Platinum Group Metals Ltd. · TSX:PTM
Platinum Group Metals — Shareholder Meeting (January 2010)
38 slides from Platinum Group Metals's shareholder meeting presentation, January 2010
Slide 1: 2009 Annual General Meeting
my PLATINUM GROUP MM metacs 2009 Annual General Meeting Platinum for a New World
Slide 2: Disclosure
Disclosure This presentation has been prepared by Platinum Group Metals Ltd. (“Platinum Group” or the “Company”). Information included in this presentation regarding the Company’s Company s mineral properties has been compiled by RR. Michael Jones Jones, P P.Eng, Eng the President and Chief Executiv
Slide 3: Forward Looking Statements
Forward Looking Statements Certain of the statements made herein, including statements regarding the timing of future activities and achievements by the Company, future anticipated exploration and development programs, completion of a Feasibility Study in respect of the Western Bushveld Joint Ventur
Slide 4: Overview
Overview • High grade near surface - attractive returns • Competitive on key industry factors for supply: Safety, Labour and Power • Mechanized decline mine development provides for rapid, p safe and reliable access • Shallow depth and high grade – less power per ounce
Slide 5: WBJV Project #1
WBJV Project #1 • Steady state ounces 275,000 per year 4E • Measured and Indicated Mineral Resources 8.2Moz 4E • Reserves - 4.67 M ounces 4E See Disclosure, Forward Statements and Risk Factors
Slide 6: Team
Team • R Mi R. Michael h l JJones – President/CEO/Director P id t/CEO/Di t • 20 years of experience as a professional geological engineer • Past President of gold producer Cathedral Gold and VP with Aber Resources - $1B Mine Construction • Founder of Glimmer Resources, MAG Silver and West Timmins Mi
Slide 7: Construction Readiness
Construction Readiness • Current permits allow for underground development • Large L areas off surface f rights i ht purchased h d • Power and water designs near complete • Team experienced p in mine finance,, construction and operation in Canada, South Africa and Zimbabwe • Banking and partnership
Slide 8: WBJV
WBJV • 7 g/t resource grade for 10 years • Revised mine plan calls for production of ore in 2011 and first concentrate sales first quarter of 2013 • Project 3 adds further 1.9M ounces 4E Inferred
Slide 9: WBJV
WBJV • Peak funding - US$443m • Life of Mine Capital cost estimate over 22 years - US$595m • At a platinum price of US$1,343 per oz, the Project IRR is 24% pre tax
Slide 10: WBJV
WBJV • Platinum Group’s 74% NPV share pre-tax is US$726m (NPV5), US$ 352 (NPV10) • Post tax NPV US$431m (NPV5) and US$188m (NPV10) • Received Minister approval of the majority title t transfers f for f the th 74% transaction t ti • Final titles imminent
Slide 11: Production Profile
@ Ounces recovered le yu O } OW Cc O 4E Pt,Pd,Rh, Au Ounces recovered Ww & Product - e - - Se aN
Slide 12: Operating Costs
Operating Costs WORKING COSTS EXCLUDING US$/4E oz R /tonne SMELTER DISCOUNT milled Cost during ramp up excluding $543 R717 any power generation Cost at steady state grid power post 2015 $521 R491 Life of Mine Average $526 R525
Slide 13: Net Present Value (Pre-Tax)
Net Present Value (Pre-Tax) (Pre Tax) EVALUATION (NPV) ~ Pre-tax NPV 5% NPV 10% NPV 12.5% Discount Discount Discount 3Y Year TTrailing ili R (Milli (Million)) 7 848 7,848 3 804 3,804 2 578 2,578 Price (Case A) US$ (Million) 981 475 322 IRR 23.54% Recent Prices R (Million) 3,671 1,330 622 (C (Case B)
Slide 14: Net Present Value (Post-Tax)
Net Present Value (Post (Post-Tax) Tax) EVALUATION (NPV) ~ Post-tax NPV 5% NPV 10% NPV 12.5% Discount Discount Discount 3Y Year TTrailing ili R (Milli (Million)) 4 660 4,660 2 031 2,031 1 229 1,229 Price (Case A) US$ (Million) 582 254 154 IRR 18.94% Recent Prices R (Million) 2,016 425 -59 (C (Case B
Slide 15: Capital Costs and Funding
Capital Costs and Funding • Pl Platinum ti G Group M Metals t l (74%) US$ 328M Wesizwe acquisition payment US$ 51M ((8R:$)) US$ 378M • Current Models on Conventional Project Funding at 50/50 Debt Equity • Solid banking interest –well known, high margin, long life project • Other models for best valu
Slide 16: Active Platinum Exploration Funded by Joint Ventures
Active Platinum Exploration F d db Funded by JJoint i tVVentures t • Sable Joint Venture - Adjoining Xstrata Eland Mine ($1B purchase) -23% interest if Sable earns in by funding US$5m in exploration • War Springs Joint Venture -North Limb, extensions to resources – 35% interest funded by Government
Slide 17: Share Structure
Share Structure Shares Issued 92, 815,667 Warrants ($1.75/Dec. 2010) 12,537,150 O i Options 6 144 625 6,144,625 __________________________________________ F ll Diluted Fully Dil t d 111 497 442 111,497,442 Market Capitalization $250M Cash $33M Investments (MAG (MAG-TSX) TSX) $700K January 2010
Slide 18: Back To Reality
Back To Reality 5 Year Platinum High 2252.66 Low 774,66 2400 2400 2200 2200 2000 2000 18600 1800 1600 1600 1400 1460 1200 1200 1000 1000 300 800 600 600 400 www, kKitco,com 400 o o c = o o a =| 9 = om] = ased_on New York Close 1 | PLATINUM GROUP METALS
Slide 19: Peak Platinum?
