Tharisa Minerals secures R2.4bn debt facility
Tharisa Minerals, the platinum group metals (PGMs) and chrome co-producer said yesterday it has concluded $130 million (about R2.4 billion) commodity offtake-based financing agreement with Société Générale and Absa Bank.
Spanning a 42-month term, the debt facility is part of its funding strategy to optimise its capital requirements as the mining firm invests in its assets and pursues its growth objectives, while maintaining a sustainable dividend policy.
"The facility comprises a term loan of $80m and a revolving $50 million facility, secured by commodity offtake agreements. This capital raise follows the successful issue of a three-year $32m bond listed on the Victoria Falls Stock Exchange (VFEX) on December 16, 2022," the group said.
Tharisa chief financial officer Michael Jones said: “The Société Générale and Absa senior debt facilities, as well as the significant free cash flow generated from the Tharisa Mine, provide significant flexibility to Tharisa’s capital allocation policy.
"This debt raise forms part of our strict approach to capital allocation and combines ongoing investment in our producing mining operations and our growth projects, whilst maintaining our commitment to delivering a sustainable dividend to our shareholders, which has exceeded $80m over the past seven years".
Tharisa said the agreement with Société Générale and Absa was an excellent outcome for the company, and another key step in Tharisa’s development as not only a hugely innovative mining group focused on critical metals, but also a company committed to sustainable growth for the benefit of all of its stakeholders.
"On December 31, 2022, Tharisa had a cash balance of $213.9m and debt of $112.8m, with an improved net cash position of $101.1m. The cash and debt numbers include the fully consolidated capital raise on the VFEX," it said.
Tharisa produces PGMs and chrome from its open pit mine in Rustenburg and is currently building its 70%-owned Karo PGM mine in Zimbabwe for $391m.
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