Eastern Platinum Limited · TSX:ELR
Eastern Platinum — Investor Presentation (June 2024)
29 slides from Eastern Platinum's investor presentation, June 2024
Slide 1: Advancing PGM Projects in South Africa
Advancing PGM Projects in South Africa June 2024 TSX:ELR | JSE:EPS
Slide 2: Forward-Looking Statements
Forward-Looking Statements The information contained in this Presentation is provided for informational purposes only and does not constitute an offer to sell, or This Presentation contains certain statements that may be “forward-looking statements” or “forward-looking information” within the the so
Slide 3: Eastplats Highlights
Eastplats Highlights Eastern Platinum Limited (Eastplats) owns, directly egend impopo ush eld ompl ex and indirectly, a number of platinum group metals pera tions (PGM) and chrome assets in South Africa roje cts ilometres All Eastplats’ properties are situated within the auteng orth est Bushveld Com
Slide 4: Achievements
Achievements • May 2023 - Completes rights offering raising more than CAD $7 million; proceeds to support the restart of the Zandfontein underground at CRM • November 2023 - Commences blasting activities at the Crocodile River Mine, initiating the soft restart of the Zandfontein underground section
Slide 5: Leadership Team
Leadership Team MANAGEMENT BOARD SHARE CAPITAL May 13, 2024 George D. Dorin Director, Board Chair, Corporate Governance & Compensation Wanjin Yang Committee . Chair Chief Executive Officer . Mr. Yang is a senior exploration geologist with over 30 years’ of experience in major mineral Changyu (Charli
Slide 6: Focus on PGMs
Focus on PGMs Market Outlook1 • Internal combustion engines (ICE) to remain a large, but declining component of the drivetrain mix through the 2030s • Growth in vehicle production driven by battery electric vehicles (BEV) and fuel cell electric vehicles (FCEV), the latter of which still require PGMs
Slide 7: PGM-Focused Portfolio
PGM-Focused Portfolio Significant organic growth opportunities Project located on the western limb of the BCX, approx. Crocodile River Mine Reserves and Resources (UG2 Reef) RIVER MINE (CRM) 70km north-northwest from Johannesburg Proven and Probable: 14.58M tons (T) @ 3.68 g/t 4E CROCODILE • Current
Slide 8: Crocodile River Mine – High Quality Chrome and PGMs
Crocodile River Mine – High Quality Chrome and PGMs Project located on the western limb of the BCX, approx. Crocodile River Mine Reserves and Resources (UG2 Reef) RIVER MINE (CRM) 70km north-northwest from Johannesburg Proven and Probable: 14.58M tons (T) @ 3.68 g/t 4E CROCODILE • Current mine lease
Slide 9: Record FY 2023 Revenue
Record FY 2023 Revenue Focus on operational efficiency initiatives to lower costs and improve bottom line Revenue Mine Operating EPS 120 Income 0.1 35 0.08 100 30 0.06 0.04 80 25 0.02 60 20 0 15 -0.02 40 -0.04 10 -0.06 20 5 -0.08 0 0 -0.1 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 T
Slide 10: Crocodile River Mine - Revenue & EBITDA
Crocodile River Mine - Revenue & EBITDA Revenue US$000s EBITDA US$000s 40,000 Chrome Revenue PGM Revenue EBITDA 12,000 10,000 35,000 8,000 PGM to account for 30,000 6,000 25,000 4,000 65% of Revenue by 2,000 2025-2026 20,000 - 15,000 (2,000) (4,000) 10,000 (6,000) 5,000 (8,000) - (10,000) TSX: ELR |
Slide 11: Chrome and PGM Production
Chrome and PGM Production Tailings retreatment project Total Project to Chrome production 2019 2020 2021 2022 2023 FY 2023 Total tailing re-mined Tonnes 1,778,525 2,328,732 2,504,777 2,548,785 2,247,705 11,408,524 Total chrome concentrate Tonnes 588,006 987,003 773,274 602,112 486,166 3,436,561 Reco
Slide 12: Zandfontein Mine Facility Map
Zandfontein Mine Facility Map 0 250 500 m TSX: ELR | JSE: EPS 12
Slide 13: Zandfontein Plant & Equipment
Zandfontein Plant & Equipment TSX: ELR | JSE: EPS 13
Slide 14: Mineral Reserves and Resources
Mineral Reserves and Resources Mineral Reserves January 1, 2022 Delivered 4E grade 4E content tonnes kt g/t kg koz Proved 2,282 4.75 10,829 348 Probable 12,298 3.48 42,777 1,375 Total 14,580 3.68 53,605 1,723 Mineral Resources January 1, 2022 Mineral resource cut-off of 1.7 g/t 4E applied Geo Loss M
Slide 15: Crocodile River Mine – Economic Highlights
Crocodile River Mine – Economic Highlights Chrome cashflow upside 90,000 4.50 1.7Moz 4E Reserves (Zanfontein) 80,000 4.00 US $1,502/oz (including TSF) 70,000 3.50 US $1,405/oz(excluding TSF) 60,000 3.00 Cost (4E)(AISC) Recovered Oz Grade (g/t) 50,000 2.50 US $202 m (including TSF) 40,000 2.00 US $18
Slide 16: Zandfontein Underground Soft Restart Plan
