Platina Resources Limited · ASX:PGM
Platina Resources — Investor Presentation (February 2019)
42 slides from Platina Resources's investor presentation, Feb 27, 2019
Slide 1: Investor Presentation
For personal use only February 2019 Investor Presentation Advancing a Portfolio of Precious and Specialty Metals Projects
Slide 2: Platina at a glance
Platina at a glance Platina Scandium (100%) New South Wales For personal use only Platina is listed on the Australian Securities ▪ Target – Sc, Co, Ni & Pt Exchange (ASX:PGM) ▪ One of the world’s highest-grade scandium PGM holds a high- deposits quality portfolio of scandium, cobalt, gold ▪ DFS comp
Slide 3: Capital Structure
Capital Structure For personal use only Share Structure Capitalisation ASX Code PGM Price 25 February 2019 6.7¢ Shares(1) 264.1 million Market cap AUD$17.7 million 52 week low/high 5.2¢ - 14¢ Cash (31 Dec 2018) AUD$2.4 million Top 20 shareholders 54% Debt (31 Dec 2018) Nil Note: Enterprise value AUD
Slide 4: Board
Board For personal use only Mr. Brian Moller Corey Nolan Chris Hartley John Anderson Paul Jurman LL.B (Hons) B.Com, MMEE, GAICD B.Sc, PhD,GAICD LL.B, B.Com,GDCL,GAICD B.Com, CPA Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Company Secretary/CFO Partner with
Slide 5: Strong Team of Technical Consultants
Strong Team of Technical Consultants For personal use only John Horton Boyd Willis Roland Wells Gideon Steyl BSc (hons) DipCompSc PGCert BAppSc(AppChem), ARMIT Mining, Civil PhD, MIEAust CPEng RPEQ Env, Geostats MAIG FAusIMM CP FAusIMM, CP Project Director MRACI CChem Principal Geologist Project Man
Slide 6: Platina Investment Highlights
Platina Investment Highlights For personal use only PSP is an advanced, de- Executing a plan to realise risked project. Definitive value from Skaergaard by Feasibility Study completed completing a Scoping Study Executing a plan to get the Low market capitalisation and PSP into production and attract
Slide 7: Significantly Undervalued Versus Peers
Significantly Undervalued Versus Peers For personal use only 250 • Market cap lagging multi-product (Ni/Co), high capex projects, despite PSP’s low Market Capitalisation ($A million) capex and attractive economics 200 • Attributes low value to Munni Munni and Skaergaard 150 100 50 $17 $48 $55 $58 $1
Slide 8: Platina Scandium Project (PSP)
Platina Scandium Project (PSP) For personal use only The 2018 DFS has confirmed the technical and financial viability of constructing a simple, low-strip ratio, open-cut mining operation and processing facility producing high-purity scandium oxide
Slide 9: Scandium Opportunity
Scandium Opportunity • Scandium’s PRIMARY USE today is in For personal use only solid fuel cells (Bloom Energy) • DEMAND GROWTH– driven by the next generation of lightweight Sc-Al alloys • Sc-Al alloys provide SUPERIOR strength and weldability • MARKET GROWTH – constrained by LIMITED western world s
Slide 10: Scandium Opportunity
Scandium Opportunity For personal use only “ Aluminum alloys present the largest of these potential scandium applications. If only a tiny fraction (0.1 %) of the annual aluminum market absorbed scandium in alloy at a 0.5% level, it would represent 350 tonnes in annual global scandium demand. Many ob
Slide 11: Developing a New Source of High-Grade Scandium
Developing a New Source of High-Grade Scandium For personal use only • Premier mining address - 350 km west of Sydney, New South Wales • Established mining district with highly skilled workforce • Major gold and copper mining operating in the district • Significant tech metals district – Sc, Co, Ni,
Slide 12: 2018 Definitive Feasibility Study Highlights
2018 Definitive Feasibility Study Highlights For personal use only Simple, low-cost, open-cut mining operation Conventional process plant producing 99.99% scandium oxide Staged production strategy – 20t/yr growing to 40t/yr as market demand increases. Potential to enhance value with by-product credi
Slide 13: DFS Financial Results
