JOHANNESBURG (miningweekly.com) – Dual-listed platinum group metals (PGMs) miner Tharisa Minerals has successfully concluded project completion tests in respect of a R1-billion senior debt finance facility, which will significantly reduce the group’s cost of debt.
In a note to shareholders on Tuesday, Tharisa explained that the milestone proved that it could mine economically at the required run rate of at least 400 000 t/m, and that Tharisa’s plants had the technical capability to process this material at the nameplate capacity. It also proved that the plants could produce specified PGM and chrome concentrates.
Tharisa CFO Michael Jones noted that, while commodity prices had recorded a recovery from recent lows, the commodity markets remained volatile and that, to further derisk its business, Tharisa would continue to reduce its debt levels.
The debt finance facility, utilised in full, was first raised in February 2012 to fund the expansion of Tharisa’s mining footprint and for the construction of the Voyager Plant.
As at September 30, the balance outstanding on the facility was R502.2-million, with a final scheduled repayment date set for March 31, 2019.
Further, the group holds a cash amount of R135.3-million as a debt service reserve account, resulting in a net amount of R366.9-million owed on the facility as at September 30.
Tharisa targets a debt-to-equity ratio of 15% and, as at September 30, the total debt-to-equity ratio was about 17.5%.