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Corporate Presentation
December 2016
Platinum
Palladium
PLG: NYSE MKT
PTM: TSX
Disclosure
TECHNICAL AND SCIENTIFIC INFORMATION
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 other 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. Technical information related to the Maseve Mine (WBJV Project 1 Platinum Mine) can be found in the July 15, 2015 press release and the Company’s
Annual Information Form. Mineral Resources reflected in the July 15, 2015 press release were completed by Charles Muller of CJM Consulting, and the Mineral Reserves were
prepared under the supervision of Gert Roets of DRA. A technical report with respect to the July 15, 2015 Maseve (WBJV Project 1) technical information contained herein was filed
on www.sedar.com on August 28, 2015. Reference is made to such reports for more detailed information with respect to the Company’s properties, including details of quality and
grade of each resource, details of the key assumptions, methods and parameters used in the resource estimates and 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. Scientific or technical information contained herein related to the Waterberg Project can be found in the October 19, 2016 press release. Mineral
resources reflected in the October 19, 2016 press release were completed by Charles Muller of CJM Consulting. A technical report with respect to the October 19, 2016 Waterberg
technical information contained herein was filed on www.sedar.com on October 19, 2016.
CAUTIONARY NOTE TO UNITED STATES INVESTORS
As a Canadian issuer that is eligible to use the U.S./Canada Multijurisdictional Disclosure System (MJDS), the Company is permitted to prepare its public disclosures and this
presentation in accordance with Canadian securities laws, which differ in certain respects from U.S. securities laws. In particular, this presentation uses the terms “mineral resource”,
“measured mineral resource”, “indicated mineral resource” and “inferred mineral resource”. While these terms are recognized and required by Canadian securities laws, they are not
recognized by the SEC. In addition, “reserves” reported by the Company under Canadian standards may not qualify as reserves under SEC standards. U.S. investors are cautioned
not to assume that any part of a “measured mineral resource” or an “indicated mineral resource” will ever be converted into a “reserve.” Under U.S. standards, mineralization may not
be classified as a “reserve” unless the mineralization can be economically and legally produced or extracted at the time the reserve determination is made. “Inferred mineral
resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher category. U.S. investors are urged to read the statement in the Offering Circular under the heading “Cautionary Note to
United States Investors” for further information. Historical results or feasibility models presented herein are not guarantees or expectations of future performance.
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. public companies from including in their filings with the SEC.
This presentation also contains information about adjacent properties on which the Company has no right to explore or mine. The Company advises 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 the Companies 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 NYSE MKT LLC have not reviewed and do not
accept responsibility for the accuracy or adequacy of this presentation, which has been prepared by the Company.
PLG: NYSE MKT PTM: TSX 1PLG: NYSE MKT | PTM: TSX
Forward Looking Statements
Certain of the statements made herein, including statements regarding the Company’s business plans and objectives; potential exploration, development and other activities; the
achievement, timing and potential ramp-up and scale of production; other economic and operational projections, estimates and assumptions, including, without limitation, revenues,
costs, margin, metal prices, currency exchange rates, peak funding, cost curves, metal split, mine life, future market conditions, terms related to the Sprott working capital facility,
terms related to the LMM facility and production payment and the adequacy of capital; growth potential; planned studies and reports; and the Black Empowerment (“BEE”) partner,
constitute “forward looking statements” and “forward looking information” within the meaning of applicable U.S. and Canadian securities legislation (collectively, “forward looking
statements”). In addition, resource estimates and 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 subject to a number of risks and uncertainties that may cause the actual events or results to differ materially from those discussed in the forward-
looking statements, and even if events or results discussed in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the
expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things:
the inability of the Company to find an additional and suitable joint venture partner for the Maseve Mine (WBJV Project 1 and Project 3); failure of the Company or its joint venture
partners to fund their respective pro-rata share of funding obligations; additional financing requirements; the Company’s history of losses and ability to continue as a going concern;
the Company’s negative cash flow; no known mineral reserves on most of the Company’s properties; delays in, or inability to achieve, planned commercial production; discrepancies
between actual and estimated mineral reserves and mineral resources, development and operating costs, metallurgical recoveries and production; fluctuations in the relative values of
the Canadian dollar as compared to the South African Rand and the U.S. dollar; volatility in metal prices; the ability of the Company to retain its key management employees and
skilled and experienced personnel; conflicts of interest; any disputes or disagreements with the Company’s joint venture partners; the costs of increasing BEE requirements in the
Company's mining and prospecting operations; exploration, development and mining risks and the inherently dangerous nature of the mining industry, including environmental
hazards, industrial accidents, unusual or unexpected formations, safety stoppages (whether voluntary or regulatory), pressures, mine collapses, cave-ins or flooding and the risk of
inadequate insurance or inability to obtain insurance to cover these risks and other risks and uncertainties; property and mineral title risks including defective title to mineral claims or
property; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, South Africa or other countries in
which the Company does or may in the future carry out business; equipment shortages and the ability of the Company to acquire the necessary access rights and infrastructure for its
mineral properties; environmental regulations and the ability to obtain and maintain necessary permits, including environmental authorizations; extreme competition in the mineral
exploration industry; risks of doing business in South Africa, including but not limited to labor, economic and political instability and potential changes to legislation; and the other risks
disclosed in the Company’s Annual Information Form for the year ended August 31, 2015, 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 except as required by law.
22PLG: NYSE MKT | PTM: TSX
Overview of Platinum Group Metals Ltd.
3
Large scale reserves in two deposits in South
Africa – palladium and platinum.
Maseve Mine: $500M USD successfully
completed mine build on the Western Limb
commissioned in February 2016.
Maseve Mine is in the ramp-up phase
Waterberg: Pre-feasibility study confirms the
project as one of the largest, lowest cash
cost PGM mines globally – primary
palladium.
