Platinum Group Metals Ltd. Reports 2024 Annual Results
838 – 1100 Melville Street
Vancouver, BC V6E 4A6
P: 604-899-5450
F: 604-484-4710
News Release No. 24-482
November 27, 2024
Platinum Group Metals Ltd. Reports 2024 Annual Results
(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM:TSX; PLG:NYSE American)
(“Platinum Group”, “PTM” or the “Company”) reports the Company’s financial results for
the fiscal year ended August 31, 2024, and provides an update and outlook. The Company
is focused on advancing the Waterberg project located on the Northern Limb of the Bushveld
Complex in South Africa (the “Waterberg Project”). The Waterberg Project is planned as a
fully mechanised, shallow, decline access platinum, palladium, rhodium and gold (“4E” or
“PGM”) mine, including by-product copper and nickel production, and is projected to be one
of the largest and lowest cost underground platinum group metals (“PGM” or “PGMs”) mines
globally.
The Company’s near-term objectives are to advance the Waterberg Project to a development
and construction decision including the arrangement of construction financing and concentrate
offtake agreements. The Company is also advancing an initiative through Lion Battery
Technologies Inc. (“ Lion”) using platinum and palladium in lithium battery technologies in
collaboration with Anglo American Platinum Limited (“Amplats”) and Florida International
University (“FIU”).
The Company has filed its audited consolidated financial statements (the “ Financial
Statements”) for the year ended August 31, 2024, Annual Information Form (“ AIF”), and
Management’s Discussion and Analysis (“MD&A”) with Canadian securities regulators on
SEDAR+ (www.sedarplus.ca). The Company has also filed a Form 40-F annual report (“Form
40-F”), including the Financial Statements , with the U.S. Securities and Exchange
Commission (the “SEC”) on EDGAR (www.sec.gov). Shareholders are encouraged to visit the
Company’s website at www.platinumgroupmetals.net. Shareholders may receive a hard copy
of the complete Financial Statements and MD&A from the Company free of charge upon
request.
All amounts herein are reported in United States dollars unless otherwise specified. The
Company holds cash in Canadian dollars, United States dollars and South African Rand .
Changes in exchange rates may create variances in the cash holdings or results reported.
Project Ownership
As of August 31, 2024, the Waterberg Project is owned by Waterberg JV Resources (Pty) Ltd.
(”Waterberg JV Co.”), which is in turn owned by Platinum Group (37.19%), Mnombo Wethu
Consultants Proprietary Limited (“ Mnombo”) (26.0%), HJ Platinum Metals Company Ltd.
PLATINUM GROUP METALS LTD. …2
(“HJM”) (21.95%) and Impala Platinum Holdings Ltd. (“ Implats”) (14.86%). Platinum
Group holds a further 12.97% indirect interest in Waterberg JV Co. through a 49.9% interest
in Mnombo . HJM was established in 2023 by Japan Organization for Metals and Energy
Security (“JOGMEC”) and Hanwa Co. Ltd. (“Hanwa”) as a special purpose company to hold
and fund their aggregate future equity interests in the Waterberg Project. The combined
Waterberg JV Co. ownership of JOGMEC (12.195%) and Hanwa (9.755%) were consolidated
into a 21.95% interest for HJM going forward, with JOGME C to fund 75% of future equity
investments into HJM and Hanwa the remaining 25%.
Recent Events
On September 16, 2024, the Company reported positive results from an Independent
Definitive Feasibility Study Update ( the “ Waterberg DFS Update”) for the Waterberg
Project. The associated technical report entitled “Waterberg Definitive Feasibility Study
Update, Bushveld Igneous Complex, Republic of South Africa”, with an effective date of August
31, 2024 , was filed on SEDAR+ on October 9, 2024. The Waterberg DFS Update was
prepared by independent qualified persons in accordance with Canadian National Instrument
43-101 Standards of Disclosure for Mineral Projects (“ NI 43-101”) and Subpart 229.1300
and Item 601 (b)(96) of the U.S. Securities and Exchange Commission's Regulation S -K
(collectively, “ S-K 1300 ”). The Waterberg DFS Update is an update to the Waterberg
Project’s original Independent Definitive Feasibility Study published in September 2019 ( the
“2019 DFS”) for a safe, large-scale, shallow, decline-accessible, mechanised, PGM mine.
