Prescient presentation - Petmin

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The Strategic Objectives for the next 3 years 20 Overall • To de-risk <strong>Petmin</strong> for all shareholders, by reducing our dependence on one geographic region and one commodity through geographic diversification spread across our chosen range of commodities that feed into the steel value chain • To continuously evaluate the performance of our assets to ensure superior returns through investment and divestment • To ensure sustainable organic growth in our cash producing assets • To maintain our dividend policy of paying 20% of HEPS • To maintain a debt to equity ratio of less than 30% • To acquire cash producing assets that produce at a price that will ensure a long-tern return well in excess of our cost of capital • To prudently allocate our capital resources between cash generating operations and a quality pipeline of development asset • To move our London AIM listing to the Main Board and to become part of the FTSE Top 250 Index by 2015 • Continue the culture of zero harm to employees and minimal impact on the environment Business of Today • To ensure Operational Excellence • To ensure Value added Growth • To Securing the future • To successfully close the sale of SamQuarz • To ensure sustainable organic growth at Somkhele To successfully commission the Second Plant at Somkhele To ensure a “life of Mine” in excess of 20 years at full production To ensure the conversion of all prospecting permits into New Order Mining Licence To ensure sufficient export capacity Business of Tomorrow • To ensure Value added Growth • To Securing the future To acquire cash producing assets that produce at a price that will ensure a long-tern return well in excess of our cost of capital To invest in a quality pipeline of development assets To achieve the objectives iro Veremo, Iron Bird, Sivas and NAIC as outlined elsewhere …A STRONG …Committed PLATFORM to growth, FOR …exceeding dedicated FUTURE to expectations value GROWTH
<strong>Petmin</strong> valuation curve – Huge optionality embedded in projects 21 Value curve • Exploration projects don’t generate cash flows or earnings and are difficult to value. Therefore management must move them up the value curve • Each stage of the value curve has a clear set of deliverables • There are a range early evaluation techniques (e.g. Aeromag, Lydar etc.) • Successful drilling results determine if feasibility study undertaken • Once the feasibility study is complete, there is the option to develop the resource by committing capital or relinquish the undeveloped resource Valuing a mining company with multiple resources • The preferred approach is to consider each resource separately as an option, value it and add the values of the options to determine the company’s value • Valuing a mining company: Value of developed resource (DCF Valuation: cash flow from extraction and sale of cash flow) + Value of undeveloped resources (Option Valuation: option value of undeveloped resources (individually or aggregate) = Value of Assets …A STRONG …Committed PLATFORM to growth, FOR …exceeding dedicated FUTURE to expectations value GROWTH
Page 1 and 2: 1 Prescient Presentation The upside
Page 3 and 4: 3 Disclaimer No representation, war
Page 5 and 6: 5 Petmin’s share price outperform
Page 7 and 8: Current overview of Petmin 7 Red Cr
Page 9 and 10: 9 Significant upside potential as a
Page 11 and 12: Petmin Board and management governa
Page 13 and 14: Urbanisation and infrastructure Los
Page 15 and 16: Urbanisation has a double effect on
Page 17 and 18: The effect of urbanisation and infr
Page 19: Our strategy is based on key pillar
Page 23 and 24: Investor presentation - 14 November
Page 25 and 26: Somkhele anthracite mine 25 More th
Page 27 and 28: Somkhele anthracite mine 27 …A ST
Page 29 and 30: 29 Performance Summary 2010 and 201
Page 31 and 32: Sale of SamQuarz silica mine 31 Pet
Page 33 and 34: Comprehensive and aggressive Petmin
Page 35 and 36: NAIC 35 …A STRONG …Committed PL
Page 37 and 38: NAIC 37 Executive Summary • Commo
Page 39 and 40: NAIC 39 Metallurgy • Ore dressing
Page 41 and 42: NAIC 41 Example of Drill Core Recon
Page 43 and 44: Iron Ore - Mount Ginka, Liberia 43
Page 49 and 50: Red Crescent Resources (RCR) and Si
Page 51 and 52: SIVAS 51 Note 1 • Phase 1 - Measu
Page 53 and 54: SIVAS $ 1.40 $ 1.20 $ 1.00 $ 0.80 $
Page 55 and 56: Petmin holds a 25% interest in Vere
Page 57 and 58: Petmin value curve - Veremo 57 …A
Page 59: Significant upside potential as at

Prescient presentation - Petmin

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