Sylvania Resources Limited “An emerging low cost PGM producer” 5 th BAC Platinum Day, October 2007
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Sylvania Resources Limited“An emerging low cost PGM producer”
5th BAC Platinum Day, October 2007
Important Information"Certain forward looking statements may be contained
in the presentation which include, without limitation, expectations regarding platinum prices, estimates of
production, operating expenditure, capital expenditure and projections regarding the
completion of capital projects as well as the financial position of the company. Although Sylvania believes
that the expectations reflected in such forward-looking statements are reasonable, no assurance
can be given that such expectations will prove to be accurate. Accordingly, results could differ from those
projected as a result of, among other factors, changes in economic and market conditions,
changes in the regulatory environment and other business and operational risks."
Company Overview
£221.9 millionMarket cap (Oct 07) AIMA$56 millionCash on Hand (Oct 07)
A$510.8 millionMarket Cap (Oct 07) ASX£1.26Share price (Oct 07)AIM$2.90Share price (Oct 07) ASX
176,154,273Shares in Issue (Oct 07)July 2006Aim ListedFeb 2001ASX Listed
Share Price Performance
Top Five Shareholders1.Audley Capital2.Fidelity3.JP Morgan4.Odey Asset management5.Aegon
Sylvania Summary• CTRP (Chrome Tailings Re-treatment Project)
– 25% Sylvania,25% Ivanhoe 50% Aquarius Platinum– Re-treatment of Xstrata and Beyer chrome dumps to recover
PGE’s – Two years history of profits.
• Samancor dumps (Recovery of Cr & PGE’s from current arisings and tailings dams) – 74% Sylvania owned 26% Ehlobo (BEE)– 2 CWP’s and 2 PRP’s plants in production (Millsell and
Steelpoort)– Construction of 1 CWP’s and 1 PRP’s plant at Lannex being
implemented.– Construction of 1 CWP and 1PRP started at Elandsdrift but
delayed until mid 2008
• Everest North Platinum Mine– Opencast and underground mining of UG2 ore bankable study
in progress
CTRP Overview
81%
1856
2382US$ 336
1877
Quarter June 07
84%77%77%Cash Margin
177518061592Basket price US$ / oz
1985US$ 284
2750US$ 393
2143US$ 306
Opex R/OzRate of Exchange assumed
R7 / US$
266819541866Total 4 E Oz
QuarterSept 07
(Management figures)
Quarter March 07
Quarter Dec 06
PGE Production Forecast(Steady state all 4 PGE plants working)
32.5%
32.5%
32.5%
32.5%
OverallRecovery
1.35
3.69
4.32
1.79
Grade
g/ton
6685Total
50%2.33US$ 3111583March 2008
Forecast Aug 2008
Elandsdrift/MooinooiPlanned
50%6.38US$ 1321227July 08
Forecast July 08
Lannex/TweefonteinPlanned
50%7.46US$ 1013185Oct 08
ActualSept 2007
SteelpoortPlanned
50%3.1US$ 284690June 07
Actual August 07
Millsell Planned
Float Recovery
Float head grade g / ton
Cash cost
US $/ oz
PGE
Oz/month
Dates
Ref: AIM Placing doc July 2006
Assumptions
42.5%32.5%PGM Recovery
3.48 g/t2.5 g/tGrade
1,443 US$ per oz1,300 US$ per ozBasket price
R/$ 7.00R/$ 7.14Exchange rates
Current target and assumptions
Assuming steady state production
(Base case as per placing admission
to AIM)
Operating plants
PGE PLANTS Total production all 4 plants(Steady state 100% production)
R43.0m(US$ 6.14m @ R7 / $)
[US$73.7m / year
R35.9m(US$ 5.13m @ R7 / $)
[US$ 61.6m / year]
Gross operating profit
R56.9mR46.6mTurnover
70466,685Ounces
Current Target at steady state and 4
PGE plants operational.
