Presentation is loading. Please wait.

Presentation is loading. Please wait.

Wesizwe platinum limited Strategic Overview February, 2010.

Similar presentations


Presentation on theme: "Wesizwe platinum limited Strategic Overview February, 2010."— Presentation transcript:

1 wesizwe platinum limited Strategic Overview February, 2010

2 Disclaimer The information in this document (this “Document”) is for information purposes only. This Document will form part of a verbal briefing by members of Wesizwe Platinum Limited and cannot be relied on or used in isolation therefrom. This Document does not constitute an offer of any kind or a solicitation of an offer and does not imply that information contained herein is correct as of any time subsequent to the date of issue. You are to rely on your own independent appraisal of and investigations into all matters and things contemplated by this Document. Whilst every care has been taken in preparing this Document, no representation, warranty or undertaking (express or implied) is given as to the accuracy, completeness or reasonableness of the information or statements contained herein and no responsibility or liability whatsoever is accepted by Wesizwe Platinum Limited for any direct or consequential loss resulting from the use of this Document. All opinions and estimates contained in this Document may be changed after publication at any time without notice. This document has been provided to you for your information only and may not be reproduced or redistributed to any other person. By accepting this document, you agree to be bound by the foregoing limitations. 2

3 3 Western Limb provides 67% of the world’s platinum Western Limb provides 67% of the world’s platinum Bushveld Complex Western Limb Located on the PGM centre of gravity of the Western Limb of the Bushveld 3

4 Regional Geology 4

5 At the centre of a fully explored, quality new mining area Styldrift Koedoesfontein JQ Frisch 11 Frisch 4 Zandrivierspoort WBJV Project 1 Area Boschkoppie North Shaft South Shaft D-Section Frisch 11 Frisch 3&4 BRPM (established benchmark) Current margin to cost multiple of 2:1 100% Merensky Pt to Pd ratio = 2.2:1 Base metals increase revenues by 30% Impala 20# Flat lying, thick reef = Easier, more efficient mining Amenability to mechanisation Fewer mining levels Lower cost mining regime 5 Frisch- Ledig

6 Rigorously explored: 180 boreholes + 3D Geoseismic Survey 6

7 AMSL Both MR and UG2, stable structural geology 7 Merensky UG2 Qualified to a high level of confidence by intensive drilling and a 3D geoseismic survey Qualified to a high level of confidence by intensive drilling and a 3D geoseismic survey

8 A stable mining platform within a relatively disturbed region 8 TWT

9 Flat Lying 9

10 10 Relatively little faulting

11 Exceptionally thick reef widths 144cm 158cm 115cm 174cm

12 Highly favourable Prill Split 12 Pt:Pd Ratio 2,33 High Rhodium kicker

13 Consolidated Resource Schedule 13

14 Mining Regime

15 Mining parameters  230 ktpm Run of MIne  180 ktpm Merensky & 50 ktpm UG2 initially  230 ktpm UG2 once Merensky depleted 15

16 Mining methods  Conventional mining on the Merensky Jackhammers, face / strike / dip winch scrapers into ore passes. Loaded at muck bays on UG2 and trammed to ore passes  Hybrid mining on the UG2 Jackhammers & face scrapers on Face Drill rig in ASG Ore loaded in ASG by and trammed to ore passes 16

17 Overall mining layout: simple because of flat lying nature of reef and well defined sections 17

18 Mining logistics  Tramming levels below UG2 horizon  Tram ore and waste to shaft.  Trackless tramming with trucks back to shaft ore passes.  The layout allows flexibility to negotiate geological structures.  Underground crushing, then ore passes into crushed rock silos  Fed by chute onto belt and into 20t skips  Hoisting calculated on 23 day & 18 hrs/day cycles per month. 18

19 Schematic stoping layout 19

20 Flexible mining infrastructure 20

21 Shallow in comparison with existing underground mines operations Western Platinum Union Wesizwe Western Platinum Impala Karee Union Amandelbult Union Impala Northam Amandelbult Northam Depth m Different shafts Wesizwe mining at m below surface Source: SFA Oxford Frisch Ledig working depth m 21

