ripper company presentation out now, page-17

on hogan,s website,

• Construction timetables and PGM production outlook are now clearer.
• It has stakes in three discrete PGM projects in South Africa’s Bushveld.
• The Chrome Tailings Retreatment Project at Aquarius’ Kroondal mine produced PGMs from Jan-05, proving the model to be commercial.
• Chromite tailings require washing to produce a chromite concentrate after which the PGMs are then reclaimed from the remaining material.
• Signed contracts allow SLV to treat all Samancor’s tailings dumps where Samancor has such rights.
• Basically Samancor takes chromite at near cost in exchange for access to the final tailings and land.
• Platinum Recovery Plants will be commissioned at Millsell mine in May and at Steelpoort in June.
• The Base Case uses the worst case actual data from the CTRP plant for conservatism.
• This includes a 32.5% PGM recovery rate.
• It also uses tailings feed headgrades of:
o 1.79gpt 4E for Millsell;
o 4.32gpt 4E for Steelpoort.
• Basket 4E metal prices of ~US$1,400/oz.
• The Base Case forecasts SLV’s cash never falling below A$8M and at A$45M in Dec08.
• Close-spaced drilling of Millsell tailings shows actual head grade to be 5.1gpt 4E.
• Steelpoort tailings actual grade is 6.7gpt 4E.
• Current CTRP actual recovery: 68%.
• Current 4E basket price: ~US$1,800/oz.
• These grades, recoveries and metals prices, combined with cash operating margins of ~80%, deliver very positive cashflows to SLV from Jun/Jul 2007 when production commences.
• SLV will receive 74% of cashflow; its BEE partner Ehlobo Metals receives the 26% balance.
• Ehlobo will acquire its 26% interest for ZAR40M (~A$7M) contribution to the initial capital costs.
• Total PGM Plant Capex costs are forecast to be ~A$5M for Millsell and ~A$6.8M for Steelpoort.
• Millsell’s forecast throughput is 14,500tpm and Steelpoort 27,500tpm, for theoretical production of ~5,600oz 4E PGM and net cashflow to SLV of A$7.4M per month for its 74% equity share.
• 100% of capex is deductible in Year 1, equating to potential annual after-tax earnings of >A$0.50ps.
• Using a conservative 4x earnings multiple, a $2.00 share price is therefore not beyond reason.
• Such a target is further underpinned by the two other planned PRPs and by the potential at Everest.
• The Everest North UG2 project is SLV’s third PGM project. SLV intends to pool its project areas with Eastern Platinum’s contiguous areas, which together cover a geologically discreet PGM resource.
• Inferred UG2 ore resources at SLV’s “Vygenhoek” area are 4.2Mt at 5.87g/t for 796,000oz 4E PGM.
• Current drilling to define measured resources of this UG2 ore should be complete by end March 07.
• Primary PGM production from its PRPs should translate to a significant market re-rating of SLV.