Platinum Group Metals Ltd. · TSX:PTM
Platinum Group Metals — PDAC Conference 2014
35 slides from Platinum Group Metals's conference presentation, March 2014
Slide 1: Building and Discovering Competitive PGM Mines
Building and Discovering Competitive PGM Mines
Slide 2: Disclosure
Disclosure This presentation has been prepared by Platinum Group Metals Ltd. (“Platinum Group” or the “Company”). Information included in this presentation regarding the Company’s mineral properties has been compiled by R. Michael Jones, P.Eng, the President and Chief Executive Officer of the Compan
Slide 3: Forward Looking Statements
Forward Looking Statements Certain of the statements made herein, including statements regarding the timing of future activities and achievements by the Company, future anticipated exploration and development programs of the Company’s WBJV and Waterberg projects, business plans, funding models for t
Slide 4: Investment Highlights
Investment Highlights Advanced Mine Strategic Financial Strength Construction Discovery • Platinum Group Metals • $355M in equity raised • Waterberg - a thick Ltd. is in construction during 2013 to fund mechanized target, on the 74% owned project development growing, open and WBJV Project 1 and expl
Slide 5: Share Structure and Capital Markets
Share Structure and Capital Markets Share Structure as at March 2014 2013 TSX MINING FINANCINGS EX-BARRICK 200,000,000 Stock Symbols: PTM: TSX; PLG:NYSE MKT 180,000,000 Market Capitalization: C$ 700M 160,000,000 140,000,000 Share Price: C$ 1.30 120,000,000 52 Week High/Low: $1.70/$0.74 100,000,000 8
Slide 6: Bushveld Complex, South Africa
Bushveld Complex, South Africa PLG: NYSE MKT PTM: TSX 5
Slide 7: Platinum Supply
Platinum Supply SOUTH AFRICAN SUPPLY VS. TOTAL SUPPLY 8,000 7,000 6,000 MILLIONS OF OUNCES 5,000 4,000 3,000 2,000 1,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Johnson Matthey PLG: NYSE MKT PTM: TSX 6
Slide 8: Platinum Demand
Platinum Demand PGM PRICES (USD) DEMAND BY SECTOR $2,500 $2,000 Pt Pd Petroleum $1,500 Medical & 2% Biomedical $1,000 3% Other 5% $500 $0 Jan-99 Jan-02 Jan-05 Jan-08 Jan-11 Jan-14 CHINESE JEWELRY DEMAND VS. EUROPEAN Autocatalyst 2,500 AUTO DEMAND 37% European Autocatalyst Demand Chinese Jewelry Dema
Slide 9: Platinum Cost Curve: Targeting the Lowest Quartile
Platinum Cost Curve: Targeting the Lowest Quartile Major African PGM Mines: Cash Cost + Maintenance Capital WBJV is adjacent to the operating BRPM mine: shallow, high grade Merensky reef Waterberg has similar traits to Anglo Platinum Mogalakwena and Impala Zimplats: large scale, thick, near surface,
Slide 10: PLG: NYSE MKT PTM: TSX
PLG: NYSE MKT PTM: TSX 9
Slide 11: WBJV Project 1 – Shallow and High Grade
WBJV Project 1 – Shallow and High Grade Wesizwe Bakubung Mine Highlights Highlights RBP/Anglo Platinum Styldrift Expansion • A mining license was granted in 2012. • Platinum Group has a 74% interest in the WBJV Platinum Group Metals Project 1 Platinum Mine. WBJV Project 1 • Anglo Platinum has exerci
Slide 12: WBJV Project 1: Surface Layout
WBJV Project 1: Surface Layout North Mine Pollution Control Dam Eskom Substation Stores and Warehouse Tailings Facility Plant and Office Crusher Location Ore Conveyance South Mine PLG: NYSE MKT PTM: TSX 11
Slide 13: WBJV Project 1: Key Developments
WBJV Project 1: Key Developments Mill Foundations Eskom Substation Current workforce: Over 1200 people on site with 20% from local communities. North Mine: Decline development advanced 1200m+ on twin headings. Mining underway with ore being stockpiled. South Mine: Decline development has advanced 30
