platinum group metals ltd. · 2019-09-24 · plg: nyse mkt ptm: tsx platinum group metals ltd....

PLG: NYSE MKT PTM: TSX

PLATINUM GROUP METALS LTD.

CORPORATE PRESENTATION

March 2013

PLG: NYSE MKT PTM: TSX1 1

This presentation has been prepared by Platinum Group Metals Ltd. (“Platinum Group” or the “Company”). Information included in this presentation regarding theCompany’s mineral properties has been compiled by R. Michael Jones, P.Eng, the President and Chief Executive Officer of the Company, and a non-independentQualified Person for purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”), based on the independent technicalreports, and Other Information filed by the Company with the Canadian securities regulators and the U.S. Securities and Exchange Commission (“SEC”). Theauthors of the technical reports have reviewed and consented to the use of the material from their reports in the Disclosure Record..

For more detailed information regarding the Company and its mineral properties, you should refer to the Company’s independent technical reports and other filingswith the Canadian securities regulators and the SEC, which are available at www.sedar.com and www.sec.gov, respectively. Scientific or Technical informationcontained herein is derived from the Company’s technical reports, including the “Updated Technical Report (Updated Feasibility Study Western Bushveld JointVenture Project 1 (Elandsfontein and Frischgewaagd)” dated November 20, 2009 with an effective date of October 8, 2009 (the “2009 UFS”) prepared by Gordon I.Cunningham, Charles J. Muller, Timothy V. Spindler and Byron Stewart, which include more detailed information with respect to the Company’s properties,including the dates of such reports and the estimates included therein, details of quality and grade of each resource, details of the key assumptions, methods andparameters used in the resource estimates and the 2009 UFS and a general discussion of the extent to which the resource estimates and the other estimates andprojections included in the reports may be materially affected by any known environmental, permitting, legal, taxation, socio-political, marketing, or other relevantissues.

CAUTIONARY NOTE TO UNITED STATES INVESTORS

As a Canadian issuer that is eligible to use the U.S./Canada Multijurisdictional Disclosure System (MJDS), the Company is permitted to prepare a prospectus and this presentation in accordance with Canadian securities laws, which differ in certain respects from U.S. securities laws. In particular, this presentation uses the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource”. While these terms are recognized and required by Canadian securities laws, they are not recognized by the SEC. In addition, “reserves” reported by the Company under Canadian standards may not qualify as reserves under SEC standards. U.S. investors are cautioned not to assume that any part of a “measured mineral resource” or an “indicated mineral resource” will ever be converted into a “reserve.” Under U.S. standards, mineralization may not be classified as a “reserve” unless the mineralization can be economically and legally produced or extracted at the time the reserve determination is made. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. U.S. investors are urged to read the statement in the filed prospectus under the heading “Cautionary Note to United States Investors” for further information. Historical results or feasibility models presented herein are not guarantees or expectations of future performance.

Information included in this presentation, the Company’s independent technical reports and the Company’s other public statements related to its mineral properties has been prepared in accordance with securities laws in effect in Canada, which differ from U.S. securities laws. The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. The Company uses certain terms in this presentation, such as “resources,” that the SEC’s guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. You are urged to consider closely the disclosure in our Form 40-F annual report, which may be secured from us, or from the SEC’s website at www.sec.gov.This presentation also contains information about adjacent properties on which the Company has no right to explore or mine. The Company advises you that the SEC’s mining guidelines strictly prohibit information of this type in documents filed with the SEC. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Companies properties

This presentation is not an offer to sell, or a solicitation to buy, any securities in any jurisdiction. The Toronto Stock Exchange and the NYSE.MKT LLC have not reviewed and do not accept responsibility for the accuracy or adequacy of this presentation, which has been prepared by the Company.

DISCLOSURE

PLG: NYSE MKT PTM: TSX2

• 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 the WBJV Project 1 platinum mine, the drawdown of the US$260M project senior secured loan facility, the potential exercise of the over-allotment option, potential required equity contributions and cost overrun accounts, potential mining scenarios and timing of production at the WBJV Project 1 platinum mine, business trends and future operating factors, price estimates and anticipated platinum supply and deficits are forward-looking and subject to important risk factors and uncertainties, many of which are beyond the Company’s ability to control or predict. In addition, resource estimates and feasibility study results constitute forward-looking statements to the extent that they represent, respectively, estimates of mineralization that may be encountered upon additional exploration and estimates of the capital and operating expenses, metals and currency prices and other operating conditions that may be encountered in the future.

