Sylvania Platinum Ltd. · LSE:SLP
Sylvania Platinum — Investor Presentation (July 2011)
20 slides from Sylvania Platinum's investor presentation, July 2011
Slide 1: Introducing Sylvania Platinum
Introducing Sylvania Platinum www.sylvaniaplatinum.com
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 • Listings – Australian Stock Exchange (ASX:SLP) – London’s AIM market (AIM:SLP) – Shares in issue: 301,251,805 – Sylvania Platinum now successfully listed in Bermuda • Market Capitalisation: GBP 111.5 million * • Shareholders with + 5% of shares in issue (>50% of equity) o IMR sub
Slide 4: Sylvania assets in the Bushveld complex of South Africa
Sylvania assets in the Bushveld complex of South Africa Northern limb section Volspruit section Volspruit section Eastern limb dump operations Western limb dump operations Everest North Section 4
Slide 5: Sylvania Dump Operations (Typical configuration)
Sylvania Dump Operations (Typical configuration) Chrome tailings dump & current arisings Chrome Chrome product recovery plant PGM flotation plant Ball mill Thickener PGM concentrate 5
Slide 6: Sylvania dump operations operational and performing well
Sylvania dump operations operational and performing well. Sylvania dump Operations (SDO) average for all plants • 5 operating dump plants. Milsell, Mooinooi, Lannex, Steelpoort and Doornbosch. 6
Slide 7: Sylvania Dumps average for all plants
Sylvania Dumps average for all plants • Record ounces produced each quarter in 2011, continuous growth targets being met – Good cash margins maintained 7
Slide 8: Sylvania Resources
Sylvania Resources • Dump Resource Status – Dump Material , Current Arisings & Run of Mine o Mooinooi ROM project underway o Tweefontein plant (6th plant) on stream May 2012 • Mineral Resource Status – Volspruit Mine (Northern and Southern Ore Bodies) o Southern orebody inferred, prospect holes plan
Slide 9: Sylvania Dump Operations Report and Forecasts
Sylvania Dump Operations Report and Forecasts • Record ounces produced each quarter, continuous growth targets being met – Operations remain on-track to exceed annual forecast of 40,000 oz Market Commitment o Q1: 8,500 Q2: 9,500 Q3: 10,500 Q4: 11,500 2011: 40,000 Q1,2 & 3 Act & Forecast o Q1: 8,758
Slide 10: Company Growth: Everest North
Company Growth:- Everest North • Exploitation strategy determined between AQPSA and Sylvania – A 50:50 partnership contract signed – No capital will be spent on processing plant o Project will use capacity from Everest South – Underground mine will follow the open pit operation – Tailings storage at
Slide 11: Company Growth: Volspruit; mine, smelter & refinery project
Company Growth:- Volspruit; mine, smelter & refinery project • Overview – Bulk sample taken and full test work completed to prove process from “ore to alloy ingot” o Metal alloy from Volspruit test material produced by Mintek in February 2011 using DC arc furnace o Some benefits of base metals inclu
Slide 12: Northern limb: Southern section called Volspruit
Northern limb: Southern section called Volspruit • 2 massive ore bodies to be mined via two opencast pits • Planned for 3 x 100,000 ton feed plants per month Volspruit Near surface ore body 12
Slide 13: Volspruit & Northern Limb Project Development Strategy
Volspruit & Northern Limb Project Development Strategy • Operating Strategy Mine – The Volspuit project becomes the model for future mines • Operations Overview – Open pit mine • Conventional drill and blast Pelletizer Crushing and Milling • Ore transported to concentrator plant Flotation – Processi
Slide 14: Company Growth: Northern Limb Projects
Company Growth:- Northern Limb Projects • Four geological targets or “Hot Spots” identified – Each hot spot could potentially lead to a new mine • New mines will roll out as per the Volspruit model – Mining and processing methods will be “ Cut and paste” from Volspruit – Processing plants identical
Slide 15: Company Growth: Northern Limb Hot Spots
Company Growth:- Northern Limb Hot Spots SYLVANIA RESOURCES -12000 E -11000 E -10000 E -9000 E -8000 E -7000 E -6000 E Hotspots at Aurora-Hacra -2598000 N The MSA Group Date: 29 March 2011N -2598000 0 250 500 750 1000 1250 1500 Metres -2599000 N -2599000 N Kransplaats 422LR Aurora 397LR HOTSPOT 1 Ri
Slide 16: Company Growth: Northern Limb Iron Ore
Company Growth:- Northern Limb Iron Ore • Magnetite Iron ore discovered on prospecting licenses Cracouw – Deposit runs parallel to the PGM deposit Harriets TN Wish • Will spin out the Iron Ore into a separate company. Main Magnetite Layer – Consideration of $30m to $50m to Sylvania Aurora • Encourag
Slide 17: Sylvania Platinum Indicative Ounce Production Forecast
Sylvania Platinum Indicative Ounce Production Forecast NPV optimisation indicated steady build‐up preferable Market Guidance October 2010 17
Slide 18: Attractive company valuations
Attractive company valuations Recent research reports – Ambrian (Nomad/ Broker); – RBC Capital Markets; – Investec Securities; – Mirabaud; – Edison Investment Research; – Evolution Securities; – Fat Prophets; – Hogan & Partners; and – Veritas Securities. Low cost producer Buy recommendations 18
Slide 19: Conclusion
conclusion • One of the lowest cost producers in the platinum space • Sylvania dump operations profitable and generating positive cash flow • Margins consistently above 50% • Share buy back implemented • New advisors appointed • Largest shareholder is the owner of the chrome dumps that we exploit fo
Slide 20: Contacts
Contacts +44 777 533 7175 Terry McConnachie terry@sylvania.co.za UK and South Africa +44 796 917 0622 Louis Carroll louis@sylvania.co.za +27 11 673 1171 South Africa Nigel Trevarthen +27 82 574 2251 nigel@sylvania.co.za Website: Sylvaniaplatinum.com 20
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