Waterberg moves to definitive feasibility and
mining right application in 2017.
Palladium market in fundamental deficit with
strong demand and limited mine supply
growth.
PLG: NYSE MKT | PTM: TSX
PGM Producer with Strategic, Large Scale, Shallow, Competitive Assets - 10M Ounces Reserves
Maseve Mine
Waterberg Project
N
Waterberg Central Super F – Long Hole Mine Plan
Maseve Mine PGM Flotation Mill
USD $1B+ Market Cap.Advancing Juanicipio JV in MexicoPartnered with Fresnillo
Management Track Record
4
USD $200M Market Cap.Operating the Maseve mine in South AfricaMajor new PGM discovery at Waterberg
Sold to Lakeshore Gold for $424M in 2009Lakeshore acquired by Tahoe for $945M in 2016
Acquired distressed gold assets from Allied NevadaLow cost, shovel ready - $30M Market Cap.
PLG: NYSE MKT | PTM: TSX
Overview of Platinum Group Metals Ltd.The Bushveld Complex – South Africa – 70% of Global Platinum Production
5PLG: NYSE MKT | PTM: TSX
Share Structure and Capital Markets
Stock Symbol: PLG: NYSE MKT; PTM: TSX
Share Price as of December 2016: USD $1.80
52-Week High / Low: USD $4.50 / $1.00
Issued and Outstanding: 112,803,619
Market Capitalization: USD $200M
6PLG: NYSE MKT | PTM: TSX
Analyst Coverage: BMO Capital Markets, RBC Capital Markets
Major Shareholders: Blackrock, Franklin, Liberty Metals
Debt: $85M USD (Sprott Lending and Liberty Metals)
Platinum Group Metals Ltd - World Class Mineral Inventory 10.6M P&P Reserves, 20M M&I and 6.4M Inferred Resources (4E) - Waterberg = Pd Dominant
7PLG: NYSE MKT | PTM: TSX
Reserve Ounces: 4.3 MillionM&I Ounces: 7.8 Million Inferred Ounces: 1.9 Million
Reserve Ounces: 5.3 Million M&I Ounces: 10.4 Million Inferred Ounces: 3.8 Million
Reserve Ounces: 677,000 M&I Ounces: 1.3 Million Inferred Ounces: 545,000
Attributable ounces based on 83% WBJV and 58.63% Waterberg ownership respectively.Mineral Reserves are a subset of the Mineral Resources. (Technical reports filed on www.sedar.com) WBJV Mineral Resources were completed by Charles Muller of CJM Consulting, and the Mineral Reserves were prepared by Gert Roets of DRA – August 28, 2015.Waterberg Mineral Resources were completed by Charles Muller of CJM Consulting – October 19, 2016. WBJV 100% P&P Reserves: 4.12M ounces (“4E”) – 32.44M tonnes grading 3.95 g/t 4E (2.51 g/t Pt, 1.05 g/t Pd, 0.25 g/t Rh, 0.14 g/t Au, 2.50 g/t cut-off).WBJV 100% M&I Merensky Resource: 3.86M ounces (“4E”) – 21.82M tonnes grading 5.51 g/t 4E (3.53 g/t Pt, 1.49 g/t Pd, 0.21 g/t Rh, 0.28 g/t Au) WBJV 100% M&I UG2 Resource: 2.77M ounces (“4E”) – 22.68M tonnes grading 3.80 g/t 4E (2.39 g/t Pt, 0.99 g/t Pd, 0.38 g/t Rh, 0.04 g/t Au)Waterberg 100% Probable Reserve: 12.32M ounces (“4E”) – 102.7M tonnes grading 3.73 g/t 4E (1.11 g/t Pt, 2.29 g/t Pd, 0.29 g/t Au, 0.04 g/t Rh, 2.50 g/t cut-off).Waterberg 100% Indicated Resource: 24.886M ounces (“4E”) – 218M tonnes grading 3.55 g/t 4E (1.06g/t Pt, 2.18 g/t Pd, 0.26 g/t Au, 0.04 g/t Rh, 2.50 g/t cut-off). Waterberg 100% Inferred Resource:: 10.80M ounces (“4E”) – 97.212M tonnes grading 3.46 g/t 3E (1.03g/t Pt, 2.10g/t Pd, 0.30g/t Au, 0.03 g/t Rh,2.5 g/t cut-off).
Global Platinum and Palladium: Demand
8
PtPlatinum
195.08
78
PdPalladium
106.42
46
Source: Johnson Matthey PGM Market Report, May, 2016
PLG: NYSE MKT | PTM: TSX
Automotive Jewelry Industrial & Other
2015 Physical End
Market Contribution (%)
2015E Physical End
Market Contribution (%)Physical Demand by End Use (koz)
Physical Demand by End Use (koz)
Selected
End Use Applications
Selected
End Use Applications
Autocatalysts
Jewelry
Investment
Electronics
Medical devices
Glass/LCD
Fuel cells
Autocatalysts
Electronics
Investment
Hydrogen storage
Jewelry
Hydrogen purification
Automotive Jewelry Industrial & Other
Global Platinum and Palladium: Supply
9
Platinum: Primary Supply by Region (koz)1
Palladium: Primary Supply by Region (koz)1
PGM: 2015 Global Primary Supply Contribution
PLG: NYSE MKT | PTM: TSX
Source: Johnson Matthey PGM Market Report, May 2016.1 Excludes recycled supply.
