Sylvania Platinum Ltd. · LSE:SLP
Sylvania Platinum — Investor Presentation (October 2008)
22 slides from Sylvania Platinum's investor presentation, October 2008
Slide 1: Investor presentation October 2008
Investor presentation October 2008
Slide 2: Disclaimer
Disclaimer Certain forward-looking statements may be contained in this presentation which include, without limitation, expectations regarding platinum prices, estimates of production, operating expenditure, capital expenditure and projections regarding the completion of capital projects as well as t
Slide 3: Sylvania in brief
Sylvania in brief • South African PGM producer Quarterly production • ASX and AIM-listed 7,000 6,000 • (ASX, AIM:SLV) 5,000 Ounces • S&P/ASX 300 Index 4,000 3,000 • 180m shares in issue 2,000 1,000 • quality shareholders ‐ Sep 2007 Q Dec 2007 Q Mar 2008 Q Jun 2008 Q Sep 2008 Q • Share price: A$0.81;
Slide 4: Vision
Vision • Leading South African mid-tier PGM producer • Low-risk tailings and shallow mining assets 4
Slide 5: Key drivers
Key drivers 1. Business model • high-margin, low-risk surface operations 2. Sector • PGM market fundamentals remain positive 3. People • relevant experience with track record in value creation 4. Future • growth funded by strong cash flows and balance sheet 5
Slide 6: Business model
1. Business model PGM extraction from Near-surface, hard-rock chrome tailings PGM exploration Ehlobo Metals (Pty) Ltd Sylvania Everest North Dump Operations (exercising option Exploration Great Australian CTRP to acquire 100% (NOPR) Resources (SDO) of Vygenhoek) • Aurora (100%) • Harriet’s Wish (50%
Slide 7: Location – in the heart of 'PGM country'
Location – in the heart of ‘PGM country’ Northern Limb Harriet's Wish/Cracouw Bushveld Igneous Polokwane Complex Great Australian Eastern Limb Resources Western Limb Steelpoort Lannex Everest North Mooinooi Chrome tailings Near-surface Brits exploration Rustenburg Pretoria CTRP Millsell Johannesburg
Slide 8: Low-risk surface operations
Low-risk surface operations Target cash cost Chrome tailings dump ~US$300/oz Chrome Chrome product recovery plant PGM flotation plant Ball mill Thickener PGM concentrate 8
Slide 9: Track record – robust profit growth
Track record – robust profit growth • Pre-tax profit growth • high PGM prices • higher production (+30%) • lower costs • US$308/oz (-15%) • operating margins >80% 120 100 80 ZAR ‐ Millions 60 40 20 - Sep 2007 Q Dec 2007 Q Mar 2008 Q Jun 2008 Q Turnover Net profit BT & exchange variances (attributabl
Slide 10: Revenue per ounce - PGM (3E+Au)
Revenue per ounce - PGM (3E+Au) Q3 FY08 Q4 FY08 $/oz $/oz Total 2 737 2 692 Revenue split Production split 10 Data - SDO basket PGM (3E+Au) price; revenue, production splits 10
Slide 11: Capital - Lannex and Mooinooi
Capital - Lannex and Mooinooi 11
Slide 12: Project development timeline
Project development timeline Status Project 2008 2009 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Lannex Broken Hill Chrome Plant Lannex PGM Plant Mooinooi Mooinooi Chrome Plant Mooinooi PGM Plant Key Completed In progress Comissioning 12
Slide 13: Attractive valuation
Attractive valuation • Recent research reports: • Ambrian (Nomad); Landsbanki; Investec; Mirabaud • buy recommendations • Landsbanki 1/10/08 forecast: 96% upside 13
Slide 14: Sector: positive long-term PGM industry fundamentals
2. Sector: positive long-term PGM industry fundamentals • Demand growth • autocatalysts, emissions legislation, developing nations • Supply-side constraints – South Africa ~80% • Sylvania less affected by power constraints US$2200/oz PGM basket: Pt US$968/oz US$400/oz Pd US$198/oz Rh US$3 350/
Slide 15: People
3. People • Experienced board focused on value creation • Committed and talented employees and contractors • SHE-driven culture • Empowered • Ehlobo Metals (Pty) Ltd Richard Rossiter Alastair Ruiters John Cooke Terry McConnachie Louis Carroll (Non-executive (Non-executive (Non-executive (Managing Di
Slide 16: Future
4. Future • Next two plants by early calendar 2009 • Ramping up to > 70koz pa Ounces - 100% 90,000 80,000 70,000 60,000 HERE 50,000 NOW 40,000 30,000 20,000 10,000 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 SDO CTRP 16
Slide 17: Illustrative targets – aggressive growth focus
Illustrative targets – aggressive growth focus Ounces - 100% 180,000 160,000 140,000 Downstream 120,000 M&A 100,000 Upside target Shallow mining – eg. Ev North 80,000 More tailings 60,000 Improved recoveries 40,000 20,000 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 SDO CTRP 17
Slide 18: Investment case
Investment case 1. Business model – high margin, low costs and low risks; attractive valuation 2. Sector – positive PGM fundamentals 3. People – growth focus and track record 4. Future – growth funded by robust cash flows 18
Slide 19: Contacts
Contacts Terry McConnachie +27 82 553 4256 UK and South Africa James Duncan +27 82 892 8052 Australia Richard Rossiter +61 41 868 8338 19
Slide 20: Investor presentation October 2008
Investor presentation October 2008
Slide 21: Share price decline benchmarked
Share price decline benchmarked 21 Source: Mineweb, data covers past 12 months
Slide 22: Comparison between a Sylvania surface retreatment operation and a conventional platinum mine
Comparison between a Sylvania surface retreatment operation and a conventional platinum (Pt) mine Conventional Pt mine Sylvania surface retreatment operation 22
Sylvania Platinum — Investor Presentation (October 2008) on 6ix