Company Profile

African Platinum plc (Afplats) is an exploration, investment and development business focused on platinum group metals (PGMs). 

It was listed on the London Stock Exchange's Alternative Investment Market (AIM) in 2002. 

Its goals are to identify and acquire quality PGM exploration and mining projects in Africa; to establish a resource base in excess of 100 million ounces 4E (the 3 platinum group metals plus gold); to position itself as a premier institutional-quality platinum investment opportunity in the global market and to elevate the company to the top mid-tier PGM companies by upgrading its resource status. 

Afplats currently has two main areas of interest, the flagship Leeuwkop project, situated on the western limb of South Africa's Bushveld Igneous Complex (BIC), the world's major platinum region, and the Molopo Farms prospect, situated on the relatively under-explored Molopo Farms Igneous Complex (MFIC) in neighbouring country Botswana. 

The Leeuwkop project consists of the Leeuwkop and Imbasa properties over which Afplats has been granted the prospecting rights, and the Inkosi property that lies adjacent to Imbasa. 

The Imbasa project consists of an east and a west portion that lie adjacent to the Leeuwkop project where Afplats has been drilling since November 2003. 

The confirmed mineral resource base on the Greater Leeuwkop Area currently stands at approximately 92 million ounces 4E, including approximately 13.8 million ounces of measured and indicated resources on the Leeuwkop property. The mineral reserves defined in the Phase 1 area currently stands at 6.9 million ounces. Ongoing exploration is expected to increase the resource base to more than 100 million ounces 4E.

The scoping study envisages a 300 000 ounce 4E per year mining and concentrating operation at Leeuwkop. This forms part of Afplats's strategy to develop multiple mines on the property. 

With cash resources of approximately US$16 million at 13 November 2006 and no debt, Afplats has sufficient cash to complete the bankable feasibility study on the Leeuwkop project, and meet its exploration and overhead expenses, until project development funding has been secured. 

In line with Afplats' plan to diversify outside South Africa, the company acquired prospecting rights over prospective platinum group metals targets in neighbouring countries, including Mozambique and Botswana to prepare for the anticipated future demand for PGMs worldwide. 

The company has met the provisions of the South African Black Economic Empowerment Charter and is in the process of finalising all necessary agreements and arrangements with its identified empowerment partners. 

Afplats is well-capitalised and has successfully attracted blue-chip American and European investors to its share register, including Fidelity, North Sound, US Global, Royce Value Fund, Rubicon and Tocqueville Gold Fund. 

It has a highly experienced board with proven track records of technical success and value creation, and has made significant progress in assembling a suitable management team. In essence, the board's strategy is to consolidate its current mineral rights, continue to source additional mineral rights, manage an effective and successful exploration programme and development the current resources into productive mining operations.