South Africa Russia Rest of World
14%Pt
20%PdOth
er
11%Pt
38%PdRu
ss
ia
75%Pt
42%Pd
So
uth
Afr
ica
Palladium Demand SummaryEnd use growth leading other PGMs since 2009
Source: SFA (Oxford)
5
6
7
8
9
10
11
2000 2002 2004 2006 2008 2010 2012 2014 2016
Palladium demand moz
Palladium Platinum + rhodium
> 10 moz
Palladium outperformance
30
40
50
60
70
80
90
100
110
120
Jan-15 Jul-15 Jan-16 Jul-16
PGM price index 100=Jan 1, 2015
Platinum Palladium Rhodium
PGM prices
Palladium outperforms; strongest recovery since January 2016
Source: SFA (Oxford)
300
500
700
900
1,100
1,300
1,500
Jan-15 Jul-15 Jan-16 Jul-16
PGM prices US$/oz
Platinum Palladium Rhodium
0
250
500
750
1,000
1,250
1,500
-200
-150
-100
-50
0
50
100
150
200
250
300
2009 2010 2011 2012 2013 2014 2015 2016
Rh supply-demand balance (koz)
Balance
Stocks (rhs)
0
2
4
6
8
10
12
-1.5
-1.0
-0.5
0.0
0.5
1.0
2009 2010 2011 2012 2013 2014 2015 2016
Pt supply-demand balance (moz)
Balance
Stocks (rhs)
0
5
10
15
20
25
30
-2.0
-1.5
-1.0
-0.5
0.0
0.5
2009 2010 2011 2012 2013 2014 2015 2016
Pd supply-demand balance (moz)
Balance
Stocks (rhs)
Market Fundamentals
Rapid depletion of Pd stocks; Pt and Rh stock draws limited
Source: SFA (Oxford). Note: s-d exclude investment. Stocks include ETFs and stock sales.
Source: SFA (Oxford), LMC Automotive. Note: BEV=battery electric vehicle; EREV= extended range electric vehicle; PHEV= plug in
hybrid electric vehicle; FCEV= fuel cell electric vehicle; FHEV= full hybrid electric vehicle; MHEV= mild hybrid electric vehicle
Electric Vehicle ThreatsPalladium-rich gasoline power (red) will continue to dominate..
Diesel21%
Gasoline76%
Full-hybrid, 69%
Mild-hybrid, 5%
BEV, 13%
EREV, 1%
PHEV, 9%
Fuel cell, 0.03%
Other, 3%
Other, 3%
Global powertrain splits 2015, %
Diesel Gasoline Full-hybrid Mild-hybrid BEV
EREV PHEV Fuel cell Other
…BEV only accounts for only <2m units by 2023 out of >100 m
Diesel19%
Gasoline73%
Full-hybrid, 39%
Mild-hybrid, 11%
BEV, 21%EREV, 1%
PHEV, 26%
Fuel cell, 0.03%
Other, 2%
Other, 8%
Global powertrain splits2023, %
What Sets Platinum Group Metals Ltd. Apart?
Platinum Group Metals Ltd. has new deposits with good grades and shallow depths.
The Waterberg Project has extraordinary thickness (3m-60m vs 1m traditionally).
Shallow, thick deposits have the opportunity for lower capital and operating costs.
Many mines are deep, old and expensive with high sustaining capital.
Only the best mines will survive - deep mines will likely close – tightening the market.
Recent palladium outperformance and structural deficits highlight importance of Waterberg a
one of the only large scale, low cost, primary palladium discoveries.
14PLG: NYSE MKT | PTM: TSX
Competitive PGM Deposits – Shallow, Thick, Good Grade – Primary Palladium Exposure
Maseve
Platinum
Mine
Maseve Mine: Ore Silo, Conveyor and Primary Crusher
Commissioned February 2016 – Ramp Up Underway
Overview
83% ownership in Maseve
Mine formerly known as
WBJV Project 1.
Mining permit granted in
2012.
Smelter offtake goes to
Anglo Platinum life of mine.
First concentrate deliveries
completed in February
2016.
Western Limb, Bushveld Complex
16PLG: NYSE MKT | PTM: TSX
Maseve Mine - Overview
Maseve Mine - Overview
17PLG: NYSE MKT | PTM: TSX
Maseve Mine is 32 km North of Rustenburg.
One of the last pieces of the Merensky Reef above
1000 meters – shallow, high grade.
All required permits including the Water Use
License are in place.
All BEE filings up to date. No notice of non-
compliance for BEE.
The Mine is built and represents over $500M
equity and debt investment largely completed in
2015/2016.
Maseve Mine, Ore Silo and Plant
Commissioned February 2016 – Ramp Up Underway
Maseve Mine – Reserves and Resources 4.1M Ounces P&P Reserves and 6.63M Ounces M&I Resources (4E) - 100% Project Basis
18
• See July 15, 2015 Press Release – Maseve (WBJV Project 1) Update. For details on tonnes and grades see Appendix.
• Figures based on 100% Project Basis – PTM owns 83% of the Maseve Mine
• Maseve 100% P&P Reserves: 4.12M ounces (“4E”) – 32.44M tonnes grading 3.95 g/t 4E (2.51 g/t Pt, 1.05 g/t Pd, 0.25 g/t Rh, 0.14 g/t Au, 2.50 g/t cut-off).
• Maseve 100% M&I Merensky Resource: 3.86M ounces (“4E”) – 21.82M tonnes grading 5.51 g/t 4E (3.53 g/t Pt, 1.49 g/t Pd, 0.21 g/t Rh, 0.28 g/t Au)
• Maseve 100% M&I UG2 Resource: 2.77M ounces (“4E”) – 22.68M tonnes grading 3.80 g/t 4E (2.39 g/t Pt, 0.99 g/t Pd, 0.38 g/t Rh, 0.04 g/t Au
• Mineral Resources were completed by Charles Muller of CJM Consulting, and the Mineral Reserves were prepared under the supervision of Gert Roets of DRA
• Resources may never become reserves, figures may change during project implementation in progress.
• A report with respect to the technical information contained here has been filed on www.sedar.com August 28, 2015.
