Platinum Group Metals Ltd. · TSX:PTM
Platinum Group Metals — Investor Presentation (October 2013)
35 slides from Platinum Group Metals's investor presentation, Oct 3, 2013
Slide 1: Building and Discovering Competitive PGM Mines
Building and Discovering Competitive PGM Mines October 3, 2013
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
4 Investment Highlights NEAR TERM PGM PRODUCTION • Platinum Group Metals Ltd. is in construction on the 74% owned WBJV Project 1 Platinum Mine • Large scale, high grade, shallow development with initial production scheduled for mid-2015. • Steady state production projected at 275K ounces 4E/year wit
Slide 5: Share Structure and Capital Markets
Share Structure and Capital Markets Major Shareholders Stock Symbols: PTM:TSX; PLG:NYSE Market Capitalization: C$ 420M • Liberty Metals and Mining • Genesis Investment Management Share Price: C$ 1.05 • Franklin Resources 52 Week High/Low: $1.70/$0.74 • Blackrock Inc. Shares Outstanding: 402,749,542
Slide 6: Platinum and Palladium Market
Platinum and Palladium Market Source: Sprott Asset Management 6
Slide 7: Bushveld Complex – South Africa
Bushveld Complex – South Africa 7
Slide 8: Platinum Cost Curve: Targeting the Lowest Quartile
Platinum Cost Curve: Targeting the Lowest Quartile Major African PGM Mines: Cash Cost + Maintenance Capital WBJV is adjacent to the operating BRPM WB mine: shallow, high grade Merensky reef. Waterberg has similar traits to Anglo Platinum Mogalakwena and Impala Zimplats: large scale, thick, near surf
Slide 9: Western Bushveld Joint Venture
2010 2011 2013 WESTERN BUSHVELD JOINT VENTURE 2012 2013 9
Slide 10: Western Limb – South Africa
Western Limb – South Africa • Area produces over 70% of global annual primary platinum supply. • Major infrastructure in place including smelters and refineries. • Legacy producers facing deep mining and dropping ore grades. • Restructuring underway by major producers to cut loss making production.
Slide 11: Western Bushveld Joint Venture – Project 1
Western Bushveld Joint Venture – Project 1 • Platinum Group has a 74% interest in the Project 1 Platinum Mine. Wesizwe Platinum (WEZ/JSE) owns the remaining 26% as the BEE partner. Wesizwe’s major shareholder (45%) is state owned Jinchuan Group of China. • A full mining right was granted in 2012 and
Slide 12: Northwest Limb
12 Northwest Limb • Over US$ 4B of new investment in platinum mines in the immediate area underway. • Last large block of undeveloped Merensky Reef above 1,000 meters. • Platinum Group is developing up-dip portion with declines from surface. • Platinum Group WBJV is $1B less in capital cost compared
Slide 13: WBJV Project 1 – Key Developments
WBJV Project 1 – Key Developments • Current workforce: Over 1000 people on site with 30% from local communities. • North Mine: Decline development has advanced 1200m+ on twin headings. Merensky development underway with ore being stockpiled. • South Mine: Decline development has advanced 200m+ with
Slide 14: WBJV Project 1 - Surface Layout
WBJV Project 1 ‐ Surface Layout North Mine Tailings Facility Stores and Warehouse Pollution Control Dam Crusher Location Eskom Substation Ore Conveyance Plant and Office Location South Mine September 2013 14
Slide 15: WBJV Project 1 – Quick Facts
WBJV Project 1 – Quick Facts Shallow, good grade, in the main platinum mining and smelting area, adjoining mines in production and construction. 1 Resources (2.8M Measured/5.4M Indicated) 8.2M ounces 4E Measured and Indicated 1 Reserves (1.8M Proven. 2.9M Probable) 4.7M ounces 4E Proven and Probab
Slide 16: Project Finance
Project Finance • Credit approval for a USD $260M project finance loan was received in December 2012. • Closing expected in 2013 upon completion of documentation and conditions precedent. • Highly competitive interest rate: Libor plus 4.75% to 5.25% with an eight year term. • Hedging strategy focuse
