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Nkwe Platinum in trading halt pending announcement about purported legal claims

Wed, 08 Dec 2010 09:19:00 +0000

Perth-based Nkwe Platinum (ASX: NKP) has requested a trading halt pending release of an announcement about clarification of purported legal claims.

The alleged claims were reported by the media, by Anglo Platinum (JNB: AMS) and African Rainbow Minerals (JNB: ARIM).

The halt will last until an announcement is made or commencement of trading on Friday 11th December 2010.

Nkwe Platinum reports South Africa court decision has no impact on Garatau BFS

Tue, 07 Dec 2010 09:11:00 +0000

Following the South African Constitutional Court’s decision regarding the prospecting rights to two farms within the Bushveldt complex in South Africa, Nkwe Platinum (ASX: NKP) has addressed inaccuracies that have been circulating in the media and amongst shareholders.

The company said the decision has no impact on Garatau bankable feasibility study (BFS) project and Nkwe, Genorah Resources and the local communities representing the farms affected by the decision have already met and resolved to proceed with new application to the DMR and and are confident that it can be resolved soon.

Nkwe has already received preliminary advice that the court decision may not apply to Nkwe’s 64% interest.

Nkwe said it remains committed to work constructively and expeditiously with the DMR and the local communities that represent the two farms and refute media reports of Genorah (and by implication Nkwe) not considering the local communities rights and ignoring their legal and rightful connection and involvement in the properties and their mineral worth.

Nkwe Platinum announced in February that the BFS on its Garatau Project, highlighted an average production of between 240,000 and 400,000 tonnes per month with an initial mine life of + 40 years.

Nkwe’s main Tubatse and Garatau Projects consist of five contiguous farms with a strike length of more than 30km. These Projects are located in an established mining district with well developed infrastructure.

Nkwe Resources in trading halt pending court decision

Fri, 03 Dec 2010 09:16:00 +0000

Perth based Nkwe Resources (ASX:ERL) has requested a trading halt pending release of an announcement about the recent court decision involving Genorah Resources.

The halt will last until an announcement is made or commencement of trading on Tuesday 7 December 2010.

On December 1 Nkwe reported that a constitutional court decision was made in South Africa regarding two farms (Nooitverwacht and Eerste Geluk) which make up 2/3 of the Nkwe’s Tubatse Project which it has a 64% interest in.

The company said the decision has no impact on Nkwe’s current Garatau Project the subject of a Bankable Feasible Study nearing completion.

A further update on the BFS will be made next week with the release of further financial modelling which sets a base case net present value of approximately 14 billion rand (US$2.0bn).

NKWE Platinum completes A$90m placement: to list on Hong Kong market

Thu, 27 May 2010 10:16:00 +0100

NKWE Platinum (ASX: NKP) has completed a successful placement with select institutional investors targeted for its proposed Hong Kong listing and is now finalising the Bankable Feasability Study (BFS) on its Garatau Project in South Africa.

The placement of securities from the company was completed to raise A$10m at an issue price of A$0.50 per share with a attaching unlisted option ($0.50, 30 June 2012) for every 2 ordinary fully paid shares subscribed for.

NKWE Platinum said the funds raised will be used to fast track drilling program and BFS on the Tubtase Project, and for the current working capital of the company. Max Capital Pty Limited and Helmsec Global Capital Limited acted as joint lead managers to the issue.

Proposed Listing on the Hong Kong Stock Exchange

Nkwe has appointed Helmsec to assist with a dual listing of the company on the Hong Kong Stock Exchange (HKEx) during Q42010 in conjunction with the company’s planned listing on the Johannesburg Stock Exchange.

This has been done "in order to enhance equity capital market support from Asian economies, Asia being one of the world’s fastest-growing regions for PGM demand."

The HKEx is the second-largest stock exchange in Asia, by market capitalisation (ranking behind the Tokyo Stock Exchange). The HKEx is regarded as one of the most diversified institutional and retail trading markets in the world, with 42% of trading being conducted by investors domiciled outside China and Hong Kong.

HKEx recently announced significant initiatives to attract new HKEx listings by foreign companies. Total market capitalisation of natural resources companies on the HKEx has grown more than 30 times over the past decade to approximately $341 billion.

