Platinum Prospects: Juniors Making The Grade

i nvest ment
r esear ch
Published by Edison Investment Research
Juniors making the grade
November 2008
Platinum prospects
Braemore Resources
Eastern Platinum
Jubilee Platinum
Nkwe Platinum*
Platinum Australia
Platinum Group Metals
Platmin
Ridge Mining*
Sylvania Resources
Wesizwe Platinum
COMPANIES FEATURED
Companies denoted with * are a research client of Edison Investment Research Limited.

A change |n South Afr|can m|n|ng |eg|s|at|on has seen the emergence of
a jun|or p|at|num sector, wh|ch can exp|ore and produce p|at|num at
|ower costs than the majors. A|though the dec||ne |n the p|at|num pr|ce
has affected the ent|re sector, the jun|ors' |ow-cost projects rema|n
attract|ve. We draw |nvestors' attent|on to cash generat|ve compan|es,
Eastern P|at|num and Sy|van|a Resources, and those about to start
produc|ng, P|at|num Austra||a, P|atm|n and R|dge M|n|ng.
P|at|num prospects
Jun|ors mak|ng the grade

P|at|num p|ummets, but expect a recovery
W|th the except|on of 2006, the p|at|num market has been |n def|c|t every year s|nce
1999, |arge|y due to growth |n autocata|yst demand for p|at|num and supp|y-s|de
constra|nts |n South Afr|ca, the |argest producer. Fo||ow|ng a sharp s|owdown |n
veh|c|e product|on, expectat|ons of weaker autocata|yst demand and p|at|num sa|es
from ETFs have dr|ven p|at|num from an a||-t|me h|gh of S$2,250/oz |n March 2008
to around S$850/oz current|y. Neverthe|ess, our ana|ys|s of fundamenta|
supp|y/demand suggests th|s has gone too far. Exc|ud|ng the affect of ETFs, we
forecast a sma|| def|c|t |n 2009 and an average p|at|num pr|ce of S$1,350/oz.
F|ve cr|ter|a to |ook for: Eastern P|at|num sat|sf|es them a||
We be||eve there are f|ve key cr|ter|a by wh|ch compan|es |n th|s sector can be
assessed: (1} produc|ng assets, w|thout wh|ch compan|es w||| cont|nue to re|y on
externa| sources of fund|ng, (2} sha||ow resources, wh|ch w||| benef|t compan|es from
both a cost and safety perspect|ve, (3} western ||mb of the Bushve|d Oomp|ex, w|th |ts
better p|at|num grades and estab||shed m|n|ng |nfrastructure, (4} access to
|nfrastructure, wh|ch w||| m|t|gate South Afr|ca's power, water and sk|||s shortages, and
(5} vert|ca| |ntegrat|on, wh|ch |s key to deve|op|ng a successfu| m|ne-to-market
bus|ness. Of the 10 compan|es prof||ed, Eastern P|at|num sat|sf|es a|| f|ve cr|ter|a.
Oompan|es prof||ed: 10 compan|es w|th prospects
The p|at|num sector |s dom|nated by two majors, three m|d-t|er producers and
approx|mate|y 25 other compan|es at var|ous stages of exp|orat|on, deve|opment and
product|on. Of these 25, we prof||e 10 compan|es |n the jun|or p|at|num sector that we
be||eve shou|d be |nc|uded |n a portfo||o of p|at|num |nvestments, name|y Eastern
P|at|num, Jub||ee P|at|num, Nkwe P|at|num, P|atm|n, R|dge M|n|ng, Wes|zwe P|at|num,
P|at|num Group Meta|s, P|at|num Austra||a, Sy|van|a Resources and Braemore
Resources.
Sector research
November 2008

ANA|YSTS

Ohar|es G|bson 020 3077 5724
cg|bson@ed|son|nvestmentresearch.co.uk
M|chae| Starke 020 3077 5725
mstarke@ed|son|nvestmentresearch.co.uk
Anthony Wagg 020 3077 5700
awagg@ed|son|nvestmentresearch.co.uk
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Prof||ed compan|es unwe|ghted performance
FTSE 350 M|n|ng

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P|at|num pr|ce (S$/oz}

2 Ed|son lnvestment Research Sector research P|at|num Prospects November 2008

Tab|e of contents
lnvestment summary: P|at|num prospects ...................................................................................... 3
1. Supp|y rema|ns t|ght .................................................................................................................. 7
2. Bushve|d dom|nates supp|y ....................................................................................................... 8
3. Demand h|t by s|owdown |n veh|c|e product|on ........................................................................ 12
4. Pa||ad|um: Generates |ess revenue .......................................................................................... 17
5. W|ndow of opportun|ty as p|at|num recovers ............................................................................ 18
6. Surp|us sme|ter capac|ty to fa|| ................................................................................................ 23
7. va|uat|on: F|ve key cr|ter|a to |ook for ....................................................................................... 26
8. Sens|t|v|t|es .............................................................................................................................. 29

Oompany prof||es ........................................................................................................................ 31
Braemore Resources ................................................................................................................... 32
Eastern P|at|num ......................................................................................................................... 34
Jub||ee P|at|num .......................................................................................................................... 36
Nkwe P|at|num ............................................................................................................................ 38
P|at|num Austra||a ........................................................................................................................ 40
P|at|num Group Meta|s ................................................................................................................ 42
P|atm|n ........................................................................................................................................ 44
R|dge M|n|ng ............................................................................................................................... 46
Sy|van|a Resources ..................................................................................................................... 48
Wes|zwe P|at|num ....................................................................................................................... 50


lnvestment summary: P|at|num prospects
lntroduct|on: Pr|ce f|oor presents an entry opportun|ty
The sharp fa|| |n p|at|num pr|ces over the past few months h|gh||ghts the |mpact of the g|oba|
s|owdown |n veh|c|e product|on and expectat|ons of |ower autocata|yst demand. ln add|t|on, we
be||eve the weaken|ng pr|ce has been exacerbated by sa|es of p|at|num from exchange traded
funds (ETFs}. Notw|thstand|ng |ower demand, we expect the trend of dec||n|ng South Afr|can
p|at|num output s|nce 2006 to cont|nue |nto 2009 and we suggest that expectat|ons of |ncreased
supp|y from the country are perhaps premature.
W|th ||m|ted above ground stocks (un||ke go|d}, the p|at|num market |s part|cu|ar|y t|ght and we
therefore expect muted supp|y growth to ||ft the pr|ce from |ts recent f|oor of around S$800/oz to
an average of S$1,350 |n 2009. We be||eve that at current p|at|num pr|ces, |nvestors have a
w|ndow of opportun|ty for an |nexpens|ve entry |nto the jun|or sector w|th cons|derab|e ups|de
prospects.
Exh|b|t 1: Peer compar|son of prof||ed compan|es
Note: As at 11 November 2008
Oompany ||st|ng Market cap
(S$m}
Ev
(S$m}
Attr|butab|e
resources
(3PGM+Au}
Ev/oz
Braemore Resources AlM, JSE 31.8 29.8 0.00 N/A
Eastern P|at|num AlM, TS, JSE 205.2 68.3 91.91 0.74
Jub||ee P|at|num AlM, JSE 24.5 9.8 40.95 0.24
Nkwe P|at|num AS 16.3 8.9 32.37 0.28
P|at|num Austra||a AlM, AS 103.6 94.5 5.03 18.76
P|at|num Group Meta|s TS, AME 53.8 46.5 8.86 5.25
P|atm|n AlM, TS 84.2 24.5 20.93 1.17
R|dge M|n|ng AlM 49.2 41.4 18.31 2.26
Sy|van|a Resources AlM, AS 103.9 64.2 2.86 22.42
Wes|zwe P|at|num JSE 137.4 114.4 12.94 8.84
Source: Ed|son lnvestment Research, company reports, B|oomberg
W|th|n the g|oba| p|at|num sector, there are approx|mate|y 25 compan|es at var|ous stages of
deve|opment. Of these 25, Ang|o P|at|num and lmpa|a P|at|num are by far the |argest, wh||e
|onm|n, Northam P|at|num and Aquar|us P|at|num represent the m|d-t|er producers. Furthermore,
approx|mate|y 10 compan|es are at very ear|y stages of deve|opment and w|thout s|gn|f|cant
p|at|num product|on or resources. ln th|s report, we prof||e the rema|n|ng 10 compan|es that we
be||eve stand to benef|t from a future pr|ce recovery and draw |nvestors' attent|on to those w|th
sha||ow, cash generat|ve assets, name|y Eastern P|at|num and Sy|van|a Resources, and those
about to go |nto product|on, name|y P|at|num Austra||a, P|atm|n and R|dge M|n|ng. Oompan|es w|th
s|gn|f|cant p|at|num resources, but some way from product|on, |nc|ude Nkwe P|at|num, P|at|num
Group Meta|s, Jub||ee P|at|num and Wes|zwe P|at|num. W|th ne|ther product|on nor p|at|num
resources, Braemore Resources |s deve|op|ng un|que sme|t|ng techno|ogy capab|e of treat|ng h|gh-
chrome ores.
The emergence of th|s jun|or p|at|num sector |n South Afr|ca fo||owed the |ntroduct|on of the M|nera|
and Petro|eum Resources Deve|opment Act, 2002, and a new po||cy of use |t or |ose |t", wh|ch
forced the majors to g|ve up |d|e ground to new entrants.


Sector pos|t|on|ng: F|ve key cr|ter|a
ln th|s report, we h|gh||ght f|ve key cr|ter|a that we be||eve w||| d|fferent|ate successfu| compan|es |n
the jun|or p|at|num sector.
1} Produc|ng assets
W|th a m|ne |n product|on, compan|es shou|d start generat|ng cash and becom|ng
prof|tab|e. Oompan|es |n th|s pos|t|on are therefore |ess ||ke|y to need to ra|se
add|t|ona| equ|ty to fund ongo|ng operat|ons, m|n|m|s|ng the d||ut|on r|sk for ex|st|ng
shareho|ders. ln add|t|on, shareho|ders shou|d start to rece|ve d|v|dends once cap|ta|
deve|opment costs have been pa|d off. Of the compan|es prof||ed, Eastern P|at|num
has a produc|ng m|ne, wh||e P|at|num Austra||a, P|atm|n and R|dge M|n|ng are w|th|n
months of f|rst product|on. W|thout a m|ne, but produc|ng p|at|num from ta|||ngs and
to||-sme|t|ng, respect|ve|y, are Sy|van|a Resources and Braemore Resources.
2} Sha||ow resources
M|n|ng costs |ncrease w|th depth. Therefore, compan|es w|th sha||ow resources stand
to benef|t from both a cost and safety perspect|ve. Wh||e the major|ty of compan|es
prof||ed have re|at|ve|y sha||ow resources, P|atm|n and Sy|van|a Resources have
produc|ng operat|ons ent|re|y at surface.
3} Western ||mb of Bushve|d Oomp|ex
A|though the eastern ||mb of the Bushve|d Oomp|ex |s the focus of many new
deve|opments |n the sector, the more estab||shed western ||mb has better
|nfrastructure, more sk|||ed |abour and greater reserves of h|gher-grade Merensky
Reef. For th|s reason, projects on the western ||mb shou|d be eas|er and |ess
expens|ve to get |nto product|on. Of our prof||ed compan|es, Eastern P|at|num
operates a m|ne on the western ||mb, wh||e P|atm|n |s about to br|ng one |nto
product|on. ln add|t|on, P|at|num Group Meta|s and Wes|zwe P|at|num both have
s|gn|f|cant western ||mb projects under deve|opment.
4} Access to |nfrastructure
South Afr|ca's rap|d|y deve|op|ng economy has put pressure on scarce resources,
|nc|ud|ng power, water and sk|||ed |abour. Fortunate|y for jun|ors w|th sma||er
operat|ons, the|r demands on ava||ab|e resources are typ|ca||y |ower than the majors
and therefore |ess ||ke|y to be |mpacted by rat|on|ng. Neverthe|ess, a|| of the
compan|es prof||ed have taken steps to deve|op cont|ngency p|ans to m|t|gate
potent|a| power outages.
5} vert|ca| |ntegrat|on
vert|ca||y |ntegrated m|n|ng compan|es capture a |arger proport|on of the revenue from
m|ne to market. A|though most jun|ors are not vert|ca||y |ntegrated, Eastern P|at|num
stands out |n th|s regard.


O|ass of 2009: Eastern P|at|num 1
st
, R|dge M|n|ng 2
nd
, P|atm|n 3
rd

On an abso|ute bas|s, a|| 10 compan|es we prof||e shou|d weather the current env|ronment of |ow
p|at|num pr|ces and stand to benef|t from the|r |ow-cost prof||es and a recovery |n the p|at|num
pr|ce. However, these 10 compan|es can be further d|v|ded |nto three ma|n groups, name|y those |n
product|on (Eastern P|at|num and Sy|van|a Resources}, those about to start produc|ng (P|at|num
Austra||a, P|atm|n and R|dge M|n|ng} and those w|th projects under exp|orat|on and deve|opment
(Nkwe P|at|num, Wes|zwe P|at|num, P|at|num Group Meta|s, Braemore Resources and Jub||ee
P|at|num}.
Overa||, Eastern P|at|num |eads the pack |n terms of sector pos|t|on|ng and Ev/resource ounce
va|uat|on. ln add|t|on, the company has made good progress at |ts Orocod||e R|ver M|ne where
product|on has |ncreased and operat|ng costs reduced. ln terms of the three emerg|ng producers,
the market seems to be |gnor|ng the progress that P|atm|n and R|dge M|n|ng are mak|ng and we
expect an upward re-rat|ng of these stocks over the next s|x months as they entrench the|r
producer status. However, |nvestors may be deterred by P|atm|n's h|gh degree of |everage.
Exh|b|t 2: Jun|or p|at|num sector va|uat|on
Note: |abe| s|ze re|at|ve to market cap|ta||sat|on
P|atm|n
R|dge M|n|ng
Sy|van|a Resources
Nkwe
P|at|num Group
Meta|s
Wes|zwe P|at|num
Braemore
Resources
Jub||ee P|at|num
Eastern P|at|num
P|at|num Austra||a
0
5
10
15
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25
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Number of cr|ter|a sat|sf|ed

Source: Ed|son lnvestment Research
Of the four exp|orers and deve|opers, Jub||ee P|at|num tra||s |ts peers and sat|sf|es the fewest of our
cr|ter|a, but |s cheap on an Ev/resource ounce bas|s, as |s Nkwe P|at|num, wh|ch trades on|y
marg|na||y above |ts cash pos|t|on. P|at|num Group Meta|s |eads the exp|orers and deve|opers |n
terms of both the number of cr|ter|a sat|sf|ed and |ts Ev/resource ounce va|uat|on.
Focused on deve|op|ng the OonRoast sme|t|ng techno|ogy, Braemore Resources has yet to fu|f|| |ts
amb|t|ons of becom|ng an exp|orer and producer, but |s act|ve|y |ook|ng for upstream opportun|t|es.
lf and when th|s happens, we expect Braemore's share pr|ce to rerate.


Sens|t|v|t|es
P|at|num pr|ce
Overa||, the p|at|num pr|ce |s the most s|gn|f|cant determ|nant of va|ue for compan|es |n th|s sector.
A|though the pr|ce has come down from |ts S$2,250/oz h|gh |n March th|s year, we be||eve |t has
h|t a f|oor at S$800/oz. We forecast a recovery, w|th an average pr|ce of S$1,350/oz next year,
rema|n|ng at around th|s |eve| unt|| the end of 2012. There |s further pr|ce protect|on for those
compan|es that have hedged a port|on of the|r product|on, most notab|y R|dge M|n|ng and
P|at|num Austra||a.
Oap|ta| and operat|ng costs |ncrease
The cost of both deve|op|ng and operat|ng a p|at|num m|ne has esca|ated cons|derab|y over the
|ast few years. W|th a marg|na| cost of product|on of approx|mate|y S$1,000/oz, many of South
Afr|ca's |arge, deeper, h|gh-cost m|nes w||| be produc|ng at a |oss and may start reduc|ng
product|on from |ow-grade ore. However, jun|ors w|th sha||ow, |ow-cost m|nes are un||ke|y to
reduce output, even |n the current pr|ce env|ronment. W|th typ|ca| operat|ng costs of around
S$500/oz, they st||| stand to benef|t from a hea|thy marg|n on the current pr|ce.
The rand/S do||ar exchange rate
The major|ty of compan|es' f|xed and var|ab|e costs as we|| as some debt |s |ncurred |n South
Afr|can rand (ZAR}, wh|ch over the |ast s|x months has fa||en aga|nst the do||ar from ZAR7.80 at the
end of June to ZAR10.30 |n November. Th|s has prov|ded compan|es w|th some resp|te from fa|||ng
p|at|num pr|ces, a|though offset part|y by h|gher |oca| fue| costs.
De|ays to regu|atory approva|s
A number of the compan|es we prof||e are awa|t|ng South Afr|can regu|atory approva|s for some
aspect of deve|opment or m|n|ng. Wh||e the author|t|es have recent|y sped up the process of
regu|atory approva|s, there rema|n capac|ty constra|nts w|th|n key departments and, as such,
bureaucrat|c de|ays may |mpact deve|opment and product|on t|me||nes.
Power and Eskom
Wh||e the reserve marg|n between e|ectr|c|ty supp|y and demand rema|ns precar|ous, Eskom |s
focus|ng on br|ng|ng severa| new projects on||ne over the next 10 years. S|nce 2005, over
2,500MW has a|ready been comm|ss|oned. ln 2009, expans|on of new open cyc|e gas turb|nes w|||
generate a further 1,000MW wh||e a further 3,800MW w||| be produced from three prev|ous|y
mothba||ed coa|-f|red power stat|ons. ln add|t|on, supp|y to the p|at|num sector w||| be strengthened
w|th a new 400kv transm|ss|on ||ne and three new substat|ons.


1. Supp|y rema|ns t|ght...
South Afr|ca accounts for around 80% of g|oba| p|at|num supp|y. However s|nce 2006, South
Afr|can m|ne product|v|ty and p|at|num supp|y have fa||en, desp|te r|s|ng meta| pr|ces. The |ndustry
has responded by deve|op|ng new m|nes and expand|ng ex|st|ng ones. As such, the trend of fa|||ng
supp|y |s expected to reverse |n 2009, a|be|t at s|ower rates than compan|es may prev|ous|y have
hoped for. By the end of 2010, we expect South Afr|can supp|y to recover to 2006 |eve|s.
...But shou|d start to grow
P|at|num supp|y th|s year w||| amount to approx|mate|y 6 m||||on ounces (Moz} pa, a|most a m||||on
ounces |ess than |n 2006. As many of South Afr|ca's |arge, deeper p|at|num m|nes get o|der, power
outages and safety |ssues have negat|ve|y |mpacted product|on growth. Neverthe|ess, there has
been a concerted effort by the |ndustry to |ncrease supp|y w|th the deve|opment of severa| new
projects and the expans|on of some ex|st|ng operat|ons. However, as a resu|t of the current |ow
p|at|num pr|ce and de|ays to br|ng|ng new supp|y on||ne, we expect a marg|na| |ncrease |n South
Afr|can supp|y from 4.7Moz th|s year to 4.8Moz next year. Meanwh||e, product|on from the rest of
the wor|d |s expected to stay steady at around 200 thousand ounces (koz} |ess than 2007 |eve|s.
Exh|b|t 3: Summary of reg|ona| p|at|num supp|y forecasts
Moz 2006 2007 2008e 2009e 2010e 2011e 2012e 2013e 2014e
South Afr|ca 5.3 5.0 4.7 4.8 5.2 5.4 5.9 6.5 6.9
Russ|a 0.9 0.9 0.7 0.7 0.7 0.7 0.7 0.7 0.7
North Amer|ca 0.3 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Other 0.3 0.3 0.2 0.2 0.2 0.3 0.3 0.3 0.3
Tota| 6.8 6.5 6.0 6.1 6.5 6.8 7.3 7.9 8.3
Source: Ed|son lnvestment Research, Johnson Matthey
Of the compan|es we prof||e, Eastern P|at|num |s |ncreas|ng supp|y from approx|mate|y 120koz
3PGM+Au th|s year to 140koz |n 2009, wh||e P|at|num Austra||a, P|atm|n and R|dge M|n|ng are a||
br|ng|ng on new supp|y |n 2009. Meanwh||e Sy|van|a Resources' ta|||ngs retreatment operat|ons are
expected to doub|e output from approx|mate|y 150koz th|s year to 300koz |n 2009. The rema|n|ng
f|ve compan|es prof||ed are at deve|opment stage and w||| not be |n product|on by 2009.
Exh|b|t 4: Forecast product|on from compan|es prof||ed
0
0.05
0.1
0.15
0.2
0.25
2007 2008e 2009e 2010e
P
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R|dge M|n|ng P|atm|n Sy|van|a Resources P|at|num Austra||a Eastern P|at|num

Source: Ed|son lnvestment Research, company reports


2. Bushve|d dom|nates supp|y
South Afr|ca's Bushve|d lgneous Oomp|ex accounts for approx|mate|y 80% of g|oba| p|at|num
supp|y. Wh||e there have been a number of we||-pub||c|sed |ssues w|th|n the |ndustry, |t rema|ns the
wor|d's pr|mary source of p|at|num group meta|s. At forecast product|on rates, there are over 40
years of reserves to be m|ned from th|s s|gn|f|cant depos|t. A|| the compan|es we prof||e |n th|s
report operate |n the Bushve|d Oomp|ex.
Over 40 years of reserves to be m|ned
P|at|num group meta|s (PGMs} are typ|ca||y assoc|ated w|th n|cke|-copper su|ph|de m|nera||sat|on |n
|gneous rocks. Depend|ng on the re|at|ve grades of prec|ous and base meta|s, PGMs are e|ther
produced as a pr|mary product or as by-products to n|cke| and copper.
The Bushve|d Oomp|ex (see Exh|b|t 8, page 10} |s the wor|d's |argest pr|mary source of PGMs and
conta|ns over 75% and 50% of the wor|d's p|at|num and pa||ad|um resources, respect|ve|y. The
Bushve|d Oomp|ex |s made up of an eastern and a western ||mb, w|th a sma||er, northern ||mb, and
covers over 65,000km
2
. The depos|t conta|ns three pr|mary ore bod|es, name|y the Merensky Reef,
the G2 and the P|atreef. At surface, the Merensky Reef and G2 extend for over 300km a|ong
each of the western and eastern ||mbs, wh||e the P|atreef extends for over 30km a|ong the northern
||mb. D|scovered |n the 1920s, the Merensky Reef has h|gher p|at|num grades than the G2 and
was the so|e source of South Afr|ca's PGMs unt|| the 1970s. S|nce then, extract|on has focused on
the G2, wh|ch now accounts for rough|y 75% of a|| product|on. The G2 |s part|cu|ar|y |mportant
|n the eastern ||mb, where |ts PGM resources exceed those of the Merensky Reef. These two reefs
are sub-para||e|, wh||e the G2 |s anywhere between 40m and 400m be|ow the Merensky Reef.
W|th the except|on of Braemore Resources and Sy|van|a Resources, the compan|es we prof||e are
e|ther exp|or|ng or produc|ng from the Merensky and G2 reefs on both the western and eastern
||mbs.
Exh|b|t 5: Proven and probab|e reserves of the Bushve|d lgneous Oomp|ex
Note: Reserves based on company est|mates and up to a depth of 2,000m. Grades reported up to 1,200m.
P|at|num reserves
(Moz}
P|at|num grade
(g/t}
Pa||ad|um reserves
(Moz}
Pa||ad|um grade
(g/t}
Eastern ||mb
Meresnky reef 10.9 2.4 - 3.2 4.8 1.4
G2 38.0 1.8 - 2.4 32.7 1.6 - 2.0
Western ||mb
Meresnky reef 66.2 2.5 - 3.2 30.6 1.2 - 1.5
G2 78.3 2.1 - 2.4 36.7 1.0 - 2.0
Northern ||mb
P|atreef 9.9 1.3 - 1.8 11.3 1.4 - 2.0
Tota| 203.3 116.1
Source: South Afr|can Journa| of Geo|ogy
The tota| resource of the Bushve|d Oomp|ex has been est|mated at 800Moz p|at|num and 500Moz
pa||ad|um, up to a depth of 1,200m. W|th company reserves est|mated at 400Moz, there rema|n
over 40 years of reserves to be m|ned at p|anned annua| product|on rates of 10Moz (3PGM+Au}.


Non-South Afr|can supp|y stays stat|c
Z|mbabwe's Great Dyke, the wor|d's second most |mportant PGM resource, produced 175koz of
p|at|num from two m|nes |ast year and we do not expect th|s to |ncrease |n 2009. The current
po||t|ca| and econom|c |ssues |n Z|mbabwe cont|nue to hamper ongo|ng product|on and
exp|orat|on.
Exh|b|t 6: Forecast wor|d p|at|num product|on
0
1
2
3
4
5
6
7
8
9
2006 2007 2008 2009 2010 2011 2012 2013 2014
M
o
z

p
|
a
t
|
n
u
m
Others North Amer|ca Russ|a South Afr|ca

Source: Ed|son lnvestment Research, company reports, Johnson Matthey
Other econom|ca||y |mportant PGM depos|ts |nc|ude the St|||water and |ac des ls|es depos|ts |n
North Amer|ca as we|| as Nor||sk N|cke|'s m|nes on the Ta|myr and Ko|a pen|nsu|as |n Russ|a. ln the
case of certa|n base meta| producers, revenue from PGM by-products can be s|gn|f|cant, but
re|at|ve|y |ne|ast|c, as product|on |s geared towards the n|cke| and copper markets. Examp|es of
th|s |nc|ude va|e lnco's vo|sey's Bay and Sudbury m|nes |n Oanada, the Du|uth Oomp|ex |n the S,
the J|nchuan n|cke| m|ne |n Oh|na as we|| as severa| sma||er |ntrus|ons |n F|n|and. As Exh|b|t 7
suggests, PGM product|on from non-South Afr|can sources |s st||| re|at|ve|y ||m|ted. Braemore
Resources, P|at|num Austra||a and Jub||ee P|at|num have some non-South Afr|can projects,
a|though none of these |s |n product|on.
Exh|b|t 7: Summary of wor|d p|at|num and pa||ad|um resources
74.7%
9.4%
6.1%
5.8%
2.9%
0.7% 0.4%
P| at|num (Moz}
South Afr|ca
Z|mbabwe
F|n|and
Russ|a
SA
Oanada
Oh|na
50.0%
5.3%
15.0%
19.0%
9.8%
0.8%
0.2%
Pa||ad|um (Moz}

Source: South Afr|can Journa| of Geo|ogy


Exh|b|t 8: P|at|num m|nes and projects |n the Bushve|d Oomp|ex

Source: Johnson Matthey


Johannesburg z
Bushveld Complex z


3. Demand h|t by s|owdown |n veh|c|e product|on
Autocata|ysts and jewe||ery account for rough|y 50% and 25% of tota| p|at|num demand,
respect|ve|y. Autocata|yst demand |s |arge|y a funct|on of g|oba| veh|c|e product|on, wh|ch has
recent|y seen a sharp s|owdown and |s expected to fa|| further |n 2009. Jewe||ery demand |s very
e|ast|c and corre|ates |nverse|y w|th pr|ce, suggest|ng consumers w||| take advantage of the current
s|tuat|on. The rema|n|ng demand for p|at|num comes from the |ndustr|a| sector and |s a|so
expected to fa|| |n 2009. However, by 2010 we expect demand to start |ncreas|ng aga|n, a|though
|t wou|d not be unt|| the fo||ow|ng year (2011} that p|at|num demand recovers to 2007 |eve|s.
Demand s|ows |n 2009
||ke go|d, p|at|num |s a prec|ous meta| w|th jewe||ery appea|, but d|ffers |n that |t has more |ndustr|a|
app||cat|ons. lt |s used pr|mar||y for autocata|ysts, and a|so |n the chem|ca|, e|ectr|ca| and
petrochem|ca| sectors. W|th |ts un|que cata|yt|c propert|es, p|at|num |s w|de|y used |n veh|c|es to
convert combust|on exhausts to |ess harmfu| em|ss|on products.
Exh|b|t 9: ses of p|at|num |n 2007
48.6%
23.1%
7.1%
5.7%
6.2%
6.3%
3.0%
Autocata|ysts
Jewe||ery
Other
Ohem|ca|
E|ectr|ca|
G|ass
Petro|eum

ln response to the cred|t cr|s|s and fears of a recess|on, growth |n g|oba| veh|c|e product|on has
s|owed dramat|ca||y, espec|a||y |n North Amer|ca. As a resu|t, we expect autocata|yst demand for
p|at|num to fa|| |n 2009, wh||e |ndustr|a| demand for the meta| |s a|so ||ke|y to decrease. On the back
of these expectat|ons of weaken|ng demand, heavy se|||ng |n O308 by a |ondon-based exchange
traded fund (ETF}, has exacerbated the recent fa|| |n the p|at|num pr|ce. W|th an |nverse corre|at|on
to pr|ce, jewe||ery |s the on|y e|ement of demand that we expect to |ncrease next year.
Exh|b|t 10: P|at|num demand forecasts
2006 2007 2008e 2009e 2010e 2011e 2012e 2013e 2014e
Autocata|yst (net} 3.0 3.3 3.4 3.2 3.6 4.0 4.4 4.7 4.8
Jewe||ery 1.6 1.6 1.1 1.3 1.3 1.2 1.3 1.4 1.5
Other 1.8 2.1 2.0 1.8 1.8 1.8 1.8 1.8 1.8
Tota| 6.4 7.0 6.5 6.3 6.7 7.0 7.5 7.9 8.1


Autocata|ysts dr|ve demand
Tota| autocata|yst demand for p|at|num has |ncreased every year s|nce 1999. However, as the
current econom|c downturn |mpacts veh|c|e sa|es, we expect tota| autocata|yst demand to fa|| |n
2009. Nonethe|ess, str|cter veh|c|e em|ss|ons regu|at|ons around the wor|d, a grow|ng proport|on of
d|ese| veh|c|e sa|es |n Europe and growth |n veh|c|e sa|es |n non-S and European markets w|||
cont|nue to dr|ve the demand for p|at|num |n autocata|ysts. As such, we expect autocata|yst
demand to start |ncreas|ng aga|n from 2010. A|though veh|c|e em|ss|on standards |n emerg|ng
econom|es are |ess deve|oped than the west's, we be||eve |eg|s|at|on w||| become str|cter,
espec|a||y as the env|ronmenta| and hea|th |mpacts of em|ss|ons from |ncreased veh|c|e numbers
become ev|dent.
Exh|b|t 11: Tota| wor|d veh|c|e product|on forecasts
50
60
70
80
90
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
T
o
t
a
|

w
o
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|
d

v
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e

p
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(
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Source: OSM Wor|dw|de, Ed|son lnvestment Research
S |ed the way...
ln 2000, the S Env|ronmenta| Protect|on Agency |ntroduced em|ss|on standards to contro| a|r
po||ut|on from new ||ght veh|c|es. The standards were phased |n from 2004 and |ed to much of the
ear|y growth |n p|at|num demand over the |ast four years. S|nce then, North Amer|can veh|c|e
product|on has s|umped and |s on|y expected to recover to 2007 |eve|s by 2013. A|though a|| new
heavy veh|c|es |n the S w||| be requ|red to f|t autocata|ysts by 2009, th|s |s a re|at|ve|y sma||
proport|on (<5%} of the country's tota| veh|c|e product|on. As such, North Amer|ca |s not expected
to contr|bute to s|gn|f|cant growth |n p|at|num demand over the next f|ve years.
Exh|b|t 12: Phase-|n schedu|e for NOx em|ss|on standards |n the S
Year Oars and ||ght trucks Heav|er trucks
2004 25% -
2005 50% -
2006 75% -
2007 100% -
2008 100% 50%
2009 100% 100%
Source: S Env|ronmenta| Protect|on Agency


...But Europe takes over
ln Europe, em|ss|on standards were f|rst |ntroduced |n 1993 and have cont|nued to become str|cter
s|nce then. The Euro 5 and the even str|cter Euro 6 standards w||| be |ntroduced over the next
seven years and focus on a reduct|on |n em|ss|ons from d|ese| (and to a |esser extent, gaso||ne}
veh|c|es. lt |s worth not|ng that autocata|ysts for d|ese| veh|c|es conta|n more p|at|num than those
used |n gaso||ne veh|c|es (|n wh|ch pa||ad|um subst|tutes more effect|ve|y}. On 1 September 2009,
veh|c|es not comp||ant w|th Regu|at|on (EO} No 715/2007 and Euro 5 em|ss|on standards w||| be
refused E or nat|ona| approva|, wh||e |arger veh|c|es have a further year w|th|n wh|ch to comp|y.
After an |n|t|a| per|od of two years, veh|c|es not comp|y|ng w|th Euro 5 w||| be proh|b|ted from
reg|strat|on, sa|e or entry |nto serv|ce. Str|cter Euro 6 standards w||| be subsequent|y |ntroduced |n
September 2014, wh||e the sa|e, reg|strat|on or entry |nto serv|ce of non-comp||ant veh|c|es w||| be
proh|b|ted a year |ater.
Exh|b|t 13: Schedu|e of Euro 5 and Euro 6 standards
Note: Oategory N1: veh|c|es used for the carr|age of goods and hav|ng a max|mum we|ght not exceed|ng 3.75 metr|c tonnes. Oategory
N2: veh|c|es used for the carr|age of goods and hav|ng a max|mum we|ght exceed|ng 3.75 but not exceed|ng 12 metr|c tonnes.
Date veh|c|es Standard lmpact of non-comp||ance w|th Regu|at|on
(EO} No 715/2007
1 September 2009 New veh|c|es Euro 5 Refuse to grant EO/nat|ona| type approva|
1 September 2010 New category N1 (c|ass ll and ll} and N2
veh|c|es
Euro 5 Refuse to grant EO/nat|ona| type approva|
1 January 2011 New veh|c|es Euro 5 Proh|b|t reg|strat|on, sa|e or entry |nto serv|ce
1 January 2012 New category N1 (c|ass ll and ll} and N2
veh|c|es and veh|c|es des|gned to meet
spec|f|c soc|a| needs
Euro 5 Proh|b|t reg|strat|on, sa|e or entry |nto serv|ce
1 September 2014 New veh|c|es Euro 6 Refuse to grant EO/nat|ona| type approva|
veh|c|es
Euro 6 Refuse to grant EO/nat|ona| type approva|
1 September 2015 New veh|c|es Euro 6 Proh|b|t reg|strat|on, sa|e or entry |nto serv|ce
veh|c|es
Euro 6 Proh|b|t reg|strat|on, sa|e or entry |nto serv|ce
Source: European Oommun|t|es
The |mp|ementat|on of veh|c|e em|ss|on standards |n Europe has |agged beh|nd North Amer|ca.
Over the next seven years, a|| veh|c|es so|d, reg|stered or put to use |n Europe w||| be requ|red to
comp|y w|th these em|ss|on standards. A|though European veh|c|e product|on has recent|y s|owed
down, we do not expect th|s downturn to be as severe as North Amer|ca's. G|ven the new
European veh|c|e em|ss|on standards and more robust demand, we expect p|at|num demand from
European veh|c|e manufacturers to |ncrease over the next f|ve years.
Jewe||ery demand shows strong pr|ce e|ast|c|ty
P|at|num's use |n jewe||ery has grown from a|most n|| at the beg|nn|ng of the 20th century to
1.6Moz |ast year. Most of th|s growth has taken p|ace over the |ast 20 years, pr|mar||y from
consumers |n Japan who accounted for 24% of wor|d p|at|num demand |n 1998. S|nce then, Oh|na
has taken over as the |argest consumer of p|at|num jewe||ery. As one wou|d expect, jewe||ery
demand |s part|cu|ar|y sens|t|ve to pr|ce, w|th an a|most perfect negat|ve corre|at|on between the
two. As p|at|num pr|ces doub|ed over the |ast f|ve years, jewe||ery demand has a|most ha|ved. The
recent fa|| |n the p|at|num pr|ce |s therefore ||ke|y to promote jewe||ery demand, espec|a||y from
Oh|na.


Exh|b|t 14: lnverse corre|at|on between jewe||ery demand and pr|ce
0
200
400
600
800
1,000
1,200
1,400
0
500
1,000
1,500
2,000
2,500
3,000
3,500
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
A
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(
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0
0

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}
Europe Japan
North Amer|ca Oh|na
Rest of wor|d Average p|at|num pr|ce (S$/oz}

Exchange traded funds: Pr|ce vo|at|||ty
n||ke go|d, there have h|stor|ca||y been very ||m|ted above ground stocks of p|at|num. Th|s
changed |n Apr|| 2007 when |ondon-based ETF Secur|t|es (ETFS} |aunched an exchange traded
commod|ty fund backed by phys|ca| p|at|num, wh|ch |s ne|ther |oaned nor so|d but secure|y he|d by
the fund. From a modest start of 31,620oz (1t} |n May 2007, |arge movements |n ETF stocks have
served to |ncrease pr|ce vo|at|||ty. P|at|num's ste||ar performance |n the f|rst ha|f of 2008 was part|y
|n response to meta| buy|ng from the ETFS fund, the |nventor|es of wh|ch peaked at 418,247oz
(13t} |n the f|rst week of Ju|y 2008. S|nce then, th|s fund shed over 200,000oz (6.2t}, as the
p|at|num pr|ce dropped. At the beg|nn|ng of November 2008, the ETFS fund he|d 136,265oz (4.2t}
of p|at|num. ln compar|son, the |eve|s of p|at|num he|d by the Sw|ss Zrcher Kantona|bank (ZKB}
have cont|nued to grow at s|ower, stead|er rates w|thout the mass|ve se||-off exper|enced by |ts
|ondon counterpart. ZKB he|d 105,358oz (3.3t} of p|at|num at the beg|nn|ng of November 2008.
We be||eve that as the p|at|num pr|ce recovers |nto 2009, |ncreased buy|ng from these ETFs cou|d
|ncrease pr|ce vo|at|||ty, potent|a||y magn|fy|ng the ups|de.
Exh|b|t 15: Phys|ca| p|at|num he|d by exchange traded funds
0
500
1,000
1,500
2,000
2,500
0
100,000
200,000
300,000
400,000
500,000
600,000
A
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0
7
M
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0
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ZKB p|at|num we|ght (oz} ETFS p|at|num we|ght (oz} P|at|num pr|ce (S$/oz}

Source: Ed|son lnvestment Research, ETF Secur|t|es, Zrcher Kantona|bank, Johnson Matthey


lndustr|a| uses: Growth to s|ow
Beyond the we||-documented demand from autocata|ysts, jewe||ery and more recent|y ETFs,
p|at|num |s a|so used for var|ous |ndustr|a| app||cat|ons w|th|n the g|ass, chem|ca|, e|ectr|ca| and
petrochem|ca| sectors. ln 1998, comb|ned demand from these sectors was 925,000oz (28.8t}
|ncreas|ng to 1,450,000oz (45.1t} |n 2007, equat|ng to a compound annua| growth rate of 5%. The
b|ggest growth came from Oh|na, where annua| demand |ncreased 13% between 1998 and 2007.
We have mode||ed |ndustr|a| demand |n 2008 and beyond on our assumpt|on that |t fa||s 7.5% from
2007 |eve|s |n year one and then rema|ns constant.


