[quarterly report] Tharisa:Q1 Chromium concentrate production 310.1kt decreased by 9.5% compared with the same period last year

SMM4, 10 Mar: recently, Tharisa released its production report for the second quarter of March 31, 2020, which pointed out that the South African government has imposed a national blockade on COVID-19 for a period of 21 days since the afternoon of March 25, 2020. starting from April 6, 2020, utilizing uses 300 ktpm Voyager plants to reduce mining activities, and on Metallurgical Chromium contract declares force majeure. Ris Tharisa has received a force majeure notification from its PGM concentrate purchaser that the company's ongoing capital account has been suspended, the lender is actively supporting the business and is in the process of inventory financing.

During the quarter, the tonnage of reef mined was 111.3 kt, and the recovery of 166.9 kt, platinum group metal (PGM) was 83.7%. The recovery rate of 32.1 koz, chromium based on 6e was 61.8%, and the concentrate output was 310.1 kt.

During the six months ended 31 March 2020 (the first two quarters), the tonnage of reef mined was 2 274.1 kt, of which the recovery rate of ground 2 414.1 kt,PGM was 82.9%, the recovery rate of 6e production of 66.5 koz, chromium was 62.5%, and the concentrate output was 652.6 kt.

With Tharisa performing strongly at a stable mining and stripping rate and strong ore processing, Tharisa was satisfied with the stable performance over the past quarter, in line with its vision target of 2020 at the end of the 2020 calendar year.

The impact of the epidemic remains a major and unquantifiable threat to the South African economy, and the Tharisa fully supports the government's efforts to respond to the global pandemic. Since the lock began, Tharisa has fully complied with DMRE, to ensure that the Tharisa mine continues to reduce operations during the lock-in period. Tharisa is an important producer of chemical and foundry grade chromium concentrates, which are used in many important industries.

The company said the team would work tirelessly with DMRE and the Minerals Commission to keep the Tharisa mine in operation during the lock-in period, while protecting employees in terms of social alienation and improved health measures in an open-pit, low-labor environment.

Tharisa's mining performance has been tracking the achievement of Vision 2020 production requirements. This has been achieved mainly through pit redesign, which was the focus area for fiscal year 2019, and with the increase in the availability of reefs and the length of workstations, it provides the necessary flexibility to meet the production targets planned in the 2020 vision plan and is achieving results.

The mining industry was disrupted by the blockade imposed by the Government on 25 March 2020, affecting the last ten days of March. Tharisa fully supports the measures taken by the Government of South Africa and is committed to adopting best practices as recommended by the relevant authorities. The safety and well-being of our employees, contractors and stakeholders are of paramount importance to the business.

A total of 1131.1 kt, of reef mined in the current quarter is equivalent to 1143.0 kt mined in the first quarter of 2020, totaling 2 274.1 kt in the six months ended 31 March 2020.

Mines and mining equipment were safely maintained and maintained before Tharisa was allowed to continue limited mining production during the lock-in period.

Tharisa's two separate processing plants, Genesis and Voyager, continued to maintain capacity above the nameplate until the shutdown. Happily, the PGM recovery rate for the quarter increased by 1.8% to 83.7%, with an average growth rate of 82.9% over a six-month period, producing 32.1 koz and 66.5 koz based on 6e, respectively. The grade of crude raw materials in this quarter is 1.37 g and 1.39 g in half a year.

Chromium concentrate production for the quarter was 310.1 kt, including metallurgical grade 233.6 kt and special grade 76.5 kt,. When added to the first quarter results, the total chromium concentrate production for six months was 652.6 kt, divided into metallurgical grade 494.6 kt and special grade 158.0 kt.

As the K3 plant began operation in late January 2020, consistent with the operation of the concentrator, third-party chromium production was low this quarter, at 54.7 kt. The production of third-party chromium in six months is 117.0 kt. During the lock, K3 remains completely paused.

Due to the blockade, the Vulcan Project of Tharisa has been suspended until further notice.

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