Slide 17: Ore Development – Merensky, Proven Mining Method
Ore Development – Merensky, Proven Mining Method 17 PLG: NYSE MKT PTM: TSX
Slide 18: WBJV Plant Design – Mototolo
WBJV Plant Design – Mototolo • Using existing detailed design will save time and cost. • Mill components have been ordered with early 2014 delivery. • DRA is the experienced EPCM – appointed, team in place, work started. Xstrata/Anglo Platinum, Mototolo Mine 18 PLG: NYSE MKT PTM: TSX
Slide 19: WBJV – Major Milestones
WBJV – Major Milestones Q1 – 2013 EPCM Contract for Mill and Mining Surface Infrastructure Q1 – 2013 JIC Mining Contract South Decline Q1 – 2013 Commence Earthworks and Civils for Processing Plant Q1 – 2013 Mill Key Components Selected and Tendered Q2 – 2013 Completion of Phase 1 and North
Slide 20: Waterberg Discovery
WATERBERG DISCOVERY 20
Slide 21: Waterberg Project: North Limb
Waterberg Project: North Limb • PLG/PTM has made a new discovery of a previously unmapped part of the Bushveld Complex. • Home grown project with less than $500K staking and acquisition cost. • PLG/PTM holds an effective 49.9% ownership interest in JOGMEC JV area and 87.5% in the extension area. • C
Slide 22: Waterberg Resource
Waterberg Resource • September 2012: 6.2M ozs (3E) inferred • February 2013: 10.1M ozs (3E) inferred • September 2013: 17.52M ozs (3E) inferred 22 PLG: NYSE MKT PTM: TSX
Slide 23: Waterberg September 2013 Resource Update
Waterberg September 2013 Resource Update my PLATINUM GROUP METALS Legend © Borehole Dating ST z0ne Suverop a aR T Zone Resource Area a J] Westerberg Current JV Rights PLATINUM 23 GROUP i METALS NYSE MKT PTM: a
Slide 24: Schematic Section
24 Schematic Section Super F Zone 24 PLG: NYSE MKT PTM: TSX
Slide 25: Schematic Cross-Section
25 Schematic Cross‐Section 25 PLG: NYSE MKT PTM: TSX
Slide 26: A District Scale Discovery
A District Scale Discovery • Step out drilling on the 87% owned extension licenses to the north has commenced. • A differential gravity and magnetic airborne survey has been completed on the existing deposit and extension license area. • Significant potential to expand the deposit up-dip and along s
Slide 27: Waterberg: Shallow and Mechanized Potential
Waterberg: Shallow and Mechanized Potential • A Preliminary Economic Assessment (PEA) for the Stepped Room and Pillar Schematic – Potential Design Waterberg deposit is scheduled for completion in late 2013. • Based on reef thicknesses a mechanized mining approach will be employed. • Mechanization ha
Slide 28: Waterberg: An Industry Changing Discovery?
Waterberg: An Industry Changing Discovery? Impala Rustenburg – 30km Strike PTM Waterberg – 30km Strike Potential $6B market cap $500M market cap 28 PLG: NYSE MKT PTM: TSX
Slide 29: Appendix
29 Appendix WBJV Reserves and Resources Waterberg Resources PLG: NYSE MKT PTM: TSX
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.sed
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
Slide 32: WBJV ~ Measured Resources
WBJV ~ Measured Resources Measured Cut-off Million Grade Mining Tonnes Moz Mineral (cm.g/t) Tonnes 4E Width PGE PGE’s Resource (Mt) (g/t) (m) (4E) (4E) (4E) Project 1 300 6.603 8.38 1.33 55.333 1.779 MR Project 1 300 7.464 4.26 1.34 31.797 1.022 UG2 Total 300 14.067 6.19 1.34 87.13 2.801 Measured QP
Slide 33: WBJV ~ Indicated Resources
WBJV ~ Indicated Resources Indicated Cut-off Million Grade Mining Tonnes Moz Mineral (cm.g/t) Tonnes 4E Width PGE PGE’s Resource (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
34 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
Slide 35: Platinum Group Metals Ltd. contact details
Platinum Group Metals Ltd. Suite 328 – 550 Burrard Street Vancouver, BC V6C 2V5 Canada +1 604‐899‐5450 info@platinumgroupmetals.net www.platinumgroupmetals.net Platinum Group Metals RSA (Pty) Ltd. Technology House Victory Park Johannesburg, RSA 35
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