PLG: NYSE MKT | PTM: TSX
Maseve Mine – Financial UpdateProject Funding, Development and Financial Performance
US$ 502M has been invested in the construction and development of the Maseve Mine.
Large scale project construction delivered on guidance.
The Project is now 100% complete and has been commissioned – Feb/March 2016.
Current operational expenditure in line with expectations in all major areas including mining
contractor, concentrator, utilities, overheads and labour.
Delay in underground development has led to delayed revenue. Recent amendments to
lending agreements and equity financings (May 26th and Nov 1st 2016) to bridge path to
commercial production.
The decline in USD PGM prices mostly offset by weakness in the Rand.
19PLG: NYSE MKT | PTM: TSX
Maseve Mine – Production and Costs Operating Cost and Basket Price
20PLG: NYSE MKT | PTM: TSX
625
1,048
0
200
400
600
800
1000
1200
1400
Cost Guidance vs Trailing Basket Price (4E)
LOM Guidance Three Year Basket
• See September 19, 2016 Press Release – Corporate Update *• See July 15, 2015 Press Release – Maseve (WBJV) Project Update **• Three year trailing average US$ Metal Prices: Pt: $1,188, Pd: $707, Rh: $962, Au: $1,230• Costs are exclusive of smelter charges and include byproduct credits
Production Guidance:
• Year 1 Estimate: 91,500 ounces 4E*
• Year 2 Estimate: 185,000 ounces 4E**
• Steady State Estimate: 250,000 ounces 4E/year
• Mine Life Estimate: 20+ years
Mine Site Cost Estimate Guidance:
• Merensky: US $526 per 4E ounce Life Of Mine (LOM)
• UG2: US $774 per 4E ounce LOM
• Combined Merensky and UG2 life of mine cost
projected at US $625 per 4E ounce
• Current Merensky Basket Spot Price is $890/4E ounce
• Net of Smelter 4E discount basket is $733/4E ounce
Revised Mine Plan:
• Adoption of mechanized mining methods based on
access to thicker, deeper mining blocks
• Mining dilution to be offset by lower costs
Maseve Mine – In Production
21
Current workforce: Approx. 2,300
people on site; good safety record.
Mining: Development and mining in
blocks 6, 10, 11, 9, 12 and 16 are in
progress with 17 reef ends open.
Block 11: Accessed in mid-August;
flat, thick and high grade; key block
for ramp-up into 2017.
Processing: All major components
installed and commissioning
completed. Main decline conveyor
and chairlift operational.
Power: 20MVA installation
complete, power steady as needed.
PLG: NYSE MKT | PTM: TSX
Mining and Production Underway
22
North Shaft
South Shaft
Block 10
Block 11
Block 12
Block 9A
Block 16
Maseve Mine – Access Complete in Five Mining Blocks Seventeen Reef Ends Open – Grade as Anticipated
PLG: NYSE MKT | PTM: TSX
Mining – Block 11 - Bord and Pillar
23
Block 11
Block 10 South
Reef Drives North and South In Progress
PLG: NYSE MKT | PTM: TSX
PLG: NYSE MKT PTM: TSX 24
Mining – Block 11 - Bord and PillarReef Drives North and South In Progress
Channel width of 1.93 metres at 7.4 g/t 4E
Tabular reef at a 7 degree dip – well developed.
Large flat area confirmed with drilling and
underground development.
Majority of tonnage profile for the next three years
planned from Block 11.
Block 11 is estimated to host more than 545,000
4E Merensky Reef ounces (3,066,512 tonnes at
5.53 gpt 4E Indicated at average 1.57 metresthick).*
*NI 43-101 report titled "An Independent Technical Report on the Maseve Project (WBJV Project areas 1 and 1A) located on the Western Limb of the Bushveld Igneous Complex, South Africa" effective July 15, 2015.
Infrastructure – North Shaft Underground – Ore Silos
25
Shaft Bottom
Vent Shaft N2Vent Shaft N1
Workshops 12
3
Silo’s 1,2 & 3Settlers
Electrical Sub-station
PLG: NYSE MKT | PTM: TSX
Mining – Blocks 10 and 11 - Bord and Pillar
26
Block 10 mid
Block 10 bot
Block 11
Block 10 South
Mine Plan by Month
PLG: NYSE MKT | PTM: TSX
Mining - Blocks 12 and 9A - Long Hole Stoping
27PLG: NYSE MKT I PTM: TSX
Block 12 (Long Hole)
Block 9A (Long Hole)
Mine Plan by Month
Mining – Block 16 - Long Hole Stoping
28PLG: NYSE MKT I PTM: TSX
Block 16 (Long Hole)
Mine Plan by Month
Maseve Mine Primary Crusher and Conveyor System – In Operation at Rated Capacity
29PLG: NYSE MKT | PTM: TSX
Maseve Mine Processing Facility: Mill, Flotation Circuit and Concentrator – Proven Performance 125 KTPM
30PLG: NYSE MKT | PTM: TSX
Maseve Mine Mill Flotation and Concentrate Filter Press All Operating at Design Criteria or Better
31PLG: NYSE MKT | PTM: TSX
Waterberg
Palladium
Project
Waterberg Project: Drill Rig
Waterberg PGM Project - Northern Limb - NEW PARADIGM
33PLG: NYSE MKT | PTM: TSX
* As a result of Platinum Group’s 49.9% ownership interest in Mnombo the Company has an effective interest in the Waterberg JV of 58.62%.
