Name of the Project
Waterberg platinum group metals (PGM) project.

Location
Limpopo, South Africa.

Project Owner/s
Platinum Group Metals (PTM) holds a 50.02% effective interest in Waterberg Joint Venture (JV), Japan, Oil, Gas and Metals National Corporation (Jogmec) holds a 12.195% interest, Impala Platinum Holdings holds a 15% interest, Hanwa holds a 9.755% interest and empowerment partner Mnombo Wethu Consultants holds the effective balance of the JV.  JSE-listed, broad-based empowerment group Hosken Consolidated Investments has acquired a 19.90% ownership interest in PTM.  

Project Description
The Waterberg project has several highly attractive characteristics that are indicative of its being a low-cost, shallow, bulk mineable project with significant scale and growth potential.

The deposit is also advantageous because of its having the highest palladium content among South African PGM mines.

According to a resource update announced in October 2018, the current measured and indicated mineral resource of the Waterberg deposit stands at 26.34-million comprising 63.04% palladium, 29.16% platinum, 6.37% gold and 1.43% rhodium (242.5-million tonnes at 3.38 g/t 4E) at a 2.5 g/t 4E cutoff grade on a 100% project basis. Reserves will be updated as part of the planned 2019 definitive feasibility study.

In the independent prefeasibility study (PFS) announced by PTM in October 2016 for the Waterberg project, a 744 000 oz/y 4E mine with an 18-year mine life was modelled. The PFS envisaged the project producing a flotation concentrate from a processing plant. The concentrate will be sold or toll-treated for the South African market.

The Waterberg is palladium-dominant and the PFS has estimated that Waterberg could produce 472 000 oz/y of palladium.

Potential Job Creation
It is estimated that the project will create 3 361 new primary jobs for highly trained people who have transferable skills.

Net Present Value/Internal Rate of Return
The project has an estimated after-tax net present value (NPV), at an 8% discount rate, of $320-million using three-year trailing average metal prices.

At a discount rate of 8% using investment bank consensus average metal prices, the project has an NPV of $507-million.

The project has an after-tax internal rate of return (IRR) of 13.5% using a three-year trailing average price deck. Using investment bank consensus average metal prices, the project has an IRR of 16.3%.

Capital Expenditure
Peak funding has been estimated at $914-million. Funding is in place to advance the project to the completion of a feasibility study.

Planned Start /End Date
The project is expected to have a 3.5-year construction period. It also includes a construction decision following the completion of the feasibility study and first production three years later.

Latest Developments
PTM has reported that Jogmec has completed the transfer of a 9.75% interest in the Waterberg palladium project to Hanwa.

Jogmec previously held a 21.95% interest in the Waterberg project. Jogmec and Hanwa agreed to the transaction in October last year.

Now that the South African authorities has given its approval for the transfer, the entire transfer procedure has been completed.

Under the terms of the transaction, Hanwa has also acquired the marketing rights to solely buy all the metals produced from the Waterberg project at market prices. The transaction secures a key future source of platinum-group metals and nickel, which are commonly used in automobile catalytic converters, fuel cells and secondary batteries, for industries in Japan.

Key Contracts and Suppliers
Worley Parsons (independent PFS) and Stantec Consulting International and DRA Projects SA (lead independent project engineers).

On Budget and on Time?
Yes.

Contact Details for Project Information
PTM VP corporate development Kris Begic, tel +1 604 899 5450.