Platinum Group Metals Ltd. Reports Second Quarter Results
838 – 1100 Melville Street
Vancouver, BC V6E 4A6
P: 604-899-5450
F: 604-484-4710
News Release No. 21-433
April 13, 2021
Platinum Group Metals Ltd. Reports Second Quarter 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 months ended February 28, 2021 and provides a summary of recent events and
outlook. The Company is focussed on advancing the palladium dominant Waterberg Project
located on the North ern Limb of the Bushveld Complex in South Africa (the “Waterberg
Project”). The Waterberg Project is planned as a fully mechanised, shallow, decline access
palladium, platinum, gold and rhodium (“4E”) mine and is projected to be one of the largest
and lowest cost underground platinum group metals (“PGM” or “PGMs”) mines globally.
A mining right for the Waterberg Project was granted by the South African Department of
Mineral Resources and Energy (“ DMRE”) on January 28, 2021 and was notarially executed
on April 13, 2021 (the “Waterberg Mining Right”). The Company’s near-term objectives
are to continue working closely with established local community leadership to maximize the
value of the Waterberg Project for all stakeholders and to complete construction funding and
concentrate offtake arrangements for the Waterberg Project.
The Company is also advancing an initiative through Lion Battery Technologies Inc. (“Lion”)
in collaboration with Anglo American Platinum Limited (“Anglo”) and Florida International
University (“FIU”). Lion was jointly formed in 2019 by Platinum Group and Anglo to accelerate
the development of next-generation lithium battery technology using platinum and palladium.
Work at Lion has focused on next generation lithium sulphur and lithium air battery chemistry.
Recent results have been encouraging, including potential innovations that may apply broadly
to current lithium ion battery chemistries. Lion continues work on filing patents to protect its
discoveries and innovations.
For details of the condensed consolidated interim financial statements for the six months
ended February 28, 2021 (the “Financial Statements”) and Management’s Discussion and
Analysis for the six months ended February 28, 2021 please see the Company’s filings on
SEDAR (www.sedar.com) 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 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.
PLATINUM GROUP METALS LTD. …2
Recent Events
On April 13, 2021, representatives of the DMRE and Waterberg JV Co. completed a notarial
execution of the Waterberg Mining Right. The Waterberg Mining Right is currently active.
On March 5, 2021, the Company received notice of an appeal to the decision by the DMRE
granting the Waterberg Mining Right. The notice was filed by a small group of four individual
appellants from a local community. The Company believes that all requirements specified
under the Mineral and Petroleum Resources Development Act (“MPRDA”) have been complied
with and that the DMRE correctly granted the mining right. According to the MPRDA, an
appeal can be considered by the Minister of the DMRE for determination within a 130-business
day timeframe. Senior Counsel acting for Waterberg JV Co. is preparing a formal rebuttal to
the appeal. The Company continues to work in a climate of positive mutual respect with the
municipal and local community leadership.
On February 5, 2021, the Company entered into an Equity Distribution Agreement with BMO
Capital Markets Corp. (“BMO”) to sell its common shares from time to time for up to $ 50.0
million in aggregate sales proceeds in “at -the-market” transactions. At February 28, 2021 ,
the Company had sold 1,631,224 common shares at an average price of $5.10 for gross
proceeds of $8.33 million. No offers or sales of common shares were made in Canada, to
anyone known to be a resident of Canada or on or through the facilities of the Toronto Stock
Exchange or other trading markets in Canada.
On January 28, 2021, the DMRE granted Waterberg JV Co. the Waterberg Mining Right.
On December 8, 2020, the Company closed a non-brokered private placement of 1,121,076
common shares at a price of $2.23 per share to existing major beneficial shareholder, Hosken
Consolidated Investments Limited (“ HCI”) through its subsidiary Deepkloof Limited
(“Deepkloof”), resulting in gross proceeds to the Company of $2.5 million and allowing HCI
to maintain approximately a 31% interest in the Company as they held prior to the at -the-
market offering completed by the Company on November 30, 2020, as described below.
On November 30, 2020, the Company completed sales of an “at-the-market” offering of
common shares first announced on September 4, 2020. The offering was completed pursuant
to an Equity Distribution Agreement with BMO whereby Platinum Group sold 5,440,186
common shares in the capital of the Company at an average price of $2.21 for gross proceeds
of US $12.0 million. No offers or sales of common shares were made in Canada, to anyone
known to be a resident of Canada or on or through the facilities of the Toronto Stock Exchange
or other trading markets in Canada.