• 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 substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: additional financing requirements; the Company’s history of losses and ability to continue as a going concern; the fact that most of the Company’s properties contain no known mineral reserves; delays in, or inability to achieve, planned commercial production at the Company’s properties; discrepancies between actual and estimated mineral reserves and mineral resources, between actual and estimated development and operating costs, between actual and estimated metallurgical recoveries and between estimated and actual production; fluctuations in the relative values of the Canadian dollar as compared to the South African Rand and the United States dollar; metal price volatility; a default under the proposed project loan facility, if consummated, including as a result of delays in the start-up of the WBJV Project 1 platinum mine; the ability of the Company to retain its key management employees or procure the services of skilled and experienced personnel; conflicts of interest among the Company’s directors and executive officers as a result of their involvement with other mineral resource companies; any disputes or disagreements with the Company’s joint venture partners or any failure of the Company or such joint venture partners to fund their obligations under applicable joint venture agreements; exploration, development and mining risks and the inherently dangerous nature of the mining industry, including environmental hazards, industrial accidents, unusual or unexpected formations, safety stoppages (whether voluntary or regulatory), pressures, mine collapses, cave ins or flooding and the risk of inadequate insurance or inability to obtain insurance to cover these risks and other risks and uncertainties; property and mineral title risks, including defective title to mineral claims or property; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, South Africa or other countries in which the Company does or may carry out business in the future; equipment shortages and the ability of the Company to acquire the necessary access rights and infrastructure for its mineral properties; environmental regulations and the ability of the Company to obtain and maintain necessary permits, including environmental authorizations; competition in the mineral exploration industry; and risks of doing business in South Africa, including but not limited to, labour, economic and political instability as well as the factors described or referred to in the section entitled “Risk Factors” in the Company’s Annual Information Form for the year ended August 31, which is available on SEDAR at www.sedar.com , and is included as part of the Company’s Form 40-F annual report filed with the SEC at www.sec.gov and in the Company’s prospectus dated December 21, 2012. You are advised to review these risk factors, and not to place undue reliance on Forward-Looking Statements.

• The Company undertakes no obligation to update publicly or release any revisions to Forward-Looking Statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events except as required by law.

2

FORWARD LOOKING STATEMENTS


INVESTMENT HIGHLIGHTS

3

NEAR TERM PGM PRODUCTION

STRONG INSTITUTIONAL SUPPORT

PROJECT BANKING APPROVED

CAPITAL FUNDED

STRATEGIC EXPLORATION

• Platinum Group Metals Ltd. is in construction, 74% owned WBJV Project 1 Platinum Mine, 275,000 ounces 4E, steady state, initial production in late 2014 - shallow, high grade Merensky

• A core of quality institutional shareholders supported the Company for A $180M equity offering that closed January 4, 2013

• Credit approval for a US$ 260M project senior loan facility at the WBJV Project 1 operating company level was announced on December 6th, 2012 with closing and drawdown upon satisfaction of loan conditions precedent

• Projects funded including a cost overrun account of US $50M to US $100M, credit approved and complete when the project loan closes

• Waterberg Project - a thick mechanized target, growing and open, near surface• CAN$ 10m exploration budget is progress for 2013 – 15 drill rigs on site• JOGMEC – Japanese State Co. partner


BUSHVELD COMPLEX, SOUTH AFRICA


• Legacy PGM miners in South Africa are facing structural challenges due to declining grade, increasing depth, capital intensity and escalating costs.

• Anglo Platinum, Impala and Lonmin have scaled back production projections and capital investment.

• A recent business restructuring by Anglo Platinum will lead to a much smaller production base.

• Structural deficits are being projected going forward for both platinum and palladium due to expected supply shortfalls.

