Interim Results for six months ended 31 March 2016

RNS Number : 9377A

Tharisa PLC

13 June 2016

 

THARISA PLC

Incorporated in the Republic of Cyprus with limited liability

Registration number: HE223412

JSE share code: THA

LSE share code: THS

ISIN: CY0103562118

REVIEWED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the six months ended 31 March 2016

Corporate information

THARISA PLC

Incorporated in the Republic of Cyprus with limited liability

Registration number: HE223412

JSE share code: THA

LSE share code: THS

ISIN: CY0103562118

REGISTERED ADDRESS

Office 108 - 110

S. Pittokopitis Business Centre

17 Neophytou Nicolaides and Kilkis Streets

8011 Paphos

Cyprus

POSTAL ADDRESS

PO Box 62425

8064 Paphos

Cyprus

WEBSITE

www.tharisa.com

DIRECTORS OF THARISA

Loucas Christos Pouroulis (Executive Chairman)

Phoevos Pouroulis (Chief Executive Officer)

Michael Gifford Jones (Chief Finance Officer)

John David Salter (Lead Independent non-executive director)

Antonios Djakouris (Independent non-executive director)

Omar Marwan Kamal (Non-executive director)

Brian Chi Ming Cheng (Non-executive director)

Carol Bell (Independent non-executive director)

Joanna Ka Ki Cheng (Alternate non-executive director)

JOINT COMPANY SECRETARIES

Lysandros Lysandrides

26 Vyronos Avenue

1096 Nicosia

Cyprus

Sanet de Witt

Eland House, The Braes

3 Eaton Avenue

Bryanston

Johannesburg 2021

South Africa

Email: [e-mail]

INVESTOR RELATIONS

Sherilee Lakmidas

Eland House, The Braes

3 Eaton Avenue

Bryanston

Johannesburg 2021

South Africa

Email: [e-mail]

TRANSFER SECRETARIES

Computershare Investor Services Proprietary Limited

Registration number: 2004/003647/07

70 Marshall Street

Johannesburg 2001

(PO Box 61051 Marshalltown 2107)

South Africa

Cymain Registrars Limited

Registration number: HE174490

26 Vyronos Avenue

1096 Nicosia

Cyprus

JSE SPONSOR

Investec Bank Limited

Registration number: 1969/004763/06

100 Grayston Drive

Sandown

Sandton 2196

(PO Box 785700 Sandton 2146)

South Africa

BROKERS

Peel Hunt

Moore House

120 London Wall

EC 2Y 5ET

AUDITORS

KPMG Limited (Cyprus)

Registration number: HE132527

14 Esperidon Street

1087 Nicosia

Cyprus

Introduction

Tharisa is an integrated resource group incorporating mining and the

processing, beneficiation, marketing, sales and logistics of PGM and

chrome concentrates.

Mission

To maximise shareholder returns

through innovative exploitation of

mineral resources in a responsible

manner

Values

-  The safety and health of our

   people is a priority

-  We take responsibility for the

   effect that our operations may

   have on the environment

-  We are committed to the

   upliftment of our local

   communities

-  We conduct ourselves with

   integrity and honesty

-  We strive to achieve superior

   returns for our shareholders

-  We originate new opportunities

   and will continue to challenge

   convention through innovation

Strategic initiatives

-  Implementation of optimisation

   initiatives to maximise value extraction

-  Growth through innovative research

   and development

-  Growth through accretive acquisition,

   development and operation of large

   scale and low cost projects that are in

   or close to production

-  Leveraging off the established platform

   for expansion into multi-commodities

   with geographic diversity

-  Capital discipline with a dividend

   policy of 10% on NPAT and capital

   allocation to low risk projects

HIGHLIGHTS H1 2016

PGM PRODUCTION

(6E)

UP 4.5%

60.0 koz

(2015: 57.4 koz)

PGM PRICES

DOWN 27.4%

US$686/oz

(2015: US$945/oz)

REVENUE

DOWN 30.5%

US$86.0m

(2015: US$123.7m)

NET CASH FLOWS FROM

OPERATING ACTIVITIES

UP 18.2%

US$18.2m

(2015: US$15.4m)

ALL IN COST PGM OZ*

DOWN 10.9%

US$492/oz

(2015: US$552/oz)

* including non-cash flow items excluding

  financing and capital expenditure

CHROME CONCENTRATE

PRODUCTION

UP 7.3%

604.4 kt

(2015: 563.3 kt)

CHROME PRICES

DOWN 32.1%

US$106/t

(2015: US$156/t)

GROSS PROFIT MARGIN

UP 6.2%

24.6%     

(2015: 18.4%)

HEADLINE PROFIT PER SHARE

US$1 cent

(2015: US$1 cent)

ALL IN COST CHROME TONNE*

DOWN 32.9%

US$102/t

(2015: US$152/t)

* including non-cash flow items excluding

  financing and capital expenditure

GROUP STATISTICS                                                                          

	Unit	% change	H1 FY2016	H1 FY2015
ROM mined	Mt	21.1	2.4	1.9
PGM rougher feed grade	g/t	1.8	1.68	1.65
Chrome grade	%	(0.3)	18.4	18.7
ROM processed	Mt	-	2.2	2.2
PGM recovery	%	1.9	65.0	63.1
PGM in concentrate produced	koz	4.5	60.0	57.4
Chrome recovery	%	6.1	62.8	56.7
Chrome concentrate produced	kt	7.3	604.4	563.3
PGM basket price	US$/oz	(27.4)	686	945
Chrome concentrate price (42% CIF China)	US$/t	(32.1)	106	156
Average exchange rate	ZAR:US$	(30.4)	15.0	11.5
Group revenue	US$'000	(30.5)	85 997	123 700
Gross profit	US$'000	(7.3)	21 134	22 805
Profit for the period	US$'000	(36.4)	3 098	4 870
EBITDA	US$'000	(17.9)	14 732	17 937
Headline earnings	US$'000	(13.9)	2 925	3 396
Headline earnings per share	US$ cents	-	1	1
Gross profit margin	%	6.2	24.6%	18.4%
Net cash flows from operating activities	US$'000	18.3	18 230	15 417
Debt to total equity ratio*	%		24.2%	42.7%

* Net of the debt service reserve account

The percentage change for changes in percentage numbers is calculated as the difference between the comparable period percentage

and the current period percentage.

INTERIM MANAGEMENT REPORT

DEAR SHAREHOLDER

Tharisa has delivered on its commitments with exceptional

performance in challenging times. In the six months ended

31 March 2016, the Group again demonstrated how its low

cost business model ensures it can withstand a commodity

price downturn and still deliver robust operational and

financial results.

The first half of FY2016 was a milestone period for

Tharisa with the Company moving closer to steady state

production. Production milestones included:

-  reef mining exceeded the steady state required run

   rate of 4.8 Mtpa on an annualised basis in Q2 FY2016;

-  mill throughput performing at nameplate design

   capacity of 400 ktpm;

-  contained PGM production on a 6E basis of 144.0 koz

   (on an annualised basis in Q2 FY2016) moving closer to

   revised steady state target of 147.4 kozpa; and

-  increase of specialty chrome production from 10.1% to

   17.5% of chrome concentrate production.

Post the half-year results, Tharisa listed on the main board

of the London Stock Exchange under the ticker THS. The

secondary listing increases Tharisa's international profile,

opens up access to a wider pool of investors and will

improve trading liquidity by facilitating the participation

of UK and European investors in the Company. Tharisa's

primary listing remains on the JSE.

The six months under review were characterised by a

challenging macroeconomic environment, where global

commodity prices declined materially before recovering

towards the end of the second quarter. The average PGM

basket price (on a 6E basis) for the six-month period was

US$686/oz, a decline of 27.4% relative to the comparable

period. Similarly, the average metallurgical grade chrome

concentrate price for the six-month period was US$106/t, a

decline of 32.1% relative to the comparable period.

While the macroeconomic conditions are outside the

control of the Group, Tharisa's continued focus on achieving

steady state production yielded positive production results

with a 4.5% increase in production of PGM contained metal

on a 6E basis of 60.0 koz and a 7.3% increase in chrome

concentrate production of 604.4 kt. With the release of the

updated Competent Person's Report dated 31 December

2015, steady state PGM production on a 6E basis was

increased to 147.4 kozpa while chrome concentrate steady

state production was revised to 1.33 Mtpa.