Zandfontein Underground Soft Restart Plan 22-year Life of Mine Zandfontein UG Additional capital needed to fully re-start Zandfontein underground operations Immediate minable stoping (proved) for 2 years with 10 stoping crews on average Total plus probable reserves on 4-5 level USD Item Mining Capit
Slide 17: Zandfontein Underground Soft Restart
Zandfontein Underground Soft Restart 12-month ramp as of January 31, 2024 Tonnage Ramp-Up • At a normalized run rate, 50,000 the initial/soft restart phase 45,000 is expected to produce 40,000 tons of PGM 40,000 ore/month by end of 2024 35,000 • The next phase will see 30,000 operations ramp up to T
Slide 18: Valuation Comparison
Valuation Comparison EV/RESERVE 20241,2 EV/RESOURCE 20241,2 Opportunity to Re-rate by: 175.3 Re-negotiating nion oal payable 114.2 113.6 Re-starting production and 104.0 98.1 Processing at Zandfontein EV/RESERVE underground; low capital AVG – 85.8x 84.6 82.9 costs ersus peers Continuing to implem
Slide 19: PGM Prill Split Underground Model
PGM Prill Split Underground Model Industrial-driven, benefits from market demand and strong PGM metal price 4E Basket Price ($) - Payable Impala Model (2010 - 2024) CRM UG2 reef Prill split 4E $4,000.00 $3,500.00 Rhodium, Gold, 0.77% 9.86% $3,000.00 $2,500.00 Palladium, $2,000.00 27.32% $1,500.00 $1
Slide 20: Focusing on Operational Efficiencies
Focusing on Operational Efficiencies • Long-term price consensus for the global PGM basket is expected to be inline with today’s prices; however, ~ 90% of PGM producers operate at or below this cost ZAR1,997 / milled t ($1,405 / oz 4E) • CRM cost per ounce based CRM on the 2022 technical report, whi
Slide 21: Focused on Operational Efficiencies
Focused on Operational Efficiencies What we are doing differently at Crocodile River Mine 2024 Operational Objectives Implemented Efficiencies • Complete the second phase of TSF capital works program; • Drilling: move to handheld with hydropower → more effective power, • Optimize Main Plant Circuit
Slide 22: Surface and Underground Infrastructure
Surface and Underground Infrastructure Past investment of USD $526m+ and USD $106m+ since new leadership appointed in 2016. Total investment to date over USD $632m Main pump station Explosive storage Vertical shaft Ore silo Main conveyor on 4 level Chairlift Rock winder Man winder TSX: ELR | JSE: EP
Slide 23: High Safety Standards
High Safety Standards Committed to providing a safe working environment Zero Harm Safety Culture ✓ 1.16 million fatality free shifts as of September 2023 (over 10-year period) ✓ Hydropower and nets for support ✓ State of the art support design to improve efficiencies and ergonomics ✓ Modernized scra
Slide 24: Social Labour Plan (SLP) - Going Beyond Mining
Social Labour Plan (SLP) - Going Beyond Mining ZAR14.8m (~US$800k) spent on LED and SLP1 since 2019 Local employment Stakeholder forums SMME business development This project creates In place and operating well Currently in place. Have trained 56 local through the assistance of businesses in tenderi
Slide 25: Chrome and PGM Value Play
Chrome and PGM Value Play 2024 Catalysts Why Eastplats? • Ramp-up Zandfontein underground operations – #2 process up to 235,000 tons of UG ROM #1 production in 2024; • Resolve outstanding corporate items, including Significant Growth Profile Attractive Economics Control numerous quality PGM Flagship
Slide 26: Thank You
Thank You Eastern Platinum Limited www.eastplats.com Vancouver South Africa For investor relations inquiries, 1080 – 1188 West Georgia Crocodile River Mine contact: Street Zandfontein, Brits Vancouver, BC North West Wanjin Yang, CEO Canada, V6E 4A2 South Africa Wylie Hui, CFO and Corporate T: +1 604
Slide 27: Chrome & PGM Demand
Chrome & PGM Demand Chrome • Properties of chrome: hard and resistance to corrosion Clean energy technologies may impact need for • Common uses of chrome: kitchen appliances, food chrome & PGMs processing equipment, medical and dental tools, and clean energy technologies Source: International Energy
Slide 28: Processing – Plant flow diagram
Processing – Plant flow diagram TSF remined tailings DC Tank Concentrate Tailings Overflow Lamella Thickener Chrome WHIMS plant Cyclones Thickeners Process water tank Concentrate PGM Circuit B Scavenger/ PGM Circuit D Drying belts Stacker Cyclone Tailings Concentrate Tailings PGM concentrate dispatc
Slide 29: What Are We Doing Differently?
What Are We Doing Differently? Aspect Previous operations New design Advantage • More effective power • Higher penetration In-stope Drilling Handheld with compressed air Handheld with hydro power • Reduced noise • Reduced heat generation • Sticks • Timberless • Reduced logistics • 1.8m roofbolts • 2