year-end guidance of 129.4 koz
PGMs and 1.25 Mt chrome concentrates."
Market update
The average PGM basket price for the three months ended June
2016 of US$745 an ounce showed a US$60 an ounce improvement on the
US$685 price achieved in the quarter to end March 2016. This 9%
increase in price also translated into an increase in the Rand
basket price despite the marginal strengthening of the ZAR against
the US$. The average PGM basket price for the quarter was ZAR11 164
per ounce, compared to ZAR10 849 per ounce in the preceding
quarter.
Metallurgical grade chrome prices also improved over the quarter
with an average contracted selling price of US$105 per tonne CIF
main ports China achieved during the quarter. This marked
improvement on the US$81 per tonne CIF contracted selling price
concluded in the March 2016 quarter comes as Chinese ferrochrome
producers began restocking as port stockpiles were depleted to near
all-time lows in the weeks leading up to the Chinese new year in
February 2016. Current contracted selling prices for delivery in
July 2016 are approximately US$150 per tonne CIF main ports
China.
Production update
The production update for the quarter ended 30 June 2016 is as
follows:
Nine months
Nine months Quarter ended Quarter ended ended
Quarter ended ended 30 June 31 March 30 June
30 June 2015 30 June 2015 2016 2016 2016
-------------- --------------- ------------------ --------------- --------------- -------------- ---------------
1 132.9 3 080.9 Reef mined kt 1 235.4 1 234.2 3 594.0
m(3)
waste/m(3)
10.7 10.2 Stripping ratio reef 7.4 7.1 7.0
1 105.0 3 303.8 Reef milled kt 1 192.2 1 199.6 3 389.2
PGM flotation
880.6 2 592.8 feed tonnes kt 929.6 942.3 2 637.7
PGM rougher feed
1.65 1.65 grade g/t 1.64 1.74 1.67
33.5 90.9 6E PGMs produced koz 33.5 36.0 93.5
71.8 66.0 PGM recovery % 68.5 68.5 66.2
Average PGM
contained metal
887 924 basket price US$/oz 745 685 708
Average PGM
contained metal
10 732 10 828 basket price ZAR/oz 11 162 10 849 10 713
17.3 18.2 Cr O RoM grade % 17.7 18.3 18.1
57.7 57.0 Chrome recovery % 61.6 63.9 62.4
23.9 25.0 Chrome yield % 25.8 27.7 26.9
Chrome
concentrates
263.8 827.0 produced kt 307.1 332.3 911.5
-------------- --------------- --------------- -------------- ---------------
Metallurgical
240.9 756.8 grade kt 225.6 259.9 724.2
Specialty
22.9 70.2 grades kt 81.5 72.4 187.3
-------------- --------------- --------------- -------------- ---------------
Metallurgical
grade chrome
concentrate US$/t CIF
159 157 contract price China 105 81 105
Metallurgical
grade chrome
concentrate ZAR/t CIF
1 919 1 828 contract price China 1 589 1 262 1 573
Average exchange
12.1 11.7 rate ZAR:US$ 15.0 15.8 15.0
-------------- --------------- ------------------ --------------- --------------- -------------- ---------------
Mining
Tharisa's mining operations, which are characterised by the
large shallow open pit, produced a steady quarter with reef mined
of 1 235.4 kt contributing to the current RoM levels ahead of the
processing plants at the planned level of 200 kt (being half of the
monthly nameplate processing capacity of the plants). This
stockpile allows for improved reef layer blending and better feed
grade consistency into the plants.
The stripping ratio at 7.4 on a per m(3) basis, is below the
life of open pit average stripping ratio of 8.9 on a m(3) basis as
the focus was on interburden waste stripping.
Processing
Tharisa maintained its PGM production while growing its
specialty grade chrome concentrate output. The Voyager Plant chrome
processing circuit was modified in H1 FY2016 to facilitate
increased production of higher value specialty grade chrome
concentrates on the back of prevailing depressed metallurgical
grade chrome concentrate prices. This flexibility has allowed
chrome production to be distributed to more globally diversified
markets. PGM production has not been affected by this shift.
PGM production totalled 33.5 koz, with PGM recoveries at 68.5%.
Total chrome concentrate production was 307.1 kt at a recovery rate
of 61.6%. Of that production 81.5 kt was specialty grade material,
which generates a pricing premium to metallurgical grade
products.
Tharisa remains on track to achieve its targeted recoveries of
70% for PGMs and 65% for chrome recoveries.
With all of its developmental capital spent, Tharisa is
de-risked and in production.
Outlook
Tharisa maintains its year end production guidance of 129.4 koz
PGMs and 1.25 Mt chrome concentrates, of which 300 kt will be
specialty chrome concentrate.
With RoM and plant throughput at steady state Tharisa will
continue to focus on improving the RoM grade and recoveries for
both PGM and chrome concentrates.
The above information has not been reported on or reviewed by
Tharisa's auditors.
Paphos, Cyprus
12 July 2016
JSE Sponsor
Investec Bank Limited
Investor Relations contact:
Sherilee Lakmidas
+27 11 996 3538
+27 79 276 2529
slakmidas@tharisa.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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