Safety remains a top priority and Tharisa continues to strive

for zero harm at its operations. Tharisa achieved a Lost

Time Injury Frequency Rate (LTIFR) of 0.3 per 200 000

man hours worked at 31 March 2016. This is among the

lowest LTIFRs in the PGM and chrome industries in South

Africa. Tharisa continues to implement appropriate risk

management processes, strategies, systems and training to

promote a safe working environment for all facilitated by

the opening of the Group's new training centre.

The Group reported a profit before tax of US$4.5 million

for the interim period with net cash flows from operating

activities of US$18.2 million, an improvement of 18.3%.

Tharisa continues to strengthen its competitive position,

benefiting from the shallow open pit and large scale

co-production of PGMs and chrome concentrates.

OPERATIONAL OVERVIEW

		31 March	31 March
	Unit	2016	2015	Change
ROM tonnes
mined	kt	2 358.6	1 948.0	21.1%
Tonnes milled	kt	2 197.0	2 198.7	-
On mine cash
cost per tonne
milled	US$	25.6	30.8	(16.9%)
Consolidated
cash cost per
tonne milled
(excluding
transport)	US$	28.7	34.3	(16.3%)

MINING

The Tharisa Mine is unique in that it mines multiple

mineralised layers with different, but defined, PGM and

chrome contents. The mine is a large-scale open pit with

a life of mine of up to 20 years and the potential to extend

the mine by a further 40 years by mining underground.

During the six months under review, 2.4 Mt of ore at an

average grade of 1.68 g/t PGMs on a 6E basis and 18.4%

chrome was mined. Tharisa needs to mine 4.8 Mtpa ROM

to produce at steady state levels of 147.4 kozpa of PGMs

and 1.33 Mtpa of chrome concentrates.

A number of section 54 safety related instructions in Q1

FY2016 adversely impacted on mining production during

the period resulting in the ROM stockpiles being depleted

and impacting on the feed grade into the processing plants.

ROM stock piles have subsequently been rebuilt with 212 kt

of ROM stock and crushed ore being available ahead of the

processing plants as at 31 March 2016.

The focus on opening up access to the full mining strike

length and the benefits of maintaining the correct multi-

reef layer profile are being realised and this contributed to

providing stable feed grades for processing.

PROCESSING

Tharisa has two processing plants - the Genesis and

Voyager standalone concentrator plants - which have

a combined nameplate capacity of 400 ktpm ROM. The

Genesis Plant incorporates the Challenger Plant on the

feed circuit for the extraction of specialty grade chrome

concentrates principally from natural fines.

During the six-month period, 2.2 Mt of reef was processed

through the two plants producing 60.0 koz of contained

PGMs on a 6E basis and 604.4 kt of chrome concentrates.

The chrome processing circuit of the Voyager Plant

was successfully modified to facilitate an increase in

the production of higher value specialty grade chrome

concentrates. Of the 604.4 kt of chrome concentrates

produced, 105.8 kt or 17.5% of total chrome concentrate

production was specialty grade chrome concentrates - up

from 10.1% for the comparable period.

Plant throughput equated to 91.5% of combined nameplate

capacity of the plants.

Overall PGM recovery was at 65.0%, an improvement

of 1.9% on the H1 FY2015 PGM recovery of 63.1%, and

demonstrates the benefits of stability in the plant feed

grades and the increase in competent ores being processed

with a lower feed of "weathered" ore. The target recovery

remains at 70.0%.

The average chrome recovery across all plants was 62.8%,

a 6.1% improvement from the 56.7% recovery recorded for

H1 FY2015 and bringing chrome recoveries within reach of

the 65.0% target.

Production of both PGMs and chrome concentrates is

expected to continue to increase as the Group achieves its

steady state levels.

There are a number of optimisation initiatives currently

being evaluated with a focus on improving chrome

recoveries and increasing PGM recoveries even further.

COMMODITY MARKETS AND SALES

		31 March	31 March
	Unit	2016	2015	Change
PGM basket
price	US$/oz	686	945	(27.4%)
PGM basket
price	ZAR/oz	10 448	10 888	(4.0%)
42%
metallurgical
grade chrome
concentrate
contract price
- CIF	US$/t	106	156	(32.1%)
42%
metallurgical
grade chrome
concentrate
contract price
- CIF	ZAR/t	1 562	1 793	(12.9%)
Specialty
chrome grades
FOB price *	US$/t	122	153	(20.3%)

* Blended average of foundry and chemical grades excluding

  the cost of sea freight

Both PGM and chrome concentrate commodity prices

remained under pressure with the chrome commodity

price, in particular, being affected by the devaluation of the

Renminbi against the US$ and the slowdown in the Chinese

economy. The average US$ PGM contained metal basket

price decreased by 27.4% and metallurgical grade chrome

concentrate contract price declined by 32.1% relative to

the comparable period's average prices. The average ZAR

weakened 30.4% relative to the US$ over the period. As

the cost base of Tharisa Minerals is mainly in ZAR, the

weakening of the ZAR partially offset the decline in US$

commodity prices.

PGM production continued to be sold to Impala Refining

Services under the off-take agreement and a total of

59.1 koz was sold during the period. The Tharisa Mine's

PGM prill split is significant in terms of platinum content at

56.1%, contributing to a favourable PGM basket price being

realised by Tharisa.

	31 March	31 March
	2016	2015
Tharisa prill split by mass	%	%
Platinum	56.1	56.5
Palladium	15.7	15.6
Rhodium	9.5	9.4
Gold	0.2	0.2
Ruthenium	13.9	13.9
Iridium	4.46	4.4

As a result of the depressed chrome prices, Tharisa elected

to defer product sales in December 2015, preferring to

rather wait for higher prices. Prices began recovering after

the Chinese New Year in February 2016. In the interim,

Tharisa diversified its production to increase its production

of the higher value specialty grade chrome. This allowed the

Group to cushion itself to some extent from the steep fall

in metallurgical chrome prices. Chrome concentrate sales

totalled 481.7 kt.

LOGISTICS

		31 March	31 March
	Unit	2016	2015	Change
Average
transport cost
per tonne
of chrome
concentrate -
CIF main ports
China basis	US$/t	40	59	(32.2%)

The chrome concentrate destined for main ports in

China is shipped either in bulk from the Richards Bay Dry

Bulk Terminal or via containers from Johannesburg and

transported by road to Durban from where it is shipped.

The economies of scale and in-house expertise have

ensured that Tharisa's transport costs, a major cost to the

Group, remained competitive.

China remains the main market for chrome concentrates

and 381.9 kt of the metallurgical grade chrome concentrates

produced by the Tharisa Mine were sold on a CIF main

ports China basis. The majority was shipped in bulk with a

negligible quantity being shipped in containers.

Arxo Logistics has sufficient storage capacity at both the

Richards Bay Dry Bulk Terminal and the Durban container

port to manage the full production capacity of the Tharisa Mine.

Negotiations over a planned public private partnership with

Transnet for an on-site railway siding at the Tharisa Mine

are progressing well.

MINERAL RESOURCE AND MINERAL RESERVE

The Mineral Resource and Mineral Reserve Statement

has been updated by Coffey Mining (SA) (Pty) Ltd dated

31 December 2015. The Mineral Resource and Mineral

Reserve Statement has been prepared in accordance

with the requirements of the South African Code for the

Reporting of Exploration Results, Mineral Resources and

Mineral Reserves, 2009.

The Mineral Resource is estimated at 829.0 Mt with a 4E

PGM grade of 1.15 g/t and a chrome grade of 20.4%. The

total Mineral Reserve is tabled below.

	Tonnes	6E	Cr(2)O(3)
Mineral Reserve	Mt	g/t	%
Proved	41.4	1.45	17.8
Probable	65.0	1.45	19.2
Total	106.4	1.45	18.6

Steady state production forecasts have been revised

from 144.0 kozpa to 147.4 kozpa of PGMs on a 6E basis

and from 1.5 Mt of chrome concentrates to 1.33 Mt of

chrome concentrates which includes 311.8 kt of specialty

chrome concentrates. With the improved optimisation

of the chrome processing spiral plant, the production of

higher value specialty chrome concentrates increases

from approximately 10.1% for the comparable period to

approximately 23.4% of chrome production at steady

state. This has resulted in the volumetric change of chrome

concentrate steady state production.