** See October 19, 2016 Technical Report – www.sedar.com and Appendix for tonnes and grade.
Super Competitive: Large, Thick, Near Surface – 12.32M 4E Ounces Probable Reserves
Probable Reserves stand at 12.32M 4E Ounces
Indicated Resource 24.89M 4E and Inferred 10.82M 4E
ounces.**
Fully Mechanized Mine Plan with Decline access near
surface = LOW COST
Platinum Group 58.62% (45.65% directly + 12.97%
indirectly), JOGMEC 28.35%, and BEE partner Mnombo
Wethu 26%.*
PTM in partnership with Japanese state Company
JOGMEC (Japan Oil, Gas, Metals National Corp.) has
discovered a new district with the potential for low-cost,
safe, bulk mechanized PGM mining.
The size and scale of the Waterberg Project represents a
significant alternative to narrow width, conventional, deep
Merensky and UG2 mining on the Western Limb.
34PLG: NYSE | MKT PTM: TSX
Waterberg PGM Project – Ownership Structure Waterberg Joint Venture: $8M Funding in Place for 2016/2017 – 100% JOGMEC
35PLG: NYSE | MKT PTM: TSX
Waterberg PGM ProjectProbable Reserve: 12.32M ounces (4E) – 102.7M tonnes grading 3.73 g/t 4E
36PLG: NYSE | MKT PTM: TSX
Waterberg PGM ProjectIndicated Resource: 24.886M ounces (4E) – 218M tonnes grading 3.55 g/t 4E
37PLG: NYSE | MKT PTM: TSX
Waterberg PGM ProjectInferred Resource: 10.80M ounces (4E) – 97.212M tonnes grading 3.46 g/t 4E
Waterberg PGM Project - A Unique Metal Balance
38PLG: NYSE | MKT PTM: TSX
Palladium Dominant With A Strong Gold Credit
39PLG: NYSE | MKT PTM: TSX
Waterberg PGM Project - Base Metal Content
Concentrate Amenable to Existing South African Smelters – Similar To Merensky Reef
Source: Company Reports
Waterberg PGM ProjectProject Location - Planned Portal and Underground Layout
40PLG: NYSE | MKT PTM: TSX
NSFZ
North Super Zone
BSFZ
Boundary Super F Zone
CSFZ
Central Super F Zone
T Zone
N
NSFZ
North Super Zone
Portal & Mining Area
BSFZ
Boundary Super F Zone
Portal & Mining Area
CSFZ
Central Super F Zone
Portal & Mining Area
T Zone
Portal & Mining Area
12
5m
26
5m
17
5m
18
5m
*See October 19, 2016 Press Release for details. www.sedar.com
Waterberg PGM Project – PFS – October 19, 2016 4E Cash Costs - Before and After Credits and Costs
41PLG: NYSE | MKT PTM: TSX
Item
US$/oz 4E in Concentrate
Life-of-Mine
Average
5-Year Average
2022 - 2026
10-Year Average
2022 - 2031
Mine Site Cash Cost 389 390 374
Nickel Credits
Copper Credits
98
42
97
40
98
40
Total Mine Cash Costs After Credits 248 253 236
Realisation cost (smelter “cost”, transport) 232 224 231
Total Cash Costs After Credits 481 477 467
*See October 19, 2016 Press Release for details. www.sedar.com
42PLG: NYSE | MKT PTM: TSX
Waterberg PGM Project – Industry Cost Curve
Source: SFA (Oxford). Data for Waterberg is based on Platinum Group projections and is not representative of SFA's view
43PLG: NYSE | MKT PTM: TSX
Waterberg PGM Project
Waterberg Mining Complex - Central Super F Declines - Looking NE, Portal
*See October 19, 2016 Press Release for details. www.sedar.com
Waterberg PGM Project – PFS – October 19, 2016 Projected Steady State Production – 744,000 Ounces 4E
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*See October 19, 2016 Press Release for details. www.sedar.com
Waterberg PGM Project – PFS – October 19, 2016
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Projected Annual Cash Flow - Post Tax (ZAR)
*See October 19, 2016 Press Release for details. www.sedar.com
Economic Assumptions – Rand 15/USD$ Flat, No Escalation
Parameter Unit3 Year Trailing
Average(July 31, 2016)
Investment BankConsensus Price(Sept. 16, 2016)
PlatinumPalladiumGoldRhodiumT and F Combined Basket (4E)NickelCopper
USD/ozUSD/ozUSD/ozUSD/ozUSD/ozUSD/lbUSD/lb
1,212710
1,2299848996.102.56
1,213800
1,3001,0009607.502.90
Base Metals Refining ChargeCopper Refining ChargeNickel Refinery Charge
% Gross Sales Pay% Gross Sales Pay% Gross Sales Pay
85%73%68%
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Rand devaluation assumed to equal excess South African cost escalation
Financial Returns – Three Year Trailing Average Price Deck 15R/USD
Item Discount RateZAR
Millions(Before Tax)
ZAR Millions
(After Tax)
USD Millions
(Before Tax)
USD Millions
(After Tax)
Net Present Value Undiscounted4.0%6.0%8.0%
10.0%12.0%14.0%
36,09618,21312,6668,5655,5193,2491,555
25,04211,8837,8084,8052,584939-278
2,4061,214844571368217104
1,66979252032017262-19
Internal Rate of ReturnProject Payback Period (Years) from 2017
16.6%10
13.5%10
16.6%10
13.5%10
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*See October 19, 2016 Press Release for details on tonnage and grades. www.sedar.com
Financial Returns – Investment Consensus Price Deck 15R/USD
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Item Discount RateBefore Tax
(ZAR M)After Tax(ZAR M)
Before Tax(USD M)
After Tax(USD M)
Net Present Value Undiscounted4.0%6.0%8.0%
10.0%12.0%14.0%
45,78124,18017,42612,4028,6415,8123,676
31,94616,18411,2637,6104,8842,8421,311
3,0521,6121,162827576387245
2,1301,07975050732518987
Internal Rate of ReturnProject Payback Period (Years) from 2017
19.8%9
16.3%9
19.8%9
16.3%9
*See October 19, 2016 Press Release for details. www.sedar.com
Waterberg Project
Thick - amenable to bulk mechanized mining – higher
skilled and educated work force.
