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Tharisa Pit

Strategy

OUR GROWTH STRATEGY IS BUILT ON SIX PILLARS:

EXPAND AND ROLL OUT THE BUSINESS SUSTAINABLY
FURTHER OPTIMISING EXISTING OPERATIONS
CONTINUING TO INVEST IN INNOVATIVE THINKING
BECOME A GLOBAL AND DIVERSIFIED BUSINESS
BE THE INVESTMENT OF CHOICE IN OUR CHOSEN SECTOR
RESPONSIBLY ENRICH THE LIVES OF ALL OF OUR STAKEHOLDERS

THARISA’S GROUP STRATEGY

Tharisa’s core strategy is to generate value by becoming a globally significant low cost producer of strategic commodities that are required to deliver a sustainable future.

We help to meet global demand for our products using an integrated model for mining, processing, marketing, sales and logistics operations, which we believe adds maximum value to the commodities we mine.

The Group’s expansion strategy focuses on diversified growth through organic project sourcing and development but is mindful of acquisition opportunities in a non-renewable operating environment.

High return hurdles are set and thus growth is measured but ensures sustainability.

All of this is achieved by ensuring we responsibly enrich lives.

 

  • DISCOVER
  • DEVELOP
  • DELIVER
  • DIVERSIFY
  • DISCIPLINE

DISCOVER

Tharisa seeks to grow and expand its business by investing in operations or projects which demonstrate opportunities for value accretion. The Group proactively seeks out investment or acquisition opportunities in strategic commodities and in countries offering geographic diversity.

The Group gives preference to opportunities to develop large scale and low-cost projects that are in, or close to production. Such opportunities must meet Tharisa’s stringent investment criteria, including a minimum return on investment of 25%.

In FY2018, the Group diversified geographically by making low-risk entry options in two projects – Karo Holdings and Salene Chrome. Both are highly prospective opportunities on the mineral-rich Great Dyke in Zimbabwe.

DEVELOP

The Group has shown that it has the skills to develop a mine from exploration through to steady state operations. A phased approach to development has derisked the current operations, allowing it to look beyond its boundaries for its next low-cost, large-scale operation.

Its innovative approach has ensured continual improvement through increased volumes and recoveries at its operations.

With the development of the Vulcan process at the Tharisa Mine, the operation is set to increase chrome output by over 25% off current production while lowering overall unit costs and increasing recovery rates even further.

The Company is in the process of developing its wholly owned Salene Chrome project in Zimbabwe and has completed the necessary technical work to look at a potential develop of its Zimbabwe Karo project end 2021.

DELIVER

Tharisa continues to explore ways to expand its marketing and sales capabilities to enable the Group to capture additional margin by leveraging its existing capability, experience and relationships through third-party sales and logistics. Tharisa effectively competes with other commodity traders based on its tailored and high-quality service offering, market knowledge and strong customer relationships.

DIVERSIFY

Strategically adding development projects to the portfolio that will ensure diversification while maintaining the focus on being a mechanised, low cost miner and beneficiator of metals.

We will use technology as our enabler and as our differentiator.

DISCIPLINE

With management of costs and improved efficiencies, Tharisa continues to be positioned in the lowest cost quartile for both PGM and chrome concentrates.

The Group subscribes to a capital allocation framework where potential projects are assessed against stringent investment criteria. The basis for the framework is investment in
low-risk entry points and the staged capital investment and development of new projects.

Tharisa is a cash generative business which has allowed it to maintain its returns to shareholders. The company has a dividend policy of distributing a minimum of 15% of consolidated net profit after tax, a policy that has been exceeded in the past 6 years with the Company aiming to pay both an interim and final dividend.

STRATEGIC INITIATIVES

Leading natural resources group

Globally significant, diversified
low-cost operations.

Optimisation initiatives

Maximise value extraction through process engineering.

Capital discipline

Disciplined capital distribution with a dividend policy of distributing at least 15% of net profit after tax (‘NPAT’) and capital allocation to low-risk projects making us an investment of choice.

Innovation

Innovation – innovative research and development feeding organic growth and adding value to our resources.

Leveraging existing platforms

Marketing, sales and logistics, expansion into multicommodities, building geographic diversity.