FINANCIAL OVERVIEW

Group revenue totalled US$86.0 million, a decrease

of 30.5% relative to the comparable period revenue of

US$123.7 million. This decrease in revenue was mainly

attributable to the reduction in the average PGM

contained metal basket price from US$945/oz to US$686/

oz - a decrease of 27.4% - and a weakening in the average

42% metallurgical grade chrome concentrate contract

price from US$156/t to US$106/t - a decrease of 32.1%.

The decrease in chrome commodity prices followed the

devaluation of the Renminbi relative to the US$ and the

slowdown in forecast global economic growth. During the

period of short-term chrome price volatility and the strong

downward trend in the price, the Group elected not to sell

at the reduced prices. This contributed to lower chrome

concentrate sales of 481.7 kt relative to the comparable

period sales of 520.5 kt - a decrease of 7.5%. Since the end

of the period under review, sales volumes have reverted

to previous levels with metallurgical chrome concentrate

prices for July 2016 delivery at US$150/t.

The PGM basket price has similarly recovered to

approximately US$715/oz.

Notwithstanding the reduction in revenue the gross

profit margin improved from 18.4% to 24.6% on increased

production volumes reducing the unit costs of production

for both PGMs and chrome concentrates and the increased

production and sales of higher value add specialty grade

chrome concentrates. Competitively priced freight costs

for bulk shipments of chrome concentrates also contributed

to the improved gross profit margins.

The segmental contribution to revenue and gross profit is

summarised in the following table (shared costs continue to

be allocated on an equal basis):

Six months ended
31 March 2016	PGM	Chrome	Total
	US$'000	US$'000	US$'000
Revenue	35 904	50 093	85 997
Cost of sales	23 761	41 102	64 863
Cost of sales excluding
selling costs	23 663	24 712	48 375
Selling costs	98	16 390	16 488
Gross profit	12 143	8 991	21 134
Gross profit percentage	33.8%	17.9%	24.6%
Sales volumes	59.1 koz	481.7 kt
All in cost of sales per
unit*	US$402/oz	US$85/t
Total all in cost per
unit**	US$492/oz	US$102/t

*  Including non-cash flow items

** Including non-cash flow items excluding financing and

   capital expenditure

Six months ended
31 March 2015	PGM	Chrome	Total
	US$'000	US$'000	US$'000
Revenue	44 087	79 613	123 700
Cost of sales	26 861	74 034	100 895
Cost of sales excluding
selling costs	26 766	44 715	71 481
Selling costs	95	29 319	29 414
Gross profit	17 226	5 579	22 805
Gross profit percentage	39.1%	7.0%	18.4%
Sales volumes	58.4 koz	520.5 kt
All in cost of sales per
unit*	US$460/oz	US$142/t
Total all in cost per
unit**	US$552/oz	US$152/t

*  Including non-cash flow items

** Including non-cash flow items excluding financing and

   capital expenditure

The PGM cash cost of sales per ounce (excluding selling

costs) for the period was US$376 (2015: US$408) and

for chrome concentrates the cash cost of sales per tonne

(excluding selling costs) for the period was US$46 (2015:

US$75). The cash unit costs have been calculated after

crediting the deferred stripping element i.e. the deferred

stripping has been treated as a non-cash flow item.

There has been no non-recurring or exceptional income

sources during the interim period.

The major constituents of the cash cost of sales of PGMs

and chrome concentrates are set out in the following graphs.

PGM cash cost of sales: 31 March 2016

Mining	59%
Utilities	7%
Reagents	6%
Steel balls	3%
Labour	6%
Diesel	16%
Overheads	3%

Chrome cash cost of sales: 31 March 2016

Mining	49%
Utilities	6%
Steel balls	5%
Labour	12%
Diesel	13%
Overheads	15%

After accounting for administrative expenses of

US$10.7 million (2015: US$10.7 million) the Group achieved

an operating profit of US$10.6 million, a reduction of 12.4%

relative to the comparable period operating profit of

US$12.1 million.

While the Group's cost base is mainly in ZAR (other than

for selling expenses) and the weakening of the ZAR relative

to the US$ benefited the Group from a cost reduction

perspective, certain "first time" costs were incurred

with the inaugural vesting of the share scheme awards to

employees and consultants with a charge of US$1.0 million

included in administrative expenses. The Company also

listed (secondary listing) on the London Stock Exchange

and professional fees for the listing of the Company were

incurred. The Group undertook a review of its costs and the

benefits of this review and the actions taken are still to be

reflected in the administrative costs as the upfront costs of

these actions were incurred in this reporting period.

EBITDA amounted to US$14.7 million (2015: US$17.9 million).

Finance costs principally relate to the senior debt facility

secured by Tharisa Minerals for the construction of the

Voyager Plant.

The tax charge amounted to US$1.4 million, an effective

charge of 30.7%, due primarily to disallowable charges being

incurred within the Group activities. The tax rate should

revert to a rate below 28.0% in the near term.

Foreign currency translation differences for foreign

operations, arising where the Company has funded the

underlying subsidiaries with US$ denominated funding and

the reporting currency of the underlying subsidiary is not in

US$, amounted to US$9.0 million (2015: US$13.9 million),

being directly related to foreign currency movements during

the period.

Basic and diluted earnings per share for the period remained

unchanged at US$0.01.

Interest-bearing debt as at 31 March 2016, totalled

US$51.8 million, resulting in a debt to total equity ratio of

29.8%. Off-setting the debt service reserve account amount

in respect of the senior debt facility of US$9.8 million,

reduces the debt to equity ratio to 24.2%. The long-term

targeted debt to equity ratio is 15.0%.

The Group complied with all the senior debt facility financial

covenants as at 31 March 2016 other than for the debt

service cover ratio. The lenders condoned the breach of

the debt service cover ratio which resulted, in part, from

the impact on production of the section 54 safety related

stoppages during Q1 FY2016, the fall in commodity prices

and reduced sales volumes of chrome concentrates.

The packing credit facility (chrome pre-shipment finance)

of US$12.5 million provided by the Group's bankers was

not renewed during the interim period, with the bankers

continuing to provide post shipment finance. The Group

continues to enter into appropriate chrome concentrate

pre-pay arrangements to part fund its working capital

requirements. As at 31 March 2016 outstanding deliveries

for approximately 80.8 kt of metallurgical and chemical grade

chrome concentrates were still due and the outstanding

amount for the chrome pre-pay, which is included in

trade and other payables, as at that date amounted to

US$6.4 million.

The Group is de-risked from a capital spend perspective

with a focus on stay in business capital with additions to

property, plant and equipment for the period amounting to

US$6.4 million, including an amount of US$3.1 million relating

to the capitalisation of deferred stripping. The depreciation

charge amounted to US$4.6 million (2015: US$5.4 million).

During the interim period the Group generated net cash

from operations of US$18.2 million (2015: US$15.4 million).

Cash on hand amounted to US$11.1 million (2015:

US$26.7 million). In addition, the Group holds US$9.8 million

in a debt service reserve account.

With the demonstrated ability to mine and process at the

required levels to achieve steady state production and the

recovery in the commodity prices subsequent to the interim

period, the "emphasis of matter" paragraph contained in the

audit report for the financial year ended 30 September 2015

has been removed.

PRINCIPAL BUSINESS RISKS

Material risks to the Group are those that substantially

affect the Group's ability to create and sustain value in the

short, medium and long term. Material risks determine

how the Group devises and implements its strategy since

each risk has the potential to impact the Group's ability to

achieve its strategic objectives. Each risk also carries with it

challenges and opportunities. The Group's strategy takes

into account known risks, but risks may exist of which the

Group is currently unaware. An overview of the material

risks which could affect the Group's operational and financial

performance was included in the Group's 2015 Annual

Report which is available on the Group's website. The

following risks have been identified which may impact the

Group over the next six months.

Regulatory compliance

In April 2016, the South African Government released a

draft reviewed Mining Charter for public comment. There

is no assurance that the Mining Charter will be adopted in

its draft form or revised again to inter alia, set new, higher or

different Historically Disadvantaged South Africans (HDSA)

or Black Economic Empowerment ownership targets, or that

the definition of persons who constitute HDSAs will not

be changed or substituted. If there is any future increase in

HDSA ownership targets or any change or substitution in

the definition of HDSAs, the Group may have to amend the

ownership structure of Tharisa Minerals in order to comply

with the new requirements.