Key findings of the Waterberg DFS Update include:
• Increased Mineral Reserve Estimate: Proven and Probable mineral reserves increased
by 20% to 23.41 million 4E oz (246.2 million tonnes at an average grade of 2.96 4E g/t,
0.08% copper (“Cu”), and 0.17% nickel (“Ni”).
• Extended Life of Mine (“LOM”): LOM increased from 45 years to 54 years with annual
steady state average production in concentrate of 353,208 4E oz and peak annual
production of 432,950 4E oz.
• Robust Economics: After-tax Net Present Value at an 8% real discount rate of $569
million (South African Rand (“ZAR”) 11.557 billion) and Internal Rate of Return of 14.2%
using average long term consensus metal prices as of May 2024 (“Consensus Prices”).
• One of the Lowest Cost PGM Mines in Southern Africa: On site LOM average cash
cost (including base metal by-product credits and smelter discounts as a cost) of $658 per
4E oz, with an all-in sustaining cost of $761 per 4E oz.
• Strong Cash Flow Generation: LOM free after-tax cashflow of $6.50 billion (ZAR130.59
billion) at Consensus Prices.
• Reasonable Capital: Estimated total project capital of $946 million (ZAR18.862 billion),
including 8.5% for contingencies, and peak capital estimated at $776 million (ZAR15.428
billion).
PLATINUM GROUP METALS LTD. …3
• Increased Confidence: The 32 hole infill drill program completed in 2023 increased the
confidence level of resources in shallow mine blocks in the T -Zone and F -Central Zone,
and refined the delineation of subcrop positions, improving the overall deposit model and
the shallow portion of the mine plan.
• Increased Continuity: The 4E economic cut -off grade for feasibility modeling of the F -
Central Zone and F-South Zone was reduced by one half a gram to 2.0 4E g/t, resulting in
a slightly lower reserve grade, but significantly improving continuity in the ore body for
mine scheduling purposes. F-Central reserve tonnage and 4E metal content increased by
88% and 63% respectively. Reserves for all other mineralized zones were estimated at a
2.5 4E g/t cut-off grade as in the 2019 DFS.
• Increased Mineral Resources: Measured and Indicated mineral resources increased by
9.5% to 33.76 million 4E oz at a 2.5 4E g/t (F -Central Zone and F-South Zone at 2.0 4E
g/t) cut-off grade (345.03 million tonnes at an average grade of 3.04 4E g/t, 0.09% Cu
and 0.18% Ni). Inferred mi neral resources increased by 6.6% to 8.52 million 4E oz at a
2.5 4E g/t (F -Central Zone and F -South Zone at 2.0 4E g/t) cut -off grade (89.70 million
tonnes at an average grade of 2.96 4E g/t, 0.08% Cu, and 0.15% Ni).
• Increased Tonnage Per Vertical Metre: Ore tonnes per vertical metre of development
in the F-Central Zone also increased by approximately 88%, improving the steady state
ore to waste ratio by 31%, from 11.3 in the 2019 DFS to 14.8 in the Waterberg DFS
Update. LOM ore to waste ratio improved by 44%, from 7.8 in the 2019 DFS to 11.3 in
the Waterberg DFS Update. The result is improved capital efficiency, reduced development
metres per tonne of ore, and lower operating costs.
• Reduced Capital Expenditure: The 88% increase in F-Central reserve tonnage and the
improved continuity of the reserve presented the opportunity to increase F -Central
production to 400,000 tonnes per month (“tpm”) and thereby reduce and delay the capital
cost of developing the South Complex T -Zone infrastructure, saving an estimated $200
million in up-front capital.
• Simplified Mine Management: Deferral of South Complex mining will simplify the mine
plan, logistics, training requirements, equipment fleet and mining method.
• Simplified Mine Establishment: Sublevel spacing for the upper mining block (100
metres) in the F-Central Zone reduced to 20 metres from the 2019 DFS combination of 20
metres and 40 metres to allow mine crews to safely complete mine establishment and gain
work experience before transitioning to 40 metre sublevel spacing.
• Reduced Water Consumption: The Waterberg DFS Update models dry stack tailings
technology, including a dewatering plant and dry tailings handling system, reducing
estimated steady state make -up water requirements by 36% to approximately 2.85
megalitres per day and reducing the tailings impoundment surface footprint by
approximately 46.0% to 155 hectares.
• Reduced Risk: Design and scheduling improvements as described above materially
reduce execution risk during mine development, construction, ramp-up and operations.
