Platinum Group Metals Ltd. Reports First Quarter 2025 Results
838 – 1100 Melville Street
Vancouver, BC V6E 4A6
P: 604-899-5450
F: 604-484-4710
News Release No. 25-484
January 14, 2025
Platinum Group Metals Ltd. Reports First Quarter 2025 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 three month period ended November 30, 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”).
For details of the condensed consolidated interim financial statements for the three months
ended November 30, 2024 (the “Financial Statements”) and Management’s Discussion and
Analysis (“MD&A”) for the three months ended November 30, 2024 please see the Company’s
filings on SEDAR + (www.sedarplus.ca) or 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 November 30, 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. (“HJM”) (21.95%) and Impala Platinum Holdings Ltd. (“Implats”) (14.86%). Platinum
PLATINUM GROUP METALS LTD. …2
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 with JOGMEC
expecting to fund 75% of future equity investments into HJM going forward.
Recent Events
On December 5, 2024, the Company entered into an Equity Distribution Agreement with
BMO Nesbit Burns Inc. and Beacon Securities Limited (the “Canadian Agents”) and BMO
Capital Markets Corp. (the “ U.S. Agent ” and together with the Canadian Agent s, the
“Agents”) for a new at -the-market equity program (the “ 2025 ATM”) to distribute up to
$50.0 million (or the equivalent in Canadian dollars) of Common Shares (the “ Offered
Shares”). The Offered Shares will be issued by the Company to the public from time to time,
through the Agents, at the Company’s discretion. The Offered Shares sold under the 2025
ATM will be sold at the prevailing market price at the time of sale. The net proceeds of any
such sales will be used for the Waterberg property (the “ Waterberg Project”) pre -
construction site work, engineering and preparation, a potential phase one development
program at the Waterberg Project, a Saudi Arabia smelter and base metal refinery definitive
feasibility study, a contingency provision and general, corporate and administrative expenses.
No Common Shares have been sold under the 2025 ATM to date.
On November 26, 2024, the Company entered a memorandum of understanding with Ajlan
& Bros Company for Mining, a subsidiary of Ajlan & Bros Holding (“Ajlan”), and the Ministry
of Investment of Saudi Arabia (“ MISA”) as a part of the Global Supply Chain Resilience
Initiative, for the setup of a proposed platinum group metals smelter (“ PGM Smelter”) and
base metal refinery (“ BMR”) to be located in Saudi Arabia. According to the terms of the
MOU, MISA will offer strategic guidance and study potential financial support to the proposed
PGM Smelter and BMR to be located in Saudi Arabia and the Waterberg Project located in
South Africa.
On November 13, 2024, the Company filed a final short form base shelf prospectus (the
“Shelf Prospectus”) with the securities regulatory authorities in each of the provinces and
territories of Canada and a corresponding registration statement on Form F -10 (the
“Registration Statement”) with the SEC , under the Multijurisdictional Disclosure System
established between Canada and the United States. Pursuant to the Shelf Prospectus and the
Registration Statement, the Company may offer and sell Common Shares, debt securities,
warrants, subscription receipts, or a combination thereof up to an aggregate initial offering
amount of $250 million (or its equivalent in Canadian dollars) from time to time, separately
or together, in amounts, at prices and on terms to be determined based on market conditions
at the time of the offering and as set out in an accompanying prospectus supplement, during
the 25 -month period that the Shelf Prospectus and the Registration Statement remain
effective.
PLATINUM GROUP METALS LTD. …3
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”). For details of the Waterberg DFS Update see the Company’s news
release dated September 16, 2024, the MD&A, and the technical report referred to above.
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 to study the establishment of a stand -alone PGM
Smelter and 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.
PLATINUM GROUP METALS LTD. …4
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
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.
Results For The Three Months Ended November 30, 2024
During the three months ended November 30, 2024, the Company incurred a net loss of $1.84
million (November 30, 2023 – net loss of $1.56 million). General and administrative expenses
during the period were higher at $1.24 million (November 30, 2023 - $1.09 million) due to a
refund of previously incurred legal costs in the previous comparable period. Stock based
compensation was higher at $0.72 million in the current period (November 30, 2023 - $0.46
million) due to the revaluation of outstanding deferred share units in the current period. The
foreign exchange gain recognized in the current period was $0.10 million (November 30, 2023
- $0.04 million gain) due primarily to the to the U.S. Dollar increasing in value relative to the
Canadian Dollar during the period.
