wesizwe investor newsletter july final version · 2013. 8. 14. · wesizwe platinum limited...

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WESIZWE PLATINUM LIMITED - INVESTOR RELATIONS www.wesizwe.com Wesizwe Platinum’s Bakubung Platinum Mine development moving full steam ahead Wesizwe Platinum’s flagship Bakubung Platinum Mine located on the Western Bushveld is progressing according to schedule. The mine will have a projected lifespan of 35 years producing up to 350koz per year, with production ramp-up scheduled for 2018. Wesizwe’s Chinese strategic equity partner ensures that the project is funded. Wesizwe also owns a stake in the PTM-managed Maseve project, adjacent to the Bakubung Platinum Mine. The company is on track to become a significant multi- commodity company focusing on strategic metals with sound derived demand fundamentals. Wesizwe’s strategic objectives remain focused on ensuring that the Bakubung Platinum Mine is delivered within budget and on schedule. To assist in this process, a new Mine General Manager and Resident Engineer have recently been appointed. At the same time, Wesizwe will explore synergistic consolidation opportunities with industry peers in the vicinity of the Bakubung Platinum Mine project. Wesizwe is looking to achieve definitive growth through acquisitions within the platinum sector in South Africa and also in base metals across Southern Africa. The company also looks to achieve a 26% BEE ownership by 2014 from the current 0.16% HDSA holding. INSIDE BAKUBUNG PLATINUM MINE UPDATE A report on current development progress at the mine site WESIZWE PEOPLE An update on the latest industry specialists to join the Wesizwe management team MEDIA ACTIVITY REPORT An update of Wesizweʼs activity in the media over the past month SUPPORT FOR NATIONAL INITIATIVES Wesizwe staff members play their part to commemorate National Mandela Day, giving 67 minutes of their time to good causes CALENDAR OF EVENTS A round-up of the conferences, seminars, media events and investor roadshows happening over the coming months. Market as at 31 JSE Sha Information May 2013 are Code: WEZ Shares in Issue 1,627,827,058 Closing Price R0.48 Market Cap R781,356,988 JULY 2013 Investor News

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Page 1: Wesizwe Investor Newsletter July final version · 2013. 8. 14. · WESIZWE PLATINUM LIMITED -INVESTOR RELATIONS INVESTOR NEWS JULY 2013 Gregory Young, Finance Manager Gregory brings

WESIZWE PLATINUM LIMITED - INVESTOR RELATIONS www.wesizwe.com

Wesizwe Platinum’s Bakubung Platinum Mine development moving full steam ahead

Wesizwe Platinum’s flagship Bakubung Platinum Mine located on the Western Bushveld is progressing according to schedule. The mine will have a projected lifespan of 35 years producing up to 350koz per year, with production ramp-up scheduled for 2018. Wesizwe’s Chinese strategic equity partner ensures that the project is funded. Wesizwe also owns a stake in the PTM-managed Maseve project, adjacent to the Bakubung Platinum Mine. The company is on track to become a significant multi-commodity company focusing on strategic metals with sound derived demand fundamentals. Wesizwe’s strategic objectives remain focused on ensuring that the Bakubung Platinum Mine is delivered within budget and on schedule. To assist in this

process, a new Mine General Manager and Resident Engineer have recently been appointed. At the same time, Wesizwe will explore synergistic consolidation opportunities with industry peers in the vicinity of the Bakubung Platinum Mine project. Wesizwe is looking to achieve definitive growth through acquisitions within the platinum sector in South Africa and also in base metals across Southern Africa. The company also looks to achieve a 26% BEE ownership by 2014 from the current 0.16% HDSA holding.

INSIDEBAKUBUNG PLATINUM MINE UPDATEA report on current development progress at the mine site

WESIZWE PEOPLEAn update on the latest industry specialists to join the Wesizwe management team

MEDIA ACTIVITY REPORTAn update of Wesizweʼsactivity in the media overthe past month

SUPPORT FOR NATIONAL INITIATIVESWesizwe staff members play their part to commemorate National Mandela Day, giving 67 minutes of their time to good causes

CALENDAR OF EVENTSA round-up of theconferences, seminars,media events and investorroadshows happening overthe coming months.

