PLATINUM GROUP METALS LTD.
July 2012
An Emerging Platinum Producer
P LG : N Y S E M K T PTM: TSX
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 Company, and a non-independent Qualified Person for purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”), based on the independent technical reports, and Press Release Information filed by the Company with the Canadian securities regulators and the U.S. Securities and Exchange Commission (“SEC”). For more detailed information regarding the Company and its mineral properties, you should refer to the Company’s independent technical reports and other filings with the Canadian securities regulators and the SEC, which are available at www.sedar.com and www.sec.gov, respectively. Scientific or Technical information contained herein is derived from the Company’s technical reports 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 and parameters used in the resource estimates and the Feasibility Study, a general discussion of the extent to which the resource estimates and the other estimates and projections included in the reports may be materially affected by any known environmental, permitting, legal, taxation, socio-political, marketing, or other relevant issues. 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 advise 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 our 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 American Stock have not reviewed and do not accept responsibility for the accuracy or adequacy of this presentation, which has been prepared by the Company. Historical results or feasibility models presented herein are not guarantees or expectations of future performance.
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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, completion of a Feasibility Study in respect of the Western Bushveld Joint Venture, business plans, potential mining scenarios and timing of production, business trends and future operating factors 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, the pre-feasibility study and the 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 necessarily based on a number of estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, among others: metals price volatility; demand for platinum and the platinum supply; additional fundraising requirements; defective title to mineral claims or property; discrepancies between actual and estimated reserves and resources, between actual and estimated development and operating costs, between actual and estimated metallurgical recoveries and between estimated and actual production; changes in national and local government legislation (including environmental 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; success of exploration activities and permitting time lines; the speculative nature of mineral exploration, development and mining, including the risks of obtaining necessary licenses and permits; dilution; competition; currency fluctuations; and loss of key employees. The Feasibility Study includes plans on surface rights that the company does not own. Failure to acquire these surface rights may materially impact the plans. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, mine collapses, cave-ins or flooding (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks), 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. 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.
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WHY PLATINUM GROUP METALS?
The Company
AN EMERGING PLATINUM PRODUCER
A well funded emerging producer with active exploration in South Africa and Canada. Flagship Western Bushveld Joint Venture (WBJV) - large scale mine development in construction. Waterberg – a new thick , near sur face PGM discover y on the Nor th Limb. Strategic, low cost project por tfolio moving for ward in a challenging environment for PGM production.
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SHARE STRUCTURE
Stock Symbols Market Capitalization Share Price 52 Week High/Low Shares Outstanding Options Fully Diluted Cash
PLG: NYSE MKT PTM: TSX $170M CAD $0.90 CAD $1 .80/$0.81 177,584,542 14,469,500 192,054,042 $65M CAD
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THREE YEARS January 2011 WBJV Construction Commences October 2009 Feasibility Study Update
November 2011 Waterberg Discovery
April 2010 74% Transaction Completed
October 2010 $143M Equity Financing
April 2012 Mining License Awarded
August 2011 Project Loan Mandate
SHAREHOLDERS AND RESEARCH Major Shareholders
Research Coverage
Franklin Advisers Inc. Genesis Investment Management LLP JP Morgan Asset Management Ltd. Liberty Mutual Insurance Group T. Rowe Price Associates Inc. Jennison Associates LLC Wellington Management Company LLP RBC Global Asset Management Inc. Chilton Investment Company LLC Cambrian Capital LP R. Michael Jones U.S. Global Investors Inc. Canada Pension Plan
RBC Capital Markets Credit Suisse GMP Securities Raymond James Stifel Nicolaus Haywood Securities Mackie Research Capital CIBC World Markets
Index Membership S&P/TSX Small Cap ISE Global Platinum 8
THE PGM MARKET
Platinum Palladium
THE PLATINUM MARKET SUPPLY
DEMAND
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WESTERN BUSHVELD JV Shallow Declines DEPTH: 100m to 600m COST: $400M/$500M USD LEAD TIME: 3 Years
WBJV HIGHLY COMPETITIVE
DEEP AND DEEPER
Mostly Mined Out
The depth of S o u t h A f r i ca n platinum mines is becoming unsustainable at current metal prices
First Generation Vertical Shafts DEPTH: 600m to 1000m COST: $1B USD LEAD TIME: 5 to 7 years Mostly Mined Out
Second Generation Vertical Shafts DEPTH: 1000m+ COST: $1.5B USD LEAD TIME: 5 to 7 years Nearing Depletion
Third Generation Vertical Shafts DEPTH: 1500m to 2500m COST: $2B USD per shaft LEAD TIME: 7 to 10 Years Sinking, Developing, Operating or Cancelled 11
SPOT PLATINUM PRICE
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WESTERN BUSHVELD JOINT VENTURE
Development
THE WESTERN BUSHVELD COMPLEX SOUTH AFRICA 70% OF GLOBAL PLATINUM PRODUCTION
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NORTH WEST LIMB
The northern portion of the We s te r n L i m b is witnessing over $4B USD in new platinum mine building
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WESTERN BUSHVELD JOINT VENTURE
Platinum Group has a 74% interest in the WBJV. Wesizwe Platinum (WEZ/JSE) owns the remaining 26%. Chinese state owned Jinchuan acquired a controlling stake in Wesizwe for $900M (USD) in 2010. The WBJV is one of the last remaining undeveloped shallow, high grade deposits on the Western Bushveld. A $100M Phase 1 construction program star ted in 2011 with fir st production scheduled for mid 2014.
