Marcum Microcap Conference New York 29 May 2014

Transcription

1 Marcum Microcap Conference New York 29 May 2014

2 Cautionary and forward-looking information This presentation contains forward-looking statements that were based on Atlatsa s expectations, estimates and projections as of the dates as of which those statements were made, including statements relating to anticipated financial or operational performance. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as may, will, outlook, anticipate, project, target, believe, estimate, expect, intend, should and similar expressions. Atlatsa believes that such forward-looking statements are based on material factors and reasonable assumptions. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the Company s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. For further information on Atlatsa, investors should review the Company s Annual Report disclosed in the Form 20-F for the year ended December 31, 2013 filed at and with the United States Securities and Exchange Commission at and other disclosure documents that are available at 2

3 Atlatsa at a glance Platinum producing company, established in 2001 Equal opportunity company born out of South Africa (SA) mineral legislation in 2002 strong SA government support 62% black economic empowerment (BEE) shareholding access to significant growth opportunities Assets located on the Bushveld Igneous Complex the world s largest platinum geological complex Operates Bokoni Platinum Mine producing 170,000 PGM oz, to ramp up to PGM oz Primary listing on TSX, secondary listings on NYSE MKT and JSE Limited Largest North American listed platinum producer 3

4 PGM macro dynamics 2015 PGM prices to pop? Hydrogen fuel cells Diesel three-way catalytic converters Lower PGM prices Higher PGM prices Auto demand European auto demand WHEN WILL PGM PRICES POP? Jewellery 4

5 4E PGM basket price* Rand PGM basket price drivers Bokoni Platinum Mine Platinum 55% Palladium 35% Rhodium 6% Gold 4% Rand/USD exchange rate 10.33:1 Total Rand PGM basket price 12,700 Total USD PGM basket price 1,230 *As at 22 May

6 Global Platinum Reserves Source: Statista: The Statistics Portal

7 Global Platinum supply Source: Johnson Matthey

8 Our assets: where we are BOKONI IS ONE OF THE LARGEST, HIGH-GRADE, LONG-LIFE PGM OREBODIES REMAINING ON THE BUSHVELD COMPLEX 8

9 How our assets stack up 154 million oz Resource base 11 million oz Reserve planned to be mined by 2035 Shallow depth 72 million oz of Resource above 100m Only significant Merensky (62% platinum) producer on Eastern Limb 4 underground shaft complexes Open cast mine operation Comparative Mineral Resources and Reserve Lonmin Bokoni Impala Lease Resources Reserves ATLATSA CONTROLS ONE OF THE LAST REMAINING HIGH-QUALITY PGM RESOURCES IN SOUTH AFRICA Source: Published Company information 9

10 Bokoni s roadmap to growth BOKONI HAS TAKEN THE BOLD DECISION TO BUILD THROUGH CHALLENGING TIMES Invested $200 million in mine expansion 70% production growth Steady-state production of 400,000 PGM oz/annum 60% growth Next investment decision to scale-up operations $100 million investment to achieve production of 250,000 PGM oz/annum 50% growth Positioning Bokoni for turnaround in PGM markets 10

11 Northern Limb opportunities Currently investigating opportunities on Northern Limb mineral properties 37,000 hectares and 4 exploration blocks, one of the largest mineral rights owners Kwanda North (JV Anglo American Platinum) Kwanda South (JV Anglo American Platinum) Central Block (100% Atlatsa) Rietfontein (JV Ivanplats) Beneficiation option to acquire ownership interest in Polokwane smelter from Anglo American Platinum relative to total Atlatsa Group concentrate feed to the smelter 11

12 Investing in the Bokoni community Bokoni is a community mine 80% employees from surrounding communities 20% migrant labour Numerous community-based projects: housing, water, sanitation, road upgrades Mokgotho Creche construction project Employee wellness programme ATLATSA BELIEVES IN RESPONSIBLE MINERAL DEVELOPMENT 12

13 Developing small enterprises Successful SMME programmes Zerbatone and BBP Mining & Projects Stimulating local economic growth through community-based enterprises Fanang Diatla Bakery Khomanchas slate quarry project Mogorishane civil works Fanang Diatla Bakery Mogorishane civil works Khomanchas slate quarry PIC OF civil works COME HERE 13

14 Capital structure Mineral assets sold - $171 million profit Consolidated debt reduced by 75% from $587 million to $150 million Cost of debt reduced from 12.7% to 4.4%* ATL Holdings increases shareholding in ATL Resources to 62% (Equity head room) Anglo American Platinum acquires 22.5% of ATL for $75 million Northern Limb (Platreef) exploration properties retained Atlatsa Holdings (BEE) Public 62% 15.5% 100% Northern Limb Exploration Central Block Rietfontein Atlatsa Resources 51% Kwanda (Exploration) 22.5% Debt $150m Bokoni Platinum Holdings 100% Anglo Platinum 49% Bokoni Platinum Mine Option to acquire ownership in Polokwane smelter complex retained * Weighted average effective cost of debt 14

15 Comparable company analysis 15

16 Share price performance ATLATSA HAS OUTPERFORMED ITS PEERS OVER THE LAST YEAR DUE TO A CONTINUING IMPROVEMENT IN ITS OPERATIONAL Rebased to Nov ATL announces Q3 30 Sept 2012 results 27 Mar 2013 ATL expects R750m in funding from Amplats 27 Mar 2013 RPM agrees to acquire Ga-Phasha and Boikgantsho from ATL for R1.7bn 5 July 2013 ATL obtains new drawdown facility from Amplats of R1.55bn 23 Aug 2013 DMR approves restructure plan with Amplats 31 Mar 2014 ATL release Q4 31 March 2014 results Volume (m) AND FINANCIAL PERFORMANCE May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Volume Atlatsa Resources Corporation FTSE/JSE Platinum Mining (Sub Sector) Index NYMEX Platinum price Rebased to Relative share price performance over last 12 months +97% +35% +4% -11% Trading information 12105/2014 Closing share price (USD) 0.38 Percentage of 12 month high 57% Percentage of 12 month low 205% Shares in issue (m) 555 Market cap (USDm) 211 Enterprise value (USDm) 362 Atlatsa Resources Corporation Lonmin plc Anglo American Platinum Limited Impala Platinum Holdings Ltd. Source: Atlatsa Resources Annual Report March 2014, S&P Capital IQ 16

17 Why Atlatsa: becoming a mid-tier producer Large, high-quality orebody with Merensky focus Building through a challenging macro-environment Production growth over next 5 years Comparatively low capital requirement to fund growth Cost containment and efficiency improvement focus Strong management team with successful track record Corporate opportunities post completion of restructure plan 17

18 Contact details Joel Kesler Chief Commercial Officer Tel: Prudence Lebina Head of Investor Relations Tel: