| Tue 12 Aug 2008, 13:41 | | WEZ - Wesizwe Platinum Limited - Results of Annual General Meeting |
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WEZ
WEZ
WEZ - Wesizwe Platinum Limited - Results of Annual General Meeting
Wesizwe Platinum Limited
(Incorporated in the Republic of South Africa)
Registration number 2003/020161/06
JSE code: WEZ & ISIN: ZAE000075859
(the "Company" or "Wesizwe")
WESIZWE PLATINUM LIMITED
Results of Annual General Meeting
Wesizwe shareholders are advised that at the Annual General Meeting of members
held on Tuesday, 12 August 2008, all resolutions as proposed in the Notice of
the Annual General Meeting were approved by the requisite majority of members.
At the Annual General Meeting, acting chairperson, Robert Rainey, made the
following address:
"Wesizwe has had yet another very successful year which effectively marked the
beginning of our transition from an exploration player to fully fledged platinum
producer.
The single most important milestone reached was the completion of the Bankable
Feasibility Study (BFS) for the Frischgewaagd-Ledig core project a year ahead of
schedule. The positive results contained in the study warranted the
unconditional go ahead for the capital construction set to begin in the next few
months, with first run of mine ore scheduled for 2011.
In a nutshell, the BFS showed the project to have a positive Net Present Value
of R9.5bn and an IRR of 18% using very conservative economic factors. The
estimated life of mine is 35 years at a monthly production rate of 230 000 tpm,
producing an average of 350 000 PGE (4) ounces per annum at steady state
production which will be achieved in 2016. The proposed mine design, comprising
of an underground mine and a surface concentrator plant, will allow for fast
production build-up and the flexibility to address the characteristics of the
ore body in the choice of mining regime.
The energy crisis experienced at the beginning of the year, and the resulting
uncertainty in terms of long-term supply ability in the mining sector, saw
Wesizwe put in place an electrical self-generation contingency as part of the
BFS. This will cover the project for any possible electricity supply delays by
Eskom. Light diesel standby generators making up the required 10MW will be
available throughout the capital construction phase and heavy fuel oil standby
for full power cover while ramping up the steady-state production requirement of
65MW during the critical ramp up to 2016 will also be put in place. These
measures are supported by an extensive study concluded by the company in June
2008 and will eliminate any energy supply uncertainty whilst only having a
limited impact on capital and working costs.
Wesizwe undertook two successful capital raisings amounting to some R500
million. The first R300m tranche was used for the procurement of long lead
capital items whilst the second tranche of R200 million raised in July 2008 will
accommodate the early works programme and the initial project construction
phase, including bulk earth works, site civil preparation, engineering and
capital items necessary to see the project through until early 2009.
In December 2007, we announced that a syndicate of Deutsche Bank, ABSA and the
Development Bank of Southern Africa had been appointed to act as lead equity and
debt arrangers to secure the necessary finance for the capital development of
the project. The financing structure, which is on schedule, will be a
combination of debt and equity instruments and is currently being finalised.
Another earlier strategic play last year saw Wesizwe acquire Africa Wide Mineral
Prospecting and Exploration, resulting in the company gaining a 26% stake in the
Western Bushveld Joint Venture (WBJV), along with Anglo Platinum and PTM who
each own 37% respectively. Following the release of the WBJV BFS, our 26% stake
now represents a base case post-tax NPV of R2,04bn with an additional 95 000
ounces per annum of 4E attributable to Wesizwe shareholders. This is in-line
with Wesizwe`s stated strategy of logical consolidation of platinum projects
near and adjacent to its core project. It is our intention to continue exploring
value-enhancing opportunities actively in the year ahead.
At the end of last year, Thuthukile Skweyiya resigned as chairperson and I would
like to take this opportunity to extend the appreciation of the board and
management for the contribution that she has made during her tenure. The process
of announcing a new chairperson is proceeding and an announcement will be made
in due course. Going forward we aim to ensure that the board is constituted to
align the company with its upcoming producer status.
I would also like to thank Michael Solomon, his executive management team and
their staff for an impressive and unprecedented year of achievement that saw the
business ranked 8th in the Business Times Annual Top 100 Companies on the JSE
for 2007 and Michael being voted 6th in the annual South Africa`s Business
Leadership listing. I am confident that this team has the technical, financial
and administrative capacity to grow Wesizwe into a leading platinum miner. To
add to this, Wesizwe was promoted to the JSE Mid-Cap index in May 2007.
Overall the past year is an impressive indication of what a young black company
can achieve. We remain committed to our goal of building a top quality mine and
to develop shareholder value through our strategy of logical consolidation.
Finally I would like to thank local investors for their support during the year
and look forward to another exciting year ahead."
ENQUIRIES
Wesizwe Platinum +27 11 994 4600
Mike Solomon, CEO
College Hill +27 11 447 3030
Fred Cornet +27 83 307 8286
Ashleigh Dubbleman +27 83 225 0438
www.wesizwe.com
Johannesburg
12 August 2008
Sponsor
Investec Bank Limited
Date: 12/08/2008 13:41:01 Produced by the JSE SENS Department.
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