Shallow - deposit starts 140m from surface.
Near surface T Reef and Super F allowing for potential
multi decline ramp access for equipment - lower capital
costs compared to vertical shafts.
Size allows for consideration of large scale operations
and downstream options.
Desirable low chrome concentrate with base metal
content amenable to existing smelters.
Why is Waterberg Different?
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Waterberg Project
50
Why is Waterberg Different?
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Conventional (Merensky) platinum mines have good
grade but are narrow resulting in lower productivity.
Waterberg (Super T and Super F) are exponentially
thicker (up to 30X) providing for massive volume and
productivity increases.
Existing known deposit extends for
13km and is open along strike
going North and at depth.
Current drilling targeting open, up
dip “Super F” zones and thickening
“T” Zone in the south.
Focus on areas 30m+ in thickness
at depths less than 200m from
surface.
Thick, shallow “Super F” zones will
have important mine plan
implications.
Feasibility Study drilling has begun.
Potential for “Super T” zones in the
southern portion of the ore body.
Waterberg Project : Scale with Growth PotentialExtensive Land Package with Potential 30km+ Strike Length
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13 km strike
33
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Waterberg Project : Scale with Growth Potential3D Contour Model – Five Defined Initial Mining Areas – Thick and Shallow
Waterberg Project – Mechanized, Bulk Mining Potential Review of Mechanized Mining Methods
53
Fully Mechanized Mining uses equipment to access and mine the ore
A deposit thickness of 3 to 60 meters allows for a fully mechanized approach
Mechanized equipment allows fewer miners to process greater ore throughput and more effectively mine larger
stopes relative to conventional mining methods
Mechanized Mining Targets
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PFS Planned Mining Methods
Sub-Level Open Stoping - Transverse Sub-Level Open Stoping - Longitudinal
North Limb – Future of Global PGM Production
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North Limb Beats Both Western Limb and Zimbabwe – Capital, Time and Volume
*Source: Impala Platinum – PGM Supply Conundrum – September 14, 2016 Presentation
Western Limb* Zimbabwe* Waterberg
Average Depth 1,000 to 1,500 Metres 200 Metres 140 to 1,250 Metres
Annual Throughput 2.7 MTPA 2.0 MTPA 7.2 MTPA
Annual Production 180,000 Ounces Pt 90,000 Ounces Pt 750,000 Ounces 4E
Time To Production 10 to 12 Years 6 Years 3.5 Years
Expected Capital Investment ZAR 12B ($870M USD) $300M USD $914M USD
Employees 6,000 1,000 3,300
Waterberg PGM Project - Development Timeline
55
Prefeasibility Study
Project Construction and Ramp-up
Feasibility Study
2017
2016
PEA
Deliverables
Proven
Business Case
No fatal-flaws
Forward work-
plan
Action Steps
Additional exploration drilling
Geological modelling
Metallurgical test work
EIA / EMP / Permitting
Improve business case
Perform option trade-offs
Deliverables
Single Option selected
Ratified and optimised
business-case
Complete
Action Steps
Improve confidence in
engineering
Operational readiness study
Prepare for implementation
Deliverables
Full detailed-design and
costing
Implementation plan
Current Phase
File Mining Right
Application
The Waterberg Project has a completed PFS and is moving towards feasibility and permitting.
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Completed Pre-Feasibility in 2016 Reinforces Path to 2018 Construction Start
2018-2021
Complete
2014
Conclusions
Company controls large scale shallow resources with 20 years plus of competitive platinum and
palladium exposure.
Maseve Mine successfully commissioned; best grade thickness block accessed; ramp up underway.
Waterberg: Pre-Feasibility Study (October 2016) complete; Final feasibility and Mining Right
Application 2017.
Waterberg: $8M growth investment for 2016/2017 funded by Japanese partner on a world class
discovery; continued exploration and engineering in 2017.
Industry is in transition with tightening market; Company is a significant player in shift to bulk
mechanized PGM mining in the North Limb.
Palladium outperformance reflects structural deficit and highlights importance of Waterberg a one of
the only large scale, low cost, primary palladium discoveries.
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2016/2017 Milestones – Maseve Positive Cash Flow and Advancement at Waterberg
Maseve Mine - Reserves and Resources
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Estimated Reserves – 100% Project Basis – July 15, 2015
Reserve
tonnes – Mt
Pt
g/t
Pd
g/t
Rh
g/t
Au
g/t
Reserve 4E
Grade - g/t
Reserve 4E
Content – t
Reserve 4E Content – Moz
MR Proven and Probable 17.525 2.94 1.24 0.18 0.23 4.59 80.401 2.585
UG2 Proven and Probable 14.914 2.01 0.83 0.32 0.03 3.19 47.649 1.532
Total 32.439 2.51 1.05 0.25 0.14 3.95 128.05 4.117
Merensky Reserve
Reserve
tonnes – Mt
Pt
g/t
Pd
g/t
Rh
g/t
Au
g/t
Reserve 4E
Grade - g/t
Reserve 4E
Content – t
Reserve 4E Content – Moz
Proven 7.082 2.89 1.22 0.18 0.22 4.51 31.905 1.025
Probable 10.433 2.98 1.26 0.18 0.23 4.65 48.496 1.560
Total 17.525 2.94 1.24 0.18 0.23 4.59 80.401 2.585
UG2 Reserve
Reserve
tonnes – Mt
Pt
g/t
Pd
g/t
Rh
g/t
Au
g/t
Reserve 4E
Grade - g/t
Reserve 4E
Content – t
Reseve 4E Content – Moz
Proven 5.452 1.95 0.80 0.31 0.03 3.09 16.821 0.540
Probable 9.462 2.05 0.85 0.33 0.03 3.26 30.828 0.992
Total 14.914 2.01 0.83 0.32 0.03 3.19 47.649 1.532
1. Mineral Resources and Mineral Reserves are classified in accordance with the SAMREC standards. There are certain differences with the “CIM Standards on Mineral Resources and Reserves”; however, in this case the Company believes the differences are not material
and the standards may be considered the same.
