Delivering Low Cost Platinum Production

Delivering Low Cost Platinum 

Production 

March 2009 

PLA/PLAA www.platinumaus.com

Platinum Australia 

• World’s s Newest Platinum Producer 

• Listed on ASX and AIM 

– Market Cap – US$100 Million 

– ASX 200 & AIM 100 

• Largest Shareholders 

– JP Morgan – 8.7% 

– Colonial First – 8.6% 

– NAB – 6.6% 

– Perpetual – 5% 

– AMP – 3% 

– Macquarie – 3% 


Platinum Australia Strategy 

• Open Pit & Shallow Underground 

• Rapid Evaluation & Development 

• Low Operating Costs – grade, depth, overheads 

• Low Capital Cost – “Fit for Purpose” 

• No constraints on size of project 

• Joint Ventures & other arrangements 

• Build on existing Production and Projects 


Delivering on the Strategy 

• Smokey Hills 

– 1 Moz Resource 

– Open Pit & Shallow Underground 

– Production - 95,000 oz 4E PGM pa 

– Production Build Up 

• Kalahari Platinum 

– 4.2 Moz 4E PGM Resource 

– Open Pit – 120-300,000 oz PGM pa 

– Feasibility Study – first half 2009 

– Significant Regional Presence 


Platinum Australia Limited 

Project Locations 


Smokey Hills Platinum Mine 



• Nov 2007 – Mining Right 

• Nov 2007 – Start Site Works 

• Jan 2008 – Start Open Pit 

• Sept 2008 – Commissioning 

• May 2005 - JV Signed 

• July 2005 – Drilling Program 

• July 2006 – BFS Completed 

• Dec 2006 – Mills Ordered 

• July 2007 - EPCM Contract 

awarded to GRD Minproc 



• Sept 2008 – Underground Mine 

• Jan 2009 – First Production 

• April/May 2009 - Full Production 

• Standby Generating Power of 8 

MVA installed 

• Offtake IRS - Life of Mine 

• Capital Cost US$45 Million 

• Hedging – 15% for 5 years 

at ~US$2,000/oz Pt & 

~US$500/oz Pd, R7.5:1US$ 

• Designed for Expansion 



BFS July 06 

Current 

Base Case 1 

January 2009 2 

Initial Capital 

US$ Million 

40 

45 4 

Ongoing Capex 

US$ Million 

14 

11 

Production 

Ozs 4E p.a. 

95,000 

95,000 

Cash Costs 3 

US$/oz 4E 

225 

190 

Basket Price 

US$/oz 4E 

677 

680 

IRR (pre Tax) 

70% 

~60% 

Cashflow (Pre Tax) 

US$ Million 

140 

190 

Cashflow (EBITDA) 

US$ Million 

30 pa 

35 pa 

1 - Pt US$900/oz; Pd US$300/oz; Gold US$450/oz; Rh US$1,500/oz; ZAR 7:1 US$ 

2 - Pt US$1,000/oz; Pd US$200/oz; Gold US$800/oz; Rh US$1,500/oz; ZAR10:1 US$; Excludes Hedging 

3 – Net of Credits for Ni, Cu, Ru, Ir & Chrome 

4 – Including Diesel Generators US$3 Million 



Mining Contracts 

Opencast Mining 

• Contractor - CCT 

• 40 000 t per month 

• 16 Months 

• Waste utilized for tailings dam 

construction 

Underground Mining 

• Contractor – Redpath Mining 

• 60 000t per month 

• 5 year contract 

• LOM 7 years 



Processing Plant 

F TH 

CR Tails 

F 

TH 

T CY 

FFC Conc 

CR Tails 

Cleaner Tails CY 

u/f 

Process Fines Th 

FFC Conc 

PLA/PLAA www.platinumaus.com 

Larox Filter 

Final Concentrate 

Final 

Tails


Summary 

• Development – 3 ½ Years from JV to Production 

• Production 95,000 ozs 4E PGM for seven years 

• Initial Capital Cost US$45 Million at ZAR10:US$1 

• Debt Finance by Standard Bank ~ZAR260 Million plus ongoing 

Mining Capital Equipment ~ZAR72 Million 

• Operating Cost US$300/oz 4E PGM net of credits, including 

Smelting & Refining Charges 

• PLA 69.75%, effective ~85% of Economic Interest 

• Potential for expansion or extensions 

• Complete Standby Power installed 

• Production of ~75,000 oz 4E PGM expected 2009 CY 


Kalahari Platinum Project 



BOTSWANA 

20km 

Kalgold O/C 

Mine 

Kalplats 

PGM Project 

• JV with ARMplatinum – 

PLA earning 49% 

• 330 km West of 

Johannesburg 

• Stella Layered Intrusive 

(“SLI”) within the Kraaipan 

Greenstone Belt 

• 45 km from Kalgold Mine 

• Good Infrastructure 



Crater 

Scorpio 

Vela 

Mira 

Sirius 

Tucana 

Orion 

1km 

Serpens North 

Serpens South 

Crux 

Pointer 

• 140,000m drilled 

• 7 Deposits with resources 

• Several Other Prospects 

• All open at depth & 

along strike 

• 4.2 Million oz PGM JORC 

compliant Resource 

• Potential for major 

expansion of resource 



Total 

Pt+Pd+Au 

Thickness 

LG 

1.0 g/t 10m 

Mid 

Reef 

Package 

MR 

1.1 g/t 8m 

2.5 g/t 2m 

Main 

Reef 

Package 

LM 

UM 

3.8 g/t 2 - 3m 

1.0 g/t 10m 

4.5 g/t 3 - 6m 



Initial Resource Update 

Mineral Resource 

Total 

Main Reef 

High Grade 

‘000 oz 

‘000 oz 

‘000 oz 

Crux 

Harmony 

583 

320 

186 

Snowden 1 

1,238 

702 

404 

Difference 

+655 

+382 

+218 

Crater & Orion 

Harmony 

1,175 

797 

630 

Snowden 1 

1,282 

810 

584 

Difference 

+107 

+13 

-46 

Crux, Crater & Orion 

Difference 

+762 

+395 

+172 

1 - Snowden Resource is interim to be updated with additional drilling results prior to completion of Feasibility Study 



