Name of the Project
Waterberg platinum group metals project.

Location
The Waterberg project is located 85 km north of Mokopane, in Limpopo, South Africa.

Project Owner/s
Waterberg Joint Venture (JV) Resources, or Waterberg JV Co, is a JV between Platinum Group Metals, or PTM (37.05%), Impala Platinum Holdings (Implats) (15%), Japan Oil, Gas and Metals National Corporation (12.195%), Hanwa Co (9.755%) and black economic-empowerment partner Mnombo Wethu Consultants (26%). As a result of PTM's 49.90% ownership in Mnombo, the company has an effective interest in the Waterberg JV of 50.02%.

Project Description
The 2019 definitive feasibility study (DFS) mine plan envisages production of 4.8-million tonnes of ore a year and 420 000 platinum, palladium rhodium and gold, or 4E, ounces a year in concentrate.

The mine will initially access the orebody using two sets of twin decline tunnels, with fully mechanised longhole stoping methods and paste backfill used for mining. Paste backfill allows for a high mining extraction ratio, as mining can be completed next to backfilled stopes without leaving internal pillars.

Maintaining safety and reliability are key mine design criteria. As a result of the scale of the orebody, bulk mining on 20 m to 40 m sublevels using large underground equipment, and conveyors for ore and waste transport, will provide high efficiency.

Potential Job Creation
The project will create about 1 100 new highly skilled jobs.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $982-million and an internal rate of return of 20.7%. This is based on the 2019 DFS prices: palladium $1 546, platinum $980, gold $1 548 and rhodium $5 036 ($/R:15).

Capital Expenditure
Capital expenditure is estimated at $874-million, including $87-million in contingencies. Peak project funding is estimated at $617-million, based on 2019 commodity prices and costs.

Latest Developments
PTM reported on January 13, 2022, that it was assessing commercial alternatives for mine development, financing and concentrate offtake.

Studies to assess the economic feasibility of establishing a dedicated Waterberg matte furnace to process Waterberg concentrate as an alternative to a traditional concentrate offtake arrangement are under way.

Implats currently holds a right of first refusal (ROFR) to match concentrate offtake terms offered to Waterberg JV Co by a bona fide third party (the offtake ROFR).

Processing the Waterberg concentrate through a matte furnace owned by Waterberg JV Co or by one or more of the JV partners would not be subject to the offtake ROFR because such an entity would not be a bona fide third party.

Any transaction between Waterberg JV Co and any one or more shareholders must be entered into on a bona fide arms-length basis and for fair value.

Under the terms of the shareholders agreement governing Waterberg JV Co, Hanwa holds the exclusive right to buy or direct the sale of all or part of the Waterberg project concentrate or metal contained therein.

Hanwa may, therefore, direct the processing and marketing of the project’s concentrate or contained metal at market prices, once again without being subject to the offtake ROFR.

Before a construction decision can be made, arrangements will be required for project concentrate offtake or processing. 

Waterberg JV Co is working to advance project permitting, engineering, infrastructure servitudes, surface access and community relationships.

Key Contracts, Suppliers and Consultants
Stantec Consulting International and DRA Projects SA (DFS).

Contact Details for Project Information
PTM, tel +27 11782 2186 or email info@platinumgroupmetals.net.