Tharisa PLC Tharisa to transition to owner mining model (4227B)
April 04 2017 - 1:00AM
UK Regulatory
TIDMTHS
RNS Number : 4227B
Tharisa PLC
04 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')
Tharisa to transition to owner mining model
Tharisa, a profitable low cost producer of PGMs and chrome, owns
a large scale open pit operation with an open pit life of 18 years
and a further 40 years of underground mine extension. With the long
life of the open pit Tharisa has been evaluating the benefits of
transitioning from contract mining to an owner mining model at its
Tharisa Mine in South Africa.
Tharisa currently contracts its mining operations to MCC
Contracts Proprietary Limited (MCC). MCC's parent company Extract
has announced a strategic decision to align its capital allocations
with the current mining environment and to review its business
model. As a result, Tharisa has the opportunity to purchase MCC's
existing on-site plant and equipment, as well as employ skilled
employees currently in service at the Tharisa Mine.
Tharisa has accordingly engaged with MCC in an orderly manner,
to purchase a requisite portion of the existing mining fleet as a
going concern. Tharisa, in the normal course of managing its mining
operations, has developed engineering and geological skills that
are integral to in-house mining, and the successful conclusion of
this process will ensure that the Tharisa Mine transitions to an
owner mining model without interruption.
The Company believes that with the long life of the open pit,
the transition to an owner mining model is a logical progression in
its development. The change in the operating model is expected to
have both cost and operational benefits as well as providing
financial flexibility, thereby cementing Tharisa's low-cost high
margin position. Further details on this transaction will be
published in due course.
"Tharisa has spent the last two years building up its mining
expertise and we are now happy that we have the necessary skills to
make a smooth transition. We are excited to have the opportunity to
directly control our own mining," said Tharisa CEO Phoevos
Pouroulis.
Tharisa will be releasing its production update for the second
quarter and first half of its 2017 financial year on Monday, 10
April, 2017.
Paphos, Cyprus
4 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
tharisa@buchanan.uk.com
This information is provided by RNS
The company news service from the London Stock Exchange
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