The Group is required to comply with a range of Health

and Safety Laws and Regulations in connection with its

mining, processing and on mine logistics activities. Regular

inspections are conducted by the Department of Mineral

Resources to ensure compliance. Any perceived violation of

the Regulations could lead to a temporary shutdown of all or

a portion of the Group's mining operations.

Labour unrest in South Africa

Whilst labour relations are currently stable, the risk of

potential unrest remains particularly with the pending local

government elections scheduled for 3 August 2016 which

may contribute to heightened labour and community unrest

regionally.

In 2015, the Group concluded a collective agreement with

the National Union of Mineworkers, the majority trade

union at the Tharisa Mine, determining wage increases over

the next three years until June 2018.

Unscheduled breakdowns

The Group's performance is reliant on the consistent

production of PGM and chrome concentrates from the

Tharisa Mine. Any unscheduled breakdown leading to a

prolonged reduction in production may have a material

impact on the Group's financial performance and results of

operations.

Currency risk

The Group's reporting currency is US$. The Group's

operations are predominantly based in South Africa with a

ZAR cost base while the majority of the revenue stream is

in US$ exposing the Group to the volatility and movements

in the ZAR. Fluctuations in the US$ and ZAR may have a

significant impact on the performance of the Group.

Commodity prices

The Group's revenues, profitability and future rate of growth

depends on the prevailing market prices of PGMs and

chrome. A sustained downward movement in the market

price for PGMs and/or chrome may negatively affect the

Group's profitability and cash flows.

Financing and liquidity

The activities of the Group exposes it to a variety of financial

risks including market, commodity prices, credit, foreign

exchange and interest rate risks. The Group closely monitors

and manages these risks. Cash forecasts are regularly

updated and reviewed including sensitivity scenarios with

reference to the above risks.

BOARD APPOINTMENT

Tharisa welcomes Dr Carol Bell to the board as an

independent non-executive director with effect from

23 March 2016.

SUBSEQUENT MARKET CONDITIONS

Post the half-year results, both PGM and chrome concentrate

prices have recorded a recovery. By mid Q3 FY2016, the

PGM basket price was at approximately US$715/oz and

current chrome trading prices for July 2016 delivery were at

approximately US$150/t. At the same time, the ZAR to US$

exchange rate weakened to approximately ZAR15.0.

OUTLOOK

Tharisa's plans to reach steady state are materialising

and the Group continues towards achieving the targeted

recoveries required to maintain these production levels.

Tharisa expects continued strong operational performance

for the remainder of the year with a focus on improving

the ROM chrome grade and recoveries for both PGM and

chrome concentrates.

These interim results reinforce the Groups sustainable

competitive advantage of being a profitable co-producer of

PGM and chrome concentrates from a large scale, long life

open pit operation weathering commodity and exchange

rate volatility.

Tharisa would like to thank its team and directors for their

continued support in achieving these interim results.

Apart from the IFRS reviewed condensed consolidated

financial statements prepared for submission to the JSE,

the Group also needs to prepare reviewed condensed

consolidated financial statements for Cyprus regulatory

purposes which are in accordance with IFRS as adopted by

the EU. A number of new and revised IFRS standards and

interpretations have not yet been adopted by the EU while

the Group may elect to early adopt such interpretations

and standards in terms of IFRS. There are no numerical

differences in this regard.

STATEMENT BY THE MEMBERS OF THE

BOARD OF DIRECTORS AND THE

COMPANY OFFICIALS RESPONSIBLE FOR

THE DRAFTING OF THE CONDENSED

CONSOLIDATED INTERIM FINANCIAL

STATEMENTS ACCORDING TO THE CYPRUS

SECURITIES AND EXCHANGE COMMISSION

LEGISLATION

In accordance with sections 10(3)(c) and 10(7) of Law No.

190(I)/2007, as amended, providing for the transparency

requirements of issuers whose securities are admitted to

trading on a regulated market (the Transparency Law),

we, the members of the Board of Directors of Tharisa

plc, responsible for the preparation of the condensed

consolidated interim financial statements of Tharisa plc for

the period ended 31 March 2016, hereby declare that to the

best of our knowledge:

a) the condensed consolidated interim financial

    statements for the period ended 31 March 2016:

   -  have been prepared in accordance with

      International Accounting Standard 34: Interim

      Financial Reporting and as stipulated for under

      section 10(4) of the Transparency Law, and

   -  give a true and fair view of the assets and liabilities,

       the financial position and profit or losses of

       Tharisa plc and its undertakings, as included in

       the condensed consolidated interim financial

       statements as a whole; and

b) the adoption of a going-concern basis for the

    preparation of the financial statements continues to

    be appropriately based on the foregoing and having

    reviewed the forecast financial position of the Group; and

c) the interim management report provides a fair review

    of the information required by section 10(6) of the

    Transparency Law.

Loucas Pouroulis	Executive Chairman
Phoevos Pouroulis	Chief Executive Officer
Michael Jones	Chief Finance Officer
David Salter	Lead Independent Non-executive
	Director
Antonios Djakouris	Independent Non-executive
	Director
Omar Kamal	Independent Non-executive
	Director
Brian Cheng	Non-Executive Director
Carol Bell	Independent Non-executive
	Director
Joanna Ka Ki Cheng	Alternate Non-executive Director
	to Brian Cheng

Paphos

10 June 2016

SUMMARISED PRODUCTION DATA

							Financial
		Quarter	Quarter	Quarter	Half year	Half year	year
		ended	ended	ended	ended	ended	ended
		31 March	31 December	31 March	31 March	31 March	30 September
		2016	2015	2015	2016	2015	2015
Reef mined	kt	1 234.2	1 124.4	1 042.1	2 358.6	1 948.0	4 183.2
Stripping ratio	m(3)
	waste/m(3)
	reef	7.1	6.4	9.8	6.8	10.0	10.7
Reef milled	kt	1 199.6	997.4	1 167.1	2 197.0	2 198.7	4 400.4
PGM flotation feed	kt
tonnes		942.3	765.8	907.2	1 708.1	1 712.2	3 446.2
PGM rougher feed	g/t
grade		1.74	1.61	1.65	1.68	1.65	1.62
6E PGMs produced	koz	36.0	24.0	33.0	60.0	57.4	118.0
PGM recovery	%	68.5	60.4	68.6	65.0	63.1	65.8
Average PGM	US$/oz
contained metal
basket price		685	687	935	686	945	885
Average PGM	ZAR/oz
contained metal
basket price		10 849	9 865	10 991	10 448	10 888	10 608
Cr(2)O(3) ROM grade	%	18.3	18.5	18.8	18.4	18.7	18.3
Chrome recovery	%	63.9	61.5	57.5	62.8	56.7	58.0
Chrome yield	%	27.7	27.3	26.2	27.5	25.6	25.5
Chrome concentrates	kt
produced		332.3	272.1	305.5	604.4	563.3	1 122.2
Metallurgical grade	kt	259.9	238.7	283.6	498.6	515.9	1 009.4
Specialty grades	kt	72.4	33.4	21.9	105.8	47.4	112.8
Metallurgical grade	US$/t CIF
chrome concentrate	China
contract price		81	124	155	106	156	158
Metallurgical grade	ZAR/t CIF
chrome concentrate	China
contract price		1 262	1 777	1 742	1 562	1 793	1 894
Average exchange	ZAR:US$
rate		15.8	14.2	11.7	15.0	11.5	12.0

INDEPENDENT AUDITORS' REVIEW REPORT ON

INTERIM FINANCIAL STATEMENTS

TO THE SHAREHOLDERS OF THARISA PLC

We have reviewed the condensed consolidated financial

statements of Tharisa plc,on pages 16 to 20 contained in the

accompanying interim report, which comprise the condensed

consolidated statement of financial position as at 31 March

2016, and the condensed consolidated interim statements of

profit or loss and other comprehensive income, changes in

equity and cash flows for the six months then ended, and

selected explanatory notes.