Source Anglo Platinum Presentation January 2013

CHALLENGES FACING LEGACY PGM MINERS - “THE OLD PLATINUM”


• Exploration efforts on the North Limb of the Bushveld Complex has led to significant PGM discoveries by a new breed of operators.

• PTM and Ivanplats have made thick, high-grade discoveries with the potential for low cost, safe mechanized mining.

• Much of this exploration work has been funded by Japanese government and corporate interests. (JOGMEC and Itochu Corporation)

• PTM is well positioned with a shallow high margin conventional mine development at the WBJV and a new discovery on the North Limb at Waterberg.

DISCIPLINE AND EXPLORATION FOCUS - “THE NEW PLATINUM”

Waterberg Core (T2 Layer) – February 2012


PTM - TARGETING THE BOTTOM OF THE COST CURVE

WITH SCALE TO GROW

Like Waterberg – Mogalakwena, North Limb and thickLike WBJV Project 1 – BRPM, good grade MR, near surface


• Stillwater and North American Palladium

are often touted as attractive PGM

investments due to political jurisdiction.

• South African PGM producers have

delivered significant earnings and

shareholder returns in comparison to

North American peers over time.

• The geology of South Africa makes it the

primary jurisdiction for PGM mining,

exploration and investment – end of

story.

• Election of Cyril Ramaphosa as Deputy

President confirms RSA open for

business.

NORTH AMERICAN PGM PRODUCERS - A HISTORY OF LOSING MONEY

Sources : Bloomberg, Public Information


• 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 Jinchuan Group of China.

• The Project 1 Platinum Mine is located in the Western Limb of the Bushveld and is a shallow, high grade (Merensky) deposit.

• A US$ 100M Phase 1 construction program started in 2010, focused on general infrastructure and underground development is near complete.

• The Phase 2 construction program has commenced focusing on processing infrastructure and continued ore development.

• First production is scheduled for late 2014.

WESTERN BUSHVELD PROJECT 1 PLATINUM MINE


• Area produces over 70% of global annual primary platinum supply.

• Major infrastructure in place including smelters and refineries.

WESTERN BUSHVELD, SOUTH AFRICA


• Over US$ 4B of new investment in platinum mines in the immediate area underway

• Last large block of undeveloped Merensky Reefabove 1,000 Meters

• Platinum Group is developing declines from surface.

11

NORTHWEST LIMB


! See 2009 UFS, www.sedar.com, including Risk Factors, Metal Prices and Differences in Reporting under SEC Guidelines ! Resources may never become reserves, figures may change during project implementation in progress.! Figures based on 100% Project Valuation – PTM 74%, WEZ 26% The Company has a 74% interest in these mineral resources and reserves! US$ Metal Price Assumptions: Pt: $1,343, Pd: $322, Rh: $4,951, Au: $807 (2009 UFS)! * Updated Operational Guidance, April 16, 2012! (1) See Appendix for tonnes and grade associated with reserves and resources and associated Qualified Persons

1

1

! Shallow, good grade, in the main platinum mining and smelting area, adjoining mines in production and construction

1

1

WBJV PROJECT 1 - QUICK FACTS


• 400 plus people on site with 30% from local communities.

• Underground development has advanced 1000m on twin headings.

• Project is substantially on budget.

• Section 54 Feb 14 resulting from fatality is in active co-operative discussion with the DMR. Safety Record was good to this point, resolution expected soon

• Anglo Platinum has exercised a first right of refusal on off take.

WBJV Central Decline

WBJV PROJECT 1


0.00

50.00

100.00

150.00

200.00

250.00

Met

res

WBJV Project1 (Maseve )

Decline Advance

Conveyor Decline Material Decline Other

WBJV - Central Decline Advance Rates


Face Position22nd January 2013

Expected Reef Intersection@Decline Start plus 1100m

1100m AMSL

1000m AMSL

900m AMSL

800m AMSL

700m AMSL

600m AMSL

WB

JV

244

VO

35

WB

JV

0348

WB

JV

0270

WB

JV

0263

VO

24

VO

23A

ELEVATION

SURFACE 1040 AMSL

North DeclineSection showing Merensky Reef Intersection

Start of Decline + 1100m to expected reef horizon22nd January 2013

North Portal

–


WBJV Plant Design – Mototolo

Using existing detailed design saves time and money

Performance demonstrated, value engineering in addition

• Major components are in the market for tenders currently

• Indications are positive on price and time compared to budget and schedule

• DRA is the experienced EPCM –appointed, team in place, work started


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

• Q1 – 2013 Construction of Concentrator begins, civil work started now

• Q2 – 2013 Completion of Phase 1 and North Mine Ore Development

• Q2 – 2013 Eskom Phase 1 Complete (10 MVA)

