Strategic overview of Wesizwe Platinum Limited November forward looking & FOCUSSING ON THE FUTURE

Transcription

1 Strategic overview of Wesizwe Platinum Limited November 2011 forward looking & FOCUSSING ON THE FUTURE

2 Introduction Wesizwe is in the process of building a PGM mine on the bushveld complex. Project was given approval to proceed on 4 July It is intended that at full production stage, the mine will deliver up to 350koz per annum over a 35 year life of mine. The introduction of a Chinese Consortium as the strategic equity partner and funder, ensures that the project is fully funded through to full production: With no shareholder dilution until production commences. Wesizwe also owns a fully funded 26% stake in the adjacent PTM owned Maseve Project.

3 The journey 2003 Company is incorporated Wesizwe lists on the JSE Permission to convert to new order mining rights granted Successful capital raising Results of prefeasibility study released. Takeover of Africa Wide Minerals Feasibility study reviewed shows PGM resource of over 13moz and 35 year LOM Financing transaction concluded. New management team in place. 4 July Mine development begins officially. The Wesizwe Journey 2004 Name changes to Wesizwe Platinum Wesizwe purchases mineral rights Exploration programme begins Drilling programme accelerated Bankable feasibility study completed. Global financial crisis impacts on project development 2010 Project Delta concluded to consolidate project shareholding. Terms of agreement signed with Chinese consortium.

4 Clean ownership structure Chinese Consortium Anglo Platinum, institutional, BEE and retail shareholders Platinum Group Metals (TSX listed) 45% 55% PTM SA 100% 100% Bakubung Africa Wide 74% 100% Project 2 Frisch Ledig 26%* Maseve 100% Project 1 & 3 WBJV Current BEE shareholding of approximately 17%. Key shareholder has committed to sell its interest to a BEE entity before * In 2010, Wesizwe received R408 million to be applied towards its (26%) capital contribution to the Maseve development.

5 Management and Board Board of Directors Ms Dawn Mokhobo Chairman Mr Dexin Chen Deputy Chairman Mr Jianke Gao Chief Executive Officer Mr Wenliang Ma Financial Director Mr Mike Eksteen Independent Non executive Director Mr Bob Garnett Independent Non executive Director Prof Wiseman Nkuhlu Independent Non executive Director Mr Jikang Li Non executive Director Mr Mlibo Mgudlwa Non executive Director Mr James Ngculu Non executive Director Mr Liliang Teng Non executive Director Mr Barrie van der Merwe Non executive Director Mr James Zhang Executive Director Management Jianke GAO (CEO) Bachelor of Mining; Professor Level Senior Engineer Mr Gao was previously a mining engineer with Jinchuan and he has 28 years mining technical and management experience. He has operated, developed and commissioned mining operations in different parts of the world. Wenliang MA (Michael) (Financial Director) Bachelor of Economics, Minor in Law and Philosophy; Master of Art (Economics) Mr Ma first joined CAD Fund, as a senior manager, in October During his 17 year career, he has worked in various financial and administrative positions. Jacques de Wet (Financial Advisor) Bachelor of Commerce (Hons); CA (SA) Mr de Wet has spent more than 16 years in the financial, corporate and project finance sectors in the mining industry. Lester GP Napier (Advisor to Wesizwe) Electrical and Mechanical Engineer; Post Graduate Mining Engineering (Wits); BCom (South Africa); FSAIMM and PMP Mr Napier has 38 years experience in various technical and senior management positions. He was previously the Group Consulting Engineer at JCI and General Manager Projects, Anglo Platinum. He has also spent time as a company executive, including a CEO, for various mining companies.

6 About Jinchuan Pride of China Formed 51 years ago in China. Non ferrous metallurgical and chemical conglomerate with integrated mining, concentrating, smelting and refining assets. Today Jinchuan is recognised as a leader in smelting and refining technologies that continues to grow processing capacity and auxiliary business opportunities thereby extending the value chain. Innovation and application oriented research has been a key success factor. Sustainable development and zero harm are key values of the business model. Jinchuan is established in 30 countries globally. Revenue of 100 billion Yuan (US$16 billion).

7 High quality resource at the center of platinum gravity of the Western Bushveld Western Limb provides 67% of the world s platinum

8 The project is now at the centre of a fully explored, quality new mining area Koedoesfontein JQ Frisch Ledig Frisch 4 Frisch 11 Styldrift Flat lying, thick reef Easier, more efficient mining Amenability to mechanisation Fewer mining levels Lower cost mining regime WBJV Project 1 Area Boschkoppie Impala 20# North Shaft South Shaft D Section

9 Wesizwe has graduated from explorer

10 ..to one of the best to be mined PGM ore bodies An impressive mining platform, flat lying and structurally stable

11 Key asset differentiators Relatively shallow in relation to industry producers MMD 850mbc. High mining extraction 74%. Thick Reef widths 1.4 to 1.7 m higher operating efficiency and yields. Favourable Prill Split high Pt tenor therefore improved basket value. Head grades amongst the best in the industry: Combined resource of 82Mt at 5.1g/t (4E) or 13,47Moz (CPR June 2008) over 1.42m, Merensky reserve grade 4.84g/t and the UG2 reserve grade of 3.36g/t. Merensky dominates production for the first 18 years. Flexible mine design based on flat dipping reef.

