Sylvania Platinum Ltd. · LSE:SLP

Sylvania Platinum — Ruukki Group — Merger or Acquisition (June 2009)

25 slides from Sylvania Platinum's merger presentation, Jun 30, 2009

  1. Slide 1: Analyst Presentation

    Sylvania Resources Limited (‘Sylvania’ or the ‘Company’) ASX, AIM: SLV 30 June 2009 Analyst Presentation In preparation for the Conference Call for Analysts to be held on 30 June 2009 at 09.00 UK time (10.00 South Africa, 11.00 Finland, 16.00 Perth, 18.00 Sydney), please find to follow the Analyst P

  2. Slide 2: Creating an Integrated Mine to Metals PGM and Ferrochrome Company

    CreatinganIntegrated,MinetoMetalsPGMandFerrochrome Company ProposedMergerwithSylvaniaResources UnlockingValuefromPGMsandFerrochrome 30 June 20091

  3. Slide 3: Disclaimer

    Disclaimer This presentation has been prepared by Ruukki Group Plc (the “Company”) solely for its use at the presentation to analysts and investors to be made in connection with the proposed acquisition of Sylvania Resources Limited (“Sylvania”) as announced by the Company on 30 June 2009. By attend

  4. Slide 4: 1. Strategic Rationale 2. The Transaction 3. Conclusion

    1. Strategic Rationale 2. The Transaction 3. Conclusion 3

  5. Slide 5: Strategic Rationale

    Strategic Rationale ƒ Create an integrated producer and processor of PGMs and ferrochrome ƒ Expand existing profitable production by accessing: previously uneconomic high chrome low grade material in tailings dumps and current risings conventional ore deposits ƒ Apply the direct current (“DC”) furna

  6. Slide 6: Mine to Metals company

    Unlocking Value from PGMs and Ferrochrome High chrome, low grade PGM material + Mine to Metals company Application of DC furnace technology currently available at Mogale Alloys + Established processing infrastructure Well funded and established European base = Efficient, technology enabled, integrat

  7. Slide 7: Mine To Metals

    Mine To Metals Supply Processing Products Marketing DC Furnace PGM Technology PGMs Tailings Dumps FeCr Finished Product Concentrate PGM DC Furnaces FeCr / Other Sales, Platreef / UG2 Ferroalloys Procurement FeCr and Marketing Mogale PGM Base Metals rd 3 Party JVs FeCr 6

  8. Slide 8: Complementary Businesses

    Complementary Businesses ƒ Ruukki is listed on NASDAQ OMX Helsinki Ltd; market capitalisation: EUR585m(1) Ruukki Sylvania(2) PGM Resources Processing South Africa Bushveld Region South Africa Bushveld Region Hard Rock SA Metals(2) Great Australian Resources(2) Mogale Alloys Everest North Germany Gra

  9. Slide 9: Resource Base – Bushveld Igneous Complex

    Resource Base – Bushveld Igneous Complex Northern Limb Harriet’s Wish (GAU) Aurora (SXM) Johannesburg The Bushveld Complex Mokopane Mooiplaats (GAU) South South Africa SouthAfrica Africa Western Limb Grass Valley (SXM) Doornbosch (SLV) Steelpoort (SLV) Key Lannex (SLV) Tweefontein (SLV) SLV Sylvania

  10. Slide 10: Mogale Alloys

    Mogale Alloys ƒ Total smelting capacity of 96 MVA in 2 DC furnaces and 2 submerged arc furnaces ƒ Currently produces silico manganese, stainless steel alloy and ferrochrome: annual production capacity around 100,000 tonnes per annum ƒ DC furnace technology co-developed with Mintek and independently

  11. Slide 11: 1. Strategic Rationale 2. The Transaction 3. Conclusion

    1. Strategic Rationale 2. The Transaction 3. Conclusion 10

  12. Slide 12: The Transaction

    The Transaction ƒ Announcement for Ruukki to acquire 100% of Sylvania: 1.81 Sylvania shares for 1.0 Ruukki share ƒ Unanimous recommendation by the independent directors of Sylvania In the absence of a superior proposal and subject to confirmation from an independent expert that the scheme is in the