• Q4 – 2014 Bulk Electricity Supply from Eskom (40MVA)

• Q4 – 2014 Bulk Water Supply from Magalies (6Ml/day)

• Q4 – 2014 Plant Commission, concentrate sales


• The North Limb of the Bushveld Complex has seen an increased investment by Anglo Platinum, JOGMEC, ITOCHU and Ivanplats.

• PLG/PTM has made a new discovery of a previously unmapped part of the Bushveld Complex.

• Japan Oil and Gas Mineral Exploration Corporation (JOGMEC) partnership has earned a 37% interest in Waterberg by spending US$ 3.2M.

• PLG/PTM holds an effective 49.9% ownership interest in JOGMEC JV area and 87.5% in the extension area.

• Current resource stands at 10.1 million 3E ounces. (Press Release dated Feb. 1, 2013 Ken Lomberg QP, Coffey Mining)

• Work continues with a $10M exploration budget for 2013 including drilling with15 machines.

WATERBERG PROJECT, NORTH LIMB


Projected Extension

WB 34

Waterberg Deposit

PGM production of

676 4000 oz for 2011


WATERBERG PROJECT AREA - REGIONAL GEOLOGY

Exploration off the north end of the previously known North Limb.

Platinum Group has an 87% interest in the pending extension licenses –applications are progressing


Projected Extension

Drilled Strike Extent of 5.5km

PGM production of 676 4000 oz for 2011


22

Initial inferred mineral resource is 3m to 6m thick compared to conventional platinum mines at 1m to 1.5m thick.

Current Resource: 10.12M ounces 3E inferred

Drilling continues with 15 rigs and a $10M 2013 exploration program.

Inferred Mineral Resource, Dated February 01, 2013, Ken Lomberg, Coffey Mining, Independent Qualified Person

See press release February 1, 2013. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of

mineral resources may be materially affected be environmental, permitting, legal marketing or other relevant issues. The quantity and grade of reported

inferred mineral resources in this estimate are conceptual in nature. There is no guarantee that all or any part of the mineral resource will be converted

to a mineral reserve.

WATERBERG PROJECT

NORTH LIMB

Mineral Resource Estimate

01 February 2013

Stratigraphic Tonnage Pt (g/t)

Pd (g/t)

Au(g/t)

2PGE+Au (g/t)

Pt:Pd:Au2PGE+Au

(koz)Cu (%)

Ni (%)

Cu (t) Ni (t)

Thickness Mt

T1 2.58 4.33 0.91 1.37 0.52 2.80 32:49:19 390 0.21 0.11 9,200 4,900

T2 4.08 25.46 1.07 1.87 0.78 3.72 29:50:21 3,045 0.17 0.09 44,000 22,600

T Total 3.76 29.78 1.05 1.79 0.75 3.59 29:50:21 3,435 0.18 0.09 53,200 27,500

FH 4.02 7.19 1.09 2.37 0.20 3.66 30:65:6 847 0.10 0.22 6,900 15,500

FP 5.46 55.95 1.01 2.10 0.14 3.25 31:65:4 5,838 0.06 0.16 33,400 91,600

F Total 5.24 63.15 1.02 2.13 0.15 3.29 31:65:4 6,685 0.06 0.17 40,300 107,100

CombinedTotal

4.63 92.93 1.03 2.02 0.34 3.39 30:60:10 10,120

Content (koz) 3,071 6,040 1,009


Waterberg has thick mineralized layers with potential for mechanized mining.

The area up-dip of the resource is on a recently granted prospecting permit

The deposit is open up dip, at depth and along strike.