12 Resources (4E Moz) After PTM exercised the Maseve option Project 1 26% Project 3 26% Project 2 100% War Spring 15% Inferred Indicated Measured Total Total attributable resource ounces

13 Highly favourable prill split Merensky prill split, without Ruthenium (Frisch Ledig) UG2 prill split (Frisch Ledig) Rh g/t, 4.6% Au g/t, 3.8% Rh g/t, 10.6% Au g/t, 0.4% Pd g/t, 26.9% Pt g/t, 64.7% Pd g/t, 29.2% Pt g/t, 59.7% MERENSKY Pt to Pd Ratio: 2,42 Ratio is one of the highest in the industry 13

14 Shallow in comparison with existing underground mines Juniors vs majors accessible mine depth (m.b.s.) Marikana Smokey Hills Pilanesberg Everest South PPRust Kroondal Two Rivers Mototolo Elandsfontein Crocodile River Limpopo Modikwa BRPM Lebowa Karee Ga Phasha WBJV Lonmin (WP) Marula Blue Ridge Wesizwe Impala Lease Styldrift Thembalani Rustenburg Tjate Union Akanani Leeuwkop Impala 16 shaft Impala 17 shaft Amandelbult Northam Frisch Ledig working depth m

15 Total cash costs per tonne 1600 ZAR/tonne total cash costs, Source: SFA (Oxford), company reports 15

16 Site view: mid

17 Site view: August 2011 R556 (Sun City Road) Main Shaft Box cut Main Shaft Winder Building Ventilation Shaft Box cut Temporary Site Offices Bakubung Substation First Blast: July 2011 Planned Concentrator Plant

18 Production profile Full Production 2023 Forecast Annual Production tonnages (t) Merensky depleted 2039 Waste UG2 Merensky Start of pre sink Start of Production 2018 LOM

19 Production profile Forecast Annual 3PGE + Au Production content UG2 3PGE + Au Content (kg) Mer 3PGE + Au Content (kg) UG2 3PGE + Au Content (oz) Mer 3PGE + Au Content (oz) Kg oz

20 Capital per area R R R Capital being approved R3.26 Bn (July 2011) Capital under review R 4.12 Bn (July 2011) R Millions R 800 R 600 R 400 R 200 R 0 Common Surface Infrastructure Shaft Surface Complex Infrastructure Main Shaft Sinking & Development Vent Shaft Sinking & Development EPCM Capital Footprint Development Concentrator Plant External Bulk Power & Water Supply Community Projects Indirect Costs Total Capital (Real July 2011): CIRCA R7.38 Bn ( +15% / 10%) 20

21 Platinum demand forecast by sector Shaft fully commissioned: 2016 Source: SFA (Oxford)

22 Long term platinum price forecast Source: SFA (Oxford)

23 Stakeholder engagement Formal stakeholder processes are in place: Community Shareholding issue being dealt with by community in a separate process. Perception survey done that has informed ongoing engagement strategy and help to prioritise social investment. Stakeholder Engagement Forum launched (pen Day held on 4 November 2011; and community Office in Ledig and Community Liaison Officer appointed). Complaints and suggestions procedure walk in/phone in service. Farmers Association Engagement relocation of cattle. Community Newsletter. Government Regular interface with DMR, representative Mayors (Moses Kotane Municipality as well as the Rustenburg Local Municipality) Programme of communication with all tiers of government in place. Quarterly interactions either underway, or being planned (Provincial MECs, Local government as well as Traditional Affairs)

24 Deal package Chinese Consortium investment: JNMC and CADFund subscribed for million ordinary shares in Wesizwe (45% of the Company) for US$200 million. Micawber 809 (BEE vehicle) subscribed for 97.4 million shares for US$26.6 million. JNMC/CADFund will underwrite project finance of US$650 million (from CDB) and guarantee project funding to production. Debt funding agreed at competitive cost and rate (Libor plus 3.5%) Any resultant shortfall in funding JNMC shall provide the required funding shortfall required to reach capital completion stage on terms similar to the project finance package.

25 The project is fully funded A very unique proposition: Dilution Immunity: no further equity dilution for shareholders. Wesizwe shareholders have upside exposure to one of the best PGM development projects in the country. The project is effectively de risked. Wesizwe has acquired a balance sheet partner with the financial muscle to be able to grow the company.

26 Opportunities Regional synergies with other producers (e.g. infrastructure) being evaluated. Consolidation with neighbours. Group growth strategy being developed. Wesizwe offers excellent value at current levels: - Current cash holding accounts for 70 cents on the share price; and - Maseve investment accounts for 40 cents on the share price (based on PTM Group listed price on TSX).

27 Conclusion Exceptionally good deposit with above average grades. Project is fully funded, shaft sinking contract to be awarded in January First mine production at Frisch Ledig will start year life, mining down to a depth of 850m at a competitive mining cost. Wesizwe s total annual platinum production places the company at the top end of the smaller PGM groups. Experienced management team. Technically and financially backed by Jinchuan and the CAD Fund. Strategic re alignment underway. Aligned to the Asian funding market. Commitment to shareholders and all stakeholders.