PROFITABLE LOW COST CO-PRODUCER PGMS AND CHROME PLATINUM WEEK 2016 - PowerPoint PPT Presentation

PROFITABLE LOW COST CO-PRODUCER – PGMS AND CHROME PLATINUM WEEK 2016

DISCLAIMER This document has been compiled by Tharisa plc (“Tharisa”) . While the information contained herein is believed to be accurate, no representation or warranty, express or implied is or will be given by Tharisa or its respective directors, employees or advisors or any other person as to the accuracy, completeness or fairness of this document and, so far as permitted by law and except in the case of fraud by the party concerned, no responsibility or liability whatsoever is accepted for the accuracy or sufficiency thereof or for any errors, omissions or misstatements negligent or otherwise relating thereto. This document includes certain statements, estimates, targets, forecasts and projections with respect to Tharisa’s anticipated future performance. Such statements, estimates, targets, forecasts and projections reflect significant assumptions and subjective judgments and analysis by Tharisa’s management concerning anticipated results which may or may not prove to be correct and there can be no assurance that any estimates, targets, forecasts or projections are attainable or will be realised. Nothing contained in this document is, or shall be relied upon as, a promise or representation, whether as to the past or the future. Accordingly, none of Tharisa nor any of its directors, employees or advisors nor any other person, shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in or omission from this document and any such liability is expressly disclaimed. In particular, but without limitation, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any estimates, targets, forecasts or projections contained in this document (or otherwise provided by or on behalf of Tharisa with respect to the subject matter of this document). Basis of preparation note: where figures are expressed in percent and a change is reflected, the change is expressed in percent basis points. 2

NO ORDINARY MINING COMPANY

THARISA AT A GLANCE 828 ZAR1.7 billion REVENUE US$246.8m MARKET CAPITALISATION EBITDA US$ 2 cents Mtpa ROM 144 1.5 TONNAGE Mt RESOURCE PLATINUM 5.5 km GROUP METALS koz pa US$29.0m Mtpa CHROME CONCENTRATES STRIKE 2 056 20 LENGTH OF INAUGURAL HEPS PER 4.8 ALL 6 MG SHARE CHROMITITE ESTIMATED YEARS OPEN PIT LIFE LAYERS 40 OF SOUTH AFRICA’S CHROME ORE/CONCENTRATE EXPORTS EMPLOYEES 5 475 14.2% (including contractors) ESTIMATED YEARS ha MINING RIGHT AREA UNDERGROUND 4

CORPORATE OVERVIEW CORPORATE STRUCTURE TOP 10 SHAREHOLDERS Shareholder % Black Economic Tharisa plc Medway Developments Ltd 46.5 Empowerment Cyprus (BEE) shareholders (2) (JSE:THA) 15.8 LCC Pershing 11.0 Fujian Wuhang Stainless Steel 4.3 HSBC Private Bank (Suisse) Sa 100% 100% 74% 4.2 Phillip Ventures Enterprise Fund 2 & 3 Tharisa 26% Arxo Logistics Arxo Resources 4.2 Macquarie Capital Hong Kong Limited Minerals (South Africa) (Cyprus) (South Africa) 2.6 Friedshelf 1525 Pty Ltd Altius Investment Holdings Pty Ltd 2.2 100% HongKong Heyi Mining Resources Co Ltd 2.0 Arxo Metals Raiffeisen Bank International 1.1 (South Africa) Tharisa Mine Other 7.1 Total 100.0 Notes: 1. Only key subsidiaries have been included Notes: 2. Tharisa Minerals BEE partners are a broad-based Community Trust which holds an unencumbered 6% Shareholder information as of January 2016 interest and a women's investment group Thari Resources, which holds a 20% interest 5

MANAGEMENT TEAM EXECUTIVE MANAGEMENT  Over 50 years of experience in  Over 15 years of experience in  Over 18 years of investment  Over 8 years of experience at mining company exploration, project management in the mining banking experience in corporate the Tharisa Group  Responsible for the oversight project management, financing industry, including PGM and finance  Extensive equity and debt capital and production (including PGM chrome and day-to-day operations of  Held directorships in several and gold mines) raising experience with a focus in the Tharisa Minerals  Established a number of mining  Works closely with the mining companies the latter years in the resources  Extensive trading experience companies including TransAfrika industry Pouroulis family and is familiar  5 years of financial management Resources, Keaton Energy, Kameni within the Tharisa group, Keaton with their operating and and Eland Platinum Energy and Chromex Mining experience with PGM and chrome reporting procedures and Loucas Pouroulis Phoevos Pouroulis Michael Jones Michelle Taylor mining operations management structure COO Executive Chairman CEO CFO GROUP MANAGEMENT  Responsible for the overall  Responsible for all marketing  Responsible for the overall  Responsible for the mining and management of the logistics processing operations of the Tharisa activities of the Tharisa group management of beneficiation and transport services provided  Over 20 years experience in Mine and value addition projects  Over 15 years experience in the by Arxo Logistics to the Tharisa international trade, cross- within the group group’s operations recovery of PGMs and chrome  Over 14 years experience in the border relations and South  Over 30 years experience in  Held various positions in the African sales chrome and manganese logistics technical field focusing on the  Held various managerial industries recovery of PGMs and chrome,  Held positions in operations at positions and directorships with having worked on a number of prominent companies in the BHP Billiton, Samancor Chrome Hans van Wyk Elize Groesbeek Willem de Villiers Greg Taurog chrome and PGM concentrator mining industry since 1994 and Xstrata Alloys operations Acting Operations Managing Director: Managing Director: Executive – Sales Director: Tharisa Arxo Logistics Arxo Metals and Marketing Minerals 6