4. Pa||ad|um: Generates |ess revenue
Pa||ad|um typ|ca||y trades at a quarter of p|at|num's pr|ce. Oompared to p|at|num, eastern ||mb ores
genera||y conta|n more pa||ad|um and are therefore |ess va|uab|e than those m|ned from the
western ||mb. Th|s |s one of the reasons we suggest |nvestors |ook for compan|es w|th western
||mb assets, such as Eastern P|at|num, P|atm|n, Wes|zwe P|at|num and P|at|num Group Meta|s.
Pa||ad|um h|ts pr|ce f|oor
Pa||ad|um d|ffers from p|at|num |n a number of respects, but most notab|y |ts pr|ce and the
presence of above ground stocks (a|be|t of unknown quant|ty}. lt |s ab|e to part|a||y subst|tute for
p|at|num |n autocata|ysts. The market for these two meta|s |s therefore we||-corre|ated. After
peak|ng br|ef|y at S$580/oz |n February th|s year, the pa||ad|um pr|ce has tracked p|at|num's fa||
and traded at S$170/oz |n October 2008 before recover|ng to S$225/oz.
2009: S$330/oz pa||ad|um
Over the |ast 10 years, |ndustr|a| demand for pa||ad|um has shrunk by rough|y 2% a year and we
expect th|s trend to cont|nue |nto 2009. Neverthe|ess, |n the |onger term, pa||ad|um demand shou|d
recover as emerg|ng economy sa|es of gaso||ne veh|c|es (wh|ch use more pa||ad|um |n the|r
autocata|ysts} p|ck up aga|n. Assum|ng |t tracks p|at|num's recovery |nto 2009, we suggest an
average pr|ce for pa||ad|um of around S$330/oz.
Russ|a's |nf|uence cont|nues, but for how much |onger?
The b|g quest|on fac|ng the pa||ad|um market re|ates to the extent and attr|t|on rate of above-
ground stocks he|d by Russ|a, the wor|d's |argest producer, account|ng for rough|y 50% of g|oba|
supp|y. The Nor||sk Oomp|ex |n northern S|ber|a |s the pr|mary source of Russ|an pa||ad|um where |t
|s m|ned as a by-product to n|cke|. Dur|ng the 1970s and 1980s, th|s meta| was stockp||ed by the
Sov|et government and subsequent |rregu|ar state sa|es cont|nue to keep the market |n uncerta|nty.
A|though pre-2005 pa||ad|um product|on data from Nor||sk N|cke| are not ava||ab|e, sa|es |n 2005,
2006 and 2007 have been re|at|ve|y constant (3,235koz, 3,220koz and 3,126koz, respect|ve|y}.
Russ|a's tota| annua| contr|but|on to g|oba| pa||ad|um sa|es has been fa|||ng at 2.7% pa s|nce 1998.
Wh||e commentary on Russ|an stocks rema|ns specu|at|ve, we wou|d suggest that pa||ad|um
supp|y from stockp||es w||| cont|nue to fa|| and pa||ad|um w|||, |n future, trade at |ess of a d|scount to
p|at|num.


5. W|ndow of opportun|ty as p|at|num recovers
W|th the except|on of 2006, the p|at|num market has been |n def|c|t every year s|nce 1999.
A|though the fa|| |n the p|at|num pr|ce |n the second ha|f of 2008 h|gh||ghts the |mpact of a
s|owdown |n g|oba| veh|c|e product|on and autocata|yst demand, we expect muted supp|y-s|de
growth from South Afr|ca to keep the market |n def|c|t unt|| 2012. Hav|ng recent|y h|t the f|oor at
S$800/oz, the p|at|num pr|ce has started to |ncrease and |s expected to recover |nto 2009, when
we forecast an average pr|ce of S$1,350/oz. As such, we be||eve |nvestors have a w|ndow of
opportun|ty to buy |nto the p|at|num sector |nexpens|ve|y and benef|t from a recovery |n the
p|at|num pr|ce over the next three years.
P|at|num h|ts a f|oor at S$800/oz, and starts to recover
After the spectacu|ar r|se and fa|| of p|at|num |n 2008, we expect the pr|ce to recover over the next
three years, as the market rema|ns |n def|c|t unt|| 2012. lf a|| new postu|ated supp|y from South
Afr|ca mater|a||ses, the def|c|t wou|d reduce to n|| |n 2013 when we expect an average pr|ce of
S$1,200/oz. lnsofar as there are de|ays or d|srupt|ons to th|s new supp|y, we expect a h|gher
pr|ce.
Exh|b|t 16: Ed|son's forecasts of the p|at|num def|c|t and average pr|ce (S/oz}
Note: Average pr|ce error of est|mat|on S$184/oz
'000 oz 2006 2007 2008e 2009e 2010e 2011e 2012e 2013e 2014e
Supp|y 6.8 6.5 6.0 6.1 6.5 6.8 7.3 7.9 8.3
Demand 6.5 7.0 6.5 6.3 6.7 7.0 7.5 7.9 8.1
Surp|us/(Def|c|t} 0.3 (0.5} (0.5} (0.2} (0.2} (0.2} (0.2} 0.0 0.2
Average pr|ce (S$/oz} 1,143 1,304 1,730 1,350 1,390 1,480 1,400 1,200 1,050
Oompan|es current|y produc|ng (Eastern P|at|num and Sy|van|a Resources} or w|th |mm|nent
product|on (P|at|num Austra||a, P|atm|n and R|dge M|n|ng}, stand to benef|t from a recovery |n the
p|at|num pr|ce over the next three years. However, w|th the prospect of soften|ng pr|ces from 2012,
|nvestors shou|d be |ook|ng for compan|es deve|op|ng sha||ow, |ow-cost operat|ons.
Exh|b|t 17: H|stor|c and forecast p|at|num supp|y, demand and average pr|ce
0
200
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600
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2
0
0
0
2
0
0
1
2
0
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2
0
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3
2
0
0
4
2
0
0
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2
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6
2
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2
0
0
8
e
2
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0
9
e
2
0
1
0
e
2
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1
1
e
2
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1
2
e
2
0
1
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Tota| p|at|num supp|y Tota| p|at|num demand Average p|at|num pr|ce (S$/oz}



P|at|num versus go|d
At the t|me of wr|t|ng, the pr|ce of p|at|num |s S$830/oz, hav|ng averaged S$1,740/oz for the
year to date. Assum|ng that |t rema|ns at th|s |eve| for the rema|nder of the year w||| mean an
average pr|ce for the who|e year of S$1,416/oz. Wh||e h|gh |n compar|son to the pr|ce of recent
years, th|s pr|ce rema|ns be|ow prev|ous peaks of S$1,855/oz |n 1980 and S$1,588/oz |n 1968
|n rea| terms (Exh|b|t 18}.
Exh|b|t 18: Nom|na| vs rea| p|at|num pr|ces s|nce 1960
0
200
400
600
800
1000
1200
1400
1600
1800
2000
1
9
6
0
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3
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1
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2
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5
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8
S
$
/
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Nom|na| p|at|num pr|ce Rea| p|at|num pr|ce (2008 do||ars}

Source: Ed|son lnvestment Research, www.k|tco.com, S Bureau of |abor
Dur|ng the per|od from 1960 to the present, p|at|num has typ|ca||y traded at a prem|um to the go|d
pr|ce of between one and three t|mes. Not on|y can th|s rat|o be seen to have ex|sted |n two d|st|nct
phases (as seen |n Exh|b|t 19}, but |t has a|so exh|b|ted s|gn|f|cant vo|at|||ty. From above two t|mes
|n the ear|y 1960s, the rat|o |eapt to |ts max|mum of 6.58 t|mes |n 1968, as the p|at|num pr|ce
ant|c|pated the c|os|ng of the go|d w|ndow |n August 1971. Th|s fe|| back down aga|n after go|d
rose sharp|y |n 1970s and s|nce 1972 the p|at|num pr|ce has rare|y traded above tw|ce the |eve| of
the go|d pr|ce. By contrast, |t has traded be|ow the |eve| of the go|d pr|ce on a number of
occas|ons, |nc|ud|ng |n 1975 and then aga|n |n the per|od 1981-1985, when the western wor|d
suffered a ser|es of s|owdowns and recess|ons |n the wake of the second o|| shock of the |ate
1970s. lt s||pped be|ow the |eve| of the go|d pr|ce aga|n |n the |ate 1990s (a|be|t on|y for a short t|me
so as not to be ref|ected |n the annua| average f|gures}, reach|ng |ts |owest ever pr|ce |n rea| terms,
before once aga|n ant|c|pat|ng the genera| commod|ty pr|ce r|ses of the current decade, from 1998
onwards.


Exh|b|t 19: P|at|num/go|d pr|ce rat|o s|nce 1960
0
1
2
3
4
5
6
7
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4
1
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2
1
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1
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1
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2
1
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6
1
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2
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2
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2
2
0
0
4
2
0
0
6
P|at|num/go|d rat|o

Source: Ed|son lnvestment Research, www.k|tco.com, SA Ohamber of M|nes
Over the ent|re per|od the average p|at|num:go|d pr|ce rat|o has been 1.83 on an annua| average
bas|s. At the t|me of wr|t|ng |t |s 1.14, ref|ect|ng p|at|num's sharp pr|ce dec||nes s|nce Ju|y 2008 |n
both abso|ute terms and re|at|ve to go|d. Neverthe|ess, there |s a poor corre|at|on between the two,
w|th a regress|on ana|ys|s return|ng a Pearson Product Moment Ooeff|c|ent of -0.22.
P|at|num's re|at|onsh|p w|th o||
The pr|ce of p|at|num a|so corre|ates very c|ose|y w|th the pr|ce of o||. For the per|od s|nce 1960, a
regress|on ana|ys|s performed on the average annua| pr|ce of p|at|num compared to the annua|
average pr|ce of crude o|| returns a Pearson Product Moment Ooeff|c|ent of 0.91. G|ven the amount
of data used |n the ana|ys|s, th|s |s sa|d to be s|gn|f|cant at the 5% |eve|. That |s, there |s |ess than a
5% probab|||ty that th|s corre|at|on occurred by chance. The correct rat|ona||sat|on for th|s
corre|at|on |s probab|y that o||, |n the form of both fue| and power, const|tutes a very h|gh
proport|on of the |nput costs (as much as 40%} of any m|n|ng operat|on. As a resu|t, changes |n the
crude o|| pr|ce have a |arge |mpact on the cost base of any m|n|ng operat|on. Thus, when the pr|ce
of crude o|| goes up, marg|na| producers are rendered unprof|tab|e, e|ther the p|at|num pr|ce goes
up therefore or p|at|num product|on |s squeezed out - t|ghten|ng the supp|y-demand ba|ance and
thereby exert|ng upward pressure on the p|at|num pr|ce. The oppos|te effect occurs |n the event of
the o|| pr|ce fa|||ng. As a resu|t of th|s, |t |s poss|b|e to pred|ct the pr|ce of p|at|num w|th respect to
the pr|ce of o||, as shown |n Exh|b|t 20.
Exh|b|t 20: Re|at|onsh|p between o|| and p|at|num

Orude o|| pr|ce (S$/bb|} 50 60 70 80 90 100 125 150
P|at|num pr|ce (S$/oz} 918 1,089 1,260 1,430 1,602 1,773 2,201 2,628
At the t|me of wr|t|ng, the pr|ce of crude o|| pr|ce |s S$63.54/bb|, hav|ng averaged S$109.33/bb|
|n the year to date. Assum|ng that |t rema|ns at |ts current |eve| for the rest of the year, the fu|| year
average pr|ce w||| be S$94.07/bb|. Th|s |mp||es p|at|num pr|ces of S$1,149/oz (at the t|me of
wr|t|ng}, S$1,933/oz (year-to-date average} and S$1,672/oz (fu||-year pr|ce average},
respect|ve|y.


Exh|b|t 21: P|at|num and o|| pr|ces s|nce 1960
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P|at|num pr|ce (S$/oz} Orude o|| pr|ce (S$/bb|}

Source: Ed|son lnvestment Research, WRTG
Future p|at|num: Para||e|s w|th the go|d sector
Wh||e the markets for p|at|num and go|d are qu|te d|st|nct, |t |s neverthe|ess poss|b|e that the future
deve|opment of the (re|at|ve|y modern} p|at|num m|n|ng |ndustry w||| m|rror that of go|d |n an ear||er
era. ||ke p|at|num |n the current t|me, the output of go|d |n 1971 was dom|nated by a s|ng|e, |arge,
h|gh-grade producer |n the form of South Afr|ca, wh|ch produced 976 tonnes out of tota| western
wor|d product|on of 1,233t that year (|e 79% of the tota|}. Many other |ow grade go|d depos|ts were
known to ex|st |n the wor|d, but rema|ned uneconom|c g|ven the preva|||ng go|d pr|ce at the t|me
and the techno|ogy ava||ab|e to the |ndustry.
At the t|me a great dea| of research was conducted |nto the retreatment of o|d m|n|ng dumps to
extract the rema|n|ng go|d - not |east |n South Afr|ca. As the pr|ce of go|d rose throughout the
1970s, th|s techno|ogy was |mproved to the po|nt at wh|ch |t became commerc|a|, f|na||y a||ow|ng
the econom|c deve|opment of the rest of the wor|d's |ow grade, but extens|ve go|d depos|ts at a
t|me when marg|ns at the m|nes of South Afr|ca's Oentra| Rand were under |ncreas|ng pressure
ow|ng to the age and depth of m|n|ng operat|ons there.


Exh|b|t 22: South Afr|can vs non-South Afr|can go|d supp|y
0
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500
1,000
1,500
2,000
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South Afr|can product|on Non-South Afr|can product|on Go|d grade

Source: Ed|son lnvestment Research, South Afr|can Ohamber of M|nes
As a resu|t, the next 20 years of m|n|ng operat|ons were character|sed by dec||n|ng product|on from
South Afr|ca |n both abso|ute and re|at|ve terms at the same t|me as average grades have a|so
been dec||n|ng. At the moment a comparab|e s|tuat|on ex|sts w|th|n the p|at|num |ndustry |n that
output |s s|m||ar|y dom|nated by a s|ng|e, h|gh grade depos|t |n the form of South Afr|ca's Bushve|d
lgneous Oomp|ex. ln ex|stence, but thus far undeve|oped, are a grow|ng number of re|at|ve|y |ow
grade, but extens|ve depos|ts |n other parts of the wor|d. Wh||e there |s no |nd|cat|on that the
exp|o|tat|on of these depos|ts |s |mm|nent, grow|ng demand coup|ed w|th |mproved process|ng
techno|ogy and the eventua| matur|ty of the Bushve|d Oomp|ex means that they w||| |nev|tab|y
become econom|c |n due course of t|me. Noteworthy depos|ts |n th|s respect |nc|ude P|at|num
Austra||a's Ka|p|ats project |n the Kraa|pan Greenstone Be|t, P|at|na Resources' depos|ts |n
Green|and and Austra||a and the Russ|an depos|ts |ocated |n both the ra|s and the Ko|a Pen|nsu|a.


6. Surp|us sme|ter capac|ty to fa||
Sme|t|ng |s a key step |n ||berat|ng and further concentrat|ng PGMs from the concentrate produced
by m|nes. South Afr|ca's s|x PGM sme|ters are contro||ed by the majors and m|d-t|er producers,
wh|ch treat the|r own concentrate and to||-treat on beha|f of others. We est|mate current surp|us
sme|ter capac|ty of approx|mate|y 5Moz, wh|ch w||| by exhausted by around 2015 as m|ne
product|on |ncreases over th|s per|od. An |ncrease |n the |eve|s of h|gh-chrome G2 be|ng sme|ted
w||| a|so put pressure on current sme|t|ng capac|ty un|ess new sme|t|ng techno|og|es, such as
Braemore's OonRoast, are commerc|a||sed. Secur|ng concentrate off-take agreements w|th
sme|ters |s therefore a key e|ement of success for jun|ors |n th|s sector, and one of the cr|ter|a
|nvestors shou|d |ook for.
Sme|t|ng more G2: The chrome |ssue
Ore from p|at|num m|nes |s typ|ca||y crushed and fed |nto an on-s|te f|oatat|on c|rcu|t to produce a
concentrate, wh|ch |s trucked to one of s|x sme|ters |n South Afr|ca for further process|ng under an
off-take agreement. Depend|ng on the or|g|n and nature of the concentrate, sme|ters charge
producers a roya|ty, wh|ch anecdota| ev|dence suggests can be as h|gh as 30%, a|though exact
deta||s are kept conf|dent|a| by the |ndustry.
Exh|b|t 23: Summary of South Afr|can PGM sme|ter capac|ty
Note: M|npro |nc|udes new product|on from the expans|on of lmpa|a's sme|ter due to be comm|ss|oned end 2008.
Oompany Sme|ter |ocat|on Year of f|rst
product|on
Annua| PGM
product|on (Moz}
Ang|oP|at|num Waterva| Rustenburg 1926 4.162
Ang|oP|at|num Mort|mer Swartk||p 1973 0.754
Ang|oP|at|num Po|okwane Po|okwane 2003 3.131
lmpa|a M|npro Rustenburg 1969 4.935
|onm|n Moo|noo| Mar|kana 1971 1.758
Northam Northam Northam 1992 0.385
Tota| 15.125
Source: R.T Jones, An overv|ew of Southern Afr|can PGM Sme|t|ng, N|cke| and Ooba|t 2005: Oha||enges |n
Extract|on and Product|on, 44th Annua| Oonference of Meta||urg|sts, Oa|gary, A|berta, Oanada, 21-24 August
2005, pp.147-178.
W|th |ts h|gher p|at|num grades and |ower chrom|te concentrat|ons, ore from the Merenksy Reef
has h|stor|ca||y been favoured by m|n|ng compan|es. However, as sha||ower Merensky Reef
becomes dep|eted, and w|th the deve|opment of the Bushve|d's eastern ||mb (where G2
resources exceed Merensky resources}, South Afr|ca's sme|ters are now process|ng greater
proport|ons of G2 than ever before. Wh||e the G2 conta|ns |ess n|cke| and copper su|ph|des, |ts
h|gher chrom|te content |eads to a bu||d up of chrom|te sp|ne|s w|th|n the furnaces of trad|t|ona|
's|x-|n-||ne' sme|ters, mak|ng |t more d|ff|cu|t to sme|t. ln the past, th|s has been dea|t w|th by
b|end|ng ores from the Merensky and G2 reefs |n order to reduce the overa|| chrom|te content.
However, a t|me w||| come when m|ners w||| be produc|ng ma|n|y h|gh-chrom|te G2 and sme|t|ng
techno|og|es w||| need to be adapted accord|ng|y.


