Waterberg:
The ownership structure consists of Platinum Group (45.65% directly), JOGMEC (28.35%), and BEE partner Mnombo Wethu Consultants (26%). As a result of Platinum Group’s 49.90% ownership in Mnombo the Company has a direct and indirect 58.62% overall interest in the project. Platinum Group is the operator.
The Waterberg Project represents a large system containing multiple, thick mineralized layers between 3 and 70 metres in thickness that will likely be amenable to low cost mechanized mining methods. A pre-feasibility study was published on October 19, 2016 including updated reserves and resources. Highlights of the PFS include:
Validation of the 2014 Waterberg Preliminary Economic Assessment ("PEA") results for a large scale, shallow, decline accessible, mechanized platinum, palladium, rhodium and gold ("4E") mine.
Annual steady state production rate of 744,000 4E ounces in concentrate.
A 3.5 year construction period.
On site life-of-mine average cash cost of US$248 per 4E ounce including by-product credits and exclusive of smelter discounts.
After-tax Net Present Value ("NPV") of US$320 million, at an 8% discount rate, using three-year trailing average metal prices.
After-tax NPV of US$507 million, at an 8% discount rate, using investment bank consensus average metal prices.
Estimated capital to full production of approximately US$1.06 billion including US$67 million in contingencies. Peak project funding estimated at US$914 million.
After-tax Internal Rate of Return ("IRR") of 13.5% using three-year trailing average price deck.
After-tax IRR of 16.3% at investment bank consensus average metal prices.
Probable reserves of 12.3 million 4E ounces.
Indicated resources updated to 24.9 million 4E ounces (2.5 g/t 4E cut-off) and deposit remains open on strike to the north and below a 1,250 meter arbitrary depth cut-off.