THARISA SNAPSHOT Tharisa plc is the only JSE listed Open pit operations with Large scale One of the world’s PGM and chrome concentrate 20 year LOM and ( 828 Mt resource) largest single chrome open pit co-producer with an 40 year LOM mid-tier PGM and chrome resource mines integrated marketing, sales and concentrate co-producer underground extension logistics platform Mechanised open pit Steady state production In production and of 144 koz PGMs mining with a skilled and de-risked with major and 1.5 Mt of chrome stable capex programme concentrates labour force complete Lowest cost quartile In-house, cost effective Growth/optimisation mine to customers producer of PGM and initiatives in place chrome concentrates logistics solution 7

OUR VALUE CHAIN THE FULL VALUE CHAIN IS CAPTURED THROUGH THE CO-EXTRACTION OF PGM AND CHROME AND IN-HOUSE MARKETING, SALES AND LOGISTICS Our customers Mining and processing Beneficiation Marketing and sales Logistics and agreements (Tharisa Minerals) (Arxo Metals) (Arxo Resources) (Arxo Logistics) 74% 100% 100% 100%  20 year open pit  Production of higher value foundry    10.1% of China’s chrome Road and rail transport capacity, PGM off-take agreement with  40 year LOM underground extension warehousing facilities and port facilities ore/concentrate imports and 14.2% and chemical grade chrome Impala Refinery Services sufficient for steady state production  828 Mt resource  of South Africa’s chrome concentrates Off-take agreement with Rand York  Transport of PGMs to Impala Refinery  100 Mt open pit reserve  Committed to research and ore/concentrate exports for FY2015 for foundry and chemical grade Services by road  5.5 km mining strike length development chrome concentrates  Shipment of chrome concentrate in  50 ktpm chrome concentrate bulk from Richards Bay Dry Bulk  Production for FY2015: agency agreement with the Noble Terminal and containers from the  118.0 koz of PGMs Group Durban port    1.1 Mt chrome concentrates Shipments for FY2015: Relationships with a broad range of  974.8 kt of chrome concentrates, stainless steel producers, mainly to China ferrochrome producers and global  87% of shipments by bulk commodity traders  13% of shipments by container 8

LOCATION OF THARISA MINE LOCATED IN THE MAIN PGM AND CHROME PRODUCING AREA IN SOUTH AFRICA  Mining rights over 5 475 ha  Adjacent to Anglo Platinum, Lonmin, Impala Platinum, Eastern Platinum  Well serviced by road, rail, power and other services  Neighbouring towns are Brits (45 km) and Rustenburg (30 km) 9

MINING ALL SIX MG CHROMITITE LAYERS GENERALISED CROSS SECTION SHOWING THE MG CHROMITITE LAYERS AND PLANNED PIT DEPTH Steady state Bench = 20m MG4A production of 4.8 Mtpa ROM MG4 200m Reef dip east: 9-12° MG4(0) Reef dip west: 14-18° 53 ° Strike length: 5.5 km Average stripping ratio: 8.5 (bcm:bcm) over LOM MINERAL RESOURCE 828 Mt at 1.56 g/t 6E PGMs and MG3 20.38% Cr₂O₃ OPEN PIT MINERAL RESERVE MG2C East Pit West Pit  100 Mt at 1.51 g/t 6E PGMs and MG2B MG2A  19.4 % Cr₂O₃ OPEN PIT CONTAINED METAL  3.79 Moz 6E PGMs and 19.4 Mt Cr₂O₃ MG1 MG0 Resource and reserves as at 30 September 2015 10

Total capacity of 400 ktpm ROM Processing flexibility provided Voyager – 300 ktpm OPERATIONAL OVERVIEW through owner operated Voyager Genesis – 100 ktpm and Genesis standalone Operationally de-risked concentrator plants. co-producer 11