  13. Slide 13: Proposed Transaction Summary

    Proposed Transaction Summary Merger Ratio ƒ 1.81 Sylvania : 1.0 Ruukki Premium ƒ 28% to share price of GBP0.82 on 29 June 2009 ƒ 36% to share price of GBP0.77 on 23 June 2009, the day prior to Sylvania's statement regarding press speculation ƒ 44% to 30 day volume weighted average price prior to 29

  14. Slide 14: Proposed Ruukki Group Post Transactions

    Proposed Ruukki Group Post Transactions (Finland) 98.75 % 100.0 % 100.0% Turk Maadin Sirketi Ruukki Holdings Sylvania (Turkey) (Malta) All scrip offer 12.55 % 19.9 % 100.0% 100.0% Offer Offer launched Great launched RCS Ruukki South Africa by Sylvania for SA Metals Australian by Sylvania for (Malta)

  15. Slide 15: Proposed Enlarged Group Management

    Proposed Enlarged Group Management ƒ Alwyn Smit Chief Executive Officer Ruukki Group ƒ Terry McConnachie Chief Executive Ruukki Minerals: PGM ƒ Jukka Havia Finance Director Ruukki Group 14

  16. Slide 16: Board of Directors Post Transactions

    Board of Directors Post Transactions ƒ Jelena Manojlovic Chairperson ƒ Alwyn Smit Chief Executive Officer ƒ Terry McConnachie Executive Director ƒ Thomas Hoyer Non Executive Director ƒ Markku Kankaala Non Executive Director 15

  17. Slide 17: 1. Strategic Rationale 2. The Transaction 3. Conclusion

    1. Strategic Rationale 2. The Transaction 3. Conclusion 16

  18. Slide 18: Conclusion

    Conclusion ƒ Creating an integrated producer and processor of PGMs and ferrochrome ƒ To be implemented by way of an Australian scheme of arrangement ƒ Unanimous recommendation by the independent directors of Sylvania(1) ƒ Expanding existing profitable production ƒ Applying DC furnace technology curr

  19. Slide 19: Appendices

    Appendices RUUKKI | GROUP 18

  20. Slide 20: Current Producing Mines Cash Costs per PGM oz

    Current Producing Mines Cash Costs per PGM oz (USD/oz) Source: RBCCM March 2008 19

  21. Slide 21: Platinum Market

    Platinum Market Global Vehicle Production and Growth Platinum Demand By End User (1) 100 10% 8,000 Vehicle Production (millions) 80 5% 7,000 Annual Platinum Demand (koz) 6,000 60 0% 5,000 4,000 40 -5% 3,000 20 -10% 2,000 1,000 0 -15% 0 2007A 2008F 2009E 2010E 2011E 2012E 2013E 2007A 2008F 2009E 2010

  22. Slide 22: Platinum Market – continued

    Platinum Market – continued Platinum Demand by End User – 2008 Platinum Supply and Demand 7,400 Platinum Supply / Demand (kozpa) 7,000 Autocatalysts - gross Jewellery 20% 6,600 Glass 4% Chemical 63% 6% 6,200 Other 7% 5,800 5,400 2007A 2008F 2009E 2010E 2011E 2012E 2013E Platinum Supply Platinum Dema

  23. Slide 23: Platinum Price Forecast

    Platinum Price Forecast 1,800 1,600 Platinum Price USD/oz 1,400 1,200 1,000 800 600 2007A 2008A 2009E 2010E 2011E 2012E 2013E Source: Standard Bank and Credit Suisse Standard Securities 22

  24. Slide 24: Ferrochrome Market

    Ferrochrome Market LC and MC FeCr Supply and Consumption LC and MC FeCr Consumption By Region LC and MC FeCr Supply and Demand (ktpa) LC and MC FeCr Consumption (ktpa gross 1,000 800 800 600 600 weight) 400 400 200 200 - 0 2007A 2008A 2009E 2010E 2011E 2012E 2013E 2007A 2008A 2009E 2010E 2011E 2012E

  25. Slide 25: Ferrochrome Price Forecast

    Ferrochrome Price Forecast 4.50 4.00 3.50 LC FeCr Price USD/lb 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2007A 2008A 2009E 2010E 2011E 2012E 2013E Source: Standard Bank and CRU International 24

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