Sylvania Platinum Ltd. · LSE:SLP
Sylvania Platinum — Sylvania Resources — Non-Deal Roadshow (May 2007)
30 slides from Sylvania Platinum's roadshow presentation, May 2007
Slide 1: Overview of Progress – London, May 2007
SYLVANIA RESOURCES LIMITED -Turning vision into reality- Overview of Progress London MAY 2007
Slide 2: Important Information
IMPORTANT INFORMATION • "Certain forward looking statements may be contained in the presentation which include, without limitation, expectations regarding platinum prices, estimates of production, operating expenditure, capital expenditure and projections regarding the completion of capital projects
Slide 3: Company Overview
Company Overview • ASX Listed since February 2001 • AIM listed since July 2006 • Shares in Issue – 152,929,273 • Current share price £0.75 • Market cap @ £0.75 - £115 million
Slide 4: Current Directors – Sylvania Resources Limited
Current Directors – Sylvania Resources Limited Ed Nealon Chairman Executive Non Executive Directors Directors Terry Grant Dr Evan Melissa Scott McConnachie Button Kirby Sturgess Huntly C.E.O Director C.O.O Director Director • Strong management team • Experienced in mining and project development • E
Slide 5: Current Status
Current Status • Current Business, 25% share of CTRP (Chrome Tailings re treatment Project), a South African based re-treatment of chrome dumps to recover PGE’s (Two years history of profits. Owned 50% by Aquarius and 25% Ivanhoe ) • New Business 100% Sylvania owned recovery of Cr & PGE’s from curre
Slide 6: Project Locations
Project Locations Location of Sylvania projects on the Bushveld Igneous Complex of South Africa wey Eastern Limb Western Limb Pretoria @ | Johannesberg 100 km
Slide 7: CTRP
CTRP Chrome Tailings Re-treatment Plant JV between Aquarius, Ivanhoe and Sylvania Resources Quarter Dec Quarter Mar 2006 2006 Total 4E Oz 1866 1954 Opex 2143 2750 R/oz Basket Price US$/oz 1592 1806 Cash 77% 77% Margin
Slide 8: Current Status
Current Status • GB 12m raised in July 2006 with secondary AIM listing, enabling the company to – advance construction of Cr & PGE recovery plants. – sign binding EPCM agreements for 2 of the 4 PGE plants – Complete bankable feasibility on Everest North • Currently completing 2 Cr washing plants and
Slide 9: Plant Layout
y. Dam ‘- Dam eo Dam Current Arisings = Dam = Dam = Dam = Dam c Dam Scraper / Truck q Mooinooi Hydro Mining cf poinoo! Scraper Winch _ Truck = Sere PGE Fines ur Tailings Dam 2 5.5km - H Ee _Elandsdrit Mooinooi i Chrome Plant , Chrome Plant { Pump @ Ls PGE Fines Tailings Dam fooinoo _Steelpoort Chrom
Slide 10: Millsell
Milsell Classification plant, Spiral plant, Thickener plant and PGE float plant Mining and Classification Section Spiral Cr Washing Section Thickener Section PGE Float Section
Slide 11: Steelpoort
Steelpoort Spiral plant and PGE float plant
Slide 12: Sylvania PGM Recovery Plants Process Enhancements Compared with CTRP
Sylvania PGM Recovery Plants Process Enhancements Compared with CTRP That Will Improve Flotation Performance • Ball Mill ahead of Chrome Recovery – Liberates both chrome and PGM – Gives controlled feed size to PGM float • Thickener ahead of PGM Plant – Gives controlled slurry density to PGM float –
Slide 13: Comparative Results of Mintek Testwork on Current Arisings Fines Fractions
Comparative Results of Mintek Testwork on Current Arisings Fines Fractions Flotation Testwork CTRP Results (Xstrata) Millsell Steelpoort Headgrade (4E gpt) 4.9 5.1 6.7 Rougher Recovery (%) 72.3 76.3 80.9 Recleaner Recovery (%) 40.2 58.0 40.5 Concentrate Grade (4E gpt) 112 155 180 • Conclusion – Mill
Slide 14: PGE Production Profile - Base Case Model
PGE Production Profile - Base Case Model (100% of Production) (Steady State) Plant Commissioning Dates PGE Cash Cost Grade Project Chrome PGE (oz/m) Capex (£m) (US$/oz) (gpt) Millsell March 07 May 07 690 £2.1 US$284 1.79 Steelport April 07 June 07 3,185 £2.8 US$101 4.32 Elandsdrift October 07 - - -
Slide 15: Basket Information
Basket Information Millsell Steelpoort Mooinooi Tweefontein Basket Contents Platinum 59.0% 59.1% 60.0% 60.0% Palladium 24.0% 23.6% 28.5% 28.5% Rhodium 16.5% 17.0% 10.5% 10.5% Gold 0.5% 0.3% 1.0% 1.0% Element Prices Model 08-May-07 Platinum $/oz $1,074 $1,345 Palladium $/oz $349 $376 Rhodium $/oz $4,
