[miningmx.com] – THARISA, a platinum group metal (PGM) and chrome co-producer, said it would list on the Johannesburg Stock Exchange on April 8 when it would issue R1bn worth of shares in order to optimise the mine, settle debt, build stockpiles, and buy spare parts.
Approximately 23,39 million shares would be issued for a total of R1bn valuing Tharisa’s shares at about R42,70/share. The proceeds would also provide working capital funding for its product pipeline and purchase long-lead items, the company said in an announcement.
Tharisa currently owns 74% of Tharisa Minerals which operates an opencast mine on the south-west limb of the Bushveld. The balance of the shares belong to an empowerment company (20%) and a community trust (6%).
The open cast mine had a life of about 23 years with the option of developing underground for a further 36 years of operation.
It had targeted average steady state production of 144,000 ounces a year of PGMs and 1,85 million tonnes a year of chrome concentrate in its 2016 financial year.
The mine was “operationally cash flow positive” and was operating at about 87% of full capacity, the company said. It could produce its own PGM and chrome concentrate, and had an offtake agreement with Impala Platinum.
It said its strategy was to focus on growth through “… value accretive acquisition, development and operation of large-scale and low cost projects that are in or close to production”.
The listing is the latest company off the conveyor belt of Loucas Pouroulis who floated Eland Platinum – and sold it to Xstrata for R1bn – and Keaton Energy, a less successful company. The Pouroulis family were also behind the founding and UK listing of Petra Diamonds.
Phoevos Pouroulis, CEO of Tharisa, said all mine infrastructure capital expenditure had been completed. The listing was to “… provide us with a platform to pursue our objective to become a leading natural resources company to service growing global demand in PGM, chrome and other steel raw material sectors through integrated mining, processing, marketing, sales and logistics operations’.