OonRoast: Braemore Resources takes the |ead
ln the |ate 1980s, South Afr|ca's nat|ona| m|nera| research organ|sat|on, M|ntek, commenced
deve|opment of the OonRoast process capab|e of sme|t|ng h|gh-chrom|te G2 ore. Th|s
h|gher-temperature process |s more f|ex|b|e than trad|t|ona| sme|t|ng techn|ques and can hand|e a
var|ety of concentrates, w|thout be|ng affected by h|gher chrom|te concentrat|ons. ln 2000,
Braemore Resources acqu|red the exc|us|ve wor|dw|de r|ghts to the OonRoast process for a three-
year per|od of deve|opment fo||owed by an exc|us|ve seven-year per|od of commerc|a||sat|on. Once
commerc|a||sed, we expect the OonRoast process to p|ay an |mportant ro|e |n South Afr|ca's
sme|t|ng sector. Braemore has recent|y expanded |ts Johannesburg-based tr|a| sme|ter to 3.2MW
and p|ans to deve|op a new 10MW sme|ter capab|e of treat|ng h|gh-chrome ores by 2011. For
|nvestors |n Braemore Resources, South Afr|ca's d|m|n|sh|ng excess sme|ter capac|ty as we|| as the
deve|opment of the eastern ||mb, presents a number of potent|a| opportun|t|es.
Sme|ter capac|ty constra|ned
We est|mate that capac|ty for PGM sme|t|ng |n South Afr|ca |s current|y around 15Moz per annum,
a|though th|s |s obv|ous|y |mpacted by feedstock grades, sme|ter ava||ab|||ty and meta||urg|ca|
recover|es. At th|s |eve| of sme|ter capac|ty and tak|ng |nto account our PGM product|on forecasts,
South Afr|ca's excess sme|ter capac|ty |s expected to be exhausted by around 2015. As th|s
occurs, the majors and m|d-t|er producers may be re|uctant to cont|nue to to|| treat th|rd party
concentrate, espec|a||y |f |t |s G2, and the|r ab|||ty to sme|t the|r own concentrate |s comprom|sed.
Secur|ng concentrate off-take agreements and access to sme|t|ng fac|||t|es |s therefore a key
e|ement of success for jun|ors |n th|s sector.
Exh|b|t 24: Ourrent South Afr|can sme|ter capac|ty and forecast PGM supp|y
0
2
4
6
8
10
12
14
16
18
20
2007 2008e 2009e 2010e 2011e 2012e 2013e 2014e 2015e 2016e
P
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South Afr|can forecast PGM supp|y Ourrent Annua| Sme|ter Oapac|ty

Source: Ed|son lnvestment Research, company reports


vert|ca| |ntegrat|on: |ook for jun|ors w|th sme|ter access
As new PGM product|on from severa| sma||er compan|es comes on||ne over the next f|ve years, we
expect to see the deve|opment of a handfu| of sma||er (c 25MW} sme|ters w|th the ab|||ty to hand|e
h|gh-chrom|te G2 ores w|thout part|cu|ar|y onerous e|ectr|c|ty consumpt|on demands. For
examp|e, P|atm|n |s cons|der|ng the deve|opment of an |ndependent sme|ter, wh||e Braemore
Resources |s go|ng ahead w|th p|ans to deve|op |ts 10MW OonRoast sme|ter. ln add|t|on, Eastern
P|at|num may dec|de to recomm|ss|on the 20MW mothba||ed sme|ter at |ts Orocod||e R|ver M|ne.
On the eastern ||mb, R|dge M|n|ng, a|ong w|th Jv partners Ang|o P|at|num and South Afr|ca's
lndustr|a| Deve|opment Oorporat|on, |s a|so assess|ng the deve|opment of a sme|ter at |ts Sheba's
R|dge project.


7. va|uat|on: F|ve key cr|ter|a to |ook for
lnvestors |n the jun|or p|at|num sector shou|d |ook for f|ve key cr|ter|a that we be||eve are ||ke|y to
d|fferent|ate successfu| compan|es |n the sector. These cr|ter|a |nc|ude current or |mm|nent
product|on, sha||ow resources, a western ||mb |ocat|on, access to |nfrastructure and vert|ca|
|ntegrat|on. Of the 10 compan|es prof||ed |n th|s report, we draw |nvestors' attent|on to cash
generat|ve Eastern P|at|num and Sy|van|a Resources as we|| as those compan|es about to go |nto
product|on, name|y P|at|num Austra||a, P|atm|n and R|dge M|n|ng.
Jun|or p|at|num compan|es can be va|ued by any number of methods depend|ng on the|r stage of
deve|opment. For ear|y-stage exp|orat|on and deve|opment compan|es w|th a portfo||o of resource
assets, an Ev/resource ounce metr|c |s appropr|ate. s|ng d|scounted cash f|ow (DOF} ana|ys|s and
ca|cu|at|ng the net present va|ue (NPv} of compan|es about to go |nto product|on |s another usefu|
va|uat|on method, a|though subject to a number of assumpt|ons (|nc|ud|ng meta|s pr|ces,
product|on forecasts and operat|ng costs}. For |ong-||fe compan|es w|th earn|ngs, us|ng a P/E rat|o
|s perhaps the eas|est way to compare the expected returns of d|fferent compan|es. For the
compan|es we prof||e, we have app||ed a comb|nat|on of these va|uat|on methods. ln add|t|on, we
have |dent|f|ed f|ve key cr|ter|a aga|nst wh|ch, we be||eve, |nvestors shou|d assess jun|or compan|es
|n th|s sector.
1. lnvestors shou|d |ook out for compan|es a|ready |n product|on or those about to go |nto
product|on. Produc|ng compan|es shou|d be cash generat|ve and prof|tab|e, prov|ded
costs are under contro|. ln add|t|on, producers may be |n a pos|t|on to start pay|ng
d|v|dends to shareho|ders. Oompan|es |n product|on are a|so |ess ||ke|y to need to ra|se
add|t|ona| equ|ty f|nance, m|n|m|s|ng the r|sk of d||ut|on for ex|st|ng shareho|ders. Of the
compan|es prof||ed, Eastern P|at|num |s produc|ng from |ts Orocod||e R|ver M|ne, wh||e
Sy|van|a Resources produces p|at|num from |ts ta|||ngs retreatment operat|ons. P|at|num
Austra||a, P|atm|n and R|dge M|n|ng are a|| about to go |nto product|on, expected ear|y
2009.
2. Once |n product|on, depth of resource |s a key dr|ver of costs, and therefore prof|tab|||ty.
W|th |ncreas|ng depth, producers face a r|s|ng geotherma| grad|ent as we|| as h|gher
cap|ta| and operat|ng costs. Therefore, the sha||ower the resources, the better. Most of
the compan|es prof||ed have re|at|ve|y sha||ow resources, a|though we draw attent|on to
P|atm|n and Sy|van|a Resources, wh|ch have ent|re|y surface-based operat|ons.
3. |ocat|on on the Bushve|d Oomp|ex |s a|so |mportant. Wh||e most p|at|num m|n|ng has
h|stor|ca||y taken p|ace on the western ||mb, the eastern ||mb |s the focus of new
deve|opment. However, approx|mate|y 80% of the eastern ||mb's p|at|num reserves are
hosted w|th|n the G2 (compared to on|y 54% on the western ||mb}, wh|ch has a |ower
average p|at|num grade than the Merensky Reef. Furthermore, the chrome content of
eastern ||mb ores |s h|gher, mak|ng convent|ona| sme|t|ng more cha||eng|ng. The western
||mb a|so has better estab||shed |nfrastructure. M|n|ng on the western ||mb |s therefore
preferab|e to the eastern ||mb. Both Eastern P|at|num and P|atm|n have m|nes on the


western ||mb, wh||e Wes|zwe P|at|num and P|at|num Group Meta|s are p|ann|ng the
deve|opment of new m|nes there.
4. Access to |nfrastructure |s |mportant for any m|n|ng operat|on. However, concern
regard|ng the ava||ab|||ty of power and water cont|nue to p|ague South Afr|ca's p|at|num
m|ners. Se|f-suff|c|ent operat|ons are more ||ke|y to be ab|e to m|t|gate th|s |mpact. A|| of
the compan|es we prof||e have taken steps to take advantage of ex|st|ng |nfrastructure
wh||e a|so p|ann|ng for cont|ngenc|es.
5. vert|ca| |ntegrat|on |s v|ta| to a m|n|ng company's ab|||ty to grow and create va|ue.
A|though re|at|ve|y more d|ff|cu|t to estab||sh as a jun|or |n the p|at|num sector, a portfo||o
of exp|orat|on, deve|opment and product|on assets |nc|ud|ng access to nearby sme|t|ng
fac|||t|es |s key. Eastern P|at|num |s the most vert|ca||y |ntegrated of the 10 compan|es we
prof||e.
Exh|b|t 25: Summary of |nvestment cr|ter|a
ln Sha||ow Western Access to vert|ca|
product|on resource ||mb |nfrastructure |ntegrat|on
Braemore Resources
Eastern P|at|num
Jub||ee P|at|num
Nkwe P|at|num
P|at|num Austra||a
P|at|num Group Meta|s
P|atm|n
R|dge M|n|ng
Sy|van|a Resources
Wes|zwe P|at|num
Exh|b|ts 26 and 27 present our peer compar|son for those compan|es w|th stated PGM resources.
The we|ghted average Ev/attr|butab|e resource ounce for the sector |s S$12/oz, compared to an
unwe|ghted average of S$9/oz. On a resources base on|y, th|s suggests compan|es w|th
Ev/attr|butab|e resources va|ues of |ess than S$12/oz trade at a d|scount re|at|ve to the|r peers.
Exh|b|t 26: Ev/attr|butab|e resource ounce
0
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Ev/Oz Resource We|ghted average Ev/oz nwe|ghted average Ev/oz



Of the compan|es we prof||e, Wes|zwe P|at|num, P|atm|n, P|at|num Group Meta|s, R|dge M|n|ng,
Eastern P|at|num, Nkwe P|at|num and Jub||ee P|at|num trade at |ess than S$12/oz and at a
d|scount to the sector.
Exh|b|t 27: Peer compar|son for the p|at|num sector
Note: As at 11 November 2008
* Oompan|es prof||ed |n th|s report, exc|udes Braemore Resources
Oompany ||st|ng Market cap
(S$m}
Ev
(S$m}
Attr|butab|e
resources
(3PGM+Au}
Ev/oz
Aquar|us P|at|num AS 768.6 843.1 21.40 39.40
P|at|num Austra||a* AlM, AS 103.6 94.5 5.03 18.76
|onm|n FTSE 2,629.4 3,547.4 165.62 21.42
Ang|o P|at|num JSE 9,959.2 10,766.4 641.35 16.79
Sy|van|a Resources* AlM, AS 103.9 64.2 2.86 22.42
lmpa|a P|at|num S, JSE 6,948.8 6,053.8 486.86 12.43
Wes|zwe P|at|num* JSE 137.4 114.4 12.94 8.84
P|atm|n* AlM, TS 84.2 24.5 20.93 1.17
St|||water M|n|ng S 364.2 472.6 57.22 8.26
Northam P|at|num JSE 1,130.5 938.7 133.55 7.03
P|at|num Group Meta|s* TS, AME 53.8 46.5 8.86 5.25
R|dge M|n|ng* AlM 49.2 41.4 18.31 2.26
Eastern P|at|num* AlM, TS, JSE 205.2 68.3 91.91 0.74
Nkwe P|at|num* AS 16.3 8.9 32.37 0.28
Anooraq AS 77.8 86.2 100.48 0.86
Jub||ee P|at|num* AlM, JSE 24.5 9.8 40.95 0.24
P|at|na Resources AS 10.6 7.0 44.01 0.16
Marathon PGM TS 8.4 -14.7 3.43 -4.30
Tota|/average 22,675.4 23,172.9 1,888.1 12.3
nwe|ghted average 9.0


8. Sens|t|v|t|es
The p|at|num pr|ce |s the most s|gn|f|cant va|ue determ|nant for compan|es |n th|s sector. The pr|ce
|s a funct|on of demand (|arge|y from veh|c|e autocata|ysts} and supp|y (where South Afr|ca |s the
dom|nant producer}. W|th|n our mode|, our base case scenar|o suggests a p|at|num pr|ce for 2009
of S$1,350/oz. However, |f we assume a 10% reduct|on from our base case |n terms of veh|c|e
product|on and South Afr|can supp|y, we wou|d expect an average pr|ce of S$1,170oz |n 2009.
Even |n th|s scenar|o, there |s potent|a| ups|de to the current pr|ce. When |nvest|ng |n th|s sector,
|nvestors shou|d a|so take heed of compan|es' operat|ng and cap|ta| costs as we|| as the potent|a|
|mpact of exchange rate f|uctuat|ons.
P|at|num pr|ce: veh|c|e product|on and South Afr|can supp|y are key
On the demand s|de, veh|c|e product|on and autocata|yst demand have the greatest |mpact on our
pr|ce forecasts. Ohanges to veh|c|e product|on and the eff|cacy of p|at|num subst|tut|on are
therefore key dr|vers of demand. ln terms of supp|y, South Afr|ca |s the |argest producer of
p|at|num, so any |ssues there (such as power outages, safety |nc|dents and product|on de|ays} w|||
|mpact the meta|'s pr|ce.
Exh|b|t 28: P|at|num pr|ce sens|t|v|ty ana|ys|s
0
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-30% -15% Base case 15% 30%
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South Afr|can supp|y G|oba| veh|c|e product|on
Non-South Afr|can supp|y Demand exc|ud|ng jewe||ery

ETF |mpact
Ohanges |n ETF ho|d|ngs of phys|ca| p|at|num w||| cont|nue to |nf|uence the pr|ce. G|ven the h|gh|y
||||qu|d nature of the market, sma|| var|at|ons |n ETF ho|d|ngs tend to have a |arge |mpact on the
p|at|num pr|ce. After heavy se|||ng |n the th|rd quarter of 2008, ETFs have started to |ncrease the|r
p|at|num stocks aga|n (a|be|t at a s|ower rate}, wh|ch shou|d prov|de ups|de to the current pr|ce.
Operat|ng and cap|ta| costs
A|ong w|th the rest of the m|n|ng |ndustry, the p|at|num sector |s |n a per|od of esca|at|ng costs,
dr|ven by h|gher cap|ta| expend|ture as we|| as h|gher |nput costs such as energy, |abour and
m|n|ng consumab|es. The per|od of ramp|ng up to fu|| product|on |s a|so the most expens|ve.
Operat|ng costs are h|ghest at these |ower product|on |eve|s, wh||e cap|ta| expend|ture |s a|so at |ts


peak. As compan|es move |nto steady state product|on, we wou|d expect a reduct|on |n operat|ng
costs. The |ncreased depth of m|n|ng and the |ower p|at|num grades fac|ng today's m|ners are a|so
contr|but|ng to r|s|ng operat|ng costs. Wh||e these are not ent|re|y unavo|dab|e, compan|es w|th
sha||ower (eg Sy|van|a Resources or P|at|num Austra||a} or h|gher-grade depos|ts are sh|e|ded to
some degree from cost pressures. Furthermore, as most of the |nput costs, as we|| as some debt,
are |ncurred |n South Afr|can rand, p|at|num producers w||| benef|t from any deprec|at|on of the |oca|
currency re|at|ve to the S do||ar.
Rand vs S do||ar
As d|scussed above, the major|ty of compan|es' f|xed and var|ab|e costs as we|| as some of the|r
debt |s |ncurred |n South Afr|can rand, wh|ch has fa||en aga|nst the S do||ar from ZAR7.80 at the
end of June 2008 to ZAR10.70 at the beg|nn|ng of November 2008. Th|s has prov|ded some
resp|te to fa|||ng p|at|num pr|ces, a|though |t has been offset part|y by h|gher fue| costs. As
emerg|ng markets fee| the knock-on effects of a g|oba| s|owdown, we expect the rand to rema|n
vu|nerab|e |n 2009, a|though any weaken|ng |n the S do||ar w||| support the p|at|num pr|ce.
Power and Eskom
Wh||e the reserve marg|n between e|ectr|c|ty supp|y and demand rema|ns precar|ous, Eskom |s
focus|ng on br|ng|ng severa| new projects on||ne over the next 10 years. S|nce 2005, over
2,500MW has a|ready been comm|ss|oned. ln 2009, expans|on of new open cyc|e gas turb|nes w|||
generate a further 1,000MW, wh||e a further 3,800MW w||| be produced from three prev|ous|y
mothba||ed coa|-f|red power stat|ons. ln add|t|on, supp|y to the Bushve|d w||| be strengthened w|th
a new 400kv transm|ss|on ||ne and three new substat|ons. Neverthe|ess, compan|es w|th
a|ternat|ve sources of power w||| be |n a better pos|t|on to m|t|gate potent|a| shortages. A|| of the
compan|es we prof||e have some form of cont|ngency p|an |n p|ace to dea| w|th potent|a| power
outages.