DFS Financial Results For personal use only Start-up capex of Post-Tax NPV (8% real) AU$234m AU$68 million Post-Tax IRR 29% Capital Payback 5.3 years and Ave Annual Revenue AU$77m Stage 2 expansion Ave Annual EBITDA AU$47m capex of Price Forecast US$1,550/kg AU$16 million
Slide 14: Ore Reserves & Resources
Ore Reserves & Resources JORC Ore Reserve (400 ppm Sc cut-off) For personal use only • Laterite hosted orebody Dry Sc Co Ni Sc2O3 Co Ni rich in scandium and Mt ppm % % t* t t cobalt Proven 3.05 575 0.10 0.13 2,696 2,945 4,054 • One of the highest-grade Probable 0.97 550 0.07 0.08 816 654 767 scandiu
Slide 15: Simple Geology Delivers Low Mining Costs
Simple Geology Delivers Low Mining Costs For personal use only Deposit Geology Scandium Grade Profile
Slide 16: Proven Processing Methodology
Proven Processing Methodology • PSP is a laterite ore deposit – 2/3rds of world nickel production For personal use only comes from similar laterites • Conventional High-Pressure Acid Leach (HPAL) process route • Very low in acid consuming elements • 5.4wt bulk sample pilot tested – 99.99% Sc2O3 prod
Slide 17: Platina Scandium Project Process Flow Sheet
Platina Scandium Project Process Flow Sheet For personal use only * Stage 2 Options * Stage 2 capex
Slide 18: Excellent Access to Infrastructure at Process Site
Excellent Access to Infrastructure at Process Site • Established industrial site For personal use only chosen for processing facilities • Ore to be trucked 70 km from Red Heart mine to Condobolin processing site • Access to power, water, roads, buildings and labour • Simple permitting – no Mining Le
Slide 19: Process Plant Site Layout
Process Plant Site Layout For personal use only
Slide 20: Multi, High-Value Product Development Options
Multi, High-Value Product Development Options For personal use only Scandium Oxide Phase II Expansion to 40t / year Sc2O3 Sc-Al Master Alloys Cobalt JORC Resource# (0.08% Co cut-off) Sc Co Pt Ni Nickel and Cobalt Mt ppm % g/t % Measured 4.0 380 0.14 0.49 0.29 Indicated 6.2 350 0.12 0.26 0.20 Inferre
Slide 21: Value Adding Through Master Alloy Manufacturing
Value Adding Through Master Alloy Manufacturing Traditional Melting Process For personal use only Scandium Oxide Electrolysis furnace furnace Alumina Aluminium metal Master alloy – AlSc (2%) Metalysis Process Scandium Oxide furnace End use alloy Alumina Oxide Metalysis process AlSc master alloy (ten
Slide 22: Sustainability and Community Benefits
Sustainability and Community Benefits Community For personal use only Environment Tailings neutralised and LOCAL community engagement, consultation placed back in the mine and support Plant utilises existing industrial site JOB creation and infrastructure investment Small project footprint Innovatio
Slide 23: PSP Next Steps
For personal use only PSP Next Steps
Slide 24: Project Skaergaard
For personal use only Project Skaergaard
Slide 25: A Major Deposit of Gold and Palladium
A Major of Deposit of Gold and Palladium For personal use only One of the world’s largest undeveloped gold and palladium resources • 100% owned by PGM • Located on the east coast of Greenland • 68 drill holes and 35,000m of diamond drilling • A$16 million invested in drilling, metallurgy and studies
Slide 26: JORC Mineral Resource
JORC Mineral Resource Wardell Armstrong International (WAI) July 2013 For personal use only JORC Mineral Resource (1g/t AuEq cut-off) Resource Tonnes Au Pd Pt AuEq Au Pd Pt Classification (kt) (g/t) (g/t) (g/t) (g/t) (Moz) (Moz) (Moz) Indicated 5,080 1.25 0.88 0.06 1.66 0.2 0.14 0.01 Inferred 197,14
Slide 27: Mineral Resource
Mineral Resource For personal use only Potential to expand the Mineral Resource with further drilling • Main Mineral Resource within three reefs of the Triple Group horizon: ▪ H0 – gold mineralisation ▪ H3 – gold and palladium mineralisation ▪ H5 – palladium mineralisation • Mineralisation outcrops
Slide 28: Example Geological Cross Section of Triple Group
Example Geological Cross Section of Triple Group For personal use only N S 1 m @ 3.81 g/t Au and 0.55 g/t Pd from 237 m Depth (m) PRL-11-49 PRL-11-50 Depth (m) PRL-11-51 0 0 2 m @ 2.14 g/t Au and 0.86 g/t Pd from 324 m 6 m @ 0.13 g/t Au and 2 m @ 3.07 g/t Au and 0.59 g/t Pd from 471 m 2.17 g/t Pd fr
