Wesizwe Platinum Limited · JSE:WEZ
Wesizwe Platinum — Non-Deal Roadshow (July 2012)
28 slides from Wesizwe Platinum's roadshow presentation, July 2012
Slide 1: Full Steam Ahead: Wesizwe Platinum Limited
FULL STEAM AHEAD: WESIZWE PLATINUM LIMITED Investor Road Show – July 2012
Slide 2: Introduction
INTRODUCTION • Wesizwe is moving ahead with the development of the Bakubung Platinum Mine located on the western bushveld. • The mine will produce up to 350koz per annum over a 35 year life of mine. • Strategic equity partner and funder ensures that the project is funded through to full production:
Slide 3: Clean Ownership Structure
CLEAN OWNERSHIP STRUCTURE STRATEGIC OVERVIEW – JULY 2012 3
Slide 4: Vision and Purpose
VISION AND PURPOSE VISION To become a significant multi-commodity company, focusing on strategic metals with sound derived demand fundamentals PURPOSE To create shareholder value in an environmentally responsible and sustainable manner based on long-term relationships with government and local commu
Slide 5: Key Strategic Objectives
KEY STRATEGIC OBJECTIVES • To ensure that the Bakubung Platinum Mine is delivered within budget and on schedule • To explore synergies with industry peers on consolidation opportunities in the vicinity of the Bakubung Platinum Mine • To achieve 26% BEE ownership by 2014 STRATEGIC OVERVIEW – JULY 201
Slide 6: The Journey Has Started
THE JOURNEY HAS STARTED STRATEGIC OVERVIEW – JULY 2012 6
Slide 7: Perfectly Located Quality Resource
PERFECTLY LOCATED QUALITY RESOURCE Western Limb provides 67% of the world’s platinum High quality resource…at the centre of platinum gravity of the Western Bushveld, which is a fully explored, quality new mining area Flat lying, thick reef • Easier, more efficient mining • Amenability to mechanisati
Slide 8: Resources (4E Moz)
RESOURCES (4E Moz) After PTM exercised the Maseve option Project 1 Project 3 Project 2 War Spring 26% 26% 100% 15% Inferred 0.022 0.494 3.473 0.251 Indicated 1.571 0.000 8.436 0.000 Measured 0.842 0.000 1.351 0.000 Total 2.436 0.494 13.260 0.251 Total attributable resource ounces (million oz) 16.441
Slide 9: Key Asset Differentiators
KEY ASSET DIFFERENTIATORS • Shallow in relation to other producers: mean mining depth of 850mbc • High mining extraction – 74% • Thick reef widths - 1.4m to 1.7m - higher operating efficiency and yields • Favourable prill split – good Pt yield from Merensky reef, improved basket value • Head grades
Slide 10: Highly Favourable Prill Split
HIGHLY FAVOURABLE PRILL SPLIT Merensky prill split, UG2 prill split without Ruthenium (Bakubung) (Bakubung) Au g/t, Rh g/t, Au g/t, 3.8% 4.6% Rh g/t, 0.4% 10.6% Pd g/t, 26.9% Pd g/t, 29.2% Pt g/t, Pt g/t, 64.7% 59.7% MERENSKY Pt to Pd Ratio: 2,42 Ratio is one of the highest in the industry STRAT
Slide 11: Site View – March 2012
SITE VIEW – MARCH 2012 STRATEGIC OVERVIEW – JULY 2012 11
Slide 12: Delivery on Mine Development Milestones
DELIVERY ON MINE DEVELOPMENT MILESTONES • Apr 2011: First blast for box cut and winder house foundation • Jul 2011 : TWP appointed EPCM contractor to June 2012 • Sep 2011: Award full scope civil earthworks and concrete for mine area, winder-house and winder foundations, and shafts collaring • Nov 20
Slide 13: Site Progress – March 2012
SITE PROGRESS – MARCH 2012 STRATEGIC OVERVIEW – JULY 2012 13
Slide 14: Significant Activity on Site
SIGNIFICANT ACTIVITY ON SITE • Vent shaft collar and backfill completed, main shaft collar making good progress • All critical winders refurbished - installation and commissioning underway • Eskom sub-station near completion, supply installation on track • Shaft sinker given access to portion of the