PLATINUM GROUP METALS LTD. …4
• Flexibility: Any time after peak capital a twin heading into the T -Zone can be developed
underground from the Central Complex infrastructure to allow the mining of up to 100,000
tpm of T-Zone, with a concurrent reduction from the F-Central Zone down to 300,000 tpm.
On April 3, 2024, the directors and shareholders of Waterberg JV Co. unanimously approved
a $1.35 million stage four budget (the “ Stage Four Budget ”) to allow the continuation of
work programs underway while finalizing the Waterberg DFS Update. The Stage Four Budget,
covering the period from March 2024 to approximately August 2024, was a subcomponent of
a $21.0 million pre-construction work program (the “ Work Program ”) approved for the
Waterberg Project by the directors and shareholders of Waterberg JV Co. on October 18,
2022. With regard to the Stage Four Budget, Implats advised that its 2023 group wide
restriction on capital expenditures remained in effect and they could not fund their share of
current cash calls. I n the fourth fiscal quarter of 2024, Implats’ interest was diluted by
0.087% to approximately 14.864%. Platinum Group has funded Implats shortfall and the
Company’s direct interest in Waterberg JV Co. has increased concurrently with Implats
dilution. Implats stated they would consider the funding of subsequent cash calls as future
circumstances allow.
On December 20 , 2023 , the Company announced a Cooperation Agreement (the
“Cooperation Agreement”) with Ajlan & Bros Mining and Metals Co. (“Ajlan”) to study the
establishment of a stand -alone PGM smelter (“PGM Smelter ”) and base metal refinery
(“BMR”) in Saudi Arabia. Ajlan is a subsidiary of Ajlan & Bros Holdings, one of the largest
private sector diversified conglomerates in the Middle East . The Cooperation Agreement
encompasses three phases: a global PGM concentrate market study (the “Market Study”), a
Definitive Feasibility Study for the construction and operation of the PGM Smelter and BMR in
Saudi Arabia (the “Smelter DFS”), and an option to form an incorporated 50:50 joint venture
following the completion of the Smelter DFS. An initial trade-off study was completed in mid
2023 to first determine the viability of exporting PGM concentrate from South Africa to Saudi
Arabia.
The Market Study was completed subsequent to August 31, 2024 by a globally recognized
consulting group specializing in PGEs and associated base metal by -products. Based on the
analysis, the combination of concentrate from the Waterberg Project and end of life auto
catalysts and petrochemical catalysts, sourced from the Gulf Region, could justify the scale
required to construct a long term PGE smelting and refining complex in Saudi Arabia. Other
sources of mined PGE concentrate from Southern Africa could be considered over the longer
term. Sources beyond South Africa are considered to be too early stage, too low in PGE
content and too far away to be transported economically.
Ajlan and the Company are now considering the commissioning of the Smelter DFS. A key
requirement would be to secure a long-term permit for the export of unrefined precious metals
in concentrate from South Africa. Platinum Group has been working with the Government of
South Africa to identify local beneficiation opportunities and to analyze the possible impact of
exporting concentrate on the value chain. The Smelter DFS will assume the export of PGM
PLATINUM GROUP METALS LTD. …5
concentrate from the Waterberg Project in South Africa to a port facility in Saudi Arabia and
will encompass options related to infrastructure, location, technical specifications, capital, and
operating costs. All expenses related to the Smelter DFS, expected to cost approximately US
$4.0 million, are to be split on a 50:50 basis between Platinum Group and Ajlan, including
certain costs already incurred by Platinum Group in previous independent beneficiation
studies.
On December 11, 2023, the directors, and shareholders of Waterberg JV Co. unanimously
approved a stage three budget of $ 1.65 million (the “Stage Three Budget”) for continued
work on the Waterberg Project covering the period from September 2023 to approximately
February 2024. In conjunction with its approval, Implats advised that due to a restriction on
capital expenditure across their portfolio, it could not fund its 15% share of the Stage Three
Budget. As a result , Implats’ interest in Waterberg JV Co. was diluted to approximately
14.951% during the third fiscal quarter of 2024. Platinum Group elected to fund Implats ’
funding shortfall and the Company’s direct interest in Waterberg JV Co. increased concurrently
with Implats’ dilution.