Oompany prof||es

32 Ed|son lnvestment Research Oompany prof||e Braemore Resources November 2008

Pr|ce 2.75p*
Market Oap 22m
* pr|ced as at 31 October 2008
Share pr|ce graph
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Share deta||s
Oode BRR, BRE
||st|ng AlM, JSE
Shares |n |ssue 789.3m

Pr|ce
52 week H|gh |ow
23.8p 1.0p

Ba|ance Sheet as at 30 June 2008
Debt/Equ|ty (%} N/A
NAv per share (p} 6.1
Net cash (m} 1.0

Bus|ness
Braemore Resources |s deve|op|ng un|que,
env|ronmenta||y fr|end|y sme|t|ng techno|ogy for
h|gh-chrome PGM ores. Hav|ng secured off-
take agreements w|th Ang|o P|at|num and
Northam P|at|num, product|on from a tr|a|
sme|ter |n South Afr|ca |s |ncreas|ng from
20koz/year to 70koz/year. ln Austra||a, a
def|n|t|ve feas|b|||ty study |s underway for the
retreatment of su|ph|de n|cke| ta|||ngs at BHP
B||||ton's |e|nster n|cke| m|ne.
Bu||
Ab|||ty to treat h|gh-chrome, PGM ores
Generat|ng cash from sme|t|ng revenue
Bear
No upstream m|ne product|on
Sca|ab|||ty of sme|t|ng techno|ogy

Ana|ysts
Ohar|es G|bson 020 3077 5724
M|chae| Starke 020 3077 5725
Braemore Resources

lnvestment summary: n|que techno|ogy
Braemore Resources |s un|que w|th|n the PGM sector. ln South Afr|ca, |t p|ans to
become a vert|ca||y |ntegrated PGM producer and |s current|y focused on
deve|op|ng and commerc|a||s|ng the OonRoast techno|ogy ||censed from M|ntek for
10 years. ln Austra||a, |t has deve|oped processes to retreat su|ph|de n|cke| ta|||ngs.
The company trades at a d|scount to |ts book va|ue of rough|y 45m.
n|ock|ng the va|ue of h|gh-chrome PGM ores
Braemore's 100% owned South Afr|can subs|d|ary |s sme|t|ng h|gh-chrome PGM ores
at M|ntek's Johannesburg fac|||ty. W|th |n|t|a| product|on rates of c 20koz/year
(3PGM+Au}, the company a|ms to |ncrease annua| product|on to c 70koz fo||ow|ng a
recent upgrade from 1MW to 3.2MW. Once the sca|ab|||ty of th|s techno|ogy has been
proven, Braemore p|ans to comm|ss|on a 10MW PGM OonRoast sme|ter on the
western ||mb by January 2011 and, fo||ow|ng th|s, a 360ktpa base meta| ref|nery. A
pos|t|ve feas|b|||ty for the 10MW sme|ter was comp|eted |n October 2008.
The chrome conundrum
As the Merensky Reef |s dep|eted and the eastern ||mb cont|nues to be deve|oped, a
greater proport|on of PGMs are be|ng m|ned from the G2, wh|ch has a h|gher
chrome content. The h|gh-temperature OonRoast process has been deve|oped to
process these chrome-r|ch ores, wh|ch trad|t|ona| sme|t|ng methods strugg|e to treat.
Sens|t|v|t|es: Meta||urgy |s key
Wh||e |n|t|a| resu|ts are encourag|ng, Braemore's ab|||ty to sca|e up the test sme|ter and
secure |ts own source of ore feedstock rema|n |mportant to the company's success,
as does the v|ab|||ty of N| recovery from the su|ph|de ta|||ngs. Prov|ded the company |s
ab|e to secure off-take agreements for the 10MW sme|ter, |t shou|d be |n a good
pos|t|on to access the necessary deve|opment fund|ng.
va|uat|on: Trad|ng at a d|scount to NAv
Fo||ow|ng p|acement of 100m shares at 6.5p |n Ju|y 2008, Braemore ra|sed 6.5m
and |s current|y trad|ng at a d|scount to our est|mated book va|ue of approx|mate|y 6p
per share. Debt free and generat|ng revenue, Braemore has suff|c|ent cash to
comp|ete a feas|b|||ty study of the |e|nster m|ne ta|||ngs and cont|nue w|th the p|ann|ng
stages of the 10MW sme|ter. lt a|so has the support of |ts |argest shareho|der,
Atomaer Techno|og|es, wh|ch has a 40% stake.
Oonsensus est|mates
Year
End
Revenue
(m}
PBT*
(m}
EPS*
(p}
DPS
(p}
P/E
(x}
Y|e|d
(%}
06/07 0.0 (0.9} (0.2} 0.0 N/A N/A
06/08 9.0 (1.4} (0.2} 0.0 N/A N/A
06/09e 6.3 0.7 0.0 0.0 N/A N/A
06/10e 15.3 0.2 0.0 0.0 N/A N/A
Note: *PBT and EPS are norma||sed, exc|ud|ng goodw||| amort|sat|on and except|ona| |tems

33 Ed|son lnvestment Research Oompany prof||e Braemore Resources November 2008

Key cr|ter|a
lnvestment cr|ter|a Summary Oomment
ln product|on 20-70koz/year from tr|a| 3.2MW sme|ter at M|ntek fac|||ty
Sha||ow resource N/A Ourrent|y no m|nera| resources
Western Bushve|d N/A Proposed 10MW sme|ter to be |ocated |n Rustenburg
Access to |nfrastructure Exc|us|ve r|ghts to OonRoast, un|que PGM sme|t|ng techno|ogy
vert|ca| |ntegrat|on Sme|t|ng on|y, current|y no exp|orat|on or m|ne product|on
|ocat|on of projects Future cata|ysts

z M|ntek Sme|ter

z

Oomp|et|on of def|n|t|ve feas|b|||ty study
rev|ew for 10MW sme|ter
lncrease 3.2MW sme|ter product|on to
70koz/year
Appo|ntment of BEE partner
Oomp|et|on of def|n|t|ve feas|b|||ty study
at |e|nster n|cke| ta|||ngs
Acqu|s|t|on/deve|opment of upstream
PGM m|ne product|on
Attr|butab|e m|nera| resource Non-Execut|ve Oha|rman
0
25
50
75
100
Eastern
P|at|num
Jub||ee
P|at|num
Nkwe
P|at|num
P|atm|n R|dge
M|n|ng
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
P|at|num
Austra||a
Sy|van|a
Resources
Braemore
Resources
M
o
z

P
G
M
Dr Matthews Phosa |s an attorney by
profess|on and s|ts on the boards of a
number of South Afr|can compan|es. He
served as prem|er of Mpuma|anga from
1994 to 1999 and cont|nues to p|ay an
act|ve ro|e |n po||t|cs. Phosa |s fac|||tat|ng
the BEE partnersh|p current|y under
negot|at|on.
Attr|butab|e Ev/resource Manag|ng D|rector
N/A
|eon Ooetzer |s a qua||f|ed chem|ca|
eng|neer w|th over 16 years' exper|ence
w|th Ang|o P|at|num, where he managed
both the techn|ca| and product|on aspects
of |arge concentrators and sme|ters.
Ooetzer |s spearhead|ng the company's
growth strategy.
Forecast attr|butab|e product|on Major shareho|ders
N/A
Atomaer
Ho|d|ngs
40%
HSBO O||ent
Ho|d|ngs
9%
Other
51%

34 Ed|son lnvestment Research Oompany prof||e Eastern P|at|num November 2008
Pr|ce 19.8p*
Market Oap 134m
*pr|ced as at 31 October 2008
Share pr|ce graph
0
50
100
150
200
250
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7
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Share deta||s
Oode E|R, EPS
||st|ng AlM, TS, JSE

Pr|ce
52 week H|gh |ow
203.8p 19.5p

Debt/Equ|ty (%} N/A
NAv per share (S$} 1.22
Net cash (S$m} 90.7

Bus|ness
Eastern P|at|num owns 85% of the Orocod||e
R|ver M|ne, wh|ch |t operates on the western
||mb. On the eastern ||mb, |t |s exp|or|ng and
deve|op|ng the Kennedy's va|e (85%}, Sp|tzkop
(93%} and Mareesburg (75%} projects.
Bu||
Generat|ng revenue, f|rst prof|ts
expected FY08
vert|ca||y |ntegrated, un|que among
jun|ors
Bear
Reschedu||ng of eastern ||mb
deve|opment due to |ow PGM pr|ces
Regu|atory de|ays to New Order M|n|ng
R|ghts

Ana|ysts
Ohar|es G|bson 020 3077 5724
M|chae| Starke 020 3077 5725
Eastern P|at|num

lnvestment summary: Prof|tab|e return
Eastern P|at|num's f|agsh|p Orocod||e R|ver M|ne (ORM} |s return|ng to prof|tab|||ty
through |mproved management and m|n|ng methods. The company expects to be
produc|ng at 125koz/year by year end. W|th a portfo||o of assets, Eastp|ats |s the
most vert|ca||y |ntegrated jun|or |n the sector and a|ms to produce 140koz |n 2009.
Orocod||e R|ver M|ne product|on |ncreases
The ORM was |n|t|a||y deve|oped by Barp|ats |n 1987 and subsequent|y operated by
var|ous compan|es, |nc|ud|ng t|me under care and ma|ntenance. H|stor|ca||y, m|n|ng
has been hampered by geo|og|ca| fau|t|ng and |nappropr|ate m|n|ng methods. By
adopt|ng better methods, Eastern P|at|num has successfu||y |ncreased product|v|ty
and reduced costs. ORM current|y operates at approx|mate|y 110ktpm, w|th
potent|a| to |ncrease to 220ktpm. The capac|ty of the ex|st|ng concentrator |s be|ng
upgraded to 180ktpm, but w||| need to be further expanded w|th |ncreased
product|on rates. There |s a|so the opt|on to restart the mothba||ed 7.4MW sme|ter
on-s|te, wh|ch cou|d be upgraded to 20MW at an approx|mate cost of S$100m.
Eastern ||mb exp|orat|on and deve|opment: On ho|d
On the eastern ||mb, the company |s deve|op|ng the cont|guous Sp|tzkop and
Kennedy's va|e (SKv} projects as we|| as exp|or|ng the Mareesburg project. The
SKv project has a resource of 32.4Moz (3PGM+Au} |n the Merensky Reef and
39.9Moz |n the G2. At Mareesburg, Eastp|ats has resources of 1.7Moz |n the G2
The company has recent|y reschedu|ed deve|opment t|m|ng due to |ow PGM pr|ces.
Sens|t|v|t|es: Orocod||e R|ver M|ne geo|ogy, de|ays
Oonvent|ona| m|n|ng has been re|ntroduced to m|t|gate the |mpact of fau|t|ng at ORM.
Neverthe|ess, de|ays to regu|atory approva|s for New Order M|n|ng R|ghts cou|d
|mpact the t|m|ng of |ncreased product|on.
va|uat|on: Oash r|ch and grow|ng
From a peak of 204p |n March th|s year, the share pr|ce has tumb|ed to |eve|s of
around 20p, |arge|y due to the company's operat|ona| gear|ng. W|th a prof|tab|e
m|ne, one of the |owest Ev/resource va|uat|ons |n the sector and a P/E of 6, Eastern
P|at|num trades at a steep d|scount to |ts peers, espec|a||y cons|der|ng |ts cash,
cash equ|va|ents and short-term |nvestments of S$0.29/share at 30 June 2008.
Oonsensus est|mates
Year
End
Revenue
(S$m}
PBT*
(S$m}
EPS*
(c}
DPS
(c}
P/E
(x}
Y|e|d
(%}
06/06 12.1 (4.2} (3.0} 0.0 N/A N/A
06/07 101.2 (9.2} (2.0} 0.0 N/A N/A
12/08e 175.0 56.3 5.0 0.0 6.3 N/A
12/09e 195.0 55.6 5.0 0.0 6.3 N/A
Note: *PBT and EPS are norma||sed, exc|ud|ng goodw||| amort|sat|on and except|ona| |tems. 1= S$1.6

35 Ed|son lnvestment Research Oompany prof||e Eastern P|at|num November 2008

Key cr|ter|a
ln product|on Ourrent|y produc|ng 120koz/year at the Orocod||e R|ver M|ne
Sha||ow resource G2 at Orocod||e R|ver M|ne from surface to over 900m depth
Western Bushve|d Orocod||e R|ver M|ne |ocated on western ||mb, 5km south of Br|ts
Access to |nfrastructure ORM |ocated |n estab||shed m|n|ng d|str|ct w|th access to gr|d a||ocat|on of 23MW, water
a||ocat|on for 220koz/year at Sp|tzkop/Kennedy's va|e
vert|ca| |ntegrat|on Ongo|ng exp|orat|on, |n product|on, operat|ng concentrator, mothba||ed sme|ter fac|||t|es and an
off-take agreement w|th lmpa|a P|at|num

z Mareesburg
z Sp|tzkop/Kennedy's
va|e
z Orocod||e R|ver M|ne

z
z
z

Product|on from Orocette sect|ons at
ORM
lssuance of rema|n|ng New Order M|n|ng
R|ghts for ORM
Dec|s|on to upgrade ORM sme|ter
lssue of Mareesburg M|n|ng Perm|t
Attr|butab|e m|nera| resource Oha|rman
0
25
50
75
100
Eastern
P|at|num
Jub||ee
P|at|num
Nkwe
P|at|num
P|atm|n R|dge
M|n|ng
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
P|at|num
Austra||a
Sy|van|a
Resources
Braemore
Resources
M
o
z

P
G
M
Mr Dav|d Oohen has over 20 years'
exper|ence |n the m|n|ng |ndustry. Former|y
w|th F|uor Eng|neers, and Northern Or|on
Resources, where he was past pres|dent
and OEO and |arge|y respons|b|e for the
dramat|c turn-around |n the company's
fortune. As a resu|t, Oohen |s we||-known |n
the North Amer|can and European cap|ta|
markets.
Attr|butab|e Ev/resource Pres|dent and OEO
0
10
20
30
Sy|van|a
Resources
P|at|num
Austra||a
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
R|dge
M|n|ng
P|atm|n Eastern
P|at|num
Nkwe
P|at|num
Jub||ee
P|at|num
E
v
/
P
G
M

R
e
s
o
u
r
c
e

o
u
n
c
e
Ev/Oz Resource Peer Group We|ghted Average
Peer Group nwe|ghted Average
Mr lan Roz|er |s a profess|ona| geo|og|st
w|th over 25 years' exper|ence |n the m|n|ng
|ndustry. Former|y w|th Go|df|e|ds of South
Afr|ca and a partner of Go|der Assoc|ates,
he has worked w|th severa| major m|n|ng
compan|es. Roz|er has been |nvo|ved |n
many cap|ta| ra|s|ngs |n Oanada and
Europe.
Forecast attr|butab|e m|ne product|on Major shareho|ders
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
2007 2008 2009 2010 2011 2012 2013 2014 2015
M
o
z

P
G
M
S G|oba|
lnvestor
8%
Other
92%

36 Ed|son lnvestment Research Oompany prof||e Jub||ee P|at|num November 2008
Pr|ce 14.3p*
Market Oap 15m
Share pr|ce graph
0
10
20
30
40
50
60
70
80
90
100
N
o
v
-
0
7
D
e
c
-
0
7
J
a
n
-
0
8
F
e
b
-
0
8
M
a
r
-
0
8
A
p
r
-
0
8
M
a
y
-
0
8
J
u
n
-
0
8
J
u
|-
0
8
A
u
g
-
0
8
S
e
p
-
0
8
O
c
t
-
0
8
Share deta||s
Oode J|P
||st|ng AlM, JSE

Pr|ce
52 week H|gh |ow
94.8p 11.5p

Debt/Equ|ty (%} N/A
NAv per share (p} 29.8
Net cash (m} 9.2

Bus|ness
Jub||ee P|at|num has a 63% |nterest |n the
eastern ||mb Tjate project where |t |s comp|et|ng
a feas|b|||ty study. The company a|so has PGM
exp|orat|on |nterests |n Madagascar and S|erra
|eone.
Bu||
Rerat|ng w|th pub||cat|on of feas|b|||ty
study
Potent|a| for s|gn|f|cant JORO resources
Potent|a| Jv partner or takeover target
Bear
Execut|on and deve|opment r|sk for new
m|ne

Ana|ysts
Ohar|es G|bson 020 3077 5724
Anthony Wagg 020 3077 5700
awagg@ed|son|nvestmentresearch.co.uk
Jub||ee P|at|num

lnvestment summary: Target|ng Tjate
Jub||ee P|at|num has a 63% |nterest |n |ts f|agsh|p Tjate project on the eastern ||mb
where |t |s comp|et|ng a feas|b|||ty study for the deve|opment of a 200ktpm
underground m|ne produc|ng 225koz pa for 20 years.
Tjate feas|b|||ty study nears comp|et|on
Tjate cons|sts of three cont|guous farms and |s |ocated downd|p of Ang|o P|at|num's
Tw|ckenham m|ne and lmpa|a P|at|num's Maru|a m|ne. Jub||ee P|at|num has dr|||ed
over 38,000m, wh||e a further 16,000m |s p|anned for the rema|nder of the year. On
the back of a pos|t|ve scop|ng study conducted by Snowden, the company ra|sed
11.2m |n November 2007 to fund a feas|b|||ty study on the sha||owest of the three
farms (Dsjate}. The feas|b|||ty study commenced |n January and |s expected to be
f|na||sed before the end of the year. As part of th|s study, we expect Jub||ee to
re|ease deta||s of a JORO-comp||ant resource est|mate. To date, the company
expects to de||neate attr|butab|e resources of around 282Mt at an average grade of
7.2g/t conta|n|ng 41Moz (3PGM+Au}. A JORO-comp||ant resource statement |s
expected w|th|n the com|ng months.
Madagascar: Exp|orat|on ongo|ng
The company has f|ve projects |n Madagascar where |t has |dent|f|ed PGM, n|cke|
and copper m|nera||sat|on, a|be|t at |ower grades to Tjate. As part of |ts ongo|ng
greenf|e|d exp|orat|on programme, Jub||ee |s us|ng so|| geochem|stry, a|rborne
geophys|cs and d|amond dr||||ng to de||neate potent|a| targets on the |s|and.
Sens|t|v|t|es: Tjate feas|b|||ty outcome
The key |ssue fac|ng Jub||ee |s the outcome of the feas|b|||ty study current|y |n
progress. W|th depressed PGM pr|ces and reca|c|trant cap|ta| markets, mot|vat|on
for the deve|opment of a m|ne of th|s nature on the eastern ||mb needs to be robust.
lt seems more ||ke|y Jub||ee w||| eventua||y str|ke a dea| w|th one |ts ne|ghbours.
va|uat|on: Enough cash to comp|ete Tjate feas|b|||ty study
W|th an Ev of c 7.0m and a resource of 41Moz, Jub||ee's Ev/resource mu|t|p|e |s
be|ow most |ts peers. However, there |s ups|de |n the form of a pos|t|ve outcome to
the feas|b|||ty study, JORO conf|rmat|on of the resource or a takeover offer. Jub||ee's
hea|thy cash ba|ance shou|d see |t through unt|| the end of next year.
Oonsensus est|mates
Year
End
Revenue
(m}
PBT*
(m}
EPS*
(p}
DPS
(p}
P/E
(x}
Y|e|d
(%}
06/07 0.0 (1.8} (2.1} 0.0 N/A N/A
06/08 0.0 (4.1} (3.5} 0.0 N/A N/A
06/09e 0.0 (4.4} (1.7} 0.0 N/A N/A
06/10e 0.0 (1.8} (5.2} 0.0 N/A N/A
Note: *PBT and EPS are norma||sed, exc|ud|ng goodw||| amort|sat|on and except|ona| |tems.