Slide 16: Assumptions
Assumptions Base case Upside Case Operating plants Assuming Assuming commissioning as commissioning as per prev. slide per prev. slide Exchange rate R/$ 7.14 R/$ 7.14 Basket price 1,300US$oz 1,300US$oz Grade 2.5 g/t 4 g/t PGM Recovery 32.5% 60% * Please see full details of Assumptions in the Appendi
Slide 17: PGE Plants - Total production all plants
PGE Plants - Total production all plants (Steady state) (100% of Production) Base Case Upside Monthly Monthly Ounces 6,685 18,174 Turnover £3.4m £8.7m (R46.6m) (R119.3m) Gross profit £2.6m £7.3m (R35.9m) (R100.8m) • Every R1 change to the US$, monthly profitability changes by £0.45m (R6 million) • I
Slide 18: This graph is produced from the information used in the base case model and
This graph is produced from the information used in the base case model and is subject to the assumptions and qualifications in respect thereof
Slide 19: BEE
BEE • Concluded a deal with Ehlobo Holdings (Pty) Ltd • They will invest up to £2.9m (R40m) in the business • Mooinooi Plant ring fenced as security for IDC security. Dr Reuters • Proven track record with Government and International Business community Mr. Bagus
Slide 20: Everest North Platinum Deposit (Reef Thickness Isopach)
EVEREST NORTH PLATINUM DEPOSIT (Reef Thickness Isopach) Vygenhoek Farm Deposit (Sylvania) Mareesburg Farm Deposit (East Plats)
Slide 21: Channel Width
Channel Width Mareesburg Width (in m) Vygenhoek MUndefined
Slide 22: Everest North (New Surface & Underground Mining Operation)
EVEREST NORTH (New Surface & Underground Mining Operation) • Exploration drilling commenced June 2006 – To date 17 boreholes have been drilled with 3 intersections each, Total of 51 intersections – 2 in progress , 2 remaining – Drilling expected to be completed end of May 2007 • 6 trenches of outcro
Slide 23: Everest North Project Development Plan
EVEREST NORTH PROJECT DEVELOPMENT PLAN 2007 2008 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DESCRIPTION OF WORK MINING RIGHT APPLICATION Mine works programme Social and labour plan (SLP) EIA/EMP: Project initiation with authorities Scoping public participatio
Slide 24: Investment Attractions
Investment Attractions • Low cost platinum producer because of low mining costs. No Mining risks of faults, flooding, caving etc • Forecast operating margin in excess of 70% well in line with CTRP achieved 77% margin. • Dollar based business with Rand based expenses • Most tailings pumped. No expens
Slide 25: Conclusion
Conclusion • Agreements – New agreement signed with Samancor – BEE agreement signed – Matomo fixed price contract signed – Off take heads of agreement signed • Technical – Learning curve on mining and plant operations completed – Skills secured and outsourced partners in place – Low risk, low capex
Slide 26: Conclusions
Conclusions • Future – cash flow from early as July 2007 – New Project generation – Platinum fundamentals very strong • No new Junior Mining Platinum producers forecast to start generating profits within the next 3 years.
Slide 27: Appendices
Appendices
Slide 28: Assumptions and Qualifications
Assumptions and Qualifications • The base case PGE production profile is based on the following assumptions and qualifications: – Completion of construction of the PRP at Millsell during April 2007 and commissioning in May 2007 – Completion of construction of the PRP at Steelport by end of April 200
Slide 29: Assumptions and Qualifications
Assumptions and Qualifications • The upside case PGE production profile is based on the following assumptions and qualifications: – Completion of construction of the PRP at Millsell during April 2007 and commissioning in May 2007 – Completion of construction of the PRP at Steelport by end of April 2
Slide 30: PGE Plants
PGE Plants • Steelpoort – Fixed price contract with Matomo Projects (Pty) Ltd – Mechanical Completion scheduled for 30 April – 4 to 6 weeks Commissioning, operational by mid June, 15 months ahead of schedule • Mooinooi/Elandsdrift – Scheduled construction to begin in July 2007 – Commissioning planne