Platinum Group Metals Ltd. Reports Second Quarter 2025 Results
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838 – 1100 Melville Street
Vancouver, BC V6E 4A6
P: 604-899-5450
F: 604-484-4710
News Release No. 25-486
April 11, 2025
Platinum Group Metals Ltd. Reports Second 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 six-month period ended February 28, 2025, 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
(“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 six months
ended February 28, 2025 (the “Financial Statements”) and Management’s Discussion and
Analysis (“MD&A”) for the six months ended February 28, 2025, 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 February 28, 2025, 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 (Pty) Ltd. (“Mnombo”) (26.0%), HJ Platinum Metals Company Ltd.
(“HJM”) (21.95%) and Impala Platinum Holdings Ltd. (“ Implats”) (14.86%). Platinum
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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 February 18, 2025, the board of directors for Waterberg JV Co. unanimously approved
a Rand 42 million interim budget (Approximately $2.27 million at the time) to allow the
continuation of work programs for the Waterberg Project. The interim budget will cover the
period ending approximately August 31, 2025, and will include some components of a $21.0
million pre-construction work program approved in principle for the Waterberg Project by the
directors and shareholders of Waterberg JV Co. on October 18, 2022.
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 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.
During the three months ended February 28, 2025 , the Company issued 842,561 Common
Shares, through BMO Capital Markets on the NYSE American pursuant to the 202 5 ATM, at
an average price of $1.35 per share, for gross proceeds of $1.14 million. Directly attributable
expenses paid to the U.S. Agent , totaled $0.03 million during the three months ending
February 28, 2025. After February 28, 2025, to the date of this news release, the Company
sold and issued a further 732,726 Common Shares pursuant to the 2025 ATM at an average
price of $1.25 per share, for net proceeds of $0.90 million.
On November 26, 2024, the Company entered a memorandum of understanding (“MOU”)
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. Ajlan is one of the
largest private sector diversified conglomerates in the Middle East. Earlier, in December 2023,
Ajlan and the Company entered into a Cooperation Agreement (as defined below) to study
the establishment of a stand-alone PGM Smelter and BMR in Saudi Arabia. According to the
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terms of the MOU, MISA will offer strategic guidance and study potential financial support to
the proposed PGM Smelter and BMR 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 U.S. Securities and Exchange Commission (“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.
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 SEC's Regulation S-K (collectively, “S-K 1300”). The Waterberg
DFS Update included revised mineral resource and mineral reserve estimates. 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.
Results For The Six Months Ended February 28, 2025
During the six months ended February 28, 2025, the Company incurred a net loss of $2.25
million (February 28, 2024 – net loss of $2.37 million). General and administrative expenses
during the period were higher at $2.0 million (February 28, 2024 - $1.82 million) due to legal
costs related to the Shelf Prospectus, the Registration Statement, the 2025 ATM, the
completion of the Waterberg DFS Update, and a reimbursement of legal costs in the previous
comparable period. Stock based compensation was lower at $0.45 million in the current
period (February 28, 2024 - $0.59 million) due to the revaluation of outstanding deferred
share units in the current period. The foreign exchange gain recognized in the current period
was $0.15 million (February 28, 2024 - $0.03 million gain) due primarily to the U.S. Dollar
increasing in value relative to the Canadian Dollar during the period.
At February 28, 2025, finance income consisting of interest earned in the six month period
amounted to $0.10 million (February 28, 2024 - $0.25 million). Basic and diluted l oss per
share for the six months ended February 28, 2025, amounted to $0.02, which was also $0.02
per share for the comparable period ended February 28, 2024.
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Accounts receivable at February 28, 2025, totalled $0.18 million (August 31, 2024 - $0.23
million) while accounts payable and other liabilities amounted to $ 0.69 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 six
months ended February 28, 2025, were approximately $ 1.0 million (February 28, 2024 -
$1.63 million). At period end, $45.9 million in accumulated net costs were capitalized to the
Waterberg Project. Total expenditures on the property since inception to February 28, 2025,
are approximately $90.1 million.
For more information on mineral properties, see Note 3 of the Financial Statements.
Smelting and Refining Update
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. 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 in late 2024 by a globally recognized consulting group specializing in PG Ms 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 PGM smelting
and refining complex in Saudi Arabia. Other sources of mined PGM concentrate from Southern
Africa could be considered over the longer term. Sources beyond South ern Africa are
considered to o early stage, too low in PG M content and too far away to be transported
economically.
The Smelter DFS was to assume the export of PGM concentrate from the Waterberg Project
in South Africa to a port facility in Saudi Arabia and w as to encompass options related to
infrastructure, location, technical specifications, capital, and operating costs. All expenses
related to the Smelter DFS, expected to cost approximately $4.0 million, were 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.
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A key requirement for the above proposal to establish a PGM Smelter and BMR in Saudi Arabia
would be a long-term South African government approval for the export of unrefined precious
metals in concentrate. 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. Through these discussions the government of South Africa
has expressed their preference and support for beneficiation in South Africa. As a result,
Ajlan and PTM are also now studying the possibility of establishing a matte furnace in South
Africa capable of smelting Waterberg Project concentrate. Such a facility would ideally be
located near the Waterberg Project with existing power, water and environmental
authorizations. The converter matte produced would be shipped to Saudi Arabia for further
processing through a BMR , at which time spent auto catalysts and other PGM bearing
materials could be co-processed.
The Company and Ajlan are currently conducting a trade off study and developing a scope of
work and cost estimate for the engineering studies required to assess the above scenario ,
should it be chosen as the primary plan . One noteworthy consideration would be the much
lower volume of material to be shipped to Saudi Arabia. Rather than shipping up to 130,000
tonnes of concentrate a year, or approximately fourteen concentrate trucks a day, the volume
of converter matte to be shipped would be reduced to approximately 8,000 tonnes a year, or
approximately one truck a day.
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.
Since October 18, 2022, Waterberg JV Co. has been advancing exploration and engineering
work related to the Waterberg DFS Update, initial road access, water supply, infrastructure
and 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.
Engagement with local communities has been ongoing and together the parties have agreed
upon the location of project facilities and infrastructure.
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 (as described above), 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.
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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.
Although platinum and palladium are exempt, as they are considered critical minerals, the
new global tariffs recently announced by the United States administration in Washington, DC,
layered on top of previously announced tariffs on automobiles, steel, aluminum, etc. , have
raised uncertainty regarding markets in general and specifically to the production and sale of
automobiles and light duty vehicles. A period of uncertainty is likely as investors and
consumers consider the impact of these tariffs, and as the level of retaliation and market
diversification by other nations becomes apparent.
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
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 E SG 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, 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
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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
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
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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 , the effect of recent tariffs and other trade policy
announcements by the United States Government and other countries including capital
market volatility , 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 th e
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
employees and skilled and experienced pe rsonnel; 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 including 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 to acquire necessary access rights and in frastructure 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 mineral exploration industry; delays in o btaining, 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