Modern Mining April 2020

Mining recommences at Tharisa

430 000 oz of gold production at an All-In Sustaining Cost of US$980/oz.” A substantial increase in mined and hauled tonnages from the Syama Underground Mine were achieved in the March 2020 Quarter. A record 519 898 tonnes (t) of ore was mined, an increase of 33% over the December 2019 Quarter, with 186 807 t being mined in the month of March. Available underground sulphide ore stockpiled at Syama has increased to 517 000 tonnes at an average grade of 2,5 g per tonne of gold (g/t Au). Gold production from the sulphide cir- cuit increased by 54% from the December 2019 Quarter to 21 430 oz, with the sulphide mill and roaster returning to operational service. Overall sulphide circuit recovery was 75,1% which is below the full year target of 85%. Roaster performance remains a key area of focus with incremen- tal improvement expected during 2020. Recoveries are expected to average 80% for the June 2020 quarter with gradual progress enabling the company to deliver target recoveries of 85% during the second half of 2020. 

Tharisa mine has been given permission by the South African government to recom- mence mining operations at a reduced rate ahead of lifting the wider lockdown mea- sures. As of the week of April 6, has been using its 300 ktpm Voyager plant (-75% of total capacity). Tharisa is one of the first South African chrome and PGM producers to be allowed to restart amid the nationwide lockdown, and the company believes it is well placed to benefit once restrictions are eased in the future. However, given the unprecedented situation, Tharisa has also implemented a number of measures to conserve resources such as the suspension of capital projects, including the Vulcan recovery plant, and is securing stockpile financing to aid working capital. As previously announced, Tharisa has declared force majeure on metallurgical chrome contracts and has received force majeure notifications from its PGM off-tak- ers following smelter shutdowns in South

Africa. Furthermore, the company has reiterated that its 2020 guidance remains suspended as per the original March 24 announcement.  Tharisa is one of the first South African chrome and PGM producers to be allowed to restart amid the nationwide lockdown.