DIRECTORS' RESPONSIBILITY FOR THE

INTERIM FINANCIAL STATEMENTS

The directors are responsible for the preparation and

presentation of these interim financial statements in

accordance with the International Accounting Standard,

(IAS) 34 Interim Financial Reporting, and for such internal

control as the directors determine is necessary to enable the

preparation of interim financial statements that are free from

material misstatement, whether due to fraud or error.

AUDITORS' RESPONSIBILITY

Our responsibility is to express a conclusion on these interim

financial statements. We conducted our review in accordance

with International Standard on Review Engagements (ISRE)

2410, Review of Interim Financial Information Performed by the

Independent Auditor of the Entity. ISRE 2410 requires us to

conclude whether anything has come to our attention that

causes us to believe that the interim financial statements are

not prepared in all material respects in accordance with the

applicable financial reporting framework. This standard also

requires us to comply with relevant ethical requirements.

A review of interim financial statements in accordance with ISRE

2410 is a limited assurance engagement. We perform procedures,

primarily consisting of making inquiries of management and

others within the entity, as appropriate, and applying analytical

procedures, and evaluate the evidence obtained.

The procedures performed in a review are substantially less

than and differ in nature from those performed in an audit

conducted in accordance with International Standards on

Auditing. Accordingly, we do not express an audit opinion on

these financial statements.

CONCLUSION

Based on our review, nothing has come to our attention

that causes us to believe that the accompanying condensed

consolidated interim financial statements of Tharisa plc for

the six months ended 31 March 2016 are not prepared,

in all material respects, in accordance with IAS 34, Interim

Financial Reporting.

Maria A. Karantoni FCA

Certified Public Accountant and Registered Auditor

for and on behalf of

KPMG Limited

Certified Public Accountants and Registered Auditors

14 Esperidon Street

1087 Nicosia

Cyprus

10 June 2016

Condensed consolidated statement of profit or loss and other comprehensive income

for the six months ended 31 March 2016

		Six months ended
		31 March 2016	31 March 2015
		Reviewed	Reviewed
	Notes	US$'000	US$'000
Revenue	4	85 997	123 700
Cost of sales	4	(64 863)	(100 895)
Gross profit		21 134	22 805
Other income		182	27
Administrative expenses	5	(10 709)	(10 741)
Results from operating activities		10 607	12 091
Finance income		410	664
Finance costs		(5 738)	(6 443)
Changes in fair value of financial assets at fair value through
profit or loss		3	(24)
Changes in fair value of financial liabilities at fair value through
profit or loss		(813)	775
Net finance costs		(6 138)	(5 028)
Profit before tax		4 469	7 063
Tax	6	(1 371)	(2 193)
Profit for the period		3 098	4 870
Other comprehensive income
Items that may be classified subsequently to profit or loss
Foreign currency translation differences for foreign operations, net of tax		(9 034)	(13 905)
Other comprehensive income, net of tax		(9 034)	(13 905)
Total comprehensive expense for the period		(5 936)	(9 035)
Profit for the period attributable to
Owners of the Company		2 900	3 361
Non-controlling interests		198	1 509
		3 098	4 870
Total comprehensive expense for the period attributable to
Owners of the Company		(3 882)	(7 104)
Non-controlling interests		(2 054)	(1 931)
		(5 936)	(9 035)
Profit/(loss) per share
Basic and diluted profit/(loss) per share (US$)	7	1	1

The notes on pages 21 to 31 are an integral part of these financial statements.

Condensed consolidated statement of financial position

as at 31 March 2016

			30 September
		31 March 2016	2015
		reviewed	Audited
	Notes	US$'000	US$'000
Assets
Property, plant and equipment	8	204 126	214 518
Goodwill		843	919
Other financial assets	10	2 282	1 636
Long-term deposits	9	9 754	10 656
Deferred tax assets		664	1 954
Non-current assets		217 669	229 683
Inventories	11	15 408	8 951
Trade and other receivables		25 546	37 979
Other financial assets	10	46	55
Current taxation		203	144
Cash and cash equivalents		11 119	24 265
Current assets		52 322	71 394
Total assets		269 991	301 077
Equity
Share capital	12	256	256
Share premium		452 512	452 512
Other reserve		47 245	47 245
Foreign currency translation reserve		(83 487)	(76 705)
Revenue reserve	12	(202 791)	(206 566)
Equity attributable to owners of the company		213 735	216 742
Non-controlling interests		(39 848)	(37 794)
Total equity		173 887	178 948
Liabilities
Provisions	13	3 633	4 088
Borrowings	14	27 765	36 329
Trade and other payables	16	778	-
Deferred tax liabilities		168	13
Non-current liabilities		32 344	40 430
Borrowings	14	18 554	33 692
Other financial liabilities	15	534	388
Current taxation		91	98
Trade and other payables		44 581	47 521
Current liabilities		63 760	81 699
Total liabilities		96 104	122 129
Total equity and liabilities		269 991	301 077

The condensed consolidated interim financial statements were authorised for issue by the board of directors on 10 June 2016.

Phoevos Pouroulis	Michael Jones
Director	Director

The notes on page 21 to 31 are an integral part of these financial statements.

Condensed consolidated statement of changes in equity

for the six months ended 31 March 2016

	ATTRIBUTABLE TO OWNERS OF THE COMPANY
				Foreign currency
	Share	Share	Other	translation	Revenue		Non-controlling
	capital	premium	reserve	reserve	reserve	Total	interests	Total equity
	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000	US$'000
Balance at 1 October 2015	256	452 512	47 245	(76 705)	(206 566)	216 742	(37 794)	178 948
Total comprehensive income for the period
Profit for the period	-	-	-	-	2 900	2 900	198	3 098
Other comprehensive income
Foreign currency translation differences	-	-	-	(6 782)	-	(6 782)	(2 252)	(9 034)
Total comprehensive income for the period	-	-	-	(6 782)	2 900	(3 882)	(2 054)	(5 936)
Transactions with owners of the Company
Contributions by and distributions to owners
Equity-settled share based payments	-	-	-	-	875	875	-	875
Contributions by owners of the Company	-	-	-	-	875	875	-	875
Total transactions with owners of the Company	-	-	-	-	875	875	-	875
Balance at 31 March 2016 (Reviewed)	256	452 512	47 245	(83 487)	(202 791)	213 735	(39 848)	173 887
Balance at 1 October 2014	255	452 363	47 245	(47 361)	(216 596)	235 906	(26 052)	209 854
Total comprehensive income for the period
Net profit for the period	-	-	-	-	3 361	3 361	1 509	4 870
Other comprehensive income
Foreign currency translation differences	-	-	-	(10 465)	-	(10 465)	(3 440)	(13 905)
Total comprehensive income for the period	-	-	-	(10 465)	3 361	(7 104)	(1 931)	(9 035)
Transactions with owners of the Company
Equity settled share based payments	-	-	-	-	100	100	-	100
Contributions by owners of the Company	-	-	-	-	100	100	-	100
Total transactions with owners of the Company	-	-	-	-	100	100	-	100
Balance at 31 March 2015 (Reviewed)	255	452 363	47 245	(57 826)	(213 135)	228 902	(27 983)	200 919

The notes on pages 21 to 31 are an integral part of these financial statements.

Condensed consolidated statement of cash flows

for the six months ended 31 March 2016

		Six months ended
		31 March 2016	31 March 2015
		Reviewed	Reviewed
	Notes	US$'000	US$'000
Cash flows from operating activities
Profit for the period		3 098	4 870
Adjustments for
Depreciation of property, plant and equipment		4 599	5 421
Loss on disposal of property, plant and equipment		67	-
Impairment losses on property, plant and equipment		-	3
Impairment losses on goodwill		25	33
Impairment losses on inventory		183	250
Changes in fair value of financial liabilities at fair value through profit
or loss		813	-
Interest income		(410)	(450)
Changes in fair value of financial assets at fair value through profit or
loss		(3)	(727)
Interest expense		5 172	6 392
Tax		1 371	2 193
Equity-settled share based payments		1 049	202
		15 964	18 187
Changes in
Inventories		(6 845)	3 683
Trade and other receivables		12 433	(12 754)
Trade and other payables		(2 946)	7 005
Provisions		(250)	(175)
Cash from operations		18 356	15 946
Income tax paid		(126)	(529)
Net cash flows from operating activities		18 230	15 417
Cash flows from investing activities
Interest received		384	371
Additions to property, plant and equipment	8	(6 375)	(9 113)
Proceeds from disposal of property, plant and equipment		107	-
(Additions)/refunds of other financial assets		(744)	2 917
Net cash flows used in investing activities		(6 628)	(5 825)
Cash flows from financing activities
Refund of long term deposits		575	824
Changes in non current trade and other payables		769	-
(Repayments of)/proceeds from bank credit and other facility borrowings		(15 490)	11 289
Net proceeds from obligations under new loan		1 698	759
Repayment of secured bank borrowings and loan to third party		(9 694)	(14 072)
Interest paid		(1 507)	(579)
Net cash flows used in financing activities		(23 649)	(1 779)
Net (decrease)/increase in cash and cash equivalents		(12 047)	7 813
Cash and cash equivalents at the beginning of the period		24 265	19 629
Effect of exchange rate fluctuations on cash held		(1 099)	(709)
Cash and cash equivalents at the end of the period		11 119	26 733

The notes on pages 21 to 31j are an integral part of these financial statements.

