[miningmx.com] — Brian Gilbertson has shown why he delisted Platmin
late last year, announcing a consolidation of the company with Pallinghurst Resouces
and the Bakgatla community’s other PGM interests in the region.
The new entity, called NewCo, would also receive a R3.24bn investment from the
Industrial Development Corporation in return for a 16.% stake. The Bakgatla would
hold a 27% shareholding in the post-consolidated company. Pallinghurst would hold
42%, with other entities – mostly minority Platmin shareholders – another 15%.
The company would start off as an unhedged and debt-free producer, with a balance
sheet that includes $500m in cash.
NewCo would consist of the following properties: the Pilanesberg Platinum Mine
(Platmin’s operational assets), the Sedibelo platinum project which is owned by the
Bakgatla as well as the Magazynskraal project.
“This consolidation provides the foundation for a large, shallow and low-cost mining
complex, with long life [in excess of 30 years] and a promising growth profile,’ read a
Pallinghurst announcement.
“NewCo’s resource base is approximately 70 million 4PGM ounces and, uniquely, the
majority of these ounces are shallower than 600 metres, making this one of the
safest and most energy efficient new generation PGM operations in the world.’
It hopes to be a top-4 producer within four to five years, targeting 1.1 million ounces in output.
In addition, the IDC and the parties will form a joint venture to develop and fund
beneficiation opportunities in the region.
“This consolidation has been almost five years in the making,’ said Pallinghurst CEO
Arne Frandsen. “Our beneficiation partnership with the IDC has the potential to
transform the PGM smelting industry and to provide third party juniors access to cost-
effective concentrate processing.’
Pallinghurst Chairman Brian Gilbertson said in December that Platmin’s delisting from
the TSX and JSE was a precursor to the company’s long-planned consolidation of three
properties in the western limb of the Bushveld Complex.
“We said we wanted to consolidate [in the region] and this is it. It’s the dawning of
that plan. But it’s difficult to get it done under that [Platmin’s] structure,’ Gilbertson
said at the time.
