investor presentation: wesizwe platinum limited
TRANSCRIPT
WESIZWE PLATINUM LIMITEDPresentation to the Mining on Top Africa Summit
25 and 26 June 2013
Mr Hamlet Morule, Executive: Corporate Affairs and
Investor Relations
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DISCLAIMER
• Certain forward-looking statements may be contained in the presentation which include, without limitation, expectations regarding metal prices, estimates of production, operating expenditure, capital expenditure and projections regarding the completion of capital projects as well as the financial position of the company. Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks.
• No representation or warranty, express or implied, is made by Wesizwe Platinum, nor any of its subsidiaries, that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Wesizwe’s officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. Wesizwe accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information.
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INTRODUCTION
• Wesizwe is moving ahead with the development of the Bakubung Platinum Mine located on the Western Bushveld
• The mine will produce up to 350koz per annum over a 35 year life of mine, with production ramp-up from 2018
• Chinese strategic equity partner and funder ensures that the project is funded
• Wesizwe also owns a 26% stake in the PTM-managed Maseve Project, which is adjacent to the Bakubung Platinum Mine
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VISION AND PURPOSE
VISION
To become a significant multi-commodity company, focusing on strategic metals with sound derived demand fundamentals
PURPOSE
To create shareholder value in an environmentally responsible and sustainable manner based on long-term relationships with government
and local communities
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KEY STRATEGIES
• To ensure that the Bakubung Platinum Mine is delivered within budget and on schedule
• To explore synergies with industry peers on consolidation opportunities in the vicinity of the Bakubung Platinum Mine
• To achieve 26% BEE ownership by 2014, from the current 16% HDSA Holding
• Definitive Growth (Acquisitions) within the Platinum Sector (SA) and in Base Metals (Southern Africa)
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PERFECTLY LOCATED QUALITY RESOURCE
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Western Limb provides 67% of the world’s platinum
High quality resource…at the centre of platinum gravity of the Western Bushveld, which is a fully explored, quality new mining area
Flat lying, thick reef • Easier, more efficient
mining• Amenability to
mechanisation
• Fewer mining levels• Lower cost mining
regime
KEY ASSET DIFFERENTIATORS
• Shallow in relation to other producers: mean mining depth of 850mbc
• High mining extraction – 74%
• Thick reef widths - 1.4m to 1.7m - higher operating efficiency and yields
• Favourable prill split – good Pt yield from Merensky reef, improved basket
value
• Head grades in line with normal averages in the region
• Sequential mining starts with Merensky mining for first 10 years steady state
• Flexible mine design based on flat dipping reef with ore handling infrastructure
in the footwall of the UG2
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HIGHLY FAVOURABLE PRILL SPLIT
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Pt
g/t, 64.7%
Pd
g/t, 26.9%
Rh
g/t, 4.6%
Au
g/t, 3.8%
Merensky prill split, without Ruthenium (Bakubung)
Pt
g/t, 59.7%
Pd
g/t, 29.2%
Rh
g/t, 10.6%
Au
g/t, 0.4%
UG2 prill split (Bakubung)
MERENSKY Pt to Pd Ratio: 2,42 Ratio is one of the highest in the industry
Production profile
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-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
Forecast Annual Production tonnages (t)WasteUG2Merensky
LOM2049
Start of pre-sink
2012
Full Production
2023
Start of Production
2018
Merensky depleted
2039
FUNDING
• The China Development Bank (CDB) has approved the US$ 650mproject funding. The finalization of project funding documents iscurrently in progress
• The CDB, as part of the US$ 650m project funding, has also approvedtwo bridging loans of US$ 100m each.
• These short-term loans will be refunded in part by the US$ 650million long-term loan
• 15 years loan facility, applicable interest rate is the six month LIBORplus 3.5% repayments only commencing seven years after the firstdrawdown
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POSSIBLE SYNERGY OPPORTUNITIES
• Infrastructure/bulk services: water and power supply (collective discussions with ESKOM and Magalies Water)
• Concentrator Plant Synergy with Royal Bafokeng Platinum (Styldrift)
• Sharing concepts for employee housing programme
• Proposing joint training and skills development centre in the area
• Community upliftment and socio-economic development (talking to the same municipalities)
• Establishing a mine owners’ forum for three neighbouring mines to explore further synergies and collaborations
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% ISC Mar-13
Company Related
China-Africa Jinchuan Investment Ltd. 45.00% 732,522,177
Rustenburg Platinum Mines, Ltd. 13.01% 211,850,125
Directors & Related Holdings 0.11% 1,750,000
Total 58.12% 946,122,302
Empowerment
Micawber 809 (Pty) Limited 5.98% 97,362,283
African Continental Resources Venture (ACRV) 4.52% 73,630,000
Africa Wide Investment Holding (Pty) Ltd. 2.82% 45,937,315
Vunani Capital (Pty) Ltd 1.80% 29,261,905
Green Tree Investments (Pty) Ltd 0.82% 13,333,333
Inkwali Asset Management 0.36% 5,795,888
Total 16.30% 265,320,724
Institutional Shareholders
South Africa 2.31% 37,583,724
United Kingdom 1.67% 27,242,776
Switzerland 0.55% 8,936,767
United States 0.47% 7,649,155
Denmark 0.08% 1,369,040
Rest of Europe 0.01% 182,000
Rest of World 0.06% 941,040
Total 5.15% 83,904,502
Non Institutional Shareholders
Corporation 2.07% 33,697,142
Custodians 0.03% 461,803
Private Investors 12.61% 205,232,733
Brokerage Accounts 3.91% 63,616,617
Deutsche Bank AG London 0.82% 13,297,801
Total 19.44% 316,306,096
Total Identified Shares 99.01% 1,611,653,624
Shareholders below 20,000 shares 0.99% 16,173,434
Total Share Capital 100.00% 1,627,827,058
Market Cap (ZAR) 797,635,258
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SHAREHOLDER COMPOSITION