Tharisa PLC Vision 2020 (5009D)
January 31 2018 - 7:00AM
UK Regulatory
TIDMTHS
RNS Number : 5009D
Tharisa PLC
31 January 2018
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')
Vision 2020
FY2017 - FY2020
As previously reported, Tharisa achieved a number of milestones
during FY2017, including 5.0 Mt of ROM, production of 143.6 koz of
PGMs (on a 6E basis) and 1.3 Mt of chrome concentrates. Tharisa's
FY2018 guidance remains at 5.0 Mt of ROM and production of 150 koz
PGMs and 1.4 Mt chrome concentrates, of which 350.0 kt will be
specialty grade chrome concentrates. The near term focus will be on
continued operational improvements and the commencement of the
Vision 2020 projects detailed below, that will ensure Tharisa
delivers 5.9 Mtpa of ROM, 200 kozpa of PGMs and 2.0 Mtpa of chrome
concentrates by 2020.
Upgrade of the crusher at the Genesis Plant
The upgrade of the crusher at the Genesis Plant is aimed at
increasing plant throughput by 15% (approximately 180 ktpa), with a
potential increase in chemical grade chrome concentrate and foundry
grade chrome concentrate production by 24 ktpa and 18 ktpa
respectively. The project is scheduled to be commissioned during
July 2018 at an expected capital cost of approximately ZAR90
million (+/- US$7.5 million). Operating costs are estimated at
ZAR10 (+/- US$ 83 cents) per tonne, with an expected payback period
of less than 12 months.
PGM optimisation at the Voyager Plant
Additional flash flotation and a scavenger plant with high
energy mechanisms aimed at improving PGM recoveries and increasing
PGM production at the Voyager Plant by an estimated 14 kozpa. The
project is expected to be commissioned during October 2018 at an
estimated capital cost of approximately ZAR70 million (+/- US$5.8
million). Operating costs are expected to be negligible, with an
expected payback period of less than 12 months.
Vulcan Fine Chrome Recovery Plant
The Vulcan Plant will facilitate additional recovery of fine
chrome from tailings streams. The proprietary process is being
developed by Tharisa and a demonstration scale plant is scheduled
to be constructed during FY2018. The feasibility study and process
design will be undertaken in conjunction with the operation of the
pilot plant. The full scale Vulcan Plant is expected to be
commissioned during October 2019 with projected chrome concentrate
production of 380 ktpa. The estimated capital cost is ZAR300
million (+/- US$25 million). Operating costs are estimated at ZAR50
(+/- US$4.16) per tonne.
Apollo Chrome and PGM Plant
The Apollo Plant will be designed and built as an independent
chrome plant with PGM flotation aimed at production of chrome
concentrate from UG1 ore being mined at the Tharisa Mine's west pit
and additional MG reef horizons. It will be designed in two phases,
the first of which is expected to treat 50 ktpm and the second
phase expected to double capacity. The feasibility study is being
conducted and test work and resource estimation are in progress.
Plant construction is estimated to take approximately 12 months,
with commissioning planned for March 2020. The Apollo Plant is
expected to produce 6 kozpa of PGMs and 180 ktpa of chrome
concentrates. The capital cost is estimated at ZAR300 million (+/-
US$25 million) and operating costs, including mining, at ZAR225
(+/- US$18.75) per tonne.
Both the Vulcan and Apollo plants are subject to feasibility
studies and, if approved, will be funded from cash flows and
drawdown from debt facilities. Tharisa will continue to pay
dividends in accordance with its stated dividend policy.
The optimisation projects and new processing plants, together
with improved mining grades, are expected to add 61.8 kozpa of PGMs
and 602 ktpa of chrome concentrates to the Tharisa Mine's annual
production by 2020, thereby ensuring that Tharisa delivers 200
kozpa of PGMs and 2 Mtpa of chrome concentrates.
The above information has not been reported on or reviewed by
Tharisa's auditors.
Paphos, Cyprus
31 January 2018
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)
Ross Allister/James Bavister
+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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