JUBILEE PLATINUM Plc Jubilee Platinum Plc ( JLP ) is an AIM and AltX - - PowerPoint PPT Presentation

JUBILEE PLATINUM Plc

Jubilee Platinum Plc (“JLP”) is an AIM and AltX listed exploration and development company focussed on platinum in South Africa.

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Disclaimer

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Division ST A TUS Await award of Mining Right Tjate Platinum

Attributable 44Moz 6PGE+Au (targeted over total area)

Two Platinum Surface Projects

4.4 million tons at surface 40 000 oz PGE annually 200 000 tons of Chrome annually

ASA in Operation and expanded processing capacity 3 fold Hernic Under construction ConRoast

Platinum recovery process

Fully developed offering competitive edge Executed Sale Asset

(ZAR 110.5 million – GBP 5.67 million) Middelburg Smelter retain right to platinum furnace PowerAlt retain right to participate in private power expansion project

Overview

Platinum focused mines to metal company

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Overview

Platinum focused mines to metal company

Tjate Platinum

• Attributable 44Moz 6PGE+Au

(targeted over total area)

• Concluded exploration drilling

with 70 boreholes drilled

• Top mining address
• Mine Right application

submitted and awaiting award

PLATINUM EXPLORATION & MINING PROJECT 4

Overview

Platinum focused mines to metal company

ASA Surface Platinum Material

• 1.1 million tons already at surface

and growing

• Zero mining risk
• Concluded constructing and

commissioning of 25 000 tons per month ("tpm") chrome processing facility at ASA

• Secured further 75 000 tpm

chrome processing facility at ASA

• Targeting processing of 45 000

tpm of 3rd party platinum containing chrome ore

• ASA Project more than trebled in

size and revenue potential within 2 months of commissioning

• Low capital high margin project

PLATINUM SURFACE PROJECT No 1 5

Overview

Platinum focused mines to metal company

Hernic Surface Platinum Material

• 3.3 million tons at surface and

growing at 17 000 tons per month

• Zero mining risk
• Construction commenced of worlds

largest platinum processing facility

• f chrome tailings targeting 55 000

tons per month processing capacity

• Targeting 31 000 oz PGE per annum
• Key project mile stones
• Conclude construction by end

2016

• Ramp-up of production to

reach full capacity by March 2017

• Low capital high margin project

PLATINUM SURFACE PROJECT No 2

Example Platinum Recovery Process

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Jubilee’s Strategy

Platinum focused mines to metal company

• Develop the two acquired surface platinum projects in the shortest time

possible commensurate with quality engineering practice – construction underway targeting commissioning in 2016

• Earnings potential of USD 12 million per annum (before expansion of ASA

project)

• 80 000 tons per month processing now increased to a combined capacity of

130 000 tons per month

• Aggressively pursue further surface platinum and near surface

platinum/chrome opportunities

• Continue to outpace competitors
• Identify suitable Tjate development partner on the back of award of Mining

Right.

• Tjate NPV USD 1.2 billion

EXECUTING ITS PLATINUM MISSION

Surface Rock

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Jubilee’s Surface Platinum Projects

At-Surface Platinum Projects

• Jubilee’s subsidiary Jubilee Tailings Treatment Company (Pty) Ltd (“JTTC”) was

awarded the rights by ASA Metals ("ASA") to beneficiate the platinum from their Dilokong Chrome Mine ("DCM") surface material and current arisings

Estimated at 1 100 000 tons (Nov 2014) of material at surface with current arisings estimated being added up to 11 500 tpm

• Jubilee executed a Cooperation Agreement with Hernic Ferrochrome as the

appointed company to process the Hernic surface tailings and current arisings

Hernic estimated to hold 3.3 million tons at surface with current arisings estimated being added at an estimated 17 000 tpm Hernic is the world 4th largest integrated Ferrochrome producer

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PLATINUM AT SURFACE

Surface Rock

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Jubilee’s Surface Platinum Projects

ASA (DCM) ASA Dump and Surface stocks

• 1.1 million tons resource estimate:

800 000 million tons fully drilled 1.1 million surface stock Nov 2014 – (ASA surveyed estimate)

• Further tailings being deposited onto the dam at estimated rate of 11 500 tpm
• Total 88 000 4E (3PGM+Au) oz b

b 3rd party verified based on drilling programme as at Nov 2014 DCM tailings - picture November 2014

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Jubilee’s Surface Platinum Projects

ASA (DCM) Status

• Jubilee’s 100 % owned subsidiary JTTC secured the exclusive right to recover

the PGMs and chrome contained in the DCM tailings

• JTTC has Access Agreement with ASA & DCM to secure property and access

all infrastructure for the construction of a PGM processing plant within the mining and processing area of DCM

• Construction of Processing Plant concluded in February 2016 reaching design

throughput during April 2016.

• Processing capacity of up to 30 000 tons per month

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Jubilee’s Surface Platinum Projects

ASA (DCM) Status

• Jubilee executed a Funding Agreement with ASA and DCM whereby Jubilee

took full operational control of all of DCM’s surface operations securing exclusive access to 75 000 tpm of surface processing capacity (3 fold increase)

• Jubilee has enhanced the DCM tailings processing business model by including

the processing of 45 000 tpm of 3rd party platinum & chrome containing ore from adjacent mining operations, significantly increasing both the chrome and upgraded platinum production rates from the designed capacities.

• Project revenues targeted to increase by more than 150%

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Jubilee’s Surface Platinum Projects

Hernic Hernic Dump and Surface stocks

• 3.3 million tons resource estimate:

1.7 million tons SAMREC compliant in dump (1.6 million in measured category) 1.6 million tons surface stock – (Hernic estimate)

• Further tailings being deposited onto the dam at estimated rate of 17 000 tpm
• Total 224 000 4E (3PGM+Au) oz - (estimated 71 000 oz in surface stock a )

a data pro rata from SAMREC resource estimate discounted by 50% as surface stock not SAMREC compliant Hernic Processing Plant Project

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Jubilee’s Surface Platinum Projects

Hernic Status

• Jubilee executed a Heads of Agreement with Hernic to recover the PGMs

and chrome contained in the Hernic surface tailings material and current chrome tail arisings

• Mining Right with Environmental Management Programme granted.

Surface Layouts for processing plant fully executed

• Pilot and full scale metallurgical test programme to finalise processing

plant for platinum recovery completed and independently verified

• Detail Project Financial modeling and capital estimates completed and

independently verified

• Full plant layout completed. Power, water and support utilities available

from Hernic’s adjacent chrome beneficiation plant – agreement in draft.

• Site works commenced with plant laydown area preparation

LARGEST PLATINUM SURFACE PROJECT

Targeting the largest processing plant for recovery of platinum from chrome tailings

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Jubilee’s Processing Plant (3D Layout)

Processing Plants Schematic

PLATINUM AT SURFACE

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Jubilee Surface Platinum Operations

Combined Projects Overview

• Targeted Combined Processing Capacity
• Chrome beneficiation circuits designed at 80 000 tpm now increased to 130 000 tpm
• PGM recovery plants approximately 51 000 tpm offering excess material for

tol treatment

• Estimated designed monthly ounce production 3 300 oz 4E (3PGM+Au) (39 600 oz per

annum). Additional capacity estimate is dependent on platinum content of 3rd party ore (min

• f 50% increase expected)
• Capital Estimation
• Capital funding requirement - approximately ZAR290 million (USD21 million)
• Design and build programme - 10 to 11 months
• ASA plant under construction
• Potential initial annual operation cash flow estimated at USD12 million assuming

platinum price of USD1250/oz (excludes increased capacities)

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Strategy Threats

Threat Comment

• Platinum Price

Outside our control but project de-risked by having no mining component with associated risk and cost

• South African labour

Small skilled operating labour teams easier to manage

• Execution risk

Projects turn key supervised by engineer who has built several such plants (first plant operational on-time and in budget)