On October 15, 2020, the Company closed a non-brokered private placement with HCI, for
1,146,790 Common Shares at a price of $2.18 each for gross proceeds of $2.5 million. HCI
completed the placement through Deepkloof, which maintained HCI’s effective ownership
percentage in the Company at that time of approximately 31%.
On September 21, 2020, the Company was added to the S&P/TSX SmallCap Index.
PLATINUM GROUP METALS LTD. …3
On August 4, 2020, the U.S. Patent and Trademark Office issued Patent No. 10,734,636 B2
entitled “Battery Cathodes for Improved Stability” to F IU covering the use of PGMs, carbon
nanotubes and other innovations in lithium batteries. Under a sponsored research agreement,
Lion has exclusive rights to such battery technology being developed by FIU, including patents
granted. Lion was formed in 2019 by Platinum Group and Anglo to accelerate the
development of next-generation battery technology using platinum and palladium.
Results For The Six Months Ended February 28, 2021
During the six months ended February 28, 2021, the Company incurred a net loss of $ 6.55
million (February 29, 2020 – net loss of $2.55 million). General and administrative expenses
during the period were $1.94 million (February 29, 2020 - $1.91 million). Interest expense
of $2.52 million was lower in the current period (February 29, 2020 - $2.71 million) due to
reduced debt levels. Gains on foreign exchange were $ 0.67 million (February 29, 2020 –
$0.36 million loss) due to the US Dollar decreasing in value relative to the parent company’s
functional currency of the Canadian Dollar. Stock based compensation expense, a non-cash
item, totalled $1.61 million (February 29, 2020 - $0.74 million). Loss on fair value derivatives
and other instruments , also a non-cash expense, was $0.56 million at February 28, 2021
versus a gain of $3.06 million in the six months ended February 29, 2020, representing t he
largest period to period variance in the Company’s second quarter results. At February 28,
2021, finance income consisting of interest earned and property rental fees in the period
amounted to $0.05 million (February 29, 2020 - $0.11 million). Loss per share for the period
amounted to $ 0.09 as compared to a loss of $ 0.04 per share for the six months ended
February 29, 2020.
Accounts receivable at February 28, 2021 totalled $0.44 million (August 31, 2020 - $0.22
million) while accounts payable and accrued liabilities amounted to $1.21 million (August 31,
2020 - $1.41 million). Accounts receivable were comprised of mainly of amounts receivable
for value added taxes repayable to the Company in South Africa and in Canada . Accounts
payable consisted primarily of Waterberg engineering fees, accrued professional fees and
regular trade payables.
Total expenditures on the Waterberg Project, before partner reimbursements, for the six
month period were approximately $0.91 million ( February 29, 2020 - $1.68 million). At
February 28, 2021 , $39.6 million in accumulated net costs had been capitalized to the
Waterberg Project (February 29, 2020 - $37.4 million). Total expenditures on the property
since inception to February 28, 2021 are approximately $76.6 million.
For more information on mineral properties, see Note 3 of the Financial Statements.
Outlook
The Company’s primary business objective is to advance the palladium dominant Waterberg
Project to development and construction. The Company continues to work closely with the
DMRE, regional and local communities and their leadership on how the mine can be developed
to provide optimal outcomes and best value to all stakeholders.
Detailed engineering in project readiness for construction continues funded by Waterberg JV
Resources Pty Ltd. The Waterberg Project engineering team is converting details from a
PLATINUM GROUP METALS LTD. …4
definitive feasibility study (“ Waterberg DFS ”) completed for the Waterberg Project in
September 2019 into a formal cost budget estimate with a focus on critical path elements and
the first two years of construction . Roads, construction camp, power , water and project
commencement are all being detailed and optimized.
The next major milestones for the Company and the Waterberg Project are further detailed
work with the host communities in the area of the mine, offtake arrangements and
construction financ ing. The Company is in discussions with several parties regarding the
offtake of concentrate and d etailed due diligen ce is underway with multiple parties for
construction financing. Technical reviews are well advanced.
The markets for platinum and palladium continue to be strong and prices are well over the
Waterberg DFS sensitivity analysis upside case.
The Company’s battery technology initiative through Lion with Anglo represents a 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 developme nt
strategy to bring new technologies to market which use palladium and platinum. Research
and development efforts by FIU on behalf of Lion continue and initial technical milestones
have been achieved. Technical results from Lion’s research may have application to a majority
of lithium ion battery chemistries and the scope of Lion’s research work is being expanded.
