[miningmx.com] — THE ramp-up problems that have beset Platmin are a
thing of the past, according to Chairman Brian Gilbertson, who said on Thursday the
mine would achieve its annualised production target of 250,000 oz by the end of
2012.
Platmin’s Pilanesberg platinum mine would soon form part of NewCo, a new company
that embodies Gilbertson’s long-held aim of consolidating the various PGM-bearing
properties in the Pilanesberg area.
When Platmin was previously listed, the mine became notorious for production and
ramp-up delays due to, among other things, waste-stripping difficulties and labour
unrest, and was only now approaching an annualised output figure of 120,000 oz,
according to Gilbertson.
“Platmin’s startup has been slow, but there is no reason to deviate from our forecast
[of 250,000 oz annualised] by the end of the year.’
The Pilanesberg platinum mine would be the only existing operational asset of
NewCo, but Gilbertson said the development of a second open-pit operation on the
current Sedibelo property would be a priority.
Newco’s likely third operational mine would be based on Magazynskraal, extending
into Sedibelo. It would also start out as an open-pit operation, before extending into
deeper levels at a later stage.
“No board [of the new entity] has so far signed off on these plans; we’re creating this
[Newco] to have a single brain for decision-making,’ he said.
Having succeeded in consolidating the Pilanesberg mine, Sedibelo and Magazynskraal
properties into one entity, Gilbertson said the company would not only benefit from
shared infrastructure and mining continuous orebodies, but also from financing the
development of one project with the cash flows of another.
“If you do it in a phased sequence you minimise the cash outflow,’ he said.
“Consolidation gives you efficiency; non-consolidation gives you inefficiency.’
Newco would have Pallinghurst (42%), the Bakgatla community (27%) and the IDC
(16%) as main shareholders. The shareholding was calculated according to a formula
that took the respective parties’ cash contributions and value of their respective
properties into account.
The IDC’s stake would be based on a R3.24bn investment, enabling the company to
start off debt-free with $500m in available cash resources. NewCo would have a post-
consolidation valuation of R23.24bn. Other properties include three projects on the
Eastern Limb, being Mphahlele, Grootboom and Loskop.
The new company hopes to be a top-4 producer within four to five years, targeting 1.1 million ounces in output.
According to Pallinghurst CEO Arne Frandsen, Newco would eventually list on either
the London or Hong Kong stock exchanges, with another listing in Johannesburg.