(Monthly)
Base case(as per placing and admission to AIM)
(Monthly)
Excludes CTRP and Everest North platinum mine
EVEREST NORTH PLATINUM DEPOSIT
(Reef Thickness Isopach)
Mareesburg Farm Deposit (East Plats)
Vygenhoek Farm Deposit (Sylvania)
• Exploration drilling commenced June 2006• Drilling completed 8 September 2007• Final few assays expected end October 2007• Resources estimation and competent persons report is
expected by mid November• Mine works plan for submission for a mining right
completed
EVEREST NORTH(New Surface and Underground
Mining Operation)
In Situ Resource UG 2 Chromite evaluated within the Channel
817,3194.835,27mt1.34842,000Vygenhoek
Ounces4E g/tTonnesChannel Width (m)
Area(m2)Property
Conclusion• South African emerging low cost platinum
producer.• Production set to rise to 6685oz per month by
third quarter 2008 at cash cost of less than ZAR2000 per oz
• Low technical and operational risk• Plant performance improvements to further
enhance production.• Platinum focused growth via:- Development of mining operations at Everest North - Seeking consolidation and other suitable M&A opportunities- Strong financial position (ZAR300m) with all projects
generating positive cash flow from start up
Sylvania Resources Limited“An emerging low cost PGM producer”
5th BAC Platinum Day, October 2007
Important Information
"Certain forward looking statements may be contained in the presentation which include, without limitation, expectations regarding platinum prices, estimates of
production, operating expenditure, capital expenditure and projections regarding the
completion of capital projects as well as the financial position of the company. Although Sylvania believes
that the expectations reflected in such forward-looking statements are reasonable, no assurance
can be given that such expectations will prove to be accurate. Accordingly, results could differ from those
projected as a result of, among other factors, changes in economic and market conditions,
changes in the regulatory environment and other business and operational risks."
Company Overview
£221.9 millionMarket cap (Oct 07) AIMA$56 millionCash on Hand (Oct 07)
A$510.8 millionMarket Cap (Oct 07) ASX£1.26Share price (Oct 07)AIM$2.90Share price (Oct 07) ASX
176,154,273Shares in Issue (Oct 07)July 2006Aim ListedFeb 2001ASX Listed
Share Price Performance
Top Five Shareholders1.Audley Capital2.Fidelity3.JP Morgan4.Odey Asset management5.Aegon
Current Directors –Sylvania Resources Limited
• Strong management team
• Board changes to reflect evolution of the company
• Extensive experience in value creation
RichardRossiter
Non ExecutiveChairman
TerryMcConnachie
C.E.OExecutive Director
Dr EvanKirbyC.O.O
Executive Director
Dr AlistairRuiters
Non ExecutiveDirector
LouisCarroll
ExecutiveDirector
BEE
• Sold 26% of Sylvania Metals and Minerals to Ehlobo Pty Ltd
• This make Sylvania totally BEE compliant• Ehlobo will invest up to £2.9m (R40m) in
Sylvania Metals and Minerals Pty Ltd • Millsell Plant ring fenced as security for IDC
funding.• Proven track record with Government and
International Business community
Sylvania Summary• CTRP (Chrome Tailings Re-treatment Project)
– 25% Sylvania,25% Ivanhoe 50% Aquarius Platinum– Re-treatment of Xstrata and Beyer chrome dumps to recover
PGE’s – Two years history of profits.