Market Informationas at 31 May 2013JSE Share Code: WEZ

Market Informationas at 31 May 2013JSE Share Code: WEZ

Shares in Issue

1,627,827,058

Closing Price

R0.48

Market Cap R781,356,988

JULY 2013

Investor News

Page 2: Wesizwe Investor Newsletter July final version · 2013. 8. 14. · WESIZWE PLATINUM LIMITED -INVESTOR RELATIONS INVESTOR NEWS JULY 2013 Gregory Young, Finance Manager Gregory brings

WESIZWE PLATINUM LIMITED - INVESTOR RELATIONS www.wesizwe.com

(continued from page 1)

In terms of human resources, the Bakubung Platinum Mine project currently has 53 permanent employees and 921 contract workers, but at full production, the mine will employ 3200 employees directly. Plans to increase the core Wesizwe team in support of the mine development programme are at an advanced stage.

The Bakubung Platinum Mine project aims to capitalise upon a perfectly located quality resource, as the Western Limb provides 67% of the world’s platinum. Its flat lying, thick reef makes it easier and more efficient to mine and is one of the best-to-be-mined PGM ore bodies in South Africa. It also has greater amenability to mechanisation, fewer mining levels and as a result a lower cost mining regime. What makes this key asset different is that it is shallow in relation to other producers with a mean mining depth of 850mbc and high mining extraction of 74%. The thick reef widths of 1.4m to 1.7m mean higher operating efficiency and yields, and the favourable prill split, with good Pt yield from the Merensky reef, means an improved basket value. In addition, head grades are in line with normal averages in the region.

In terms of funding for the project, the China Development Bank (CDB) has approved the US$ 650m project funding and the finalisation of the project funding documents is in progress. The CDB, as part of the US$ 650m project funding, has also approved two bridging loans of US$ 100m each, of which one US$ 100m drawdown took place in December last year, and the second in June this year. These short-term loans will be refunded in part by the US$ 650m long-term loan. The 15 years loan facility has an applicable interest rate of six month LIBOR plus 3.5% repayments only commencing seven years after the first drawdown.

Wesizwe Platinum is currently exploring possible synergistic opportunities including infrastructure/bulk services: water and power supply, and is currently in collective discussions with Eskom and Magalies Water to this end. In addition, investigations are underway locally to identify possible Concentrator Plant Synergies. Other opportunities could include shared concepts for employee housing programmes, joint training and skills development in the area, community upliftment and socio-economic development projects, and the establishment of a mine owners’ forum for the three neighbouring mines to explore further synergies and collaborations.

INVESTOR NEWS JULY 2013

Page 3: Wesizwe Investor Newsletter July final version · 2013. 8. 14. · WESIZWE PLATINUM LIMITED -INVESTOR RELATIONS INVESTOR NEWS JULY 2013 Gregory Young, Finance Manager Gregory brings

WESIZWE PLATINUM LIMITED - INVESTOR RELATIONS www.wesizwe.com

INVESTOR NEWS JULY 2013

Gregory Young, Finance ManagerGregory brings a wealth of specialist expertise, knowledge and experience to his new role as Finance Manager at Wesizwe. He previously spent four years working for PricewaterhouseCoopers Inc as the Manager in the Metals and Mining Assurance Division, having worked his way through the organization as an Assistant Manager and the Audit Senior in the division. He has worked on several JSE-listed mining client accounts, involved in conducting statutory audits. Gregory’s academic background includes a Bachelor of Accountancy obtained from Wits University and he is currently in the process of obtaining his membership of the Chartered Institute of Management Accountants. His professional qualifications include his CA (SA) PQE Part 1 and PQE Part II.  

