African Rainbow Minerals Limited · JSE:ARI
African Rainbow Minerals — Merger or Acquisition (December 2021)
19 slides from African Rainbow Minerals's merger presentation, December 2021
Slide 1: Investor presentation Bokoni Platinum Mine Acquisition
Investor presentation Bokoni Platinum Mine Acquisition
Slide 2: Executive Chairman quote on the BPM acquisition
“We are pleased to have concluded the acquisition of BPM which includes a large, high-grade resource and existing infrastructure. The acquisition and development of BPM will enable us to scale our platinum group metals (PGM) portfolio, improve ARM’s global competitiveness and allow us to pursue furt
Slide 3: Disclaimer and forward looking statements
Disclaimer Throughout this presentation a range of financial and non-financial measures are used to assess the company’s performance, including, but not limited to financial measures that are not defined under International Financial Reporting Standards (IFRS). These adjusted financial measures are
Slide 4: Transaction overview
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Slide 5: Salient features of the Transaction
Salient features of the Transaction ▪ A new wholly owned subsidiary of African Rainbow Minerals Platinum Proprietary Limited (ARM Platinum) has been established to acquire 100% of the shares and claims in Bokoni Platinum Mines Proprietary Limited (BPM) from Anglo American Platinum Limited (AAPL) and
Slide 6: Salient features of the Transaction
Salient features of the Transaction ▪ ARM has sufficient cash resources to fully fund the purchase consideration and will fund it in the most efficient manner. Financing ▪ A Definitive Feasibility Study (DFS) will be completed in approximately 12 months. ▪ Approximately R5.3 billion of development c
Slide 7: About Bokoni Platinum Mine
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Slide 8: BPM is a large high-grade opportunity
BPM is a large high-grade opportunity Overview of BPM PGM mining operation located in Limpopo Province, South Africa and forms part of the North-Eastern Limb of the Bushveld Complex. Formerly, 100% owned by Bokoni Platinum Holdings Proprietary Limited (BPH) which is owned 49% by AAPL, through its wh
Slide 9: BPM is a large high-grade opportunity
BPM is a large high-grade opportunity Overview of BPM As of 31 December 2020 it had measured, indicated and inferred mineral resources of 153 million ounces contained 4E PGMs with a grade of 5.87 g/t. BPM’s Mineral Resource comprises of approximately 64% UG2 and 36% Merensky. The UG2 is of a much hi
Slide 10: Established infrastructure that reduces time to production
0 Established infrastructure that reduces time to production Shafts ▪ Brakfontein Shaft which accesses the Merensky horizon was developed in 2007. ▪ Middelpunt Hill was developed for extraction of the UG2 reef. ▪ Brakfontein and Middelpunt Hill shafts have relatively new shaft infrastructure. ▪ Toge
Slide 11: BPM is an attractive mineral resource opportunity
BPM is an attractive mineral resource opportunity 2nd largest PGM resource in South Africa 3rd highest resource grade ■ Second largest PGM resource within the Bushveld Complex with 153 Moz 4E PGM in total Mineral Resource of which 55 Moz 4E PGM is in the Measured Resource Peer 1 Peer 1 category (36%
Slide 12: BPM Mineral Resources Statement
BPM Mineral Resources Statement 4E Cu Ni Category Split Reef Split Tonnes 4E grade grade grade (Mt) Moz Merensky g/t % % Inferred 36% 46% Measured Merensky 36% Measured 92.8 4.82 14 0.08 0.21 Indicated 47.8 4.85 7 0.08 0.20 UG2 Inferred 205.8 5.02 33 0.08 0.20 Indicated 64% 18% Total Merensky 346.4
Slide 13: BPM has potential for an attractive cost position based on a new DFS plan
BPM has potential for an attractive cost position based on a new DFS plan Expected to be in the bottom half of the global cost curve at steady state production post implementation of the new DFS ■ Eastern Limb asset with 24 000 Bokoni UG2 (Mechnanised favourable geological 22 000 R/oz 6E cash cost c
Slide 14: Transaction rationale
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Slide 15: BPM is a compelling fit and opportunity for ARM
BPM is a compelling fit and opportunity for ARM Strong improvement to portfolio Mineral Attractive Eastern Limb portfolio Substantially increases resource base Resource grade (Moz 4E) (g/t 4E) Close Bokoni Mine Modikwa Two Rivers proximity to ■ 135% to by 0,8 g/t existing ARM to 42 mining 266Moz (4E
Slide 16: The transaction significantly repositions ARM Platinum's portfolio mix
The transaction significantly repositions ARM Platinum’s portfolio mix Grow total PGM production… …to position ARM as a top producer ■ Bokoni’s steady state production (of c. 300koz pa 6E) is equivalent to ARM’s 2021 total PGM production on an attributable basis. Bokoni ■ ARM Platinum could be posit
Slide 17: New DFS Plan for Bokoni
New DFS Plan for Bokoni ARM has developed a new UG2 mechanised mine plan for Bokoni ▪ Initially mine the UG2 orebody exclusively – allowing for a Precious metal to be recovered (6E Koz PGM) >23 year mine plan mining Measured UG2 Resources with high confidence levels, commencing in 2024 with: 400 ✓ H
Slide 18: New DFS Plan for Bokoni (continued)
New DFS Plan for Bokoni (continued) ARM has developed a new UG2 mechanised mine plan for Bokoni ▪ Targets: Life of Mine ore mining schedule ✓Average 6E production of approximately 300,000 ounces per 250 000 6.0 annum Average Monthly Reef Tonnes Mined 5.0 200 000 ✓Within the bottom half of the 4.0 15
Slide 19: Thank you
Thank you Control room at Black Rock Manganese Ore Mine
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