On September 18, 2023 , the Company reported the closing of a non -brokered private
placement of common shares at a price of $1.18 per common share. An aggregate of
2,118,645 common shares were subscribed for and issued to existing major beneficial
shareholder, Hosken Consolidated Investments Limited (“HCI”), through its subsidiary
Deepkloof Limited, resulting in gross proceeds to the Company of approximately $2.5 million
(the “Private Placement”). Closing of the Private Placement allowed HCI to return to more
than a 26% interest in the Company.
Results For The Year Ended August 31, 2024
During the fiscal year August 31, 2024, the Company incurred a net loss of $4.58 million
(August 31, 2023 – net loss of $ 5.66 million). General and administrative expenses during
the period were lower at $ 3.42 million ( August 31, 2023 - $3.89 million). Share based
compensation was $ 1.36 million (August 31, 2023 - $1.98 million). The foreign exchange
gain recognized in the current period was $4 thousand (August 31, 2023 - $0.25 million) due
primarily to the U.S. Dollar increasing in value relative to the Canadian Dollar during the
period.
At August 31, 2024, finance income consisting of interest earned in the twelve month period
amounted to $0.44 million (August 31, 2023 - $0.58 million). Basic and diluted loss per share
for the year ended August 31, 2024, was $0.05 (August 31, 2023 - $0.06).
Accounts receivable at August 31, 2024, totalled $ 0.23 million (August 31, 2023 - $0.22
million) while accounts payable and other liabilities amounted to $ 0.90 million (August 31,
2023 - $1.37 million). Accounts receivable was comprised primarily of value added taxes
repayable to the Company in South Africa. Accounts payable consisted primarily of accruals
and payables related to accounting costs, legal costs and project engineering and
maintenance costs on the Waterberg Project.
PLATINUM GROUP METALS LTD. …6
Total expenditures on the Waterberg Project, before partner reimbursements, for the year
ended August 31, 2024, were approximately $3.0 million (August 31, 2023 - $4.9 million).
At period end, $47.03 million (August 31, 2023 - $41.61 million) in accumulated net costs
were capitalized to the Waterberg Project. Total expenditures on the property since inception
to August 31, 2024, are approximately $89 million.
For more information on mineral properties, see Note 4 of the Financial Statements.
Outlook
The Company’s primary business objective is to advance the Waterberg Project to a
development and construction decision. PTM is the operator of the Waterberg Project as
directed by a technical committee comprised of representatives from joint venture partners
Implats, Mnombo, and HJM.
On October 18, 2022, Waterberg JV Co. approved in principle the Work Program, including
proposed work on initial road access, water supply, essential site facilities, a first phase
accommodation lodge, a site construction power supply from state utility Eskom and
advancement of the Waterberg Social & Labour Plan. Work to prepare the Waterberg DFS
Update, including updated mineral resource and mineral reserve estimates, was also approved
and has been completed.
Before a construction decision can be undertaken , arrangements will be required for
Waterberg Project concentrate offtake or processing. The Company and Waterberg JV Co.
are assessing commercial alternatives for mine development financing and concentrate
offtake. In addition to the Company’s investigation of smelting and base metal refining
options in Saudi Arabia, the Company is also in discussion with several South African smelter
operators, including Implats, with a view to negotiating formal concentra te offtake
arrangements for the Waterberg Project.
The Company continues to work closely with regional and local communities and their
leadership on mine development plans to achieve optimal outcomes and best value to all
stakeholders.
As the world seeks to decarbonize and look for solutions to climate change, the adoption of
battery electric vehicles is forecast to reduce the future demand for PGMs used in
autocatalysis. T he unique properties of PGMs as powerful catalysts are being applied to
various technologies as possible solutions for more efficient energy generation and storage,
which may create new demand for PGMs . The Company’s battery technology initiative
through Lion with partner Amplats represents one such new opportunity in the high-profile
lithium battery research and innovation field. The investment in Lion creates a potential
vertical integration with a broader industrial market development strategy to bring new
technologies to market which use palladium and platinum. Research and development efforts
by FIU on behalf of Lion continue. Technical results from Lion’s research may have application
PLATINUM GROUP METALS LTD. …7
to most lithium -ion and lithium-sulfur battery chemistries. For more detail, please see the
Company’s MD&A and AIF.