37 Ed|son lnvestment Research Oompany prof||e Jub||ee P|at|num November 2008

Key cr|ter|a
ln product|on No product|on
Sha||ow resource Merensky Reef 800m to 1,300m
Western Bushve|d |ocated on the eastern ||mb
Access to |nfrastructure Oont|guous to lmpa|a P|at|num's Maru|a m|ne (O|apham and Dr|ekop dec||nes} and Ang|o
P|at|num's Tw|ckenham m|ne (Hackney Shaft}
vert|ca| |ntegrat|on Exp|orat|on on|y

z Tjate
z P||anesberg

z
z

Oomp|et|on of feas|b|||ty study at the
Tjate project
Pub||cat|on of JORO comp||ant resource
at Tjate
Potent|a| jo|nt venture or outr|ght sa|e of
Tjate project or Jub||ee P|at|num p|c
Scop|ng study for Madagascan projects
0
25
50
75
100
Eastern
P|at|num
Jub||ee
P|at|num
Nkwe
P|at|num
P|atm|n R|dge
M|n|ng
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
P|at|num
Austra||a
Sy|van|a
Resources
Braemore
Resources
M
o
z

P
G
M
Mr Ma|co|m Burne was or|g|na||y a
stockbroker and a f|nanc|a| journa||st w|th
the F|nanc|a| T|mes. He has managed and
contro||ed fund management, venture
cap|ta| and |nvestment bank|ng compan|es
|n Austra||a, Hong Kong and North
Amer|ca. He has been d|rector of over 20
compan|es most of them w|th|n the m|n|ng
sector.
Attr|butab|e Ev/resource Oh|ef Execut|ve Off|cer
0
10
20
30
Sy|van|a
Resources
P|at|num
Austra||a
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
R|dge
M|n|ng
P|atm|n Eastern
P|at|num
Nkwe
P|at|num
Jub||ee
P|at|num
E
v
/
P
G
M

R
e
s
o
u
r
c
e

o
u
n
c
e
Mr Oo||n B|rd has over 40 years of
exper|ence |n the m|n|ng |ndustry, |nc|ud|ng
m|ne manager at Se|eb| Ph|kwe N|cke|
Oopper M|ne. ln 1978, he jo|ned Oosta|n
M|n|ng and was |ater manag|ng d|rector of
P|ateau M|n|ng. He subsequent|y jo|ned
Petroman Saud| Arab|a to manage the|r
m|n|ng act|v|t|es.
N/A
Best Asset
O|ass
9%
JP Morgan
Ohase
8%
F|de||ty
Management
4%
lnvestec
Secur|t|es
3%
Oo||n B|rd
3%
Gensec bank
3%
Other
70%

38 Ed|son lnvestment Research Oompany prof||e Nkwe P|at|num November 2008
Nkwe P|at|num |s a research c||ent of Ed|son lnvestment Research ||m|ted

Pr|ce 16c*
Market Oap A$30m
Share pr|ce graph
0.0
0.2
0.4
0.6
0.8
1.0
1.2
N
o
v
-
0
7
D
e
c
-
0
7
J
a
n
-
0
8
F
e
b
-
0
8
M
a
r
-
0
8
A
p
r
-
0
8
M
a
y
-
0
8
J
u
n
-
0
8
J
u
|-
0
8
A
u
g
-
0
8
S
e
p
-
0
8
O
c
t
-
0
8
Share deta||s
Oode NKP
||st|ng AS

Pr|ce
52 week H|gh |ow
112c 10c

Debt/Equ|ty (%} N/A
NAv per share (c} 47.6
Net cash (A$m} 7.7

Bus|ness
Nkwe P|at|num's f|agsh|p Garatau-Tubatse
project |s |ocated on the eastern ||mb and has a
tota| resource of 38.4Moz. strata has pa|d
S$10m for the opt|on to acqu|re 50% of th|s
project. Nkwe's other non-core projects are
be|ng farmed out or so|d. Nkwe |s ||sted on the
AS, w|th p|ans to ||st on AlM and the JSE.
Bu||
strata support for Garatau-Tubatse
S|gn|f|cant PGM resource base
Bear
T|me to product|on at Garatau-Tubatse
538.8m fu||y d||uted shares

Ana|ysts
Ohar|es G|bson 020 3077 5724
M|chae| Starke 020 3077 5725
Nkwe P|at|num

lnvestment summary: n|ock|ng va|ue
Nkwe P|at|num has amassed a s|gn|f|cant m|nera| ho|d|ng on the eastern ||mb of
South Afr|ca's Bushve|d Oomp|ex, down-d|p of Ang|o P|at|num's Mod|kwa M|ne.
Nkwe's propert|es |nc|ude Garatau (74%} and Tubatse (opt|oned stake of 74%},
wh|ch together make up the Garatau-Tubatse project w|th JORO resources of
18.0Moz and 20.4Moz, respect|ve|y (3PGM+Au}. Nkwe has s|gned an opt|on
agreement w|th strata, wh|ch can acqu|re 50% of the project upon comp|et|on of
the feas|b|||ty study current|y underway. Nkwe |s trad|ng around |ts net cash pos|t|on
and at a d|scount to |ts peers on the bas|s of |ts Ev/resource ounce.
Garatau-Tubatse: Feas|b|||ty study underway
Nkwe's f|agsh|p Garatau-Tubatse project has a tota| resource of 38.4Moz, wh|ch |s
hosted w|th|n the Merenksy and G2 reefs from depths of 350m and 700m,
respect|ve|y. Pend|ng the outcome of the feas|b|||ty study and w|th strata fund|ng,
Nkwe p|ans to deve|op two underground m|nes w|th the potent|a| for annua|
product|on of 1Moz (3PGM+Au} and m|ne ||ves of 50 years. On th|s bas|s and
assum|ng a basket pr|ce of S$1,200/oz, operat|ng costs of S$550/oz and capex
of S$1,5bn, the project potent|a||y generates an NPv

of S$5.3bn.
strata opt|on: Nkwe's free-carry to product|on
strata's b|d for |onm|n ear||er th|s year s|gna||ed |ts |ntent|on to expand the
company's p|at|num bus|ness. A|though the b|d was w|thdrawn, strata's S$10m
opt|on to acqu|re 50% of the Garatau-Tubatse project prov|des an entry |nto a
sector dom|nated by a handfu| of majors. For Nkwe shareho|ders, the path to
p|at|num product|on cou|d we|| be funded by strata.
Sens|t|v|t|es: PGM pr|ces
For Garatau-Tubatse, a 10% var|at|on |n a |ong-term, base-case basket pr|ce of
S$1,200/oz (3PGM+Au} resu|ts |n a S$1.3bn var|at|on |n the potent|a| project
NPv from a base case of S$5.3bn.
va|uat|on: Debt free and fu||y funded to end 2009
From a h|gh of A$1.12 |n February 2008, Nkwe's share pr|ce has fa||en to |ows of
10c and |s current|y trad|ng be|ow |ts NAv/share of 48c and c|ose to cash
(14Ac/share}. Debt free w|th S$16.4m net cash, Nkwe |s we||-funded to comp|ete
the Garatau-Tubatse feas|b|||ty study by the end of 2009.
Ed|son est|mates
Year
End
Revenue
(A$m}
PBT*
(A$m}
EPS*
(c}
DPS
(c}
P/E
(x}
Y|e|d
(%}
06/07 0.2 (3.5} (4.0} 0.0 N/A N/A
06/08 2.0 (5.6} (3.1} 0.0 N/A N/A
06/09e 1.1 (4.3} (1.3} 0.0 N/A N/A
06/10e 0.0 (6.8} (1.4} 0.0 N/A N/A
Note: *PBT and EPS are norma||sed, exc|ud|ng goodw||| amort|sat|on and except|ona| |tems

39 Ed|son lnvestment Research Oompany prof||e Nkwe P|at|num November 2008

Key cr|ter|a
ln product|on F|rst potent|a| product|on expected around 2013
Sha||ow resource At Garatau-Tubtase, Merensky Reef occurs from a depth of 350m
Western Bushve|d F|agsh|p Garatau-Tubatse project on eastern ||mb
Access to |nfrastructure |ocated downd|p of Ang|o P|at|num's Mod|kwa M|ne and lmpa|a P|at|num's Maru|a M|ne
vert|ca| |ntegrat|on Exp|orat|on and deve|opment on|y

z Garatau-Tubatse
z Ghost Mounta|n
z T|nderbox/K||pr|v|er

z
z
z

Acqu|s|t|on of lnternat|ona| Go|df|e|ds
15% stake |n Tubatse
D|sposa|, Jv or earn-|n at non-core
projects
Oomp|et|on of feas|b|||ty study on
Garatau-Tubatse
Dec|s|on on strata opt|on
Deve|opment of two m|nes at
Garatau-Tubatse
Attr|butab|e m|nera| resource Manag|ng D|rector
0
25
50
75
100
Eastern
P|at|num
Jub||ee
P|at|num
Nkwe
P|at|num
P|atm|n R|dge
M|n|ng
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
P|at|num
Austra||a
Sy|van|a
Resources
Braemore
Resources
M
o
z

P
G
M
Mr Mared| Mphah|e|e ho|ds a BSc
(Eng|neer|ng} |n M|nera| Resource
Management and a D|p|oma |n M|ne
Survey|ng from the n|vers|ty of the
W|twatersrand. He has cons|derab|e
exper|ence w|th|n the m|n|ng and project
f|nance sectors. Mphah|e|e a|so s|ts on the
boards of var|ous South Afr|can
eng|neer|ng, trad|ng and m|n|ng compan|es.
Attr|butab|e Ev/resource Execut|ve D|rector
0
10
20
30
Sy|van|a
Resources
P|at|num
Austra||a
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
R|dge
M|n|ng
P|atm|n Eastern
P|at|num
Nkwe
P|at|num
Jub||ee
P|at|num
E
v
/
P
G
M

R
e
s
o
u
r
c
e

o
u
n
c
e
Mr Peter |andau |s a corporate |awyer and
adv|sor, who prev|ous|y worked w|th
O|ayton tz and as genera| counse| at Oo-
operat|ve Bu|k Hand||ng. |andau |s a
d|rector and company secretary of a
number of AS-||sted compan|es w|th a
part|cu|ar focus on m|n|ng, o|| and gas
exp|orat|on and deve|opment |n Austra||a
and Afr|ca.
0.00
0.05
0.10
0.15
0.20
0.25
0.30
2007 2008 2009 2010 2011 2012 2013 2014 2015
M
o
z

P
G
M
RAB Spec|a|
S|tuat|ons
6%
Ored|t Su|sse
5%
Other
89%

40 Ed|son lnvestment Research Oompany prof||e P|at|num Austra||a November 2008

Pr|ce 28.0p*
Market Oap 62m
* pr|ced as at 31 October 2008
Share pr|ce graph
0
20
40
60
80
100
120
140
160
N
o
v
-
0
7
D
e
c
-
0
7
J
a
n
-
0
8
F
e
b
-
0
8
M
a
r
-
0
8
A
p
r
-
0
8
M
a
y
-
0
8
J
u
n
-
0
8
J
u
|-
0
8
A
u
g
-
0
8
S
e
p
-
0
8
O
c
t
-
0
8
Share deta||s
Oode P|AA, P|A
||st|ng AlM, AS

Pr|ce
52 week H|gh |ow
148.5p 18.3p

Debt/Equ|ty (%} N/A
Net cash (A$m} 9.5

Bus|ness
P|at|num Austra||a has commenced product|on
at |ts Smokey H|||s project on the eastern ||mb
|n wh|ch |t |s |ncreas|ng to a 69.75% d|rect and
approx|mate|y 85% benef|c|a| |nterest. The
company a|so has the opt|on to earn 49% of
the Ka|ahar| P|at|num Project where |t |s
comp|et|ng a BFS w|th Jv partner ARM
P|at|num.
Bu||
Transformat|on from exp|orer to
producer shou|d ensure re-rat|ng
Sha||ow, |ow-cost m|n|ng
(c S$350/oz 3PGM+Au}
Bear
Geo|og|ca| |osses at Smokey H|||s may
exceed expected 21%

Ana|ysts
Ohar|es G|bson 020 3077 5724
M|chae| Starke 020 3077 5725
P|at|num Austra||a

lnvestment summary: |ow-cost product|on
P|at|num Austra||a (P|A} |s a |ow-cost, producer of PGM from |ts sha||ow Smokey
H|||s m|ne on the eastern ||mb. Smokey H|||s |s set to produce up to 95,000oz per
annum by the end of 2009. P|A |s a|so exp|or|ng the Kraa|pan Greenstone Be|t,
where |t has a Jv w|th ARM P|at|num and the r|ght to earn up to 49% of the project.
The company's successfu| transformat|on from exp|orer to producer shou|d act as a
cata|yst for re-rat|ng.
Smokey H|||s M|ne: The ma|n project |n product|on
At the beg|nn|ng of O308, P|A started the process of comm|ss|on|ng the
concentrator at |ts Smokey H|||s P|at|num M|ne |ocated on the eastern ||mb. Once
fu||y comm|ss|oned, we expect f|rst PGM concentrate to be produced |ater th|s year.
ln June 2007, P|A comp|eted the acqu|s|t|on of the Smokey H|||s project |n wh|ch |t
|s mov|ng to a d|rect |nterest of 69.75%. Above a basket pr|ce of S$677/oz, P|A
rece|ves approx|mate|y 85% of the project revenue, compr|s|ng a 65% d|rect
|nterest and a further |nd|rect |nterest of approx|mate|y 20% for BEE debt repayment
from cashf|ows. W|th a measured and |nd|cated resources of 1Moz, the project has
a m|ne ||fe of around 10 years. Oapex of S$51m has been funded by debt
(S$40m} and equ|ty (S$11m}, w|th an ob||gat|on to hedge a port|on of product|on.
Ka|ahar| P|at|num Project: Exp|orat|on ongo|ng
|ocated on the Kraa|pan Greenstone Be|t, 330km west of Johannesburg, the
Ka|ahar| project current|y has a tota| m|nera| resource of 4.2Moz (2PGM+Au}. To
earn |ts 49% stake from ARM P|at|num, P|A must comp|ete a BFS, wh|ch we
expect |n O109. Assum|ng a pos|t|ve outcome, we expect f|rst product|on |n 2012.
Sens|t|v|t|es: Geo|og|ca| |osses
At Smokey H|||s, P|A has accounted for geo|og|ca| |osses of 13%. ln add|t|on, the
resource est|mate conservat|ve|y assumes a further 8% |oss for potent|a| un|dent|f|ed
structura| features. To m|t|gate Eskom shortages, P|A |s a|so |nsta|||ng generators.
va|uat|on: Re-rat|ng w|th product|on
From |ts peak of 149p |n June 2008, the share pr|ce has been dragged down by the
subsequent se||-off |n p|at|num and negat|ve market sent|ment. Even w|th one of the
h|ghest Ev/resource mu|t|p|es of |ts peers, we expect a re-rat|ng as product|on
commences and subsequent|y |ncreases.
Oonsensus est|mates
Year
End
Revenue
(A$m}
PBT*
(A$m}
EPS*
(c}
DPS
(c}
P/E
(x}
Y|e|d
(%}
12/07 1.5 (7.1} (4.7} 0.0 N/A N/A
12/08 2.2 (12.0} (5.3} 0.0 N/A N/A
12/09e 64.2 35.6 9.6 0.0 7.2 N/A
12/10e 115.0 50.7 14.0 0.0 4.9 N/A
Note: *PBT and EPS are norma||sed, exc|ud|ng goodw||| amort|sat|on and except|ona|
|tems. 1=A$2.47

41 Ed|son lnvestment Research Oompany prof||e P|at|num Austra||a November 2008

Key cr|ter|a
ln product|on F|rst concentrates from Smokey H|||s |n November 2008
Sha||ow resource Smokey H|||s <150m, Ka|ahar| P|at|num <200m
Western Bushve|d |ocated on eastern ||mb and Kraa|pan Greenstone Be|t
Access to |nfrastructure 8MvA standby generat|ng capac|ty
vert|ca| |ntegrat|on Exp|orat|on, m|n|ng, concentrat|on and sme|ter off-take agreed

z Smokey H|||s

Ka|ahar| P|at|num
(Kraa|pan Greenstone
Be|t - not shown}

z

Oomp|et|on of concentrator
comm|ss|on|ng
Product|on of f|rst concentrate
nderground m|n|ng
Product|on rate of 95,000oz
Oomp|et|on of BFS at the Ka|ahar|
P|at|num Project

0
25
50
75
100
Eastern
P|at|num
Jub||ee
P|at|num
Nkwe
P|at|num
P|atm|n R|dge
M|n|ng
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
P|at|num
Austra||a
Sy|van|a
Resources
Braemore
Resources
M
o
z

P
G
M
Mr Peter Dona|d A||church |s a geo|og|st
w|th more than 40 years' exper|ence |n
m|nera| exp|orat|on, m|n|ng and petro|eum
exp|orat|on, deve|opment and product|on.
Mr A||church has been an execut|ve
d|rector of a number of ||sted Austra||an
m|n|ng and o|| and gas compan|es s|nce
1980 and has cons|derab|e exper|ence |n
corporate management.
0
10
20
30
Sy|van|a
Resources
P|at|num
Austra||a
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
R|dge
M|n|ng
P|atm|n Eastern
P|at|num
Nkwe
P|at|num
Jub||ee
P|at|num
E
v
/
P
G
M

R
e
s
o
u
r
c
e

o
u
n
c
e
Mr John Derek |ew|ns |s an eng|neer w|th
more than 20 years' exper|ence |n sen|or
m|n|ng management ro|es, |nc|ud|ng
deve|opment of m|n|ng projects from a
resource stage through feas|b|||ty stud|es
to comm|ss|on|ng of m|nes and u|t|mate|y
to susta|ned m|n|ng operat|ons.
Forecast attr|butab|e m|ne product|on
Major shareho|ders
0.00
0.05
0.10
0.15
0.20
2007 2008 2009 2010 2011 2012 2013 2014 2015
M
o
z

P
G
M
Newsm|th
G|oba|
15%
Perpetua| |td
12%
Merr||| |ynch
7%
JP Morgan
Ohase
5%
Oommonwea|th
Bank of
Austra||a
5%
A||church, Peter
Dona|d
3%
Other
53%

42 Ed|son lnvestment Research Oompany prof||e P|at|num Group Meta|s November 2008
Pr|ce 110c*
Market Oap O$74m
Share pr|ce graph
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
N
o
v
-
0
7
D
e
c
-
0
7
J
a
n
-
0
8
F
e
b
-
0
8
M
a
r
-
0
8
A
p
r
-
0
8
M
a
y
-
0
8
J
u
n
-
0
8
J
u
|-
0
8
A
u
g
-
0
8
S
e
p
-
0
8
O
c
t
-
0
8
Share deta||s
Oode PTM, P|G
||st|ng TS, AME