Peak Platinum? Historic Platinum Production Per Region (1975-2008) (000' oz platir 1975 1978 1981 984 987 1990 993 1996 1999 2002 2005 = @ South Africa m Russia | North America @ Others 2008 Source: Johnson Matthey, Raymond James Ltd.
Slide 20: Platinum Price vs. Global Auto Sales
Platinum US$ 2200 2000 1800 1600 1400 1200 1000 800 600 400 200 Platinum Price vs. Global Auto Sales 72 70 68 66 64 62 - 60 58 Mn Units 56 54 52 50 1998 !| 1999 ! 2000 ! 2001 ! 2002 ! 2003 ! 2004 ! 2005 ! 2006 ! 2007 ! 2008 ! 2009 Source: J.D. Power and Associates and Johnson Matthey, December, 2009
Slide 21: Strong Supportive Shareholders
Strong Supportive Shareholders • Geologic Resource Partners LLC (USA) • JPMorgan Asset Management U.K. Ltd. (UK) • BAC Platinum Fund (Zurich) • Gold 2000 (Zurich) • Julius Baer Gold Fund (Zurich) • Genesis Investment Management, LLP (UK) • Franklin Templeton Inc. (USA) • Chilton Investment Company,
Slide 22: Conclusions
Conclusions • Three strategic options: Build, Partner/Hedge or Sell • Pl Plan calls ll ffor commencementt off construction t ti in i late l t 2009 or early 2010. • Looking for the best return for shareholders – all paths are active • Right Time for Platinum – High Grade and Near surface
Slide 23: Appendix: Updated Feasibility Study
APPENDIX October 2009 Updated Feasibility Study
Slide 24: Financial Details - Updated
Financial Details - Updated METAL PRICES & EXCHANGE Case A Case B RATE 3 Year Recent Prices Trailing Prices Platinum (US$/oz) 1,343 1,295 Palladium (US$/oz) 322 296 Rhodium (US$/oz) 4,951 1,650 Gold (US$/oz) 807 997 Copper (US$/tonne) 6,428 6,250 Nickel (US$/tonne) 25,529 18,000 Rand/US$ 8.00 8.00
Slide 25: Financial Details - Updated
Financial Details - Updated FINANCIAL PARAMETERS AND INDICATORS at R8.00/US$ Basket Prices 4E R/kg US$/oz R/kg US$/oz (Pt, Pd, Rh, Au) Case A Case A Case B Case B Basket Price Merensky Reef 304,751 1,185 263,526 1,025 Basket Price UG2 Reef 368 571 368,571 1 433 1,433 274 639 274,639 1 068 1,068
Slide 26: Financial Details - Updated
Financial Details - Updated Smelter and Refinery Discount Smelter US$/oz US$/oz Discount Case A Case B Reduction in Basket Price MR 15.16% $180 $155 R d ti iin B Reduction Basket k tPPrice i UG2 15 16% 15.16% $217 $162 Received Basket Price for MR 15.16% $1,005 $869 Received Basket Price for UG2 15.
