Platinum Group Metals Ltd. Reports Third Quarter Results
838 – 1100 Melville Street
Vancouver, BC V6E 4A6
P: 604-899-5450
F: 604-484-4710
News Release No. 24-477
July 11, 2024
Platinum Group Metals Ltd. Reports Third 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 nine months ended May 31, 2024, and provides an update and outlook. The Company is
focused on advancing the 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 platinum, palladium, rhodium and gold (“4E”) 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 consolidated interim financial statements for the nine months ended May
31, 2024 (the “ Financial Statements ”) and Management’s Discussion and Analysis
(“MD&A”) for the nine months ended May 31, 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.
Recent Events
On April 3, 2024 , the directors and shareholders of Waterberg JV Resources (Pty) Ltd.
(”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 an
update to the Waterberg Project’s 2019 Definitive Feasibility Study (“ DFS Update”). The
Stage Four Budget, covering the period from March 2024 to approximately August 2024, is a
subcomponent of a $21.0 million pre-construction work program (the “ Work Program”)
PLATINUM GROUP METALS LTD. …2
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, Impala Platinum Holdings Ltd.
(“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. In the fourth fiscal quarter of
2024, Implats’ interest is expected to be diluted by a further 0.087% to approximately
14.864%. Platinum Group has elected to fund Implats shortfall and the Company’s direct
interest in Waterberg JV Co. will increase 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.
The Market Study, which is currently in process, will seek to identify potential global sources
of PGM concentrate that could augment the processing of the Waterberg Project concentrate
in Saudi Arabia and minimize the risk of sourcing concentrate from only one project.
Upon the completion of the Market Study, Ajlan and the Company may together commission
the Smelter DFS at an estimated cost of approximately $4.0 million. 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 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.
An initial trade -off study has been completed to determine the viability of exporting PGM
concentrate from South Africa to Saudi Arabia. A key requirement would be to secure a long-
term permit for the export from South Africa of unrefined precious metals in concentrate.
Platinum Group is working with the Government of South Africa to identify local beneficiation
opportunities and to analyze the possibility of exporting concentrate.
On December 11, 2023, the directors, and shareholders of Waterberg JV Co. unanimously
approved a stage three budget of $ 1.62 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 ’
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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.
On June 21, 2023 , the Company reported that Lion ha d engaged the Battery Innovation
Center (“ BIC”) in Newberry, Indiana , to help drive commercialization efforts for its next
generation platinum and palladium based battery chemistries. Lion is advancing both
proprietary lithium -sulfur and enhanced lithium -ion (NMC) technology using the unique
catalytic properties of platinum and palladium. Under a scope of work, BIC is conducting
independent small and large scale trials to validate Lion’s proprietary platinum and palladium
based electrode composition, slurry, and films in both lithium-sulfur and lithium-ion (NMC811)
coin and pouch cells. Collaboration with BIC will also include additional research and
development focused on improving performance and scale -up with the goal of creating
prototypes for commercialization consideration in 2024. Lion’s target is to develop batteries
with specific energies that are 20% to 100% higher than current technologies while meeting
or exceeding their present cycle lives.
On June 9, 2023, the Company reported that the Japan Organization for Metals and Energy
Security (“ JOGMEC”) and Hanwa Co. Ltd. (“ Hanwa”) ha d established a special purpose
company, HJ Platinum Metals Company Ltd. (“HJM”), to hold and fund their future equity
interests in the Waterberg Project. The combined interests of JOGMEC (12.195%) and Hanwa
(9.755%) were consolidated into a 21.95% interest for HJM going forward, with JOGMEC to
fund 75% of future equity investments into HJM and Hanwa the remaining 25%.
Results For The Nine Months Ended May 31, 2024
During the nine months ended May 31, 2024, the Company incurred a net loss of $4.02 million
(May 31, 2023 – net loss of $4.05 million). General and administrative expenses during the
period were lower at $2.57 million (May 31, 2023 - $2.92 million). Share based compensation
was $1.61 million (May 31, 2023 - $1.57 million). The foreign exchange gain recognized in
the current period was $0.04 million (May 31, 2023 - $0.29 million) due primarily to the U.S.
