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Tharisa Pit

Strategy

OUR GROWTH STRATEGY IS BUILT ON SIX PILLARS:

The Company has a stated growth and diversification strategy, built on six pillars, with maximum impact for both shareholders and stakeholders, balancing the need for growth with care for the environment in which we operate.

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

Supporting these pillars are unique competitive strengths:

Large scale producer

Shallow and large-scale PGM and chrome resource – one of the world’s largest chrome resources from a single pit – enables Tharisa to be a large-scale producer for several decades

Skilled resources

Mechanised operations and skilled labour force

Operational flexibility

Independent processing plants providing operational flexibility.

Lower costs

Positioned on the lower end of the PGM cost curve, profitable throughout the cycle

Integrated platforms

Integrated marketing, sales, and logistics platforms

Production capacity


Capacity to produce PGMs and metallurgical and specialty grade concentrates for differentiated markets

Proven track record


Proven management track record

Extensive research
programmes

Extensive research and development programmes, developing new technologies and viable mineral extraction and beneficiation capabilities

Capital discipline


Capital discipline with a dividend policy of distributing at least 15% of NPAT

Diversification


Geographic and commodity diversification with Karo Platinum construction commencement

THARISA’S GROUP STRATEGY

Our philosophy is to enrich lives responsibly.

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 of mining, processing, beneficiation, 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.

The goal is creating a circular economy, beneficiating our products, and producing critical metals for the decarbonisation of the global economy.

THE FOUNDATION OF THE COMPANY IS BUILT ON THE 4 Ds

The success of the 4 Ds is enveloped by a stringent focus on capital discipline that balances the capital needs of growth, continuous investment, and returns for shareholders.

  • DISCOVER
  • DIVERSIFY
  • DEVELOP
  • DELIVER

DISCOVER

Long-life, low operating cost assets

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.

DIVERSIFY

Diversify into a multi-asset, multijurisdictional, multi-commodity business innovatively using technology as our catalyst

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.

DEVELOP

Impactfully develop our assets, sustainably, using modern engineering and technology

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 has accelerated its growth strategy by acquiring control with a 70% stake in Karo Mining Holdings, which in turn indirectly own 85% of the tier 1 Karo Platinum Project on the Great Dyke in Zimbabwe, with the Government of Zimbabwe holding the remaining 15%, on a free carry basis. Construction at the project commenced in December 2022 and funding is well underway for the project, which will see Tharisa’s output nearly double once construction is completed in less than 24 months’ time.

DELIVER

Safely deliver maximum value from the assets in the portfolio and maximise returns for stakeholders

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.

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.