Key strengths

Platmin’s strength lies in the combination of its quality assets, management skills, partnerships and its ability to finance its projects and explore for and develop PGM mineral resources located in the world’s largest PGM district.

The PGM market – recovering from lows of late 2008

Over the past decade, the market for PGMs has been strong and growing, particularly for in the automotive sector and, in the longer term, demand for PGMs for use in clean-energy products such as fuel cells, is expected to be an area of growth. The market has come off the highs of 2008, given the global financial crisis and consequent economic downturn, but the long-term prognosis for the sector is positive.

Automotive demand for platinum for use in autocatalysts accounted for approximately 32% of total demand in 2009 (2008: 45%) (ref Johnson Matthey 2009). The decline in automotive demand was more than made up for by the increase in platinum jewellery demand which strengthened in 2009, accounting for 43% of gross platinum demand (2008: 26%). Jewellery demand was boosted by purchases in China in particular and lower prices prevailing during 2009.

Strong executive leadership

Platmin is led by a highly experienced management team and board of directors including professional geologists, engineers, financiers and metallurgists, with relevant PGM exploration, development and operating experience.

Diverse shareholder base

Platmin has a strong share register. The bulk of its share capital is held by the Pallinghurst Investment Consortium (46%). Other institutional investors are Ridgewood Investments (Mauritius) Pte Limited, Investec Bank Limited and Lonmin plc. These institutional investors collectively own 60% of the company's common shares. The Platmin share register has a free float of 40%.

Our quality assets

Another of Platmin’s particular strengths is that its assets are all located on the Bushveld Complex in South Africa – a stable, democratic country with a long history of mining, investor-friendly laws and the infrastructure and pool of skills needed for the development and operation of new mines.

Platmin’s ore has a low chrome content with high base metal credits, making it attractive for the smelter operations of the major platinum producers.

Platmin’s assets are shallow, accessible ore bodies which will have relatively lower operating costs as opposed to the increasing cost structures of the larger producers as they access deeper, more costly ores.

Recent positive corporate activity

In a recent capital raising exercise Platmin raised US$385 million in all, giving it financial flexibility and access to the funds required to enable it to achieve planned production targets. The success of the capital raisings indicated too the support of Platmin’s strategic long-term investors.