Platinum Group Metals Ltd. · TSX:PTM
Platinum Group Metals — IPO Roadshow (May 2018)
29 slides from Platinum Group Metals's IPO roadshow presentation, May 3, 2018
Slide 1: Free Writing Prospectus
The issuer has filed a registration statement (including a prospectus) and prospectus supplement with the SEC for the offering (the “Offering”) to which this communication relates. Before you invest, you should read the prospectus in that registration statement; the prospectus supplement; the docume
Slide 2: Cautionary statements regarding the offering
All capitalized terms used in these Cautionary Statements have the meaning ascribed to those terms in the final base shelf prospectus dated October 14, 2016 (the “Prospectus”) and the shelf prospectus supplement (the “Prospectus Supplement”) dated May 3, 2018. Although the Company has applied to lis
Slide 3: Cautionary Note Regarding Forward Looking Statements
Prospective investors should be aware that the acquisition of the Securities may have tax consequences both in the United States and in Canada. Such consequences for investors who are resident in, or citizens of, the United States or who are resident in Canada may not be described fully in the Prosp
Slide 4: Forward Looking Statements risks and uncertainties
Forward Looking Statements are subject to a number of risks and uncertainties that may cause the actual events or results to differ materially from those discussed in the Forward Looking Statements, and even if events or results discussed in the Forward Looking Statements are realized or substantial
Slide 5: Forward looking risk factors continued
acquire the Common Shares; the risk that the Company’s Common Shares may be delisted, or that the Company may be required to effect a reverse stock split in order to maintain the listing of the Common Shares on the NYSE American; volatility in the price of the Common Shares; the lack of a public mar
Slide 6: Industry Guide 7 and NI 43-101 reserve standards
In particular, Industry Guide 7 applies different standards in order to classify mineralization as a reserve. As a result, the definitions of proven and probable mineral reserves used in NI 43-101 differ from the definitions in Industry Guide 7. Under SEC standards, mineralization may not be classif
Slide 7: Overview of Platinum Group Metals Ltd.
A PGM Exploration and Development Company Focused on Low-Cost Bulk Mechanized Mining OVERVIEW OF PLATINUM GROUP METALS LTD. 7 Waterberg Project - large scale palladium and platinum reserves in South Africa. Waterberg 2016 pre-feasibility study confirms potential for a large, low cash cost per ounce
Slide 8: Why Waterberg?
8 WHY WATERBERG? Probable Reserve: 12.3 Million Ounce Palladium, Platinum, Gold and Rhodium (4E)* Indicated Resource: 24.9 Million Ounces (4E) and Inferred Resource: 10.8 Million Ounces (4E)* THICK - amenable to bulk mechanized mining – higher skilled and educated work force. Metal balance is majori
Slide 9: Share Structure and Capital Markets
9 SHARE STRUCTURE AND CAPITAL MARKETS DEBT US $61.71M Secured Debt (Liberty Metals)1 US $20M 6 7/8% Convertible Senior Subordinated Notes, 2022 POTENTIAL FUTURE CASH US $12.76M2 - Maseve Mine Sale Step 2 US $3.19M – Private Placement with Hosken Consolidated Investments Limited STOCK SYMBOL PLG:NYSE
Slide 10: Implats Strategic Investment
10 IMPLATS STRATEGIC INVESTMENT Implats Investment Provides Mine to Market Roadmap for the Waterberg Project Implats purchased 15% of Waterberg for US $30M in cash. Acquires right of first refusal for concentrate offtake. Implats acquired an option to increase its stake to a 50.01% controlling inter
Slide 11: Transaction Summary
11 TRANSACTION SUMMARY STEP 1 Implats has purchased a 15% interest in operating company Waterberg JV Resources Pty Ltd. for US $30M. PTM sold 8.6% interest for US $17.2M and retains a 37.05% direct interest. JOGMEC sold 6.4% interest for US $12.8M and retains a 21.95% interest. (JOGMEC has subsequen
Slide 12: Transaction Summary: Implats option to 50.01%
12 TRANSACTION SUMMARY STEP 2 Upon completion of DFS Implats has an option to increase ownership to 50.01% with a firm funded acquisition and development commitment. Purchase an additional 12.195% from JOGMEC for US $34.8M. Acquire an additional 22.815% (4.755% from JOGMEC and 18.06% from PTM) by sp
Slide 13: 2016 Pre-feasibility Study key estimates
13 IRR and NPV Based on Investment Bank Consensus USD Prices: Pd $800, Pt $1,213, Au $1,300, Rh $1,000, 15ZAR/USD. Reserves and Resources Based on Three Year Trailing USD Prices: Pd $710, Pt $1,212, Au $1,229, Rh $984, 15ZAR/USD. 100% Waterberg Project. See Waterberg NI 43-101 Technical Report dated
Slide 14: Metal Price Sensitivity
METAL PRICE sENSITIVITY The Waterberg PGM Project is Highly Geared to the Price of Palladium. At a 20% increase in the basket price results post tax IRR increase from 13.5% to 20% and the NPV8 increases from US $320M to US $790M. (Independent Technical Report PFS) IRR and NPV Based on 3-Year Trailin
Slide 15: Definitive Feasibility Study
15 DEFINITIVE FEASIBILITY STUDY Implats and Platinum Group Metals as the Operator Have Agreed the DFS Scope A joint owners team has been selected for the DFS with two options being investigated. Option 1: 600ktpm Option 2: 250ktpm – 350ktpm The DFS will be completed in accordance with both SAMREC (S
Slide 16: Anticipated Development Timeline
16 anticipated DEVELOPMENT TIMELINE Implats Definitive Feasibility Study Participation Reinforces Path to Development PEA Deliverables Proven Business Case No fatal-flaws Forward work-plan PREFEASIBILITY STUDY Action Steps Additional exploration drilling Geological modelling Metallurgical test work
Slide 17: Hosken Consolidated Investments Ltd. (HCI)
17 HOSKEN CONSOLIDATED INVESTMENTS LTD. (“HCI”) HCI is a South African black empowerment investment holding company listed on the JSE Securities Exchange. HCI is involved in a diverse group of investments including hotel and leisure; interactive gaming; media and broadcasting; transport; mining; clo
Slide 18: Secured debt obligation and financing requirements
18 Remaining secured debt obligation related to the Maseve Mine is approximately US$61.71M, including a US$8.81M production payment termination fee which would increase to US$18.81M if not paid before May 15, 2018. Planned proceeds from Step 2 of the Maseve Mine sale to Royal Bafokeng Platinum to be
Slide 19: Conclusions
19 Waterberg PGM Project – US $30M investment from Implats – the world’s second largest producer of platinum. CONCLUSIONS Implats Investment in Waterberg Provides Mine to Market Roadmap Palladium Mine at an Important Time for the Commodity 01 Implats investment establishes a mine to market roadmap w
