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Nqobile Bhebhe, Senior Business Reporter
INTEGRATED resource group, Tharisa says it has concluded a US$130m in a debt facility with two financial institutions as part of its ongoing debt capital programme which has significant bearing on its Zimbabwe mining projects

Tharisa is currently building its 70 percent owned Karo PGM mine in Zimbabwe for US$391 million.
In December last year, the mining house had raised US$31.8 million for the Karo project through a three-year bond issue on Zimbabwe’s Victoria Falls Stock Exchange.

In a statement yesterday, the platinum group metals (‘PGMs’) and chrome co-producer dual-listed on the Johannesburg and London stock exchanges, said subject to the fulfilment of certain conditions precedent it has concluded a US$130 million debt facility with Société Générale and Absa Bank Limited as part of its ongoing debt capital programme.

It added that spanning a 42-month tenure, the facility is part of Tharisa’s funding strategy of optimising its capital requirements as the company invests in its assets and pursues its growth objectives, while maintaining a sustainable dividend policy.

Tharisa CFO, Mr 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 US$ 80m over the past seven years”.

The facility comprises a term loan of US$80 million and a revolving US$50 million facility, secured by commodity offtake agreements.

The capital raise follows the successful issue of a three-year USD32 million bond listed on the VFEX on 16 December 2022.

Victoria Falls Stock Exchange

According to the firm, as at 31 December 2022, Tharisa had a cash balance of US$213.9 million and debt of US$112.8 million with an improved net cash position of US$101.1 million.

The cash and debt numbers include the fully consolidated capital raise on the VFEX.

The Karo US$4,2 billion project in Mhondoro has commenced operations with the first ore expected in the processing mill by July 2024.

The project is an upcoming tier PGMs mining operation situated on the Great Dyke.

Being home to the world’s second largest known platinum deposits after South Africa, Zimbabwe currently has three active PGMs producers namely Zimplats, Mimosa Mining Company and Unki Mine.

Karo’s platinum project is only one of several multi-million and billion-dollar mining investments that have kicked started or are in the planning phases, which started after the Second Republic was born in 2017, including the giant Manhize steel plant in Chivhu.

Zimbabwe is envisioning a US$12 billion mining industry by end of 2023, which is a key enabler of Vision 2030 of achieving an upper-middle-income economy by 2030, while leaving no one and no place behind.