Project Study Options 

• Throughput 1.2 MTPA to 3 MTPA 

• Capital Cost US$100 to US$250 Million 

• Operating Cost ~US$200-300/oz 3E PGM 

• Production 120,000 - 300,000 oz pa 

• Head Grade from 2.5 to 3.5 g/t 

• Eskom power with stand alone power as option 

• Multiple Open Pits 

• Flotation Concentrate to smelter 

• Rapid Start of Production – mid 2011 

• Target High Grade ~3 – 5 Moz to 200m 



Prospects to be developed Post DFS 

• Scorpio 

• Mira 

– 1,000m strike length with multiple intersects over 300m strike incl. i 

15m @ 2.32 g/t, , 4m @ 4.15 g/t & 4m @ 3.09 g/t 

– Multiple intersects over 400m incl. 33m @ 2.58 g/t, , 13m @ 5.11 g/t, 

8m @ 4.66 g/t & 7m @ 4.14 g/t 

• Sirius South 

– Multiple intersects incl. 6m @ 3.22 g/t & 8m @ 3.42 g/t 

• Pointer 

– 800m soil & mag anomaly with multiple intersects incl. 3m @ 3.92 g/t 

• Vela North 

– ~800m soil anomaly 


Kalplats Extension Project 

PLA - ARM JV 

• 50:50 Contributing 

• Addition 38 km strike 

• Extensions to PGM mineralised 

zones 

• Supported by Aeromag 

Interpretation 

• Detailed Aeromag Survey 

completed 

• Soil geochemical survey under 

way 

• First drilling under way 


Kalplats Extension Project 

First Drilling Results 

KE001 5m @ 3.23 g/t 3E 

incl 3m @ 4.65 g/t 3E 

KE008 3m @ 3.38 g/t 3E 

incl 1m @ 6.81 g/t 3E 

KE009 6m @ 3.19 g/t 3E 

incl 4m @ 4.28 g/t 3E 

. PLA/PLAA www.platinumaus.com

Kalplats - Stellex North Project 

Stellex Platinum 

• PLA 49% - Batsalani 

51% with PLA earning 

up to 70% 

• 26 km of strike length 

• Prospecting Right Issued 

• Aeromag & Soil Surveys 

in 2008/9 

. 



Smokey Hills 

Kalplats 

180000 

P 

G 

M 

o 

z 

s 

/ 

a 

n 

n 

u 

m 

160000 

140000 

120000 

100000 

80000 

60000 

40000 

20000 

0 

2009 2010 2011 2012 

Year 



• The World’s s newest Platinum Producer 

• One of the lowest cost producers in the industry with costs of 

~US$300/oz 4E vs Industry average of US$650/oz 4E 

• Cashflow of ~US$25 Million (EBITDA) in 2009 at current prices 

• Production of 75,000 ozs 4E in 2009 with projected growth to up 

to 200,000 ozs 4E by 2012 

• Focus on Open Pit and Shallow Underground Operations with 

Low Capital & Operating Costs 

• With a proven record of rapid development from acquisition to 

production, well placed to benefit from current market conditions 



“This presentation and information contained in it is being provided to shareholders and investors for information 

purposes only. Shareholders and investors should undertake their own evaluation of this information and otherwise 

contact their professional advisers in the event they wish to buy or sell shares. To the extent the information contains 

any projections the Company has provided these projections based upon the information that has been provided 

to the Company. The Company does not make any representations as to the accuracy or otherwise of that third 

party information." 

Qualification Statement 

We confirm that exploration results contained in this report are based on information compiled by PLA Exploration 

Staff and reviewed by Peter Allchurch, who is a Fellow of the Australian Institute of Mining and Metallurgy. Peter 

Allchurch is non-executive Chairman of Platinum Australia Limited. Peter Allchurch has more than 5 years experience 

which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he 

is undertaking, to qualify as a competent person as defined in the 2004 edition of the ‘Australasian Code for 

Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Allchurch consents to the inclusion in 

the report of the matters based on his information in the form and context in which it appears. 

The information in this report that relates to the Crater, Orion and Crux Mineral Resources is based on a resources 

estimates compiled by Mr. David Gray who is a full-time employee of Snowden Mining Industry Consultants and is a 

Member of the South African Council for Natural Scientific Professions (member no 400018/04) . 

Mr. Gray has more than 15 years experience which is relevant to the style of mineralisation and type of deposit 

under consideration and to the activity which he is undertaking and qualifies as a Competent Person as defined in 

the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. 

Mr Gray consents to the inclusion in the report of the matters based on his information in the form and context in 

which it appears.

Delivering Low Cost Platinum Production

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