Stephens Ntutu Leruo Molopyane, Procurement ManagerStephens is a highly experienced procurement specialist and joins Wesizwe from Northam Platinum Mines where he was previously the Supply Chain Manager. He has a wealth of knowledge in the management of procurement and warehousing functions in the mining sector. He was also the Commodity Specialist at Lonmin Platinum Mines from 2008 to 2012, Procurement Superintendent at Samancor Western Chrome Mines from 2007 to 2008, and Procurement Controller at Xstrata Alloys Wonderkop Chrome Smelter from 2005 to 2006. Stephens also held a variety of accountancy positions in well-known companies in South Africa from 1994 to 2005. Stephens is currently awaiting approval of his dissertation to complete his MBA from Tshwane University.

Wesizwe People

July saw Wesizwe Platinum welcoming to its management team a new Finance Manager and a new Procurement Manager.

Stephens Ntutu Leruo Molopyane, Procurement ManagerGregory Young, Finance Manager

Page 4: Wesizwe Investor Newsletter July final version · 2013. 8. 14. · WESIZWE PLATINUM LIMITED -INVESTOR RELATIONS INVESTOR NEWS JULY 2013 Gregory Young, Finance Manager Gregory brings

WESIZWE PLATINUM LIMITED - INVESTOR RELATIONS www.wesizwe.com

WESIZWE MEDIA COVERAGE FOR THE MONTH OF JULY

INVESTOR NEWS JULY 2013

Insert photo caption here

Wesizwe media activity this month...........

The past month has seen a good split of media coverage for both Wesizwe corporately and also on industry thought leadership articles published by Executive Team members.

The month focused on continuing media coverage relating to the previously issued AGM news release, the placement of thought leadership articles, the community school refurbishment handover in the local press, and the careers open day in the community. Follow up meetings were coordinated with key publication editors and journalists to secure articles and to provide interviews or briefing notes. The following feature articles were published during this month:

• Mail and Guardian feature article on the Bakubung community, its inherited financial and political problems, and the positive assessment of Wesizwe Platinum's investment in the Bakubung Platinum Mine

• The Independent on Sunday feature article bylined by CEO Jianke Gao was published on the Chinese investment view on the mining sector in Africa, to tie in with the African Union 50th anniversary

• African Mining magazine feature article on CEO Jianke Gaoʼs thought leadership piece on the mining sector and the African Union 50th anniversary

• The community school refurbishment handover project

In terms of general news mediacoverage, the month of July saw a wide range of articles published, focusing both on corporate and community issues including:

• Thought leadership pieces on the Chinese investment in South Africa linked to the African Union 50th anniversary

• Reports on the AGM resolutions passed by shareholders

• Wesizwe community school refurbishment handover report

• The Wesizwe US$ 100 million short-term drawdown

• Continuing coverage of Wesizweʼs loan from the China Development bank

• Wesizwe Bakubung Platinum Mine project identified as one to watch in the industry media

• PGM WBJV Project 1 update mentioning Wesizwe

• Canadian PGM announcement relating to its T2 platinum layer project mentioning Wesizwe

• News article providing highlights from the feature on Wesizwe's Chinese partnership and the Bakubung Platinum Mine investment, published by the Mail and Guardian

• News articles on the school refurbishment handover

• News articles on the community careers open day

Page 5: Wesizwe Investor Newsletter July final version · 2013. 8. 14. · WESIZWE PLATINUM LIMITED -INVESTOR RELATIONS INVESTOR NEWS JULY 2013 Gregory Young, Finance Manager Gregory brings