Slide 27: Financial Details - Updated
Financial Details - Updated TAXES –Royalty Pending Finalization G Government t Royalty R lt Payment: P t PGM (% off R Revenue)) 3% Government Royalty Payment: Base Metals (% of Revenue) 2% Company Tax (% of Profit) 28% Secondary Tax on Companies (STC) (% of Profit) 10%
Slide 28: Financial Details - Updated
Financial Details - Updated CAPITAL COST Rand US$ $ Peak funding Case A 3,545,000,000 443,125,000 Peak funding Case B 3,727,000,000 465,875,000 Total Life of Mine Capital Costs 4,761,849,843 595,231,230
Slide 29: Sensitivity Three Year Trailing Metals Prices - Pre-tax
Sensitivity Three Year Trailing M t l Prices Metals Pi ~PPre-tax t P Parameter t Change iin Ch Change iin Ch Change iin Ch Parameter Parameter Parameter PGM Basket Price -20% 0% 20% IRR ((pre-tax) t ) 14 5% 14.5% 23 5% 23.5% 31 2% 31.2% NPV (5% Discount) R(M) 3,494 7,848 12,202 US$ (M) 437 981 1,525
Slide 30: Sensitivity Three Year Trailing Metals Prices - Post-tax
Sensitivity Three Year Trailing M t l Prices Metals Pi ~P Post-tax tt P Parameter t Change iin Ch Change iin Ch Change iin Ch Parameter Parameter Parameter PGM Basket Price -20% 0% 20% IRR (post-tax) 11.3% 18.9% 25.3% NPV (5% Discount) R(M) 1,892 4,660 7,393 US$ (M) 236 583 924 Opex -20% 0% 20% IRR
Slide 31: WBJV Project 1 Measured Mineral Resource
WBJV Project 1 Measured Cut-off Million Grade Mining Tonnes Moz Mineral (cm.g/t) Tonnes 4E Width PGE PGE’s R Resource (M ) (Mt) (g/t) ( ) (m) (4E) (4E) (4E) Project 1 300 6.603 8.38 1.33 55.333 1.779 MR Project 1 300 7.464 4.26 1.34 31.797 1.022 UG2 Total 300 14.067 6.19 1.34 87.13 2.801 Measured QP
Slide 32: WBJV Project 1 Measured Resources Prill Splits
WBJV Project 1 Measured Pt Pt Pd Pd Rh Rh Au Au Resources Prill (g/t) (g/t) (g/t) (g/t) Splits Project 1 MR 64% 5.36 27% 2.26 4% 0.34 5% 0.42 Project 1 UG2 63% 2.68 26% 1.11 10% 0.43 1% 0.04 QP Charles Muller of Minxcon, -See details Press Release and 43-101 reports on Sedar
Slide 33: WBJV Project 1 Indicated Mineral Resource
WBJV Project 1 Indicated Cut-off Million Grade Mining Tonnes Moz Mineral (cm.g/t) Tonnes 4E Width PGE PGE’s R Resource (M (Mt (g/t) ( ) (m) (4E) (4E) (4E) Project 1 & 300 11.183 7.25 1.24 81.077 2.607 1A MR Project 1 & 300 19.209 4.46 1.39 85.672 2.754 1A UG2 Total 300 30.392 5.49 1.34 166.749 5.361
Slide 34: WBJV Project 1 Indicated Prill Splits
WBJV Project 1 Indicated Prill Pt Pt Pd Pd Rh Rh Au Au Splits (g/t) (g/t) (g/t) (g/t) Project 1 & 1A MR 64% 4.64 27% 1.96 4% 0.29 5% 0.36 Project 1 & 1A 63% 2.81 26% 1.16 10% 0.45 1% 0.04 UG2 QP Charles Muller of Minxcon, -See details Press Release p and 43-101 reports on Sedar
Slide 35: WBJV Statement of Reserves for the Merensky Reef
WBJV ~ Statement of Reserves f the for th Merensky M k Reef R f Tonnes (000) 4E Content 4E t g/t g tonne Moz Merensky Proven 6,678 5.61 37,478 1.21 Merensky Probable 11,333 5.44 61,677 1.98 Total Merensky Mineral Reserves 18,011 5.51 99,155 3.19 QP Charles Muller of Minxcon Resources, Resources -See
Slide 36: WBJV Statement of Reserves for the UG2 Reef
WBJV ~ Statement of Reserves f the for th UG2 Reef R f Tonnes (000) 4E Content 4E t g/t g tonne Moz UG2 Proven 5,086 3.37 17,126 0.55 UG2 Probable 8,449 3.41 28,831 0.93 Total UG2 Mineral Reserves 13,535 3.40 45,957 1.48 QP Charles Muller of Minxcon Resources, Resources -See See details Press Releas
Slide 37: WBJV Statement of Reserves
WBJV Statement of Reserves Reserve Prill Splits p Pt Pt Pd Pd Rh Rh Au Au (g/t) (g/t) (g/t) (g/t) Project 1 & 1A MR 64% 3.52 27% 1.49 4% 0.22 5% 0.28 Project 1&1A UG2 63% 2.15 26% 0.88 10% 0.34 1% 0.03 QP Charles Muller of Minxcon Resources, -See details Press Release and 43- 101 reports on Sedar, T
Slide 38: Contacts
Contacts: Platinum Group Metals Ltd Suite 328 – 550 Burrard Street Vancouver, BC V6C 2B5 +1604-899-5450 info@platinumgroupmetals.net Platinum Pl ti Group G Metals M t l RSA (Pt (Pty)) Ltd Technology House Victory Park Johannesburg g +27 11 782 2186
Platinum Group Metals — Shareholder Meeting (January 2010) on 6ix