Environmental, Social and Governance
Platinum Group recently received its fourth annual Environmental, Social and Governance
(“ESG”) disclosure report from Digbee Ltd. (“ Digbee”), a United Kingdom based company
that has developed an industry standard ESG disclosure framework for the mining sector
providing a right -sized, future looking set of frameworks against which they can credibly
disclose, track, compare and improve their ESG performance. For 2024, Platinum Group
achieved an overall score of BBB with a range of CC to AAA based on the information
provided. Digbee ESG has been developed in consultation with mining companies, ESG
specialists and capital providers and is endorsed by leading financial institutions, producing
mining companies and other industry stakeholders. Digbee’s reporting framework is aligned
with global standards, including the Equator Principles. For more details about the Company’s
2024 Digbee ESG Report please refer to the Company’s MD&A, Annual Information Form
(“AIF”) and Annual Report on Form 40-F (“Form 40-F”).
Regulatory
The Company advises that its consolidated Financial Statements for the fiscal year ended
August 31, 202 4, included in the Company's Form 40-F, contain an audit report from its
independent registered public accounting firm that includes a going concern emphasis of
matter. The foregoing statement is required by Section 610(b) of the NYSE American
Company Guide.
As well as the discussions within this news release, the reader is encouraged to also see the
Company’s disclosure made under the heading “Risk Factors” in the Company’s current AIF
and Form 40-F.
Qualified Person
Rob van Egmond, P.Geo., a consultant geologist to the Company and a former employee, is
an independent qualified person as defined in NI 43-101. Mr. van Egmond has reviewed,
validated and approved the scientific and technical information contained in this news release
and has previously visited the Waterberg Project site.
About Platinum Group Metals Ltd. and the Waterberg Project
Platinum Group Metals Ltd. is the operator of the Waterberg Project, a bulk underground
palladium and platinum deposit located in South Africa. The Waterberg Project was
discovered by Platinum Group and is being jointly developed with Implats, Mnombo, and HJM.
PLATINUM GROUP METALS LTD. …8
On behalf of the Board of
Platinum Group Metals Ltd.
Frank R. Hallam
President, CEO and Director
For further information contact:
Kris Begic, VP, Corporate Development
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450 / Toll Free: (866) 899-5450
www.platinumgroupmetals.net
Disclosure
The TSX and the NYSE American have not reviewed and do not accept responsibility for the
accuracy or adequacy of this news release, which has been prepared by management.
This news release contains forward -looking information within the meaning of Canadian
securities laws and forward -looking statements within the meaning of U.S. securities laws
(collectively “forward -looking statements”). Forward-looking statements are typically
identified by words such as: “believe”, “expect”, “anticipate”, “intend”, “estimate”, “may”,
“plans”, “would”, “will”, “could”, “can”, “postulate” and similar expressions, or are those,
which, by their nature, refer to future events. All statements that are not statements of
historical fact are forward -looking statements. Forward-looking statements in this news
release include, but are not limited to, statements regarding the success of the Company’s
objective to advance the Waterberg Project to a development and construction decision, the
findings of the Waterberg DFS Update, the plan for and development of the Waterberg Project
and the potential benefits and results thereof including that it is projected to become one of
the largest and lowest cost underground PGM mines globally, financing and mine development
of the Waterberg Project, potential commercial alternatives for mine development, obtaining
concentrate offtake or processing, the size and cost of the Waterberg Project, the economic
feasibility of establishing a new PGM smelter and BMR in Saudi Arabia , work with local
communities, the ability of the Company to obtain all required permitting, surface access, and
infrastructure servitudes, the effect of battery electric vehicles on the market for PGMs, the
use of PGMs in solutions to climate change, and the Company’s other future plans and
expectations. Although the Company believes any forward -looking statements in this news
release are reasonable, it can give no assurance that the expectations and assumptions in
such statements will prove to be correct.
The Company cautions investors that any forward -looking statements by the Company are
not guarantees of future results or performance and that actual results may differ materially
from those in forward-looking statements as a result of various factors, including rising global
inflation and increased potential supply chain disruptions; international conflict and other
geopolitical tensions and events; the Company’s inability to generate sufficient cash flow or
raise additional capital, and to comply with the terms of any new indebtedness; additional
financing requirements; and any new indebtedness may be secured, which potentially could
result in the loss of any assets pledged by the Company; the Company’s history of losses and
negative cash flow; the Company’s ability to continue as a going concern ; the Company’s
properties may not be brought into a state of commercial production; uncertainty of estimated
production, development plans and cost estimates for the Waterberg Project as reported in