WESIZWE PLATINUM LIMITED - INVESTOR RELATIONS www.wesizwe.com

On Mandela Day this year, Wesizwe Platinum staff at the regional office in Ledig got down to some serious dirty work as part of their 67 minute contribution. The Bakubung Clinic was in need of a revamp to make it a more pleasant place for the local community to go for their healthcare and wellbeing needs. The Wesizwe regional office teamed up with Top-Turf, a local gardening and landscaping company to help re-landscape the front garden of the clinic, planting trees, shrubs and ground cover plants, and donating the services of their specialist groundsmen and women to help with the garden tidy-up. Other Wesizwe office team members got to work on cleaning up the actual clinic building, rolling up their sleeves and scrubbing floors, cleaning windows, and generally making the clinic environment more pleasant for patients. Learners from the nearby Ratheo Primary School joined in, filling buckets with water and cleaning materials, and cleaning the many windows in the clinic building. Others helped by picking up litter from around the clinic yard and raking leaves in the grounds, under the guidance of their teachers , Mrs Mathebu la and Mrs Motsaalore. Members of the general public, seeing the efforts of the Wesizwe team and the young learners, also took time to help out. The remainder of the Wesizwe crew went into a neighbouring village to donate their 67 minutes to cleaning water tanks in order to ensure that clean water was available to all local residents in the community. They used

pressure hoses and disinfectant to ensure the tanks were clean, then repaired leaking joints and taps, as well as sealing inlets to the tanks to avoid contamination. After a long hard day, all the Wesizwe crews met up at the Bakubung Clinic to celebrate a good dayʼs work done for the community.

Closer to home, the Wesizwe Platinum head office staff at the companyʼs Melrose Arch offices gave their 67 minutes on Mandela Day to the Johannesburg General Hospital Childrenʼs Ward, raising money to buy gifts for the sick children undergoing treatment. Three members of the Wesizwe team, Lireko Ncube, Dimpho Maruping and Mpho Matshidiso hand-delivered the gifts to the children, spending time talking and playing with them on the wards and trying to make their Mandela Day special, despite the treatment they were undergoing.

INVESTOR NEWS JULY 2013

Wesizwe plays its part for Mandela DayTo show support for National Mandela Day, Wesizwe Platinumʼs regional office worked with the local community to give a much needed facelift to the Bakubung Clinic in Ledig, close to the companyʼs Bakubung Platinum Mine.

Page 6: Wesizwe Investor Newsletter July final version · 2013. 8. 14. · WESIZWE PLATINUM LIMITED -INVESTOR RELATIONS INVESTOR NEWS JULY 2013 Gregory Young, Finance Manager Gregory brings

WESIZWE PLATINUM LIMITED - INVESTOR RELATIONS www.wesizwe.com

YOUR FEEDBACKIn the spirit of our commitment to

encouraging greater shareholder engagement, we welcome your

comments or feedback relating to this investor

newsletter or any of our shareholder communications tools and

platforms. Send your comments via our website -

www.wesizwe.com

NEWSLETTER STAFF

Managing EditorHamlet Morule

EditorMelanie Hawken

Administrative Support

Lireko Ncube

PublisherJalopy Communications

Subscription

You can subscribe to this free newsletter and have it

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website - www.wesizwe.com

Wesizwe Investor Newsletterwww.wesizwe.com

INVESTOR NEWS JULY 2013

CalendarForthcoming event highlights

Date Event Details

24-25October2013

29-30October2013

9 -11November2013

Mining Africa Summit, Gauteng, South Africa

In 2013, Wesizwe will once again be participatingas a speaker at the Mining Africa Summit,discussing the junior mining sector in South Africaand the Chinese investment experience on theAfrican continent.For more information, visit the event website -www.miningafricasummit.com

Investing in Resources and Mining in AfricaSummit, Gauteng, South Africa

In 2013, Wesizwe will be participating as a speakerat this new industry Summit, discussing the BRICSapproach to the mining sector in Africa, and theChinese/SA experience from a junior miningperspective.

The 2nd Junior Mining & Exploration Confex,Gauteng, South Africa

Wesizwe will be participating as a corporate silversponsor of the 2nd Junior Mining and ExplorationSummit to be held in Gauteng. Wesizwe will beproviding the latest updates on the development ofthe Bakubung Platinum Mine.For more information, visit the event website -www.juniormining.co.za

To find out more about any of these events,

contact [email protected]