2. Mineral Reserves are a subset of the Mineral Resources and are provided on a 100% project basis.
3. Mineral Reserves are supported by a mine plan that uses conventional, hybrid and bord and pillar mining with varying costs and thickness.
4. A planning cut-off grade of 2.5 g/t for both the Merensky and UG2 Reefs were calculated to delineate the mining blocks from the resource model. The Mineral Resources and Mineral Reserves have payable credits in copper, nickel, ruthenium and iridium.
5. Cut off for the Merensky and UG2 reefs were estimated using average costs, smelter discounts, concentrator recoveries and mine call factor.
6. Mineral Resources were completed by Charles Muller of CJM Consulting, and the Mineral Reserves were prepared under the supervision of Gert Roets of DRA.
7. Mineral Resources were calculated using Kriging methods for geological domains created in Datamine from 6413 borehole assay results and geological information from underground workings. The Mineral Reserves were assessed using a Datamine block model and
Datamine Mine Design software (Studio-5D Planner) for the mine design and Datamine EPS (Enhanced Production Scheduler) software for the Life of Mine schedule. Economic models completed by the Company were reviewed for cut-off assessment.
8. The calculation of Mineral Resources and Reserves has taken into account environmental, permitting, legal, title, taxation, socio-economic, marketing and political factors. The Mineral Resources and Mineral Reserves may be materially affected by metals prices,
exchange rates, labour costs, electricity supply issues or many other factors detailed in the Company’s Annual Information Form.
9. The following prices based on a 3 year trailing average in accordance with U.S. Securities and Exchange Commission (“SEC”) guidance was used for the assessment of Resources and Reserves; USD Pt 1,408/oz, Pd 744/oz, Au 1,374/oz, Rh 1,126/oz, Ru 73/oz, Ir 731/oz, Cu
3.18/lb, Ni 7.11/lb.
Maseve Mine - Reserves and Resources
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Merensky - Mining Cut
Resource
CategoryCut-off
Tonnage
Grade Metal
Reef
Width
4E Pt Pd Rh Au 4E 4E 4E
cmg/t Mt g/t g/t g/t g/t g/t kg Moz cm
Measured 300 9.266 3.35 1.41 0.21 0.26 5.23 48,461 1.558 152
Indicated 300 12.552 3.65 1.54 0.23 0.29 5.71 71,672 2.304 141
Total 300 21.818 3.53 1.49 0.21 0.28 5.51 120,133 3.862 146
Inferred 300 0.196 2.32 0.98 0.14 0.18 3.62 710 0.023 118
UG2 - Mining Cut
Resource
CategoryCut-off
Tonnage
Grade Metal
Reef
Width
Pt Pd Rh Au 4E 4E 4E4E
cmg/t Mt g/t g/t g/t g/t g/t kg Moz cm
Measured 300 8.496 2.29 0.94 0.36 0.04 3.63 30,841 0.992 140
Indicated 300 14.183 2.46 1.01 0.39 0.04 3.90 55,314 1.778 136
Total 300 22.679 2.39 0.99 0.38 0.04 3.80 86,155 2.770 137
Estimated Resources – 100% Project Basis – July 15, 2015
Waterberg Project - Reserves
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Prill Splits - Mineral Reserve Estimate – October 19, 2016
Prill Split Grade
ZonePt Pd Au Rh Cu Ni
% % % % % %
T-Zone 29 49 21 1 0.16 0.08
F-Zone 30 64 5 1 0.07 0.16
Reasonable prospects of economic extraction were determined with the following assumptions: Metal prices used in the reserve estimate are as follows based on a 3-year trailing average (as at July 31/2016) in accordance with U.S. Securities and Exchange Commission ("SEC") guidance for the assessment of resources and reserves; US$1,212/oz Pt, US$710/oz Pd, US$1229/oz Au, US$984/oz Rh, US$6.10/lb Ni, US$2.56/lb Cu, US$/ZAR15. Smelter payability of 85% was estimated for 4E and 73% for Cu and 68% for Ni. The effective date is October 17, 2016. A 2.5 g/t Cut-off was used and checked against a pay-limit calculation. Independent Qualified Person for the Statement of Reserves is Mr. RL Goosen (WorleyParsons RSA (Pty) Ltd Trading as Advisian). The mineral reserves may be materially affected by changes in metals prices, exchange rates, labor costs, electricity supply issues or many other factors. See Risk Factors in 43-101 report on www.sedar.comand the Company’s Annual Information Form. The reserves are estimated under SAMREC with no material difference to the CIM 2014 definitions in this case. The estimation of mineral reserves has taken into account environmental, permitting and legal, title, taxation, socio-economic, marketing and political factors. Based on the cut-off grade and a maximum depth cut-off of 1,250 meters the Probable reserve will support an 18 year mine life.