See press releases www.sedar.com, WB 27- 34 Step outs, WB 32 – fill-in R. Michael Jones P.Eng, Non Independent QP

Hole FROM TOZONE

Interval 2PGE+Au Pt Pd AuPrill splits

Number (m) (m) (m) g/t g/t g/t g/t Pt Pd Au

WB027D0 1117 1123.5 FH 6.50 2.79 0.64 2.07 0.0823% 74% 3%

WB027D0 1151 1175 FP 24.00 4.32 1.17 2.99 0.1627% 69% 4%

WB027D0 1117 1175 FH+FP 58.00 2.98 0.79 2.08 0.1127% 70% 3%

WB031D0 913 924.5 FH 11.50 7.18 1.98 4.89 0.3128% 68% 4%

WB031D0 934 939 FP 5.00 4.78 1.35 3.2 0.2328% 67% 5%

WB031D0 913 939 FH+FP 26.00 4.63 1.28 3.14 0.2128% 68% 4%

WB034D0 1056 1063 FH 7.00 4.32 1.29 2.89 0.1430% 67% 3%

WB034D0 1064 1072.5 FP 8.50 4.8 1.45 3.08 0.2730% 64% 6%

WB034D0 1056 1072.5 FH+FP 16.50 4.4 1.32 2.87 0.2130% 65% 5%

WB032D0 802.00 812.50 T2 10.50 15.46 4.46 7.63 3.37 29% 49% 22%

WATERBERG PROJECT

NORTH LIMB



! Schematic Section25


Impala Rustenburg – 30km Strike$12B market cap

PTM Waterberg – 30km Strike Potential$550M market cap

WATERBERG – AN INDUSTRY CHANGING DISCOVERY ?


Stock Symbols: PLG: NYSE MKT

PTM: TSX

Market Capitalization: C$ 580M

Share Price: C$ 1.40

52 Week High/Low $1.70/$0.74

Shares Outstanding 402,599,542

Options 16,618,500

Fully Diluted 419,218,042

Cash CAN $200M

As of February 20, 2013

Research Coverage

RBC Capital Markets

GMP Securities

Stifel Nicolaus

Raymond James

Credit Suisse

Mackie Research

CIBC World Markets

SHARE STRUCTURE – CAPITAL MARKETS

Major Shareholders

Liberty Metals and Mining

Genesis Investment Management

Franklin Resources

Blackrock Inc.

JP Morgan Asset Management UK

T. Rowe Price

Wellington Management

C$180M Marketed Offering

January 4th, 2013


Appendix

WBJV Reserves and Resources

Waterberg Resources and Data

28


WBJV ~ Measured Resources

Measured Mineral Resource (4E)

Cut-off (cm.g/t)

Million Tonnes

(Mt)

Grade 4E

(g/t)

Mining Width

(m)

Tonnes PGE (4E)

Moz

PGE’s

(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 Measured

300 14.067 6.19 1.34 87.13 2.801

29

QP Charles Muller of Minxcon,

See details Press Release and 43-101 reports on www.sedar.com


WBJV ~ Indicated Resources

Indicated Mineral Resource (4E)

Cut-off (cm.g/t)

Million Tonnes

(Mt

Grade

4E

(g/t)

Mining Width

(m)

Tonnes

PGE

(4E)

Moz

PGE’s

(4E)

Project 1 & 1A MR

300 11.183 7.25 1.24 81.077 2.607

Project 1 & 1A UG2

300 19.209 4.46 1.39 85.672 2.754

Total Indicated

300 30.392 5.49 1.34 166.749 5.361

30

QP Charles Muller of Minxcon, See details Press Release and 43-101 reports on www.sedar.com


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

31

QP Charles Muller of Minxcon Resources, See details Press Release and 43-101 reports on

www.sedar.com. Includes mining dilution and flow of ore factors, QPs Tim Spindler and Gordon

Cunningham Mining Factors and Updated Feasibility Study October 2009


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

32

QP Charles Muller of Minxcon Resources, See details Press Release and 43-101 reports on

www.sedar.com, Tim Spindler and Gordon Cunningham Mining Factors and Updated Feasibility Study

Report October 2009


33


34

! Waterberg Layer Characteristics

platinum group metals ltd. · 2019-09-24 · plg: nyse mkt ptm: tsx platinum group metals ltd....

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