Pr|ce
52 week H|gh |ow
419.0c 77.0c

Ba|ance Sheet as at 31 May 2008
Debt/Equ|ty (%} N/A
Net cash (O$m} 5.6

Bus|ness
nder the terms of a proposed restructur|ng of
the Western Bushve|d (WB} Jv w|th Wes|zwe
and Ang|o, P|at|num Group Meta|s (PTM} |s
tak|ng a 74% |nterest |n Projects 1 and 3. ln
add|t|on, the company has been granted
m|nera|s r|ghts over 82.9km
2
on the western
||mb. The company's other exp|orat|on |nterests
|nc|ude War Spr|ngs and Tweespa|k on the
northern ||mb.
Bu||
Potent|a| |ncrease |n attr|butab|e
resources and reserves
Potent|a| for |ncreased product|on
Bear
Restructur|ng of WBJv to be f|na||sed
Need to ra|se capex for m|ne
deve|opment at Project 1

Ana|ysts
Ohar|es G|bson 020 3077 5724
M|chae| Starke 020 3077 5725
P|at|num Group Meta|s

lnvestment summary: Restructur|ng for growth
P|at|num Group Meta|s (PTM} has |nterests |n three projects on the western ||mb. At
the f|rst of these, PTM has comp|eted a feas|b|||ty study and p|ans to ra|se funds for
the deve|opment of an underground m|ne, pend|ng the restructur|ng of the WBJv.
At |ts second project, PTM has estab||shed a Jv to exp|ore for PGMs on a south-
eastern port|on of the western ||mb. PTM |s a|so exp|or|ng the northern ||mb.
Deve|op|ng Project 1 |nto a m|ne
Pend|ng f|na||sat|on of the WBJv restructur|ng, PTM |s |ncreas|ng |ts stake |n
Projects 1 and 3 from 37% to 74%. As a resu|t, PTM's tota| attr|butab|e resources
from these projects |ncrease from 2.2Moz to 7.7Moz, of wh|ch 3.2Moz are reserves.
Fo||ow|ng a pos|t|ve outcome to the feas|b|||ty study pub||shed ear||er th|s year, the
company p|ans to deve|op Project 1 |nto a m|ne w|th a steady state product|on rate
of approx|mate|y 250koz pa and a ||fe of 22 years. As part of the restructur|ng,
PTM's ant|c|pated attr|butab|e product|on doub|es from rough|y 92koz pa
(3PGM+Au} to 185koz pa. Once a dec|s|on to construct the m|ne has been taken,
we wou|d expect product|on after rough|y three years. Expected operat|ng costs are
S$438/oz, wh||e the ||fe of m|ne capex requ|rement |s S$684m.
Funded exp|orat|on jo|nt venture
|ocated on the south-eastern extent of the western ||mb, the PTM/Sab|e P|at|num
Jv w||| exp|ore 82.9km
2
of p|at|n|ferous m|nera| r|ghts secured by PTM. By spend|ng
ZAR51m over f|ve years, Sab|e P|at|num w||| have the r|ght to earn-|n to 51% of the
project, wh||e a BEE partner w||| reta|n 26%, |eav|ng PTM w|th 23%. The exp|orat|on
programme w||| be managed by PTM and may be expanded by a further 27.7km
2
.
Sens|t|v|t|es
Assum|ng the cond|t|ons precedent are sat|sf|ed and the WBJv restructur|ng goes
ahead, PTM w||| have to ra|se the capex needed to deve|op Project 1 |nto a m|ne.
As an underground m|ne, |t w||| a|so |ncur h|gher operat|ona| expend|ture.
va|uat|on
From a h|gh of 465c/share, the stock |s trad|ng somewhat above |ts 71c |ow. The
company recent|y ra|sed O$7.4m, wh|ch shou|d see |t through unt|| m|d-2009.
Assum|ng the m|ne |s deve|oped, the feas|b|||ty study presents a post-tax NPv
10
of
S$217m (321c/share} at S$1,295/oz Pt, S$334/oz Pd and S$5,386 Rd.
Oonsensus est|mates
Year
End
Revenue
(O$m}
PBT*
(O$m}
EPS*
(c}
DPS
(c}
P/E
(x}
Y|e|d
(%}
08/06 0.0 (3.9} (8.0} 0.0 N/A N/A
08/07 0.0 (6.8} (12.0} 0.0 N/A N/A
08/08e 0.0 (3.3} (9.8} 0.0 N/A N/A
08/09e 0.0 (4.0} (21.0} 0.0 N/A N/A

43 Ed|son lnvestment Research Oompany prof||e P|at|num Group Meta|s November 2008

Key cr|ter|a
ln product|on F|rst underground m|ne product|on expected 2011
Sha||ow resource MR and G2 occur from 130m to 630m depth be|ow surface
Western Bushve|d Part of the Western Bushve|d jo|nt venture
Access to |nfrastructure 2MW Eskom a||ocat|on for Project 1 construct|on
vert|ca| |ntegrat|on Exp|orat|on, no product|on, wh||e Ang|o P|at|num has r|ght of f|rst refusa| to purchase a|| ore or
concentrate from Project 1

z Western Bushve|d
Jo|nt venture
z Sab|e Jv
z Tweespa|k
z War Spr|ngs

z
z
z
z

F|na||sat|on of the WBJv restructur|ng
Ra|s|ng funds for the deve|opment of
Project 1
Oomp|et|on of m|ne construct|on at Project 1
Oomm|ss|on|ng and f|rst product|on from
Project 1
Exp|orat|on expend|ture of ZAR51m over f|ve
years at PTM/Sab|e Jv
Attr|butab|e m|nera| resource Pres|dent and OEO
0
25
50
75
100
Eastern
P|at|num
Jub||ee
P|at|num
Nkwe
P|at|num
P|atm|n R|dge
M|n|ng
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
P|at|num
Austra||a
Sy|van|a
Resources
Braemore
Resources
M
o
z

P
G
M
Mr M|chae| Jones has 20 years of exper|ence as
a profess|ona| geo|og|ca| eng|neer and has been
|nvo|ved w|th ra|s|ng over S$200m for
exp|orat|on, m|n|ng deve|opment and
product|on. He has he|d severa| sen|or pos|t|ons
|n the sector and was respons|b|e for the
d|scovery of the G||mmer Go|d m|ne |n Ontar|o.
Jones ho|ds a BA Sc |n geo|og|ca| eng|neer|ng
from the n|vers|ty of Toronto.
Attr|butab|e Ev/resource (assumes WBJv restructur|ng comp|etes} Oh|ef F|nanc|a| Off|cer
0
10
20
30
Sy|van|a
Resources
P|at|num
Austra||a
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
R|dge
M|n|ng
P|atm|n Eastern
P|at|num
Nkwe
P|at|num
Jub||ee
P|at|num
E
v
/
P
G
M

R
e
s
o
u
r
c
e

o
u
n
c
e
Mr Frank Ha||am has extens|ve operat|ng and
f|nanc|a| exper|ence at the sen|or management
|eve| w|th severa| pub||c|y ||sted resource
compan|es and has over 10 years of exper|ence
work|ng |n East and South Afr|ca, |nc|ud|ng h|s
ro|e as OFO and d|rector w|th Tan Range
Exp|orat|on. He |s a chartered accountant and
has a degree |n bus|ness adm|n|strat|on from
S|mon Fraser n|vers|ty.
0.00
0.05
0.10
0.15
0.20
2007 2008 2009 2010 2011 2012 2013 2014 2015
M
o
z

P
G
M
Geo|og|c
Group
Partners
12%
JP Morgan
Ohase & Oo
10%
JP Morgan
Asset Mgmt
4%
Other
74%

44 Ed|son lnvestment Research Oompany prof||e P|atm|n November 2008
Pr|ce 58p*
Market Oap 65m
Share pr|ce graph
0
100
200
300
400
500
600
N
o
v
-
0
7
D
e
c
-
0
7
J
a
n
-
0
8
F
e
b
-
0
8
M
a
r
-
0
8
A
p
r
-
0
8
M
a
y
-
0
8
J
u
n
-
0
8
J
u
|-
0
8
A
u
g
-
0
8
S
e
p
-
0
8
O
c
t
-
0
8
Share deta||s
Oode PPN
||st|ng AlM, TS

Pr|ce
52 week H|gh |ow
492.5p 58.0p

Ba|ance Sheet as at 31 August 2008
Debt/Equ|ty (%} 30.3
Net cash (S$m} 13.3

Bus|ness
P|atm|n has four PGM projects, name|y
P||anesberg (where f|rst product|on |s |mm|nent}
as we|| as Mphah|e|e and Grootboom where
feas|b|||ty stud|es are we|| underway. At |oskop,
exp|orat|on |s be|ng funded by Jv partner
|onm|n. W|th the except|on of Mphah|e|e
(54.3%}, P|atm|n owns 72.4% of |ts projects.
Bu||
|ow-cost, open-p|t, western ||mb, PGM
product|on by O109
P|pe||ne of exp|orat|on and deve|opment
projects
Bear
Potent|a| for de|ays to comm|ss|on|ng of
P||anesberg concentrator
H|gh|y |everaged

Ana|ysts
Ohar|es G|bson 020 3077 5724
M|chae| Starke 020 3077 5725
P|atm|n

lnvestment summary: Emerg|ng producer
P|atm|n |s mak|ng the trans|t|on from deve|oper to producer w|th |ts |ow-cost, open-
p|t, P||anesberg project on the western ||mb expected to produce f|rst concentrate |n
O109. The company a|so has three pre-product|on projects on the eastern ||mb.
|ow-cost open p|t product|on schedu|ed for H109
P|at|m|n's f|agsh|p P||anesberg open p|t m|ne |s |ocated on the western ||mb and was
awarded a m|n|ng r|ght |n February 2008. Ore m|n|ng started |n November 2008 to
deve|op a ROM stockp||e pr|or to comm|ss|on|ng of the concentrator |n O109. The
m|ne shou|d be |n steady state product|on from H209 of 250koz pa (3PGM+Au}.
The tota| resource of 11.4Moz |nc|ud|ng reserves of 4.4Moz w||| support a m|ne ||fe
of at |east 16 years, for wh|ch an off-take agreement has been s|gned w|th Northam.
ln add|t|on to O$93m ra|sed |ast year and a S$46m br|dg|ng |oan, P|atm|n |s |n the
process of secur|ng project f|nance of S$200m to fund c S$213m capex.
Project p|pe||ne: Two |n deve|opment, one |n exp|orat|on
On the eastern ||mb, Mphah|e|e's feas|b|||ty study shou|d be comp|eted by the end
of th|s year, wh||e Grootboom's w||| be f|na||sed |n ear|y 2009. App||cat|ons for m|n|ng
r|ghts at both projects have been accepted by the Department of M|nera| Affa|rs and
Energy and are expected to be awarded |n ear|y 2009. W|th a tota| resource of
121.4Mt at 4.57g/t conta|n|ng 17.84Moz, Mphah|e|e cou|d be produc|ng by 2013
w|th steady state product|on rates of 250koz pa. Grootboom |s sma||er w|th a
resource of 3.0Moz and med|um-term potent|a| for product|on of 86koz pa over 11
years. P|atm|n's fourth project, |oskop, |s funded and operated by |onm|n and has
a resource of 12.6Mt at 4.35g/t conta|n|ng 1.8Moz (2PGM+Au}.
Sens|t|v|t|es
Oomm|ss|on|ng a new m|ne can be subject to de|ays. Neverthe|ess, P|atm|n has an
exper|enced team and a track record of h|tt|ng targets. lt a|so has cont|ngenc|es |n
p|ace at P||anesberg to m|t|gate potent|a| water or power shortages.
va|uat|on: Strong fundamenta|s
A|ong w|th the rest of the sector, P|atm|n has been |mpacted by weak PGM pr|ces.
W|th a |ow-cost, open p|t m|ne about to go |nto product|on on the western ||mb, the
fundamenta|s of th|s bus|ness shou|d support a recovery |n the share pr|ce.
Oonsensus est|mates
Year
End
Revenue
(S$m}
PBT*
(S$m}
EPS*
(c}
DPS
(c}
P/E
(x}
Y|e|d
(%}
02/07 0.0 (7.0} (9.0} 0.0 N/A N/A
02/08 0.0 (9.1} (9.0} 0.0 N/A N/A
02/09e 4.1 (27.6} (25.3} 0.0 N/A N/A
02/10e 286.0 128.8 85.7 0.0 1.1 N/A
Note: *PBT and EPS are norma||sed, exc|ud|ng goodw||| amort|sat|on and except|ona| |tems. 1= S$1.6

45 Ed|son lnvestment Research Oompany prof||e P|atm|n November 2008

Key cr|ter|a
ln product|on X F|rst product|on expected from P||anesberg |n O109
Sha||ow resource Open p|t w|th potent|a| for underground m|n|ng between 150m and 500m on the western ||mb,
wh||e eastern ||mb projects start at surface but |ncrease to greater depths.
Western Bushve|d P||anesberg P|at|num M|ne |ocated on the western ||mb
Access to |nfrastructure Agreement w|th Eskom for 37MvA of new power supp|y at P||anesberg as we|| as standby
generat|on capac|ty. At Mphah|e|e, water a||ocat|on and temporary a||ocat|on of 5MvA
vert|ca| |ntegrat|on Exp|orat|on, product|on, benef|c|at|on and off-take agreement s|gned w|th Northam P|at|num,
potent|a| p|an for sme|ter construct|on

z P||anesberg
z |oskop
z Mphah|e|e
z Grootboom

z
z
z
z

Oomm|ss|on|ng of the concentrator at
P||anesberg
F|rst product|on from P||anesberg
Outcome of feas|b|||ty stud|es at
Mphah|e|e and Grootboom projects
Award of m|n|ng r|ghts at Mphah|e|e and
Grootboom
0
25
50
75
100
Eastern
P|at|num
Jub||ee
P|at|num
Nkwe
P|at|num
P|atm|n R|dge
M|n|ng
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
P|at|num
Austra||a
Sy|van|a
Resources
Braemore
Resources
M
o
z

P
G
M
Mr Rupert Pardoe started h|s career at
Ang|o Amer|can where he he|d var|ous ro|es
over a 20-year per|od, |nc|ud|ng that of
f|nance d|rector from 1997 to 2001. Pardoe
has served on the boards of severa|
compan|es and was appo|nted to the
P|atm|n board |n November 2005.
0
10
20
30
Sy|van|a
Resources
P|at|num
Austra||a
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
R|dge
M|n|ng
P|atm|n Eastern
P|at|num
Nkwe
P|at|num
Jub||ee
P|at|num
E
v
/
P
G
M

R
e
s
o
u
r
c
e

o
u
n
c
e
Mr lan Watson has he|d sen|or pos|t|ons at
a number of South Afr|can m|nes. He |ed
the start-up of Northam P|at|num and |ater
served as |ts manag|ng d|rector. Watson
was appo|nted to the P|atm|n board |n
August 2004.
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
2007 2008 2009 2010 2011 2012 2013 2014 2015
M
o
z

P
G
M
|onm|n P|c
21%
Karr|ck
17%
ODO Group
13%
Other
31%
OopperOo
18%

46 Ed|son lnvestment Research Oompany prof||e R|dge M|n|ng November 2008
R|dge M|n|ng |s a research c||ent of Ed|son lnvestment Research ||m|ted

Pr|ce 27.5p*
Market Oap 23m
Share pr|ce graph
0
20
40
60
80
100
120
140
160
N
o
v
-
0
7
D
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c
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-
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8
Share deta||s
Oode RDG
||st|ng AlM
Shares |n |ssue 91m

Pr|ce
52 week H|gh |ow
140.0p 21.5p

Debt/Equ|ty (%} N/A
NAv per share (p} 56
Net cash (S$m} 7.7

Bus|ness
R|dge M|n|ng |s a K-dom|c||ed m|n|ng house
that |s deve|op|ng two PGM projects on the
Bushve|d Oomp|ex ca||ed B|ue R|dge (|n wh|ch |t
has a 50% |nterest} and Sheba's R|dge (|n
wh|ch |t has a 39% |nterest w|th an opt|on to
take |t to a 61.5% |nterest}.
Bu||
Potent|a| for EPS of 9.6p and DPS of
11.8p from B|ue R|dge a|one
100% backup Genset power capac|ty
|nsta||ed at B|ue R|dge
Bear
|ong |ead t|me before deve|opment of
Sheba's R|dge
Power supp|y to Sheba's uncerta|n

Ana|ysts
Ohar|es G|bson 020 3077 5724
M|chae| Starke 020 3077 5725
R|dge M|n|ng

lnvestment summary: Product|on |mm|nent
W|th m|n|ng a|ready underway at the most advanced of |ts projects (B|ue R|dge}, the
management of R|dge M|n|ng has conf|rmed that |t |s on target to produce |ts f|rst
concentrate th|s year. ln the meant|me, a bankab|e feas|b|||ty study has been
comp|eted on the second project, Sheba's R|dge, ear|y |nd|cat|ons from wh|ch
suggest that |t cou|d be worth severa| mu|t|p|es of the B|ue R|dge project.
B|ue R|dge
The B|ue R|dge depos|t, on the eastern ||mb of the Bushve|d Oomp|ex, |s a|most
un|que |n that |t has a |ow chrome content (<2%}, wh|ch means that |t avo|ds the
sme|t|ng d|ff|cu|t|es usua||y assoc|ated w|th eastern ||mb ore. At a sha||ow depth and
accessed by dec||ne shaft, the company |s m|n|ng the ore body v|a a narrow,
'eff|c|ent cut' m|n|ng method at a rate of 120ktpm. lt w||| produce 73,335oz of
p|at|num, 35,186oz of pa||ad|um and 12,593oz of rhod|um per annum for over 20
years, at a cost of S$450 per p|at|num equ|va|ent ounce. The project |s fu||y
funded and p|ant comm|ss|on|ng |s |mm|nent. Fu|| product|on |s ant|c|pated |n m|d-
2009.
Sheba's R|dge
|ocated approx|mate|y 14 m||es from B|ue R|dge, the Sheba's R|dge depos|t
compr|ses 716Mt of ore at a grade of 0.19% n|cke| and 0.91g/t (2PGM+Au}
conta|n|ng 1.36Mt and 20.9Moz |n a sty|e of m|nera||sat|on ak|n to d||ute Merenksy
Reef. The bankab|e feas|b|||ty study at Sheba env|saged m|n|ng at a rate of 18Mtpa
to produce 23,000t of n|cke| and 394,500oz (3PGM+Au} per annum for over 20
years at a cash cost of S$1.30/|b N| and an |n|t|a| cap|ta| cost of S$707m.
'Base case' va|uat|on of S$7.13 per share
At a |ong-term p|at|num (Pt} pr|ce of S$1,470/oz and a pa||ad|um (Pd} pr|ce of
S$349/oz, we est|mate that B|ue R|dge contr|butes a va|ue of S$1.98 to each
R|dge M|n|ng share. At a n|cke| pr|ce of S$22,500/tonne and a copper pr|ce of
S$6,053/tonne, a further S$5.14 |s contr|buted by the company's ||ke|y 61.5%
|nterest |n Sheba's R|dge. Assum|ng a dec||ne |n meta| pr|ces to the |ower of the
current|y preva|||ng spot pr|ce or Ed|son's |ong-term pr|ce forecast generates a
'worst case scenar|o' va|uat|on for R|dge of S$2.49 (136p} per share.
Ed|son est|mates
Year
End
Revenue
(S$m}
PBT*
(S$m}
EPS*
(c}
DPS
(c}
P/E
(x}
Y|e|d
(%}
12/07 1.3 (3.1} (8.6} 0.0 N/A N/A
12/08 2.7 (9.6} (10.5} 0.0 N/A N/A
12/09e 53.1 16.8 12.7 0.0 3.3 0.0
12/10e 63.8 22.9 17.4 0.0 2.4 0.0
Note: *PBT and EPS are norma||sed, exc|ud|ng goodw||| amort|sat|on and except|ona| |tems. 1=$1.60