Slide 15: Site Progress – May 2012
SITE PROGRESS – MAY 2012 STRATEGIC OVERVIEW – JULY 2012 15
Slide 16: Focused on Mine Development Milestones
FOCUSED ON MINE DEVELOPMENT MILESTONES • Jun 2012: Ventilation # pre-sink start • Sept 2012: Eskom Phase 1 commissioned • Aug 2012: Shaft civils complete • Oct 2012: Main # pre-sink start • Jan 2013: Ventilation # main sink start • Jun2013: Main # main sink start • Apr 2018: Main # commission • Jun
Slide 17: Capex Summary
CAPEX SUMMARY STRATEGIC OVERVIEW – JULY 2012 17
Slide 18: Escalation per Commodity
ESCALATION PER COMMODITY STRATEGIC OVERVIEW – JULY 2012 18
Slide 19: Possible Synergy Opportunities
POSSIBLE SYNERGY OPPORTUNITIES • Infrastructure/bulk services: water and power supply • Feasibility studies being completed on concentrator plant synergy (PTM / Maseve) • Sharing concepts for employee housing programme • Proposing joint training and skills development centre in the area • Community
Slide 20: Human Resources
HUMAN RESOURCES • At full production, the Bakubung Platinum Mine will employ 3200 employees • Current average employment (six months): 42 employees and 460 contract workers • YTD average of 33% local employment vs. 20% commitment in the social and labour plan • Large contractors are fully committed
Slide 21: Skills Development
SKILLS DEVELOPMENT • Investment in skills development a key component of human resources development • As at May 2012, our HR development expenditure was 3% of payroll - well on-track to meet 4% Mining Charter target • Wesizwe has 23 bursars in 2012: – 12 apprenticeships (four-year artisan programme
Slide 22: Social and Labour Plan (SLP)
SOCIAL AND LABOUR PLAN (SLP) • Over R25 million has been spent on community upliftment to date • Projects have included: • Agricultural project • Education support and upliftment (Edumap, schools programme, ABET, bursaries, portable skills training) • Water tanks and permanent water supply solution
Slide 23: Formal Stakeholder Engagement Processes Are in Place
FORMAL STAKEHOLDER ENGAGEMENT PROCESSES ARE IN PLACE Community • Perception survey conducted to inform ongoing engagement strategy • Stakeholder Engagement Forum set-up • Traditional leadership challenges in the community Government • Programme in place for communication with all tiers of government
Slide 24: Wesizwe Share Price Performance
WESIZWE SHARE PRICE PERFORMANCE STRATEGIC OVERVIEW – JULY 2012 24
Slide 25: The PGM Fundamentals Appear Robust and Sound
THE PGM FUNDAMENTALS APPEAR ROBUST AND SOUND Platinum supply demand Palladium supply demand Rhodium supply demand model model model • PGM fundamentals remain robust and sound, with platinum, palladium and rhodium expected to move into substantial deficits over the medium and long-term • South Africa
Slide 26: Producer Exposure (and Rating) Varies Considerably
PRODUCER EXPOSURE (AND RATING) VARIES CONSIDERABLY 26 Total PGM resource and reserve exposure Market capitalisation per resource and reserve Key points (moz) ounce (R/oz) Resource and reserve exposure across the PGM equities varies considerably, with the Tier-1 producers dominating Rating differenti
Slide 27: Conclusion
CONCLUSION • Tremendous management focus and good progress on delivering the Bakubung Platinum Mine • Strategy Approved • Continuous evaluation of Project Synergies. • Relationship with Communities and Government • Progress on becoming a multi-commodity company. • Share value & Market capitalization
Slide 28: Thank You
THANK YOU STRATEGIC OVERVIEW – JULY 2012 28