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WBJV PROJECT 1 – QUICK FACTS
• • • • * •
See UFS Oct 2009, www.sedar.com, including Risk Factors, Metal Prices and Differences in Reporting under SEC Guidelines in the USA Resources may never become reserves, figures may change during project implementation in progress. Figures based on 100% Project Valuation – PTM 74%, WEZ 26% Metal Price Assumptions: Pt: $1,343, Pd: $322, Rh: $4,951, Au: $807 (2009 UFS) Updated Operational Guidance, April 16, 2012 See Appendix for tonnes and grade associated with reserves and resources and associated Qualified Persons
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WESTERN BUSHVELD JOINT VENTURE
Central Decline S i te E s t a b l i s h e d Po w e r a n d Wa te r C o n n e c te d L o n g - te r m Arrangements in Place
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ST YLDRIFT ANGLO PLATINUM AND RBPLATS A d j a c e n t S t y l d r if t d ev e l o p me n t $1 .5B capital cost mining the s a m e l aye r s down-dip of the WBJV
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WESTERN BUSHVELD JOINT VENTURE
C e n t r a l d e c l in e looking north to wa r d t h e We s i z we / J i nc h u a n d e v e l o p me n t . $1 .5B capital cost mining the same l aye r s d o w n - d ip o f t h e W B J V.
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WESTERN BUSHVELD JOINT VENTURE
J u n e 2 01 2 S o u t h B ox C u t C o n s t r u c t io n .
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PROJECT BANKING Syndicate announced in August 2011 includes Barclays Capital, Standard Bank and CAT Financial. $260M (USD) senior loan facility with a nine year term. Additional working capital facility – up to $25M (USD) with standby subordinate loan facility if required. Hedging emphasis on byproducts – palladium, gold, base metals – platinum is 70% of projected revenue. Closing anticipated in Q3 201 2.
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WATERBERG
Exploration
BUSHVELD COMPLEX SOUTH AFRICA
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THE NORTH LIMB The Nor th limb has recently seen mine expansion by Anglo Platinum and a great increase in exploration investment The Mogalkwena mine is Anglo Platinum’s most profitable operation The Ivanplats Platreef discover y has attracted a $280M (USD) investment from JOGMEC and ITOCHU Corp. for an 8% interest The Platreef project currently has over 30 drills on site and is planning a public of fering
Anglo Platinum’s Mogalkwena Mine includes four open pits employing conventional truck and shovel operations. Life-ofmine extends beyond 2060 with a Mineral Resource of 141.6 4E million ounces and an Ore Reserve of 55.3 4E million ounces. 2010 production was 260,000 ounces 4E. (Source: Anglo Platinum) 25
THE NORTH LIMB BUSHVELD COMPLEX SOUTH AFRICA
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WATERBERG PROJECT AREA REGIONAL GEOLOGY
WATERBERG Japan oil and Gas Mineral Exploration Corporation (JOGMEC) par tner ship completed in 2009 JOGMEC has earned a 37% interest by spending $3.2M USD Platinum Group holds a 49.97% ownership Discover y hole announced November 9, 2011 Current program – 10 drill rigs, +3000 assays in progress Initial resource estimate – Q3 201 2 28
WATERBERG – DRILL RESULTS
Zone
Average Thickness (m)
Average Grade 3E g/t
Number of Intercepts
T0
2.13
1.69
16
T1
3.40
2.68
15
T2
3.91
4.26
19
T3
2.15
2.68
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F
16.29
3.08
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• T Zones: 50% Pd, 30% Pt, 20% Au • F Zone: 55% Pd, 40% Pt, 5% Au 29
SCHEMATIC SECTION
*Conceptual - not to scale
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CORPORATE MILESTONES
Q1 201 2 – Mining Right record of decision – COMPLETED. Q3 201 2 – Completion of formal of f take arrangement Q3 201 2 – Completion of Project Banking Q3 201 2 – Waterberg Initial Resource Statement Q3 201 2 – Star t of Phase 2 implementation Q4 201 2 – Waterberg Regional Exploration Mid 2014 – Fir st production. 31
CONCLUSION
Large scale, high margin platinum development in progress Near term milestones: of f take and funding completion New potentially large scale PGM discover y on Nor th Limb with Japanese funding par tner JOGMEC – 10 drills Strategic project por tfolio in a challenging climate for PGM producer s globally.
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CONTACT
Platinum Group Metals Ltd. S u i te 3 2 8 – 5 5 0 B u r r a r d S t r e et Va n c o u ve r, B C V 6 C 2 V 5 Canada +1 604-899-5450 i n f o @ p l a t i n u mg ro u p m e t a l s . n e t w w w. p l a t in u m g ro u p m e t a l s . n e t
P l a t i n u m G r o u p M et a l s R S A ( P t y ) L t d . Te c h n o lo g y H o u s e V i c to r y P a r k Johannesburg, RSA + 27 1 1 7 8 2 21 8 6 33
APPENDIX
WBJV Reserves and Resources
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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
QP Charles Muller of Minxcon, See details Press Release and 43-101 reports on www.sedar.com
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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
QP Charles Muller of Minxcon, See details Press Release and 43-101 reports on www.sedar.com
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WBJV ~ MERENSKY RESERVES
Tonnes (000)
4E
t
Content 4E
g/t
tonne
Moz
5.61
37,478
1.21
5.44
61,677
1.98
99,155
3.19
Merensky Proven 6,678 Merensky Probable 11,333
Total Merensky Mineral Reserves 18,011
5.51
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
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WBJV ~ UG2 RESERVES
Tonnes (000) t
4E
Content 4E
g/t
tonne
Moz
3.37
17,126
0.55
3.41
28,831
0.93
45,957
1.48
UG2 Proven 5,086 UG2 Probable 8,449
Total UG2 Mineral Reserves 13,535
3.40
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
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