• Operational risk

Jubilee has a proven track record in plant operations

• Financing risk

Jubilee’s sale of non core asset secured equity portion against debt offering

LOW RISK - QUICK TO EXECUTE - STRONG MARGIN

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Directors and Key Officers

Leon Coetzer Chief Executive Officer BSc (Chemical Engineering), University of Stellenbosch Leon is a qualified chemical engineer. He joined Jubilee in August 2009 as Managing Director Refining and Smelting from Braemore Resources, where he was CEO. He has previously worked for 20-years with mining companies in the Anglo American group, including 16 years with Anglo Platinum. His last position at Anglo Platinum was as Head of Process Control and Instrumentation, and he was a member of the Executive Process Committee, the Research and Development Council, and advisor to the asset optimisation initiative at Anglo Platinum. He is a member of the South African Institute of Mining and Metallurgy and of the South African Institute of Directors. In 2010 Leon relinquished his former position at Jubilee and was appointed Chief Executive Officer. Colin Bird Non-executive Chairman Higher National Diploma in Mining Engineering (Trent Polytech College, United Kingdom) Colin is a Fellow of the Institute of Materials, Minerals and Mining and a UK Chartered Engineer. He has extensive coal mining experience in Zambia, South Africa, the UK, Venezuela and Spain, in addition to his involvement in the management of nickel, copper, gold and other diverse mineral operations. He has founded and floated several public companies in the resource sector and served on resource company boards in the UK, Canada and South Africa. On 1 August 2010 Colin relinquished his position as Chief Executive Officer of Jubilee and was appointed Non-executive Chairman of the Company. Dr Mathews Phosa Non-executive Deputy Chairman BProc (UNIN), Hon Doctorate in Law (Boston, USA) Dr Phosa, an attorney by profession, was one of the first four members of the African National Congress (ANC) to return to South Africa in 1990 from exile to progress negotiations on the change to majority rule with the then ruling National Party. Dr Phosa is a former Premier of Mpumalanga, and currently serves on the national Executive Committee of the ANC, is Treasurer General of the ANC and holds chairman, vice-chairman and board member positions for over 10 prominent companies and

• rganisations. Dr Phosa plays a vital role in realising companies’ business strategies, particularly with regards to the integration
• f previously-disadvantaged persons into the economic framework of South African businesses.

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Directors and Key Officers

Andrew Sarosi Executive Director MSc Eng, MIIMM, CIMM (University of Witwatersrand, South Africa) Andrew is a mineral processing engineer and consultant with 35 years’ experience in developing, managing, commissioning and troubleshooting in gold and silver ore, tungsten, tin, copper and zinc ore processing plants in Saudi Arabia, Ethiopia, South Africa and the United Kingdom. He is currently a consultant to the mineral resources industry and an advisor to Lion Mining Finance

• Limited. Andrew has previously been employed by Gold Fields, Amax Hemerdon, and Mackay and Schnellmann. Andrew joined

Jubilee in 2002 and became an Executive Director in 2010. Christopher Molefe Non-executive Director BCom (UNIN) Post Graduate Diploma (University of Cape Town, South Africa) Christopher is the former Chief Executive Officer of Royal Bafokeng Resources and is currently the Non- executive Chairman

• f Merafe Resources and a Non-executive Director of Capital Oil, both in South Africa. He has held several positions in

corporate banking and industry for the past 20 years, including Manager of Corporate Affairs at Mobil Oil Southern Africa, Executive Director of the Black Management Forum, Financial Analyst at Chase Manhattan Bank, Marketing Manager at African Bank Limited, Executive Manager at Transnet (Propnet), and Executive Director at Dipapatso Media. Christopher joined the Jubilee Board September 2004.

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Compelling Investment Case

• Jubilee is a company with clear direction and focus
• Process rights acquired to two significant bankable platinum surface projects
• First project operational and already increased processing capacity by 3 fold
• Forecasted earnings significant and sustainable
• Tjate – One of the world’s largest undeveloped block of PGMs: ascribed little

value to company by market cap

• Business model applicable to future deposits using exclusive ConRoast process
• Non-core divisions of the business sold for premium to investment for cash

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Thank you

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