Slide 14: WBJV Project 1 – Quick Facts
WBJV Project 1 – Quick Facts Shallow, high grade, in the main platinum mining and smelting area, adjoining mines in production and construction. Resources (2.8M Measured/5.4M Indicated) 8.2M ounces 4E Measured and Indicated Reserves (1.8M Proven. 2.9M Probable) 4.7M ounces 4E Proven and Probable Pro
Slide 15: PLG: NYSE MKT PTM: TSX
PLG: NYSE MKT PTM: TSX 14
Slide 16: Waterberg Projects, North Limb
Waterberg Projects, North Limb A New PGM District • A new discovery of a previously unmapped part of the Bushveld Complex. • Waterberg JV Project: A Joint Venture with Japan Oil, Gas and Metals National Corporation (JOGMEC). • Waterberg Extension: 87% owned by Platinum Group. • Preliminary Economic
Slide 17: Waterberg Joint Venture – Strategic Partner
Waterberg Joint Venture – Strategic Partner Japanese Partnership • State agency with mandate to explore for strategic minerals. • Partner since 2010 on Waterberg JV with 37% interest. • Tender process underway to sell stake to a qualified Japanese industrial firm or trading house. • Process schedule
Slide 18: Waterberg Joint Venture - Resource
Waterberg Joint Venture - Resource Total Resource: 17.52M ozs 3E Inferred SEPTEMBER 2012: 6.2M ozs (3E) inferred FEBRUARY 2013: 10.1M ozs (3E) inferred SEPTEMBER 2013: 17.52M ozs (3E) inferred Inferred Mineral Resource, Ken Lomberg, Coffey Mining, Independent Qualified Person. See press release Sept
Slide 19: Waterberg Joint Venture - Resource
Waterberg Joint Venture - Resource Inferred Resource 167 Mt, 3.26g/t Pt, Pd, Au Super “F” Zone 5.5 Kms Inferred Mineral Resource, September 3, 2013, Ken Lomberg, N Coffey Mining, Independent Qualified Person See press release September 3, 2013. Mineral resources which are not mineral reserves do not
Slide 20: PEA Key Metrics – Ounce Profile
PEA Key Metrics – Ounce Profile LOM(1) Ounce Profile 800,000 Steady State Production Gold (655 000 oz) 700,000 600,000 oz/annum 500,000 Palladium 400,000 300,000 200,000 100,000 Platinum 0 Recovered Ounces Steady State Ounces Total Concentrate 11 409 412 655 000 Platinum 3 381 234 194 000 Palladium
Slide 21: PEA - Unlocking The Potential
PEA - Unlocking The Potential Room and pillar Block cave (massive) Trough mining Sub‐level cave (massive) Reef boring Open pit (massive) Long hole stoping Sub‐level open stoping (massive) Contour drift and fill Cut and fill (massive) Step room and pillar Drift and fill (massive) Longitudinal room an
Slide 22: PEA Assumptions
PEA Assumptions Pricing Assumptions 3 Year Trailing Current/Spot Average Platinum (US$ / oz) 1,380.00 1,586.06 Palladium (US$ / oz) 708.00 701.04 Gold (US$ / oz) 1,259.00 1,548.84 Copper (US$ / lb) 3.25 3.58 Nickel (US$ / lb) 6.51 8.35 R/US$ 11.13 10.00 3 Year Trailing Basket Price Current Spot Aver
Slide 23: PEA Key Metrics – Operating Costs
PEA Key Metrics – Operating Costs Key Operating Costs Operating Cost (R/t) 501 Operating Cost ($/3E oz) 555 Operating Cost ($/3E oz) + Ni, Cu Credits 368 Production Cost ($/3E oz) 626 Production Cost ($/ 3E oz) + Ni, Cu Credits 438 Direct Costs (R’m), excl. Processing ‐ R362.51/t Power, R49.39, 13%
Slide 24: PEA Key Metrics – Capital Costs
PEA Key Metrics – Capital Costs Capital Requirements per Summary Work Package Peak Funding Capital to Full Sustaining Total Peak Funding (R’bn) 8,853 Area Production Capital (R'm) (R'm) (R'm) MIning Services R 24 R ‐ R 24 Peak Funding (US$M) 885 Mining Development R 2,014 R 3,004 R 5,018 Development