Nkwe said it believes that a dual listing on the HKEx will provide Nkwe with higher levels of shareholder liquidity and increased exposure to Asian capital markets and strategic partners looking to access physical PGM metals.

Bankable Feasibility Study

Following the successful draft Bankable Feasability Study (BFS) process, Nkwe is now finalising the BFS over the coming weeks with optimisation of major capital cost items and mine scheduling.

Peter Landau , executive director, said the company anticipates that the optimisation process will result in a meaningful reduction of proposed capital costs of the project and an improved timeline to start of production.

In conjunction with this process, Nkwe is moving to complete the formal exercise of the development option by Xstrata over the Garatau and Tubatse projects.

Nkwe Platinum requests voluntary suspension

Mon, 24 May 2010 11:30:00 +0100

Nkwe Platinum (ASX: NKP) has requested a voluntary suspension further to the company's trading halt, pending the release of an announcement regarding a corporate update.

The company is not aware of any reason why the securities should not be voluntary suspended.

Nkwe Platinum requests trading halt

Thu, 20 May 2010 10:00:00 +0100

Nkwe Platinum (ASX: NKP) has requested a trading halt pending the release of an announcement pertaining to a corporate update.

The trading halt is to last until the earlier of the company releasing an announcement, or the commencement of trade on Monday, 24 May 2010.

The company is not aware of any reason why the trading halt should not be granted.

European research firm puts $0.92 price target on Nkwe Platinum

Fri, 14 May 2010 10:58:00 +0100

Price A$0.56
Market Cap A$335m

“We expect Xstrata to exercise its option later this year, with development of the Garatau mine scheduled to commence in 2011. Despite this, the shares trade at a discount to our in-situ resource valuation (of A$0.91/undiluted share) and DCF valuation for Garatau alone (of A$0.92/fully diluted share)."

Garatau: Optimised BFS expected in May 2010

The initial findings of the Bankable Feasibility Study (BFS) confirm the feasibility of Garatau, the most advanced of Nkwe’s two projects. Nevertheless, Nkwe is currently optimising the BFS with a view to developing lower and higher capex options.

Tubatse second

With almost double Garatau’s PGM resources, Nkwe’s second project is ripe for development. Nkwe plans to finalise drilling later this year and while Xstrata’s option extends over both projects, Tubatse will likely be developed within 24 months of Garatau.

Sensitivities: Platinum price

Our valuation of Nkwe is largely dependent on the platinum price. A ±10% change in this results in a ±A$0.12 change to Garatau’s base case NPV10 of A$0.92/share.

Valuation: A$0.92/fully diluted share

Based on an in-situ resource valuation of its peer group, we value Nkwe at US$501.6m (A$545.9m) or A$0.91/undiluted share and compared to which the shares trade at a 38% discount. The shares also trade at a discount to our DCF valuation of Garatau of A$0.92/fully diluted share which excludes the value of potential cash flows from Tubatse, an expanded production profile at Garatau and higher platinum prices.”

Nkwe Platinum announces positive bankable feasibility study on Garatau Project

Wed, 03 Feb 2010 08:56:00 +0000

Emerging platinum company Nkwe Platinum (ASX: NKP) has announced details of the bankable feasibility study on its Garatau Project, highlighting an average production of between 240,000 and 400,000 tonnes per month with an initial mine life of + 40 years.

The initial BFS findings were presented to the Nkwe Board by TWP and confirmed the robust nature of the project and the economic viability of its proposed development.

The BFS estimates average production of between 240,000 and 400,000 tonnes per month with an initial mine life of + 40 years. Average life of mine cash costs of between US$435/oz and US$535/oz assuming a current 3PGM+Au basket price of approx. US$1,200/oz.

Managing Director Maredi Mphahlele said the company was very pleased with the results, particularly the very healthy operating cashflows and returns.

"Perhaps the most encouraging element is the significant benefits that can be achieved by adopting a highly flexible approach to mine development," Mr Mphahlele said.

"Through the development of an initial operation focussed solely on the Merensky Reef and with a phased development of the UG2 Reef, there is considerable opportunity to further enhance the positive project economics and greatly accelerate project development."