Waterberg Project - Reserves
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Mineral Reserve Estimate – October 19, 2016
Probable Mineral Reserve at 2.5 g/t 4E Cut-off – Tonnage and Grades
Zone MtCut-off grade (g/t)
Pt (g/t)
Pd (g/t) Au (g/t) Rh (g/t) 4E (g/t) Cu (%) Ni (%)
T-Zone 16.5 2.5 1.14 1.93 0.83 0.04 3.94 0.16 0.08
F-Zone 86.2 2.5 1.11 2.36 0.18 0.04 3.69 0.07 0.16
Total 102.7 2.5 1.11 2.29 0.29 0.04 3.73 0.08 0.15
Probable Mineral Reserve at 2.5 g/t Cut-off – Contained Metal
Zone MtPt
(Moz)Pd
(Moz)Au
(Moz)Rh
(Moz)4E
(Moz)
4Econtent
(kg)Cu (Mlb) Ni (Mlb)
T-Zone 16.5 0.61 1.03 0.44 0.02 2.09 65,097 58.21 29.10
F-Zone 86.2 3.07 6.54 0.51 0.10 10.22 318,007 132.97 303.94
Total 102.7 3.67 7.57 0.95 0.12 12.32 383,103 191.18 333.04
Waterberg Project - Resources
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Mineral Resource Estimate – T-Zone and F-Zone – October 19, 2016
T-Zone 2.5 g/t Cut-off
Resource Category
Cut-offTonnage
Grade Metal
4E Pt Pd Au Rh 4E Cu Ni 4E
g/t Mt g/t g/t g/t g/t g/t % % Kg Moz
Indicated 2.5 31.540 1.13 1.90 0.81 0.04 3.88 0.16 0.08 122,375 3.934
Inferred 2.5 19.917 1.10 1.86 0.80 0.03 3.79 0.16 0.08 75,485 2.427
F-Zone 2.5 g/t Cut-off
Resource Category
Cut-offTonnage
Grade Metal
4E Pt Pd Au Rh 4E Cu Ni 4E
g/t Mt g/t g/t g/t g/t g/t % % Kg Moz
Indicated 2.5 186.725 1.05 2.23 0.17 0.04 3.49 0.07 0.16 651,670 20.952
Inferred 2.5 77.295 1.01 2.16 0.17 0.03 3.37 0.04 0.12 260,484 8.375
Waterberg Project - Resources
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Total Mineral Resource Estimate – October 19, 2016
Waterberg Total 2.5 g/t Cut-off
Resource Category
Cut-offTonnage
Grade Metal
4E Pt Pd Au Rh 4E Cu Ni 4E
g/t Mt g/t g/t g/t g/t g/t % % Kg Moz
Indicated 2.5 218.265 1.06 2.18 0.26 0.04 3.55 0.08 0.15 774,045 24.886
Inferred 2.5 97.212 1.03 2.10 0.30 0.03 3.46 0.06 0.11 335,969 10.802
4E = Platinum Group Elements (Pt+Pd+Rh+Au). The cut-offs for mineral resources have been established by a qualified person after a review of potential operating costs and other factors. The mineralresources stated above are shown on a 100% basis, that is, for the Waterberg Project as a whole entity. Conversion Factor used – kg to oz = 32.15076. Numbers may not add due to rounding. Resources donot have demonstrated economic viability. A 5% and 7% geological loss has been applied to the Indicated and Inferred categories respectively. Effective Date Oct 17, 2016. Metal prices used in the reserveestimate are as follows based on a 3-year trailing average (as at July 31/2016) in accordance with U.S. Securities and Exchange Commission ("SEC") guidance for the assessment of resources; US$1,212/ozPt, US$710/oz Pd, US$1229/oz Au, US$984/oz Rh, US$6.10/lb Ni, US$2.56/lb Cu, US$/ZAR15.
Total aggregate mineral resources at Waterberg on a 100% project basis have increased slightly since those reported in April 2016. Inferred category resources have decreased to an estimated 10.8 million4E ounces from 11.71 million ounces 4E Inferred in April, 2016. Indicated category resources have increased to an estimated 24.9 million 4E ounces, from 23.9 million 4E ounces Indicated in April 2016:
1. The mineral resources are classified in accordance with the SAMREC standards. There are certain differences with the "CIM Standards on Mineral Resources and Reserves"; however, in this case theQP believes the differences are not material and the standards may be considered the same. Mineral resources that are not mineral reserves do not have demonstrated economic viability and Inferredresources have a high degree of uncertainty.
2. The mineral resources are provided on a 100% project basis and Inferred and Indicated categories are separate and the estimates have an effective date of 17 October 2016.
3. A cut-off grade of 2.5 g/t 4E for both the T and the F-Zones is applied to the selected base case mineral resources.
4. Cut off for the T and the F-Zones considered costs, smelter discounts, concentrator recoveries from previous engineering work completed on the property by the Company. The resource model wascut-off at an arbitrary depth of 1,250 meters, although intercepts of the deposit do occur below this depth.
5. Mineral resources were completed by Mr. CJ Muller of CJM Consulting.
6. Mineral resources were estimated using kriging methods for geological domains created in Datamine from 303 original holes and 483 deflections. A process of geological modelling and creation ofgrade shells using indicating kriging was completed in the estimation process.
7. The estimation of mineral resources has taken into account environmental, permitting and legal, title, and taxation, socio-economic, marketing and political factors.
8. The mineral resources may be materially affected by metals prices, exchange rates, labor costs, electricity supply issues or many other factors detailed in the Company's Annual Information Form.
9. The data that formed the basis of the estimate are the drill holes drilled by Platinum Group, which consist of geological logs, the drill hole collars surveys, the downhole surveys and the assay data.The area where each layer was present was delineated after examination of the intersections in the various drill holes.
10. There is no guarantee that all or any part of the mineral resource not included in the current reserves will be upgraded and converted to a mineral reserve.
Platinum Group Metals Ltd.
Suite 788 – 550 Burrard StreetVancouver, BC V6C 2V5 Canada+1 604-899-5450info@platinumgroupmetals.netwww.platinumgroupmetals.net_____________________________
Platinum Group Metals RSA (Pty) Ltd.1st Floor, Platinum House24 Sturdee AvenueRosebank, Johannesburg 2196 SA