Slide 20: Reserves and Resources 2016 PFS Details
Reserves and Resources 2016 PFS Details 20 appendix
Slide 21: Waterberg Project Reserves
21 Waterberg project reserves Mineral Reserve Estimate October 17, 2016 PROBABLE MINERAL RESERVE AT 2.5 g/t 4E Cut-off – TONNAGE AND GRADES ZONE Mt CUT-OFF GRADE (g/t) Pt (g/t) Pd (g/t) Au (g/t) Rh (g/t) 4E (g/t) Cu (%) Ni (%) T-ZONE 16.5 2.5 1.14 1.93 0.83 0.04 3.94 0.16 0.08 F-ZONE 86.2 2.5 1.11 2
Slide 22: Waterberg PGM Project Resources: T-Zone and F-Zone
22 Waterberg PGM project RESOURCES T-Zone and F-Zone Mineral Resource Estimate - October 17, 2016 T-ZONE 2.5 g/t CUT-OFF RESOURCE CATEGORY CUT-OFF Tonnage GRADE METAL 4E Pt Pd Au Rh 4E Cu Ni 4E g/t Mt g/t g/t g/t g/t g/t % % Kg Moz INDICATED 2.5 31.540 1.13 1.90 0.81 0.04 3.88 0.16 0.08 122,375 3.93
Slide 23: Total Mineral Resource Estimate
23 Waterberg PGM project RESOURCES Total Mineral Resource Estimate – October 17, 2016 WATERBERG TOTAL 2.5 g/t CUT-OFF RESOURCE CATEGORY CUT-OFF TONNAGE GRADE METAL Pt Pd Au Rh 4E Cu Ni 4E 4E g/t Mt g/t g/t g/t g/t g/t % % Kg Moz INDICATED 2.5 218.265 1.06 2.18 0.26 0.04 3.55 0.08 0.15 774,045 24.886
Slide 24: Projected 4E Cash Costs Before and After Credits
24 ITEM LIFE OF MINE AVERAGE 5 YEAR AVERAGE: 2022-2026 10 YEAR AVERAGE: 2022-2031 MINE SITE CASH COST 389 390 374 NICKEL CREDITS 98 97 98 COPPER CREDITS 42 40 40 TOTAL MINE CASH COSTS AFTER CREDITS 248 253 236 REALISATION COST (SMELTER ‘COST’, TRANSPORT) 232 224 231 TOTAL CASH COSTS AFTER CREDITS 48
Slide 25: Economic Assumptions
25 PARAMETER UNIT 3 YEAR TRAILING AVERAGE (JULY 31, 2016) INVESTMENT BANK CONSENSUS PRICE (SEP 16, 2016) PLATINUM USD /OZ 1,212 1,213 PALLADIUM USD /OZ 710 800 GOLD USD /OZ 1,229 1,300 RHODIUM USD /OZ 984 1,000 T AND F COMBINED BASKET (4E) USD /OZ 899 960 NICKEL USD /LB 6.10 7.50 COPPER USD /LB 2.56
Slide 26: Projected Financial Returns: Three Year Trailing Average Price Deck
26 ITEM DISCOUNT RATE ZAR MILLIONS (BEFORE TAX) ZAR MILLIONS (AFTER TAX) USD MILLIONS (BEFORE TAX) USD MILLIONS (AFTER TAX) NET PRESENT VALUE UNDISCOUNTED 36,096 25,042 2,406 1,669 4.0% 18,213 11,883 1,214 792 6.0% 12,666 7,808 844 520 8.0% 8,565 4,805 571 320 10.0% 5,519 2,584 368 172 12.0% 3,249 9
Slide 27: Projected Financial Returns: Investment Bank Consensus Price Deck
27 ITEM DISCOUNT RATE ZAR MILLIONS (BEFORE TAX) ZAR MILLIONS (AFTER TAX) USD MILLIONS (BEFORE TAX) USD MILLIONS (AFTER TAX) NET PRESENT VALUE UNDISCOUNTED 45,781 31,946 3,052 2,130 4.0% 24,180 16,184 1,612 1,079 6.0% 17,426 11,263 1,162 750 8.0% 12,402 7,610 827 507 10.0% 8,641 4,884 576 325 12.0% 5
Slide 28: Suite – Burrard Street Vancouver, BC V6C 2V5 Canada +1 604-899-5450 info@platinumgroupmetals.net www.platinumgroupmet…
Suite 788 – 550 Burrard Street Vancouver, BC V6C 2V5 Canada +1 604-899-5450 info@platinumgroupmetals.net www.platinumgroupmetals.net _____________________________ Platinum Group Metals RSA (Pty) Ltd. 1st Floor, Platinum House 24 Sturdee Avenue Rosebank, Johannesburg 2196 SA
Slide 29: Platinum Group Metals
PLATINUM GROUP MW wetacs Suite 788 — 550 Burrard Street Vancouver, BC V6C 2V5 Canada +1 604-899-5450 info@platinumgroupmetals.net www.platinumgroupmetals.net Platinum Group Metals 1*t Floor, Platinum House 24 Sturdee Avenue