Slide 25: PEA Key Metrics – Cashflow
PEA Key Metrics – Cashflow Cash Flow 25,000 Cashflow Revenue Cumm Cashflow Cumulative cashflow R20.9bn 10,000 20,000 8,000 Cumulative Cashflow (R’m) First production 15,000 2018 6,000 Cashflow (R'm) 10,000 4,000 5,000 2,000 0 0 (5,000) (2,000) (10,000) (4,000) Project construction Peak funding R8.8b
Slide 26: PEA - High-level Project Schedule
PEA - High-level Project Schedule Project Phases Current Phase File Mining Right Complete Application PEA Remainder of 2014 Deliverables • Proven Business Prefeasibility Study Case Action Steps • No fatal‐flaws 2015 • Additional exploration drilling • Forward work‐ • Geological modelling Feasibility
Slide 27: Waterberg Extension - A District Scale Discovery
Waterberg Extension - A District Scale Discovery District Scale • Initial round of drilling in late 2013 has extended the deposit an additional 5 kms. • A 15 drill rig program is currently underway with a $15M budget for 2014. • An inferred resource for the Waterberg Extension is expected in mid 201
Slide 28: Corporate Objectives
Corporate Objectives Continue with construction at WBJV Project 1 platinum mine. Complete WBJV Project 1 overall project finance. Expand the Waterberg discovery. Complete Pre-Feasibility study for Waterberg JV in 2014. PLG: NYSE MKT PTM: TSX 27
Slide 29: Appendices
Appendices WBJV Reserves and Resources Waterberg Resources PLG: NYSE MKT PTM: TSX 28
Slide 30: WBJV: Merensky Reserves
WBJV: Merensky Reserves Tonnes (000) 4E Content 4E t g/t tonne Moz Merensky Proven 6,678 5.61 37.478 1.21 Merensky Probable 11,333 5.44 61.677 1.98 Total Merensky Mineral Reserves 18,011 5.51 99.155 3.19 QP Charles Muller of Minxcon Resources, See details Press Release and 43-101 reports on www.seda
Slide 31: WBJV: UG2 Reserves
WBJV: UG2 Reserves Tonnes (000) 4E Content 4E t g/t tonne Moz UG2 Proven 5,086 3.37 17.126 0.55 UG2 Probable 8,449 3.41 28.831 0.93 Total UG2 Mineral Reserves 13,535 3.40 45.957 1.48 QP Charles Muller of Minxcon Resources, See details Press Release and 43-101 reports on www.sedar.com, Tim Spindler a
Slide 32: WBJV: Measured Resources
WBJV: Measured Resources Measured Grade Moz Million Mining Tonnes Mineral Cut-off 4E Tonnes Width PGE PGE’s Resource (cm.g/t) (Mt) (g/t) (m) (4E) (4E) (4E) Project 1 MR 300 6.603 8.38 1.33 55.333 1.779 Project 1 UG2 300 7.464 4.26 1.34 31.797 1.022 Total 300 14.067 6.19 1.34 87.13 2.801 Measured QP
Slide 33: WBJV: Indicated Resources
WBJV: Indicated Resources Indicated Grade Tonnes Moz Million Mining Mineral Cut-off Tonnes 4E Width PGE PGE’s Resource (cm.g/t) (Mt) (g/t) (m) (4E) (4E) (4E) Project 1 & 300 11.183 7.25 1.24 81.077 2.607 1A MR Project 1 & 300 19.209 4.46 1.39 85.672 2.754 1A UG2 Total 300 30.392 5.49 1.34 166.749 5.
Slide 34: Waterberg: Building Near Surface Ounces
33 Waterberg: Building Near Surface Ounces SEPTEMBER 2012: 6.2M ozs (3E) inferred FEBRUARY 2013: 10.1M ozs (3E) inferred SEPTEMBER 2013: 17.52M ozs (3E) inferred Thickness Tonnes Pt Pd Au 2PGE+Au Pt:Pd:Au 2 PGE+Au Cu Ni Cu Ni (m) (Mt) (g/t) (g/t) (g/t) (g/t) (koz) (%) (%) (t) (t) T1 2.30 8.50 1.04 1
Slide 35: Platinum Group Metals Ltd. contact
PLG:NYSE MKT PTM:TSX DI ATIAILIR, PLATINUM Platinum Group Metals Ltd. Suite 788 — 550 Burrard Street Platinum Group Metals RSA (Pty) Ltd. Vancouver, BC V6C 2V5 1st Floor, Platinum House Canada 24 Sturdee Avenue +1 604-899-5450 Rosebank, Johannesburg 2196 info@platinumgroup.net platinumgroupmetals.ne