Slide 29: Next Steps
Next Steps Scoping Study underway to define optimal development strategy and path For personal use only forward for the project Palladium • New economic study required reflecting current metal prices, capital and operating costs • Since the 2013 WAI JORC Resource estimate, Palladium price has increa
Slide 30: M&A Strategy
M&A Strategy Create a portfolio of carefully-chosen projects at various stages - thereby balancing the risk - based on For personal use only the following criteria: Project targeting objectives – identify Focus on investment returns – undervalued turnaround seeking high IRR and bottom opportunities:
Slide 31: Share Price Catalysts
Share Price Catalysts For personal use only Developments in value-adding Offtake agreements for the Platina Scandium Project scandium oxide into master alloys Lodgment of the Platina Advancing the Scandium Project Mining License Application Skaergaard and Munni Munni projects Project finance
Slide 32: Appendix – Scandium
For personal use only Appendix – Scandium 101
Slide 33: Scandium
Scandium 101 • Scandium is a soft, silvery For personal use only Scandium is a white metal niche industrial • Often found as a trace metal that can element in deposits of rare alloy to produce earths, titanium, uranium, super light, strong iron and nickel materials which • Primary deposits of can gr
Slide 34: Scandium Sources & Supply – 15-20t/yr
Scandium Sources & Supply – 15-20t/yr* For personal use only Russia 10% Bauxite Residues Philippines 20% Uranium China 70% Waste TiO2 Pigments Ni/Co *CM Group & PGM 2019 Estimate Laterites
Slide 35: Scandium Supply – Australia is a Game Changer
Scandium Supply – Australia is a Game Changer Australia (NSW) laterites By-Product Supply For personal use only ✓ High-grade primary resources Sensitive to primary product demand ✓ First world country Low-grade and quality resources ✓ World class infrastructure Non-OECD nations = COMPETITIVE P
Slide 36: Scandium Uses
Scandium Uses Solid Oxide Fuel Cells For personal use only Aluminium Alloys Lighting
Slide 37: Benefits of Scandium in Aluminium Alloys
Benefits of Scandium in Aluminium Alloys For personal use only Small additions of Sc2O3 into various aluminium alloys significantly improves its performance, driving significant cost savings for the manufacturer ATTRIBUTE BENEFIT Refines grain structure Increases strength Reduces amount of material
Slide 38: Scandium – Light Alloys to Drive Future Demand
Scandium – Light Alloys to Drive Future Demand Scandium effect on Yield Strength (Mpa) for various For personal use only aluminium alloys Automotive Architectural Marine Heat Exchangers Aircraft Power Transmission Source: Hydro Aluminium
Slide 39: Scandium Supply-Demand Balance Forecast
Scandium Supply-Demand Balance Forecast Case study: Airbus Group’s Light Rider For personal use only • EV opportunities not limited to standard passenger vehicles • The Light Rider utilises scandium alloys to reduce weight and improve efficiency • Light personnel transportation, such as bikes & scoo
Slide 40: Scandium Pricing
Scandium Pricing For personal use only • There is no exchange traded market for scandium • Prices are historically set by long term offtake contracts • According to the USGS, historical scandium oxide prices have ranged from USD$2,000-$4,000/kg • Platina has used a forward price of USD$1,550/kg for
Slide 41: Disclaimer
Disclaimer Cautionary and Forward-Looking Statements COMPETENT PERSON STATEMENT For personal use only This presentation contains “forward-looking information” which may include, but is not limited The information in this presentation is based on, and fairly represents information and to, statements
Slide 42: Contact
For personal use only Contact Telephone: +61 7 5580 9094 Email: admin@platinaresources.com.au Level 2, Suite 9, 389 Oxford Street Mt Hawthorn WA 6016 AUSTRALIA www.platinaresources.com.au
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