Notes to the condensed consolidated interim financial statements

for the six months ended 31 March 2016

1.   REPORTING ENTITY

     Tharisa plc (the Company) is a company domiciled in Cyprus. These condensed consolidated interim financial statements

     of the Company as at and for the six months ended 31 March 2016 comprise the Company and its subsidiaries (together

     referred to as the Group). The Group is primarily involved in platinum group metals (PGM) and chrome mining,

     processing, trading and the associated logistics.

2.   BASIS OF PREPARATION

(a)  Statement of compliance

     These condensed consolidated interim financial statements have been prepared in accordance with International

     Financial Reporting Standards (IFRS), International Accounting Standard, IAS 34 Interim Financial Reporting, the

     Listing Requirements of the JSE Limited and the Cyprus Companies Law, Cap. 113. Selected explanatory notes are

     included to explain events and transactions that are significant to an understanding of the changes in financial position

     and performance of the Group since the last annual consolidated financial statements as at and for the year ended

     30 September 2015. These condensed consolidated interim financial statements do not include all the information

     required for full annual consolidated financial statements, prepared in accordance with IFRS.

     These condensed consolidated interim financial statements were approved by the Board of Directors on 10 June 2016.

(b)  Functional and presentation currency

     The condensed consolidated interim financial statements are presented in United States Dollars (US$) which is the

     Company's functional currency and amounts are rounded to the nearest thousand.

(c)  Going concern basis

     The Group reported a profit before tax for the six months ended 31 March 2016 of US$4 469 thousand (2015:

     US$7 063 thousand). However, the Group had a net current liability position as at that date of US$11 438 thousand

     (2015: US$10 305 thousand). During this period commodity prices and in particular the metallurgical grade chrome

     concentrate price reflected a marked decline following a devaluation of the Renminbi, the currency of the Group's

     main chrome concentrate customers, and a slowdown in the global economic growth projections. Subsequent to

     the reporting period, the chrome concentrate commodity prices have recovered to levels prevailing at the financial

     year ended 30 September 2015 and the order book remains full. The decrease in the profit before tax was mainly

     attributable to commodity prices notwithstanding the improved production levels with mining achieving the required

     4.8 Mt ROM on an annualised basis for the quarter ended 31 March 2016 and with the processing facilities operating at

     the design name plate capacity of 400 ktpm on an annualised basis.

     With the demonstrated ability to mine and process at the required levels to achieve steady state production and the

     recovery in the commodity prices, the financial statements have been prepared on the going concern basis. Should

     the commodity prices, in Rand terms, come under renewed downward pressure the Group would require additional

     working capital funding and the Group may be required to enter into further commodity pre pay arrangements,

     arrange additional working capital loan facilities or undertake an issue of shares for cash to raise any shortfall in working

     capital that may arise in such circumstances.

(d)  New and revised International Financial Reporting Standards and Interpretations

     As from 1 October 2015, the Group adopted all changes to International Financial Reporting Standards (IFRSs), which

     are relevant to its operations. This adoption did not have a material effect on the accounting policies of the Group.

     The following Standards, Amendments to Standards and Interpretations have been issued but are not yet effective for

     annual periods beginning on 1 October 2015. The Board of Directors is currently evaluating the impact of these on

     the Group.

     Standards and Interpretations

     -  IFRS 9 ''Financial Instruments'' (effective the latest as from the commencement date of its first annual period

        beginning on or after 1 January 2018).

     -  IFRS 10, IFRS 12 and IAS 28 (Amendments) "Investment Entities: Applying the Consolidation Exception" (effective

        for annual periods beginning on or after 1 January 2016).

     -  IAS 1 (Amendments) "Disclosure Initiative" (effective for annual periods beginning on or after 1 January 2016).

     -  IFRS 11 (Amendments) ''Accounting for Acquisitions of Interests in Joint Operations'' (effective for annual periods

        beginning on or after 1 January 2016).

     -  IFRS 14 ''Regulatory Deferral Accounts'' (effective the latest as from the commencement date of its first annual

        period beginning on or after 1 January 2016).

     -  IFRS 15 ''Revenue from contracts with customers'' (effective for annual periods beginning on or after 1 January 2018).

     -  IAS 16 and IAS 41 (Amendments) "Bearer Plants" (effective for annual periods beginning on or after 1 January 2016).

     -  IAS 27 (Amendments) ''Equity method in separate financial statements'' (effective for annual periods beginning on

        or after 1 January 2016).

     -  Annual Improvements to IFRSs 2012 2014 Cycle (effective the latest as from the commencement date of its first

        annual period beginning on or after 1 January 2016).

     -  IAS 16 and IAS 38 (Amendments) "Clarification of acceptable methods of depreciation and amortisation"

        (effective for annual periods beginning on or after 1 January 2016).

     -  IAS 7 (Amendments) "Disclosure Initiative" (effective for annual periods beginning on or after 1 January 2017).

     -  IAS 12 (Amendments) "Recognition of Deferred Tax Assets for Unrealised Losses" (effective for annual periods

        beginning on or after 1 January 2017).

     -  IFRS 16 "Leases" (effective for annual periods beginning on or after 1 January 2019).

3.   SIGNIFICANT ACCOUNTING POLICIES

     The accounting policies applied by the Group in these condensed consolidated interim financial statements are the

     same as those applied by the Group in its audited consolidated financial statements as at and for the year ended

     30 September 2015.

4.   OPERATING Segments

     The Group has two reportable segments, the PGM segment and the chrome segment. Information regarding the

     results of each reportable segment is included below. Performance is measured based on segment revenue, cost of

     sales and gross profit, as included in the internal management reports that are reviewed by the Group's management.

     Segment revenue, cost of sales and gross profit, are used to measure performance as management believes that such

     information is the most relevant in evaluating the results of each segment.

	PGM	Chrome	Total
Six months ended 31 march 2016 (reviewed)	US$'000	US$'000	US$'000
Revenue	35 904	50 093	85 997
Cost of sales
Cost of sales excluding selling costs	23 663	24 712	48 375
Selling costs	98	16 390	16 488
	23 761	41 102	64 863
Gross profit	12 143	8 991	21 134

     The overhead costs relating to the manufacturing of the PGM and the chrome concentrates are allocated to the

     relevant products based on the relative sales value per product. The allocated percentage for chrome concentrates

     and PGM concentrate accounted for the financial periods under review is 50% for each segment.

	PGM	Chrome	Total
Six months ended 31 march 2015 (reviewed)	US$'000	US$'000	US$'000
Revenue	44 087	79 613	123 700
Cost of sales
Cost of sales excluding selling costs	26 766	44 715	71 481
Selling costs	95	29 319	29 414
	26 861	74 034	100 895
Gross profit	17 226	5 579	22 805

 Geographical information

     The following table sets out information about the geographical location of the Group's revenue from

     external customers. The geographical location analysis of revenue from external customers is based on the country

     of establishment of each customer.