The Company will continue to follow government health directives in the months ahead and
will make the health and safety of employees a prior ity. The Company plans to drive ahead
with its core business objectives while carefully managing costs where possible in this period
of market uncertainty. The health and safety of employees is a priority.
As well as the discussions within this press release, the reader is encouraged to also see the
Company’s disclosure made under the heading “Risk Factors” in the Company’s 2020 annual
Form 20-F, which was also filed as the Company’s Annual Information Form in Canada.
Qualified Person
R. Michael Jones, P.Eng., the Company’s President, Chief Executive Officer and a shareholder
of the Company, is a non-independent qualified person as defined in National Instrument 43-
101 Standards of Disclosure for Mineral Proj ects (“NI 43 -101”) and is responsible for
preparing the scientific and technical information contained in this news release. He has
verified the data by reviewing the detailed information of the geological and engineering staff
and independent qualified person reports as well as visiting the Waterberg Project site
regularly.
About Platinum Group Metals Ltd. and 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 Impala Platinum Holdings
Ltd. (“Implats”), Mnombo Wethu Consultants (Pty) Ltd. (“Mnombo”), Japan Oil, Gas and
Metals National Corporation and Hanwa Co. Ltd.
PLATINUM GROUP METALS LTD. …5
On behalf of the Board of
Platinum Group Metals Ltd.
Frank R. Hallam
CFO, Corporate Secretary and Director
For further information contact:
R. Michael Jones, President
or Kris Begic, VP, Corporate Development
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450 / Toll Free: (866) 899-5450
www.platinumgroupmetals.net
Disclosure
The Toronto Stock Exchange 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.
The recent COVID-19 pandemic and related measures taken by government create uncertainty
and have had, and may continue to have, an adverse impact on many aspects of the Company’s
business, including employee health, workforce productivity and availability, travel restrictions,
contractor availability, supply avai lability, the Company’s ability to maintain its controls and
procedures regarding financial and disclosure matters and the availability of capital and insurance
and the costs thereof, some of which, individually or when aggregated with other impacts, may
be material to the Company.
This press 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, plans, 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 press release
include, but are not limited to, statements regarding the advancement of the Waterberg Project,
the market for PGMs, the results of the Waterberg DFS, financing and mine development of the
Waterberg Project including potential commercial alternatives for mine development financing and
concentrate offtake, the appeal of the Waterberg Mining Right, work with local communities, and
potential developments related to Lion. Estimates of mineral reserves and mineral resources are
also forward-looking statements. Although the Company believes any forward-looking statements
in this press 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 mat erially from
those in forward -looking statements as a result of various factors, including possible adverse
impacts due the global outbreak of COVID -19 (as described above), the Company’s inability to
generate sufficient cash flow or raise sufficient addit ional capital to make payment on its
indebtedness, and to comply with the terms of such indebtedness; additional financing
requirements; the US $20 million senior secured facility with the Sprott Private Resource Lending
II (Collector), LP (“Sprott”) entered into August 21, 2019 (the “2019 Sprott Facility”) is, and any
new indebtedness may be, secured and the Company has pledged its shares of PTM RSA, and PTM
RSA has pledged its shares of Waterberg JV Co. to Sprott, under the 2019 Sprott Facility, which
potentially could result in the loss of the Company’s interest in PTM RSA and the Waterberg Project
in the event of a default under the 2019 Sprott Facility or any new secured indebtedness; 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;
PLATINUM GROUP METALS LTD. …6
uncertainty of estimated production, development plans and cost estimates for the Waterberg
Project; discrepancies between actual an d 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 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 shar eholders 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 a nd 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 minin g 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 acc ess 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 mineral 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; the Company’s
common shares may be delisted from the NYSE American or the Toronto Stock Exchange if it
cannot maintain compliance with the applicable listing requirements; and other risk factors
described in the Company’s most recent Form 20 -F annual report, annual information form and
other filings with the U.S Securities and Exchange Commission (“SEC”) and Canadian securities
regulators, which may be viewed at www.sec.gov and www.sedar.com, respectively. Proposed
changes in the mineral law in South Africa if implemented as proposed would have a material
adverse effect on the Company’s business and potential interest in projects. Any forward-looking
statement speaks only as of t he 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 as a result of new information, future events or results or otherwise.
The technical and scientific information contained herein 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 herein, 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.