ATLATSA: AN EMERGING MID-TIER PGM PRODUCER February 2014 Where we are: our assets Bokoni Mine Resource base: 154 m PGM/oz Average PGM grade: 5.04 g/t Average mining depth: 220m North Polokwane M’Kwena WF Kwanda Projects Mokopane Dwaalkop Limpopo CRF Thabazimbi Twickenham Marula Modikwa Amandelbult Northam Union Bela Bela Pilanesberg Groblersdal Sedibelo BRPM Zeerust Pandora Brits Impala Rustenburg RPM Lonmin 1 Legend SF Eland Crocodile River Two Rivers Mototolo Der Brochen Everest Booysendal Exploration Operating mine Pretoria Johannesburg Atlatsa: An emerging mid-tier PGM producer | February 2014 Witbank Life-of-mine potential • Bokoni is a large, high-quality and long-life orebody • Resource base supports LOM plan in excess of 95 years • Ability to scale-up production from 2mtpa (200 000 PGM/oz per annum – FY14 estimate) to 7mtpa (1.1moz PGM per annum) and sustain steady-state production for 40 years • Capital investment required to fund growth 2 Atlatsa: An emerging mid-tier PGM producer | February 2014 Life-of-mine potential (cont.) Bokoni LoM “Bokoni has the ability to sustain steady-state PGM production at 1.1Moz per annum for 40 years” Delivered 4E ounce profile “The Bokoni Resource base is able to sustain mining operations for the next 95 years” Source: Bokoni Mine – Independent Technical Review – Conceptual Study, October 2013 3 Atlatsa: An emerging mid-tier PGM producer | February 2014 Substantial North Eastern limb footprint N ZEEKOEGAT DIAMAND Vertical Shaft Brakfontein MIDDELPUNT UMKOANESTAD Middelpunt Hill BRAKFONTEIN UM2 Incline KLIPFONTEIN PASCHASKRAAL AVOCA Key Vertical DE KAMP TWICKENHAM shaft Decline BALMORAL shaft HACKNEY Open cast 4 Atlatsa: An emerging mid-tier PGM producer | February 2014 SURBITON Current production strategy • Production volumes scaled to installed mill capacity • • • 160 000tpm/1.92mtpa processing capacity Strategy to fill mill capacity: • Phase 1: underground tonnes + opencast MER (mill gap filler) while underground operations ramp up • Phase 2: underground operations ramp up to 160 000tpm Unit cost of production reduces as volumes increase at more efficient Brakfontein and MPH operations (old high-cost shaft closures) 5 Atlatsa: An emerging mid-tier PGM producer | February 2014 Cost containment and efficiency improvements • Size of workforce to remain constant whilst production increases • Closure of high cost older shafts ~3 years (Vertical & UM2) • Change from trackless to track bound tramming systems at Brakfontein and MPH shafts from 7 level and 3 level respectively • Convert to hydro power energy for drilling • New bonus system • Crew make-up and leave cycles 6 Atlatsa: An emerging mid-tier PGM producer | February 2014 Where we’ve come from Unprotected strike * * Includes 2013 wage adjustment provisions 7 Atlatsa: An emerging mid-tier PGM producer | February 2014 Capital expenditure/incremental ounces 8 Atlatsa: An emerging mid-tier PGM producer | February 2014 New look: balance sheet and capital structure Before Restructure Plan After Restructure Plan Atlatsa Holdings (BEE) 51% 62% Anglo Platinum 26% 22.5% Public, employee and community trust 23% 15.5% 430 million 555 million ZAR3.8 billion ZAR1.5 billion ~13% p.a. 2% p.a. no Yes Fully diluted shares in issue Debt Effective average cost of debt Equity financing flexibility 9 Atlatsa: An emerging mid-tier PGM producer | February 2014 Capital structure: post 2013 restructuring • Equity: • Anglo Platinum owns: Public , ESOP & Community Trusts Atlatsa Holdings (BEE) 62% 15.5% • 22.5% of Atlatsa Resources 22.5% Atlatsa Resources Anglo Platinum Debt $130m • 49% of Bokoni Platinum Holdings 51% • Debt: • • 49% $130 million debt • term: 2013-2020 • cost of borrowing: 2% average Market cap: US$ 300 million* *based on ATL share price as at 31 Jan 2014 10 Atlatsa: An emerging mid-tier PGM producer | February 2014 Bokoni Platinum Holdings 100% Bokoni Platinim Mine Investing in the Bokoni community • Improved direct communication with employees • Increased community involvement: • SMME development • CSR projects • Employee wellness programme Gamathabatha bakery 11 Monametse Village housing project Atlatsa: An emerging mid-tier PGM producer | February 2014 Mokgotho Creche construction project 2014: an update Restructure Plan finalized Migration to TSX Main Board Wage agreement finalized 12 Atlatsa: An emerging mid-tier PGM producer | February 2014 31 January 2014 February 2014 December 2013 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 13 Atlatsa: An emerging mid-tier PGM producer | February 2014 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 the Restructure Plan and anticipated financial or operational performance. Generally, these forward-looking statements can be identified by the use of forwardlooking 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, including the assumption that the Restructure Plan will be implemented in a timely manner. 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. These include but are not limited to, uncertainties related to the completion of the Revised Restructure Plan in a timely manner, if at all. 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, 2012 filed at www.sedar.com and with the United States Securities and Exchange Commission at www.sec.gov and other disclosure documents that are available at www.sedar.com. 14 Atlatsa: An emerging mid-tier PGM producer | February 2014 ATLATSA: AN EMERGING MID-TIER PGM PRODUCER February 2014
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