	Six months ended
	31 March 2016	31 March 2015
	Reviewed	Reviewed
	US$'000	US$'000
(i) Revenue from external customers
China	9 673	49 464
South Africa	46 410	49 744
Singapore	4 540	736
Hong Kong	22 605	17 817
Other countries	2 769	5 939
	85 997	123 700

		Six months ended
		31 March 2016	31 March 2015
		Reviewed	Reviewed
		US$'000	US$'000
5.	AdministratiVe exPenses
	Directors and staff costs
	Non-executive directors	245	245
	Executive directors	561	713
	Other key management	417	510
	Group employees	3 798	4 633
		5 021	6 101
	Audit	169	279
	Consulting	1 122	832
	Corporate social investment	66	177
	Depreciation	157	127
	Discount facility and related fees	205	251
	Equity settled share based expense	1 049	-
	Fees for the professional services of the listing	328	73
	Health and safety	101	87
	Insurance	335	694
	Legal and professional	133	249
	Rent and utilities	370	408
	Security	411	302
	Telecommunications and IT related costs	278	261
	Training	254	143
	Travelling and accommodation	165	248
	Sundry expenses	545	509
		10 709	10 741

6.   Tax 

     Tax is recognised based on management's best estimate of the weighted average annual income tax rate expected for

     the full financial year applied to the pre tax income of the interim period.

     The Group's consolidated effective tax rate for the six months ended 31 March 2016 and 2015 was 31.0% and 31.0%

     respectively.

		Six months ended
		31 March 2016	31 March 2015
		Reviewed	Reviewed
7.	EARNINGs PER SHARE
	(i) Basic and diluted earnings per share
	The calculation of basic and diluted earnings per share has been based
	on the following profit attributable to the ordinary shareholders of
	the Company and the weighted average number of ordinary shares
	outstanding.
	Profit for the period attributable to ordinary shareholders (US$'000)	2 900	3 361
	Weighted average number of ordinary shares at 31 March ('000)	255 892	254 781
	Basic and diluted earnings per share (US$ cents)	1	1

     At 31 March 2016 and 31 March 2015, LTIP and SARS awards were excluded from the diluted weighted average

     number of ordinary shares calculation because their effect would have been anti dilutive. The average market value

     of the Company's shares for the purposes of calculating the potential dilutive effect of SARS was based on quoted

     market prices for the period during which the options were outstanding.

     (ii) Headline and diluted headline earnings per share

     The calculation of headline and diluted headline earnings per share has been based on the following headline earnings

     attributable to the ordinary shareholders and the weighted average number of ordinary shares outstanding.

	Six months ended
	31 March 2016	31 March 2015
	Reviewed	Reviewed
Headline earnings for the period attributable to the ordinary shareholders
(note 7 (iii)) ('000)	2 925	3 396
Weighted average number of ordinary shares at 31 March (note 7 (i))
('000)	255 892	254 781
Headline and diluted headline earnings per share (US$ cents)	1	1

     (iii) Reconciliation of profit/(loss) to headline earnings

	Six months ended
	31 March 2016	31 March 2015
	Reviewed	Reviewed
	US$'000	US$'000
	Net	Net
Profit attributable to ordinary shareholders	2 900	3 361
Adjustments:
Impairment losses on goodwill	25	33
Impairment losses on property, plant and equipment	-	3
Tax effect of impairment losses on property, plant and equipment	-	(1)
Headline earnings	2 925	3 396

8.   PROPERTY, PLANT AND EQUIPMENT

     (a) Acquisitions and disposals

     During the six months ended 31 March 2016 and 2015 the Group acquired assets with a cost, excluding capitalised

     borrowing costs, of US$6 375 thousand and US$9 113 thousand respectively.

     During the six months ended 31 March 2016, disposal of property, plant and equipment resulted in a loss on disposal

     of US$67 thousand (2015: US$Nil) being recognised in profit or loss.

     (b) Capital commitments

     At 31 March 2016 and 30 September 2015, the Group's capital commitments for contracts to purchase property, plant

     and equipment amounted to US$2 387 thousand and US$1 431 thousand respectively.

     (c) Securities

     At 31 March 2016 and 30 September 2015, an amount of US$185 093 thousand and US$196 432 thousand of the

     carrying amount of the Group's tangible property, plant and equipment was pledged as security against secured bank

     borrowing and third party borrowing (see note 14).

			30 September
		31 March 2016	2015
		Reviewed	Audited
		US$'000	US$'000
9.	LONG-TERM DEPOSITS
	Long-term deposits	9 754	10 656

				30 September
			31 March 2016	2015
		Fair value	Reviewed	Audited
		hierarchy	US$'000	US$'000
10.	OTHER FINANCIAL ASSETS
	Non-current assets
	Investments in cash funds and income funds (note 10(a))	Level 2	2 279	1 632
	Interest rate caps (note 10(b))	Level 2	3	4
			2 282	1 636
	Current assets
	Investments at fair value through profit or loss
	(note 10(c))	Level 1	46	55
			46	55

     (a) The investments in cash funds and income funds are unsecured and held at fair value through profit or loss

         (designated).

         During the year ended 30 September 2014, the investment managed by a collective investment entity namely

         Stanlib Collective Investments was ceded to Lombard Insurance Group ("Lombard") against the guarantee issued

         by Lombard to the Department of Mineral Resources of South Africa ("DMR") for the rehabilitation provision.

         During the year ended 30 September 2015, a portion of the investment was withdrawn and the remaining balance

         of the investment as at 31 March 2016 and 30 September 2015 totalling US$932 thousand and US$960 thousand

         respectively is ceded to Lombard against the guarantee issued by Lombard on behalf of Arxo Logistics Proprietary

         Limited to Transnet Freight Rail, a division of Transnet SOC Limited to the value of ZAR12 000 thousand.

         Investment in Money Market and Current Accounts totalling US$1 347 thousand (2015: US$672 thousand) is

         managed by Guardrisk Insurance Company Limited ("Guardrisk") against the guarantee issued by Guardrisk

         to the DMR for the rehabilitation provision. The guarantee issued by Guardrisk has a fixed cover period from

         1 December 2014 to 30 November 2017.

         The underlying investments are in money market and other funds and the fair value has been determined by

         reference to their quoted prices.

     (b) Interest rate caps were obtained from a consortium of financial institutions, against the floating 3 month

         Johannesburg Interbank Agreed Rate (JIBAR) on 25% of the secured bank borrowing. The interest rate caps

         have a strike rate of 7.5% and terminate on 31 March 2017. The balance is held at fair value through profit or loss

         (held for trading). Fair values are based on quoted market prices at the end of the reporting period without any

         deduction for transaction costs.

     (c) Investments at fair value through profit or loss are valued based on quoted market prices at the end of the

         reporting period without any deduction for transaction costs.

			30 September
		31 March 2016	2015
		Reviewed	Audited
		US$'000	US$'000
11.	INVENTORIES
	Finished products	8 586	4 283
	Ore stockpile	3 341	1 257
	Work in progress	-	195
	Consumables	3 481	3 216
	Total carrying amount	15 408	8 951

     During the six months ended 31 March 2016 and 31 March 2015, the Group wrote down its inventories by

     US$183 thousand and US$250 thousand respectively. The write down is included in cost of sales in the condensed

     consolidated statement of profit or loss and other comprehensive income.

     Inventories are subject to a general notarial bond in favour of the lenders of the secured bank borrowings.

12.  ORDINARY SHARE CAPITAL AND REVENUE RESERVE

     The Company did not issue any ordinary share capital and did not declare or pay any dividends during the six months

     ended 31 March 2016 and 31 March 2015.

     The revenue reserve includes the accumulated retained profit and losses of the Group. The revenue reserve is

     distributable for dividend purposes.

13.  PROVISIONS

     The Group has a legal obligation to rehabilitate the site where the Group's mine is located, once the mining operations

     cease which would be when the current mine life of the project expires.

     The provision for future rehabilitation at 31 March 2016 and 30 September 2015 amounted to US$3 633 thousand

     and US$4 088 thousand respectively. During the six months ended 31 March 2016 and 31 March 2015, the provision

     for future rehabilitation recognised/(derecognised) to inventories was US$(205) thousand and US$677 thousand

     respectively and to mining assets and infrastructure US$(187) thousand and US$134 thousand respectively. The

     amounts recognised in profit or loss for the same periods amounted to US$162 thousand and US$182 thousand

     respectively.

     An insurance company provided a guarantee to the DMR to satisfy the requirements of the Mineral and Petroleum

     Resources Development Act with respect to environmental rehabilitation and the Group has pledged as collateral its

     investments in interest bearing debt instruments to the insurance company to support this guarantee.