• Samancor dumps (Recovery of Cr & PGE’s from current arisings and tailings dams) – 74% Sylvania owned 26% Ehlobo (BEE)– 2 CWP’s and 2 PRP’s plants in production (Millsell and
Steelpoort)– Construction of 1 CWP’s and 1 PRP’s plant at Lannex being
implemented.– Construction of 1 CWP and 1PRP started at Elandsdrift but
delayed until mid 2008
• Everest North Platinum Mine– Opencast and underground mining of UG2 ore bankable study
in progress
Project Locations
CTRP Overview
81%
1856
2382US$ 336
1877
Quarter June 07
84%77%77%Cash Margin
177518061592Basket price US$ / oz
1985US$ 284
2750US$ 393
2143US$ 306
Opex R/OzRate of Exchange assumed
R7 / US$
266819541866Total 4 E Oz
QuarterSept 07Management
Figures
Quarter March 07
Quarter Dec 06
Millsell Performance
15414113482Concentrate Grade (4E GPT
57%46%46%45%Average recovery(Float recovery)
5.95.65.34.5Head grade(at float feed)
-R1852R3120R3748Opex/R/Oz
6014213421864E PGE Oz
10500100099961615844% Cr
OctSeptAugustJuly
Comparison of performance
Monthly improvement
0100200300400500600700
1 3 5month
7
CTRPMilsellSteelpoort
0
100
200
300
400
500
600
700
July Aug Sept Oct
4 E PGE Oz
Steelpoort Performance
299Concentrate Grade (4E GPT
32%Average recovery
4.9Head grade
-R2408Opex/R/Oz
6024354E PGE Oz
5100479744% Cr
Oct (Projected)Sept
0
100
200
300
400
500
600
700
Sept Oct
Month
4E P
GE
Oz
Basket Price
Basket Contents Price US$ per Troy Oz
Metal Percent Model Current
Platinum 59.5 1074 1385Palladium 26.2 349 372Rhodium 13.6 4155 6140Gold 0.7 590 740
Basket Price 1301 1764
Current prices on 10 October 2007 from Kitco
PGE Production Forecast(Steady state all 4 PGE plants working)
32.5%
32.5%
32.5%
32.5%
OverallRecovery
1.35
3.69
4.32
1.79
Grade
g/ton
6685Total
50%2.33US$ 3111583March 2008
Forecast Aug 2008
Elandsdrift/MooinooiPlanned
50%6.38US$ 1321227July 08
Forecast July 08
Lannex/TweefonteinPlanned
50%7.46US$ 1013185Oct 08
ActualSept 2007
SteelpoortPlanned
50%3.1US$ 284690June 07
Actual August 07
Millsell Planned
Float Recovery
Float head grade g / ton
Cash cost
US $/ oz
PGE
Oz/month
Dates
Ref: Placing and admission to AIM July 2006
Assumptions
42.5%32.5%PGM Recovery
3.48 g/t2.5 g/tGrade
1,443 US$ per oz1,300 US$ per ozBasket price
R/$ 7.00R/$ 7.14Exchange rates
Current target and assumptions
Assuming steady state production
(Base case as per placing admission
to AIM)
Operating plants
PGE PLANTS Total production all 4 plants(Steady state 100% production)
R43.0m(US$ 6.14m @ R7 / $)
[US$73.7m / year
R35.9m(US$ 5.13m @ R7 / $)
[US$ 61.6m / year]
Gross operating profit
R56.9mR46.6mTurnover
70466,685Ounces
Current Target at steady state and 4
PGE plants operational.
(Monthly)
Base case(as per placing and admission to AIM)
(Monthly)
Excludes CTRP and Everest North platinum mine
Ref: Ambrian morning research
EVEREST NORTH PLATINUM DEPOSIT
(Reef Thickness Isopach)
Mareesburg Farm Deposit (East Plats)
Vygenhoek Farm Deposit (Sylvania)
• Exploration drilling commenced June 2006• Drilling completed 8 September 2007• Final few assays expected end October 2007• Resources estimation and competent persons report is
expected by mid November• Mine works plan for submission for a mining right
completed
EVEREST NORTH(New Surface and Underground
Mining Operation)
In Situ Resource UG 2 Chromite evaluated within the Channel
817,3194.835,27mt1.34842,000Vygenhoek
Ounces4E g/tTonnesChannel Width (m)
Area(m2)Property
Conclusion
• South African emerging low cost platinum producer.• Production set to rise to 6685oz per month by third quarter
2008 at cash cost of less than ZAR2000 per oz • Low technical and operational risk• Plant performance improvements to further enhance
production. • Platinum focused growth via:
- Development of mining operations at Everest North - Seeking consolidation and other suitable
M&A opportunities- Strong financial position (ZAR300m) with all projects generating positive cash flow from startup’s
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