At November 30, 2024, finance income consisting of interest earned in the three month period
amounted to $0.06 million (November 30, 2023 - $0.14 million). Basic and diluted loss per
share for the year amounted to $0.02, which was also $0.02 per share for the comparable
period ended November 30, 2023.
Accounts receivable at November 30, 2024 totalled $0.19 million (August 31, 2024 - $0.23
million) while accounts payable and other liabilities amounted to $ 0.94 million (August 31,
2024 - $0.91 million). Accounts receivable was comprised primarily of value added taxes
repayable to the Company in South Africa. Accounts payable consisted primarily of
professional fees payable in relation to the preparation and filing of the Shelf Prospectus, the
Registration Statement and the 2025 ATM, as well as for project engineering and maintenance
costs on the Waterberg Project.
Total expenditures on the Waterberg Project, before partner reimbursements, for the three
months ended November 30, 2024 were approximately $0.61 million (November 30, 2023 -
$1.0 million). At period end, $46.85 million in accumulated net costs were capitalized to the
Waterberg Project. Total expenditures on the property since inception to November 30, 2024
are approximately $89.70 million.
For more information on mineral properties, see Note 3 of the Financial Statements.
PLATINUM GROUP METALS LTD. …5
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 concentrate 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
to most lithium-ion and lithium-sulfur battery chemistries. For more detail, please see the
Company’s MD&A and Annual Information Form (“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
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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 institutio ns, 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, 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.
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
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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 2025 ATM
and the use of proceeds under the 2025 ATM, 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
the Waterberg DFS Update; discrepancies between actual and estimated mineral reserves and
mineral resources, between actual and estimated development and operating costs, between
actual and estimated metallurgical recoveries and between estimated and actual production;
fluctuations in the relative values of the U.S. Dollar, the South African Rand and the Canadian
Dollar; volatility in metals prices; the uncertainty of alternative funding sources for Waterberg
JV Co.; the Company may become subject to the U.S. Investment Company Act; the failure
of the Company or the other shareholders to fund their pro rata share of funding obligations
for the Waterberg Project; any disputes or disagreements with the other shareholders of
Waterberg JV Co. or Mnombo; the ability of the Company to retain its key management
PLATINUM GROUP METALS LTD. …8
employees and skilled and experienced personnel; conflicts of interest; litigation or other
administrative proceedings brought against the Company; actual or alleged breaches of
governance processes or instances of fraud, bribery or corruption; exploration, development
and mining risks and the inherently dangerous nature of the mining industry, 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 includ ing defective title to mineral claims or
property; changes in national and local government legislation, taxation, controls, regulations
and political or economic developments in Canada and South Africa; equipment shortages
and the ability of the Company t o acquire necessary access rights and infrastructure for its
mineral properties; environmental regulations and the ability to obtain and maintain
necessary permits, including environmental authorizations and water use licences; extreme
competition in the m ineral exploration industry; delays in obtaining, or a failure to obtain,
permits necessary for current or future operations or failures to comply with the terms of such
permits; risks of doing business in South Africa, including but not limited to, labour, economic
and political instability and potential changes to and failures to comply with legislation;
pandemics and other public health crises; the Company’s common shares may be delisted
from the NYSE American or the TSX if it cannot maintain compliance with the applicable listing
requirements; and other risk factors described in the Company’s most recent AIF and Form
40-F, other filings with the SEC and Canadian securities regulators, which may be viewed at
www.sec.gov and www.sedarplus.ca, respectively. Proposed changes in the mineral law in
South Africa, if implemented as proposed, may have a material adverse effect on the
Company’s business and potential interest in projects. Any forward-looking statement speaks
only as of the date on which it is made and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any forward -looking
statement, whether because of new information, future events or results or otherwise.
The Waterberg DFS Update has been prepared in accordance with NI 43-101 and S-K 1300.
The technical and scientific information contained in this news release has been prepared in
accordance with NI 43-101, which differs from the standards adopted by the SEC. Accordingly,
the technical and scientific information contained in this news release, including any estimates
of mineral reserves and mineral resources, may not be comparable to similar information
disclosed by U.S. companies subject to the disclosure requirements of the SEC.