     The interest rate used for estimating future costs is the long term risk free rate as indicated by the RI86 government

     bond of South Africa, which was 9.10% and 8.45% as at 31 March 2016 and 30 September 2015 respectively. The net

     present value of the current rehabilitation estimate is based on the average of the long term inflation target range of

     the South African Reserve Bank of 4.50% as at 31 March 2016 and 30 September 2015.

     The Group expects that the timing of the outflows relating to the provision for rehabilitation is uncertain at this stage

     but it estimates that it will probably take place at the end of the life of the mine and infrastructure.

		31 March 2016	30 September 2015
		Reviewed	Audited
		US$'000	US$'000
14.	BORROWINGS
	Non-current
	Secured bank borrowing	27 214	36 329
	Other borrowings - obligations under new loans	551	-
		27 765	36 329
	Current
	Secured bank borrowing	13 595	14 346
	Other borrowings - bank credit and other facility	1 808	17 298
	Other borrowings - obligations under new loans	1 369	164
	Other borrowings - loan payable to related party	1 782	1 884
		18 554	33 692

     There have been no changes in the terms, securities and financial covenants of the above borrowing facilities during

     the six months ended 31 March 2016, compared to those disclosed in the Group's consolidated financial statements

     as at and for the year ended 30 September 2015 other than the following:

     (a)  Insurance premium finance provided to Tharisa Minerals Proprietary Limited, a subsidiary of the Group, for an

          amount of ZAR13 383 thousand repayable in twelve monthly instalments commencing 1 December 2015. The

          finance is guaranteed by Tharisa plc for an amount of ZAR14 000 thousand and bears interest at a rate of 8.72%

          p.a.

     (b)  Finance provided to purchase equipment by Tharisa Minerals Proprietary Limited, a subsidiary of the Group, for

          an amount of ZAR20 770 thousand repayable in twenty four monthly instalments commencing 29 February 2016.

          The finance bears interest at prime +3% and the equipment will remain the property of the company providing

          the finance until the full purchase price has been paid.

     (c)  During the period under review, the Group's US$12 500 thousand bank credit facility was not extended and the

          charge over bank deposits totalling US$2 500 thousand was released.

     (d)  The senior debt providers condoned the breach of the debt service cover ratio as at 31 March 2016.

				30 September
			31 March 2016	2015
		Fair value	Reviewed	Audited
		hierarchy	US$'000	US$'000
15.	OTHER FINANCIAL LIABILITIES
	Discount facility	Level 2	534	388

     Discount facility relates to fair value adjustments on the limited recourse disclosed receivables discounting facility

     ("discount facility") with ABSA, Nedbank and HSBC in terms of which 98% of the sales of platinum, palladium and

     gold (included in PGM) are discounted at JIBAR (3 month) + 200 basis points. The discount facility is for an amount of

     ZAR300 000 thousand. The balance is held at fair value through profit or loss (designated).

16.  TRADE AND OTHER PAYABLES

     Non-current trade and other payables represent a trade payable that has been discounted and is repayable in twelve

     monthly instalments commencing on 30 October 2017. The balance is measured at amortised cost.

17.  FAIR VALUES

     The Board of Directors considers that the fair values of significant financial assets and liabilities approximate their

     carrying values at each reporting date.

		Six months ended
		31 March 2016	31 March 2015
		Reviewed	Reviewed
		US$'000	US$'000
18.	RELATED PARTY TRANSACTIONS
	Significant transactions carried at arm's length with related parties during
	the period were as follows:
	Interest expense
	Langa Trust	103	125
	Arti Trust	112	157
	Ditodi Trust	11	12
	Makhaye Trust	11	12
	The Phax Trust	23	24
	The Rowad Trust	11	12
	Moira June Jacquet-Briner	11	12
		282	354

     Interest expense is calculated at prime +2% per annum and payable quarterly.

     Compensation to key management of the Company for the period ended 31 March 2016 and 2015 are set out in the

     tables below:

	Salary	Other	Post	Share
	and	short-term	employment	based
	fees	benefits	benefits	payments	Total
	US$'000	US$'000	US$'000	US$'000	US$'000
2016 compensation to key management
(Reviewed)
Non-executive directors' remuneration	245	-	-	-	245
Executive directors' remuneration	518	4	39	-	561
Other key management remuneration	343	11	63	-	417
Total	1 106	15	102	-	1 223
2015 compensation to key management
(reviewed)
Non-executive directors' remuneration	245	-	-	-	245
Executive directors' remuneration	638	21	31	23	713
Other key management remuneration	401	50	43	16	510
Total	1 284	71	74	39	1 468

19.  CONTINGENT LIABILITIES

     During the year ended 30 September 2015, the Company received a "letter before action" from a firm of solicitors

     representing a shareholder which asserts intended claims against, inter alia, the Company for damages purporting

     to arise in the context of the listing of the Company on the JSE and the compulsory conversion of the convertible

     redeemable preference shares held by that shareholder in the Company into ordinary shares as provided for in the

     terms of the convertible redeemable preference shares. The matter is subject to the contractual arbitration proceedings

     agreed between the parties. The shareholder has as yet not invoked the arbitration proceedings.

     In accordance with paragraph 92 of IAS 37 Provisions, contingent liabilities and contingent assets no further information

     is disclosed in relation to the subject matter on the grounds that it may prejudice the position of the Company in a

     dispute with other parties.

     During the six months ended 31 March 2016, Tharisa Minerals Proprietary Limited terminated the services of a mining

     contractor based on non-performance and instructed its attorney to institute proceedings to recover damages arising

     from the non-performance. The contractor has, as a consequence of the termination of the contract, instituted legal

     proceedings against Tharisa Minerals Proprietary Limited claiming unlawful dispossession of the mine or alternatively

     those parts of the mine which it was working at the time of termination. The Board of Directors of Tharisa Minerals

     Proprietary Limited has taken legal advice and, based on the advice received, is of the view that the mining contractor's

     case has no merit and Tharisa Minerals Proprietary Limited will defend itself against any action taken against it.

     The following reclassifications have been made to the comparative figures:

		Six months ended
		31 March 2016	31 March 2015
		Reviewed	Reviewed
		US$'000	US$'000
20.	COMPARATIVE FIGURES
	consolidated statement of profit or loss and other comprehensive
	income
	Finance income	-	(751)
	Changes in fair value of financial assets at fair value through profit or loss	-	(24)
	Changes in fair value of financial liabilities at fair value through profit
	or loss	-	775

21.  MINE RESOURCE AND RESERVE STATEMENT

     The Group owns and operates the Tharisa Mine, a co-producing, open pit PGM and chrome mine located in

     the Bushveld Complex of South Africa. The proven and probable open pit and underground mine reserve as at

     31 December 2015 certified by independent experts amounted to 106.4 million tonnes. This reserve as at 31 March

     2016, due to normal mining operations, has been reduced by approximately 1.2 million tonnes. The total mineral

     resource similarly decreased as a result of depletion during the period.

22.  SUBSEQUENT EVENTS

     On 8 June 2016, the Company listed on the main board of the London Stock Exchange under the ticker THS.

     The Board of Directors are not aware of any material events after the reporting period which have a bearing on the

     understanding of the condensed consolidated interim financial statements.

LEGAL DISCLAIMER

Some of the information in these materials may contain projections or forward-looking statements regarding future events,

the future financial performance of the Group, its intentions, beliefs or current expectations and those of its officers,

directors and employees concerning, among other things, the Group's results of operations, financial condition, liquidity,

prospects, growth, strategies and business. You can identify forward looking statements by terms such as "expect",

"believe", "anticipate", "estimate", "intend", "will", "could", "may" or "might" or the negative of such terms or other similar

expressions. These statements are only predictions and actual results may differ materially. Unless otherwise required by

applicable law, regulation or accounting standard, the Group does not intend to update these statements to reflect events

and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could

cause the actual results to differ materially from those contained in projections or forward-looking statements of the Group,

including, among others, general economic conditions, the competitive environment, risks associated with operating in

South Africa and market change in the industries the Group operates in, as well as many other risks specifically related to

the Group and its operations.

www.tharisa.com

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/9377A_-2016-6-12.pdf

 

 

END

 

 

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