47 Ed|son lnvestment Research Oompany prof||e R|dge M|n|ng November 2008

Key cr|ter|a
ln product|on M|n|ng underway, p|ant comm|ss|on|ng |mm|nent, fu|| product|on m|d-2009
Sha||ow resource Average depth |ess than 300m for 10 years, max|mum depth 800m
Western Bushve|d But ore |ow |n chrome and more ak|n to western Bushve|d ore
Access to |nfrastructure 2MvA power ||ne |nsta||ed, 10MvA ||ne be|ng |nsta||ed, 100% Genset backup capac|ty
vert|ca| |ntegrat|on Off-take agreement w|th lmpa|a P|at|num at B|ue R|dge

z B|ue R|dge
z Sheba's R|dge

z
z

P|ant comm|ss|on|ng and concentrate
product|on (|mm|nent}
Fu|| product|on (m|d-2009}
Subsequent product|on enhancement
p|ans |nc|ude (subject to e|ectr|c|ty supp|y
constra|nts} the deve|opment of a ta|||ngs
re-treatment operat|on to produce a
ferrochrome concentrate as we|| as the
s|nk|ng of a sma|| shaft on-reef to
|ncrease product|on to c|oser the
2.4Mtpa m||| capac|ty
Resu|t of |ndependent sme|t|ng study at
Sheba's R|dge
Oommencement of Sheba's R|dge
0
25
50
75
100
Eastern
P|at|num
Jub||ee
P|at|num
Nkwe
P|at|num
P|atm|n R|dge
M|n|ng
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
P|at|num
Austra||a
Sy|van|a
Resources
Braemore
Resources
M
o
z

P
G
M
Mr O||ver Bar|ng was former MD of BS
Oorporate F|nance D|v|s|on, respons|b|e for
the Afr|ca and M|n|ng d|v|s|ons. He |s a
veteran of the Ang|o Amer|can/De Beers
group |n the S, K and South Afr|ca, and
was prev|ous|y a partner of Rowe and
P|tman.
0
10
20
30
Sy|van|a
Resources
P|at|num
Austra||a
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
R|dge
M|n|ng
P|atm|n Eastern
P|at|num
Nkwe
P|at|num
Jub||ee
P|at|num
E
v
/
P
G
M

R
e
s
o
u
r
c
e

o
u
n
c
e
Mr Terence W||k|nson has over 40 years'
exper|ence |n the |ndustry and was a former
ch|ef operat|ng off|cer at |onm|n.
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
2007 2008 2009 2010 2011 2012 2013 2014 2015
M
o
z

P
G
M
Go|d
Mounta|ns (HK}
20%
SlS
Sega|ntersett|e
15%
B|ackRock lnvt
Mgmt
13%
Skagen Kon-
T|k|
9%
Ooronat|on
Oap|ta|
4%
Other
39%

48 Ed|son lnvestment Research Oompany prof||e Sy|van|a Resources November 2008
Pr|ce 39.5p*
Market Oap 71m
Share pr|ce graph
0
20
40
60
80
100
120
140
160
N
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A
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S
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O
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-
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8
Share deta||s
Oode S|v
||st|ng AlM, AS

Pr|ce
52 week H|gh |ow
149.0p 28.5p

Debt/Equ|ty (%} 0.4
Net cash (A$m} 43.3

Bus|ness
Sy|van|a Resources has a 74% |nterest |n the
Sy|van|a Dump Operat|ons (SDO}, wh|ch
recovers PGMs from Samancor's chrom|te
ta|||ngs. The company a|so has a 25% |nterest |n
the Ohrom|te Ta|||ngs Retreatment Project
(OTRP} managed by Aquar|us P|at|num. ln
add|t|on, Sy|van|a has an earn-|n agreement at
Everest North, where |t |s |n the process of
comp|et|ng a feas|b|||ty study. S|v a|so has a
16% |nterest |n AS-||sted Great Austra||an
Resources.
Bu||
Oash generat|ve w|th h|gh marg|ns
|ow-techn|ca| r|sk
Bear
Future of Everest North project
Ab|||ty to secure |ong-term supp|y of
PGM feedstock/ta|||ngs

Ana|ysts
Ohar|es G|bson 020 3077 5724
M|chae| Starke 020 3077 5725
Sy|van|a Resources

lnvestment summary: |ower r|sk, h|gher marg|n
Sy|van|a Resources' growth strategy |s un|que among the jun|or PGM sector. s|ng
the cash generated by |ts ta|||ngs retreatment operat|ons, the company |s expand|ng
|ts portfo||o of PGM exp|orat|on and deve|opment assets w|th the med|um-term
object|ve of estab||sh|ng |tse|f as a sha||ow, hard-rock m|ner.
Sy|van|a Dump Operat|ons ramps up
Sy|van|a's pr|mary operat|on |s the recovery of PGM from chrom|te ta|||ngs on both
the western and eastern ||mbs. A|though product|on vo|umes and feed grades are
|ower than a typ|ca| hard-rock m|ne, these surface retreatment operat|ons produce
PGMs at s|gn|f|cant|y |ower costs (A$408/oz |n FY08 cf an average basket pr|ce of
S$2,626/oz}. ln FY08, the company produced 14,224oz (3PGM+Au} from |ts
recovery p|ants at Samancor's M|||se|| and Stee|port m|nes. To treat add|t|ona|
feedstock secured from Samancor (300ktpa} and potent|a||y |onm|n (250ktpa}, the
Moo|noo| and |annex p|ants are be|ng constructed at a cap|ta| cost of A$31.6m.
They have the potent|a| to produce 9,500oz pa at a comb|ned feed rate of 550ktpa,
at a grade of 1.4g/t and 40% recovery, and w||| be comm|ss|oned |n H109. ln
add|t|on, the company recent|y announced p|ans to deve|op two further new p|ants.
OTRP output |ncreases
|ocated at the Kroonda| P|at|num M|ne on the western ||mb, the OTRP has
recovered PGM from nearby ta|||ngs s|nce January 2005. Sy|van|a has a ||m|ted ro|e
|n the management of the p|ant, wh|ch |n FY08 |ncreased product|on by 33%.
Dur|ng that per|od, Sy|van|a's attr|butab|e 2,466oz generated revenue of A$5m.
Everest North
Sy|van|a has an earn-|n to the Everest North project and |s negot|at|ng w|th Aquar|us
P|at|num |n th|s regard. Neverthe|ess, Sy|van|a |s proceed|ng w|th a feas|b|||ty study
of the project, wh|ch has resources of 5.1Mt at 4.7g/t conta|n|ng 0.8Moz.
Sens|t|v|t|es and va|uat|on
A|though |ts revenues and share pr|ce have been |mpacted by the weaker PGM
market, w|th net cash of A$48.7m and h|gh operat|ng marg|ns, Sy|van|a |s re|at|ve|y
protected from f|uctuat|ons |n PGM pr|ces. Prov|ded |t cont|nues to secure PGM
feedstock, Sy|van|a shou|d be ab|e to fund |ts growth from these hea|thy cash f|ows.
Oonsensus est|mates
Year
End
Revenue
(A$m}
PBT*
(A$m}
EPS*
(c}
DPS
(c}
P/E
(x}
Y|e|d
(%}
06/07 0.4 (11.5} (7.6} 0.0 N/A N/A
06/08 32.8 17.0 5.6 0.0 17.6 N/A
06/09e 83.4 60.5 16.5 0.0 6.0 N/A
06/10e 174.7 140 43.7 0.0 2.3 N/A
Note: *PBT and EPS are norma||sed, exc|ud|ng goodw||| amort|sat|on and except|ona| |tems. Pr|ce
converted at 1 = A$2.499.

49 Ed|son lnvestment Research Oompany prof||e Sy|van|a Resources November 2008

Key cr|ter|a
ln product|on FY08 product|on of 16,690oz from three PGM recovery p|ants
Sha||ow resource PGM recovery from surf|c|a| ta|||ngs dumps
Western Bushve|d M|||se||, OTRP and Moo|noo| p|ants |ocated on the western ||mb
Access to |nfrastructure |ocated adjacent to current m|n|ng operat|ons. |ow power and water requ|rements, therefore
re|at|ve|y '|mmune' to Eskom |oad-shedd|ng
vert|ca| |ntegrat|on X Exp|orat|on, process|ng and off-take agreements, but no m|n|ng
z Everest North
z|anex
z Moo|noo|
z M|||se||
zStee|port
z Tweefonte|n
z Doornbosch

z
z
z
z
z
z
z

Oomp|et|on of construct|on at |annex and
Moo|noo| PGM recovery p|ants
Oomm|ss|on|ng and f|rst product|on from
|annex and Moo|noo|
Oonstruct|on of two new PGM recovery
p|ants at Tweefonte|n and Doornbosch
Outcome of Everest North feas|b|||ty study
Secur|ng earn-|n at Everest North from
Aquar|us P|at|num
0
25
50
75
100
Eastern
P|at|num
Jub||ee
P|at|num
Nkwe
P|at|num
P|atm|n R|dge
M|n|ng
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
P|at|num
Austra||a
Sy|van|a
Resources
Braemore
Resources
M
o
z

P
G
M
Mr R|chard Ross|ter |s an |nternat|ona|
resource sector spec|a||st w|th exper|ence
and qua||f|cat|ons |n f|nanc|a| markets and
|ndustry w|th an emphas|s on |nvestment
dec|s|on-mak|ng, dea| or|g|nat|on, research,
management and strategy. Ross|ter |eads
the board |n |mp|ement|ng the company's
strategy of becom|ng a s|gn|f|cant PGM
producer.
0
10
20
30
Sy|van|a
Resources
P|at|num
Austra||a
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
R|dge
M|n|ng
P|atm|n Eastern
P|at|num
Nkwe
P|at|num
Jub||ee
P|at|num
E
v
/
P
G
M

R
e
s
o
u
r
c
e

o
u
n
c
e
Mr Terry McOonnach|e |s we||-known |n the
|ndustry w|th 25 years' exper|ence |n m|n|ng
and benef|c|at|on of ferroa||oys and prec|ous
meta|s. McOonnach|e has |dent|f|ed and
founded severa| new m|n|ng operat|ons,
|nc|ud|ng South Afr|can Ohrome and A||oys
|td, ||sted on the Johannesburg Stock
Exchange.
Forecast attr|butab|e product|on Major shareho|ders
0.00
0.05
0.10
2007 2008 2009 2010 2011 2012 2013 2014 2015
M
o
z

P
G
M
Aud|ey Oap|ta|
19%
Ored|t Su|sse
17%
JP Morgan
Ohase
8%
BS AG
7%
JP Morgan
Asset Mgmt
4%
Henderson
G|oba|
4%
JO Hambro
Oap|ta|
Management
3%
Other
38%

50 Ed|son lnvestment Research Oompany prof||e Wes|zwe P|at|num November 2008
Pr|ce ZAR2.10*
Market Oap ZAR1,230m
Share pr|ce graph
0
200
400
600
800
1,000
1,200
N
o
v
-
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7
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8
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8
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u
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8
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0
8
A
u
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8
S
e
p
-
0
8
O
c
t
-
0
8
Share deta||s
Oode WEZ
||st|ng JSE

Pr|ce
52 week H|gh |ow
ZAR11.00 ZAR1.80

Ba|ance Sheet as at 31 December 2007
Debt/Equ|ty (%} 3.0
NAv per share (ZAR} 2.16
Net cash (ZARm} 247.5

Bus|ness
nder the terms of the restructur|ng of the
Western Bushve|d Jv (WBJv}, Wes|zwe
P|at|num |s mov|ng to 100% ownersh|p of |ts
core Fr|schgewaagd-|ed|g project (known as
the 'Wes|zwe Project'} and 26% ownersh|p of
Projects 1 and 3, contro||ed by P|at|num Group
Meta|s (PTM}. Once the restructur|ng |s f|na||sed,
Ang|o P|at|num w||| ho|d 26.6% of Wes|zwe
P|at|num.
Bu||
Sha||ow, western Bushve|d |ocat|on w|th
good access to |nfrastructure
M|ne construct|on commenced,
product|on expected 2013
Bear
Restructur|ng of WBJv to be f|na||sed
Oapex of S$560m to be ra|sed

Ana|ysts
Ohar|es G|bson 020 3077 5724
M|chae| Starke 020 3077 5725
Wes|zwe P|at|num

lnvestment summary: Fast track to product|on
JSE-||sted, Wes|zwe P|at|num |s deve|op|ng a PGM m|ne known as the 'Wes|zwe
Project'. Fo||ow|ng restructur|ng of the WBJv, Wes|zwe w||| own 100% of th|s m|ne
and 26% of two other western ||mb projects, contro||ed by P|at|num Group Meta|s.
The Wes|zwe Project
Wes|zwe's ma|n project has m|nera| resources of 82t at 5.9g/t for 13.5Moz
(3PGM+Au}, of wh|ch 100% w||| be attr|butab|e to Wes|zwe once the restructur|ng |s
comp|ete. S|tuated at a depth of approx|mate|y 720m, the Merensky and G2 reefs
are, on average, 1.5m th|ck and 20m to 60m apart, wh||e rough|y two th|rds |s sub-
hor|zonta|. Th|s a||ows for a comb|nat|on of mechan|sed and convent|ona| m|n|ng
w|th |n|t|a| extract|on focused on the Merensky reef, wh|ch hosts some 63% of the
project's p|at|num resource.
M|ne construct|on commences
Fo||ow|ng a pos|t|ve outcome to the feas|b|||ty study, deve|opment of the
underground m|ne and surface concentrator commenced |n O408. Oonstruct|on
shou|d take f|ve years, f|rst concentrate |s expected towards the end of 2013. W|th
operat|ng costs of ZAR363/t (S$36/t}, the company p|ans to |ncrease product|on
to steady state |eve|s of c 230ktpm by 2016. The project has a capex requ|rement
of ZAR5.6bn (S$560m}, to be funded by a comb|nat|on of debt and equ|ty.
Sens|t|v|t|es: O|os|ng the dea|
The restructur|ng transact|on |s subject to severa| cond|t|ons precedent, |nc|ud|ng
regu|atory approva|s and commerc|a| agreements. Wh||e there may be de|ays
sat|sfy|ng these cond|t|ons, we expect the restructur|ng to go ahead. ln add|t|on to
PGM pr|ces, Wes|zwe's success |s a|so dependent on ra|s|ng the requ|red capex.
va|uat|on
At the end of 2007, Wes|zwe had cash of ZAR247.5m, subsequent|y ra|s|ng
ZAR202.5m |n Ju|y 2008. Tak|ng |nto account the 211.9m shares to be |ssued to
Ang|o P|at|num as part of the restructur|ng, Wes|zwe trades around our current
est|mated book va|ue of ZAR1.85 per share, a s|gn|f|cant d|scount to the m|ne's
NPv
15
of ZAR9.56 per share presented |n the BFS. Once the restructur|ng |s f|na||sed
and f|nanc|ng secured, we expect a re-rat|ng of Wes|zwe shares.
Oonsensus est|mates
Year
End
Revenue
(ZARm}
PBT*
(ZARm}
EPS*
(ZAR}
DPS
(ZAR}
P/E
(x}
Y|e|d
(%}
12/06 0.0 (19.5} (5.3} 0.0 N/A N/A
12/07 0.0 (90.8} (19.2} 0.0 N/A N/A
12/08e 0.0 (80.4} (14.9} 0.0 N/A N/A
12/09e 0.0 (72.5} (14.9} 0.0 N/A N/A

51 Ed|son lnvestment Research Oompany prof||e Wes|zwe P|at|num November 2008

Key cr|ter|a
ln product|on F|rst product|on expected |n 2013
Sha||ow resource Merensky Reef and G2 <723m depth
Western Bushve|d |ocated on western ||mb, south of the P||anesberg
Access to |nfrastructure Oomm|tments for temporary water and power supp|y rece|ved
vert|ca| |ntegrat|on No greenf|e|d exp|orat|on, off-take agreement st||| to be f|na||sed

z Western Bushve|d
Jo|nt venture

z

Oomp|et|on of the restructur|ng
Secur|ng requ|red capex fund|ng
Oomp|et|on of m|ne construct|on
Product|on of f|rst ore
Product|on of f|rst concentrate
0
25
50
75
100
Eastern
P|at|num
Jub||ee
P|at|num
Nkwe
P|at|num
P|atm|n R|dge
M|n|ng
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
P|at|num
Austra||a
Sy|van|a
Resources
Braemore
Resources
M
o
z

P
G
M
Mr Robert Ra|ney has he|d pos|t|ons such
as OFO and OEO for severa| jun|or m|n|ng
houses ||sted |n Johannesburg, Oanada,
|ondon and Austra||a. H|s exper|ence |n the
m|n|ng sector spans near|y 20 years across
a range of commod|t|es |nc|ud|ng p|at|num,
go|d, chrome, d|amonds, copper/coba|t,
vanad|um and t|n m|n|ng.
0
10
20
30
Sy|van|a
Resources
P|at|num
Austra||a
Wes|zwe
P|at|num
P|at|num
Group
Meta|s
R|dge
M|n|ng
P|atm|n Eastern
P|at|num
Nkwe
P|at|num
Jub||ee
P|at|num
E
v
/
P
G
M

R
e
s
o
u
r
c
e

o
u
n
c
e
Mr M|chae| So|omon |s a m|n|ng eng|neer
w|th extens|ve exper|ence |n the South
Afr|can m|n|ng sector. ln add|t|on to h|s
var|ous sector-based consu|tancy ro|es,
So|omon has adv|sed both non-
governmenta| and commun|ty organ|sat|ons
on var|ous aspects of m|n|ng. Pr|or to h|s
appo|ntment as Wes|zwe's OEO, he was
contracted to Ang|o P|at|num as d|rector of
the company's m|nera| and m|n|ng r|ghts
convers|on project.
0.00
0.05
0.10
0.15
0.20
0.25
0.30
2007 2008 2009 2010 2011 2012 2013 2014 2015
M
o
z

P
G
M
Bakubung BA
Ratheo
20%
Afr|ca W|de
lnvestment
10%
vunan| Oap|ta|
5%
Other
65%

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EDISON INVESTMENT RESEARCH LIMITED
Lincoln House, 296-302 High Holborn, London, WC1V 7JH
Telephone +44 (0)20 3077 5700
Facsimile +44 (0)20 3077 5750
Email enquiries@edisoninvestmentresearch.co.uk
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