Dollar increasing in value relative to the Canadian Dollar during the period.
At May 31 , 2024, finance income consisting of interest earned in the nine month period
amounted to $0.35 million (May 31, 2023 - $0.47 million). Basic and diluted loss per share
for the year and for the period ended May 31, 2024, was $0.04.
Accounts receivable at May 31, 2024, totalled $0.09 million (August 31, 2023 - $0.22 million)
while accounts payable and other liabilities amounted to $ 0.24 million (August 31, 2023 -
PLATINUM GROUP METALS LTD. …4
$1.37 million). Accounts receivable was comprised primarily of value added taxes repayable
to the Company in South Africa. Accounts payable consisted primarily of payables related to
project engineering and maintenance costs on the Waterberg Project.
On July 27, 2022, the Company entered into an Equity Distribution Agreement with BMO
Nesbitt Burns Inc. and BMO Capital Markets for a new at -the-market equity program (the
“2022 ATM”) to distribute up to $50.0 million (or the equivalent in Canadian dollars) of
common shares of the Company. No Common Shares were sold pursuant to the 2022 ATM
prior to August 31, 2022. As of August 31, 2023 , the Company ha d issued 1,089,503
Common Shares, through BMO Capital Markets on the NYSE American pursuant to the 2022
ATM, at an average price of $1.81, for gross proceeds of $1.97 million. Directly attributable
expenses and legal fees to maintain the 2022 ATM in good standing, and for commissions on
equity sales, totaled $0.45 million during fiscal 2023. No Common Shares have been sold to
date in fiscal 2024 pursuant to the 2022 ATM.
Total expenditures on the Waterberg Project, before partner reimbursements, for the nine
months ended May 31, 2024, were approximately $2.3 million (May 31, 2023 - $3.5 million).
At period end, $44.1 million in accumulated net costs were capitalized to the Waterberg
Project. Total expenditures on the property since inception to May 31 , 2024 , are
approximately $88.1 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 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 Wethu Consultants Proprietary Limited (“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 DFS Update ,
including updated mineral resource and mineral reserve estimates, was also approved and is
currently in process. The DFS Update is to include a review of cut-off grades, mining methods,
infrastructure plans, scheduling, concentrate offtake, dry stack tailings, costing and other
potential revisions to the Waterberg Project’s mine plan and financial model. A draft of the
DFS Update is currently before the joint venture partners for review and approval and is
expected during the fourth fiscal quarter of 2024.
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
PLATINUM GROUP METALS LTD. …5
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.
Environmental, Social and Governance
Platinum Group recently received its third 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 2023, Platinum Group
achieved an overall score of BBB with a range of C to AAA based on the information provided.
This score is an improvement from the BB score achieved in 2022. 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 202 3 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
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 National Instrument 43 -101 Standards of
Disclosure for Mineral Projects (“NI 43-101”). Mr. van Egmond has reviewed, validated and
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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”, “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 approval and completion of the various phases of the Work Program, the planned
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, the size
and cost of the Waterberg Project, the economic feasibility of establishing a new PGM Smelter and
BMR, the planned Smelter DFS, work with local communities, the development of new battery
technologies and the potential benefits of utilizing palladium and platinum therein, the
commercialization thereof and Lion’s development of next generation battery technology , the
success of Lion’s and FIU’s research and development efforts, the expansion of Lion’s research
work into additional battery chemistries, 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, the results of the Market
Study 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.
PLATINUM GROUP METALS LTD. …7
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 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 properties may not be brought
into a state of commercial production; uncertainty of estimated production, development plans
and cost estimates for the Waterberg Project; 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 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 t he Company to retain its key management 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 f raud,
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 sh ortages and the ability of the Company to 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 us e 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; 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 Canadian securities regulators and SEC , which may be viewed at www.sedarplus.ca and
www.sec.gov, 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 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 o f 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.