The BFS highlights include access by large diameter twin shaft system, mining of both the Merensky and UG2 Reefs, hybrid mining methods, fully automated MF2 processing plant, plant recoveries: Merensky 84 – 87%, UG2 82 – 84%, mine construction in 2011 and ramp up to steady state production by 2016.

The capital expenditure is between ZAR 6.5 billion and ZAR 8.3 billion – subject of the current optimisation process, which is expected to reduce initial capital estimates.

Power, water and all other infrastructure requirements are catered for within existing or future regional development planning.

Within the total project area up to three large mining operations can be developed in phase within a single management and logistics structure.

Mr Mphahlele said based on the very positive BFS findings Nkwe would fast track finalisation of the Joint Venture with Xstrata and completion of the optimised BFS, scheduled for April 2010) to enable an accelerated project development timetable.

As part of the BFS and Nkwe’s ongoing exploration programme, the Garatau Project resource has been upgraded to 14.2Mozs of Measured Resources and 9.1Mozs of Inferred Resources.

The resource upgrade is based on assays from approximately 10,000m of additional drillin, with an approximate 300% increase in Measured Resources (from 4.5Mozs 3PGE+Au to 14.2Mozs 3PGE+Au).

Over 60% of total resources are now in a Measured category

The additional drilling highlighted a lower grade area in the north west portion of the Garatau Project, resulting in a minor decrease of average resource grade of Merensky Reef (4.74 g/t to 4.40 g/t).

The lower grade area lies outside of the first 20 years of mining contemplated in the BFS

Nkwe Platinum’s main Tubatse and Garatau Projects consist of five contiguous farms with a strike length of more than 30km. These Projects are located in an established mining district with well developed infrastructure.

It borders Anglo Platinum’s Modikwa Joint Venture to the east, Implat’s Marula mine to the north and Eastplat’s Spitzkop – Kennedy’s Vale project in the south.

Nkwe Platinum to raise $7.5m to develop Garatau/Tubatse platinum project with Xstrata

Wed, 12 Aug 2009 09:49:00 +0100

Platinum development company, Nkwe Platinum (ASX: NKP) has announced it will raise $7.5 million at 25 cents per share via a placement to sophisticated and institutional investors. A free 24 month option (35 cents) for every two shares held will be attached.

Reflecting the inceasing value inherent in the Garatau / Tubatse project, investors have driven the Nkwe share price up from 12 cents earlier this year to 28 cents. With market capitalisation now at $150 million, the market is now recognising the value in the project.

Xstrata's participation has signficantly enhanced project value and added a new dimension to Nkwe's future prospects to become an independent PGM producer and strategically utilize independent or joint ventured smelting and refining capabilities.

Funds raised will be used to expedite the Garatau / Tubatse platinum project Bankable Feasibility Study (BFS) with Xstrata. The highly prospective ground across five farms is in proximity to world class mines in South Africa. The Bushveldt region of South Africa – is one of the world’s premier platinum producing regions.

The recent acquisition by Nkwe of IGC’s 15% stake allows Nkwe to move to a 74% interest across the five farms, allowing full control of the Garatau / Tubatse project, a world class platinum project with current JORC resource of 68.9M oz 3PGM + Au. The remaining 26% interest is held by Nkwe’s controlling shareholder, South African BEE Company Genorah Resources.

Interestingly, the Garatau-Tubatse project consists of five contiguous farms with a strike length of more than 30km, stretching all the way in proximity from Implats’ Marula mine in the north, past Anglo Platinum’s Modikwa Joint venture to the border of Eastplat’s Spitzkop – Kennedy’s Vale project in the south.

Following completion of a Bankable Feability Study (BFS), Xstrata, upon electing to exercise their option to acquire 50% of the Garatau / Tubatse project, will have a 50% participation interest in the Garatau / Tubatse Project from Nkwe and Genorah through the funding of mine development through to concentrator stage.

The Feasibility Study with its joint venture partner Xstrata in the north and Tubatse Project Area in the south aims to develop two mines with a combined annual production of more than 1 million ounces platinum group metals from a targeted mineralisation base in excess of 100 million ounces PGM+Au.