22 Shallow compared to new mines wesizwe 650 m

23 Rapid ramp-up to steady state tpm 23 Merensky-dominant production for the first 20 years Once UG2 dominant, mine is fully developed – reduced costs Koedoesfontein extension extends LOM

24 Rapid ramp-up to steady state oz 24 Merensky-dominant production for the first 20 years Once UG2 dominant, mine is fully developed – reduced costs Koedoesfontein extension extends LOM

25 Capex and Opex

26 Early Capex, rapid drawdown Shaft Sinking Complete Concentrator Commissioned Achieve Steady State Production CAp ex Capex 26

27 Note: These cash costs exclude Smelting Refining Marketing Head office costs Note: These cash costs exclude Smelting Refining Marketing Head office costs On-mine Cash Cost: R320/t Overheads: R43/t Total Cash Cost: R363/t On-mine Cash Cost: R320/t Overheads: R43/t Total Cash Cost: R363/t Costs well researched live and zero base 27

28 Average Cash Cost per ton milled competitive with majors 28

29 Understanding Eskom Shaft Sinking Equipping Concentrator start-up Production Ramp-up Steady State Steady State Eskom recovery rollout Complete* Eskom recovery rollout Complete* Light Diesel Standby during capital construction 65 MW Eskom installation HFO standby cover Heavy Fuel Oil (HFO) Standby for full power requirement Of 10 MW ramping to 65 MW during critical ramp-up Full 65 MW supply only required by 2016 *Medupe and Bravo Power stations built + Grootvlei, Camden and Komati recommissioned 29

30 Project economics

31 Sensitivity 7.5% Real Discount Rate 31

32 Indicative value buildup over five years Pd $315 Rh $4,200 Au $750 Ni $ 20 Cu $2 R/$7.50 NPV Build-up curve - each year NPV increases as spend takes place - risk is reduced so discount rate falls - share price will rise to reflect this build up in NPV Source: Qinisele Resources

33 The Aquarius/Kroondal Experience 33

34 Shareholder Spread

35 Fund Managers by Country

36 Shareholder type 36

37 Recent Acquisition of WBJV from Anglo Platinum

38 The components of the deal 38 Platinum Group Metals/WB JV Wesizwe Anglo Platinum/BRPM JV Styldrift Boschkoppie North Shaft South Shaft D-Section Ledig Koedoesfontein JQ Frisch 11 Frisch 4 Mimosa Frisch-Ledig Core Project 100% Frisch-Ledig Core Project 100% Bafokeng Rasimone Platinum Mine WBJV 26% Impala 20# Zandrivierspoort 26% WBJV WBJV held 50% in x-hatched areas Wesizwe held 26% of WBJV

39 Pre-transaction ownership structure 39

40 Post-transaction ownership structure 40

41 In summary…….

42 What we have is……….  Excellent technical fundamentals A superb ore body Fully explored with drill holes a general 250 m grid and 125 m grid in the capital footprint verified and confirmed by 3D seismic survey High level of confidence in the economic and structural geology with continuous, flatly dipping reef (3-5 deg) that lends itself to optimal mechanised mining of MR and UG2 High Merensky reef grades with higher than average prill splits (metals basket value) with an excellent Rhodium kicker 42

43 as well as  Viable fundamentals A good Bankable Feasibility Study showing a tangible mine – it is being built Costs derived from live database of existing operations Costs underpinned by zero-based costing Planning is based on actual experience before during and after project establishment Note: this is single shaft operation with no massive corporate overheads 43

44 in addition to which…..  Project is relatively opex / capex insensitive  Power contingency in place  Feasibility undertaken by highly experienced team with real costing based on same sized shaft  Funding options still being considered, interim arrangements concluded 44

45 The project is right on track……  Simple easy mine design, done many times before, and we have the Impala 20 # team  Highly experienced project management team with a delivery track record focused on building the mine REAL TEAM,REAL MINE, REAL VALUE 45

46 46 the next name in platinum


Download ppt "Wesizwe platinum limited Strategic Overview February, 2010."

Similar presentations


Ads by Google