DARWENDALE PROJECT

Overview

Darwendale is part of the Great Dyke, the second largest platinum group metals mineralization system in the world, and one of the biggest PGM deposits globally in its own right. Located near Harare, the geology is well understood, proven by neighbouring PGM mines already operating along the same formation.

Project at a glance

PGM Resource

Mine Life

Largest PGM
System Globally

Shallow Depth

Map showing the location of the Darwendale Project in Zimbabwe
The Darwendale Project is located near Harare along the Great Dyke mineral formation in Zimbabwe.
  1. Benchmarking of the Darwendale project, SFA Oxford, 2017.
  2. JORC Compliant Mineral Resource Estimate & Scoping Study, MSA Group, 2019.
  3. Bankable Feasibility Study, DRA, 2017. Further details are provided in the supporting project presentation.

Geology & resource
base

The Great Dyke's geology and mineralogy are well understood, proven by existing neighbouring operations. A Bankable Feasibility Study was completed in 2017 by DRA Group. This remains the largest PGM exploration programme undertaken in Zimbabwe, with 130,000 metres drilled across 805 boreholes — only the northern portion of the deposit explored to date.

Total Potential
Resource

JORC-compliant
confirmed
resource

Proven & Probable
reserves - 20+ years

Exploration
upside

High geological upside remains: only the northern part of the deposit has been explored. Stage 2 and 3 exploration are expected to add further resources toward the total potential of 44.0 Moz PGM.

Chart comparing PGM resources and reserves across major deposits
Source: SFA (Oxford), company reports and websites, Great Dyke Investments.
Darwendale Project exploration map showing drilling areas and deposit boundaries

From ore to
metal

Revenue is based on metal pricing forecasts and off-take terms, factoring in metal payability and other key payment terms. Revenue streams are made up of proceeds from the sale of PGMs, gold and base metals; nickel and copper.

Ore moves from mining through concentrating, smelting and refining to produce saleable metals; platinum, palladium, rhodium, gold, ruthenium, iridium, nickel and copper — using conventional milling-flotation technology widely used across the Southern African PGM industry.

Diagram showing the Darwendale Project mining, concentrating, smelting, refining and metal sales process
The process begins with mining and concentrating at the Darwendale Project in Zimbabwe. The concentrate is then sent to an off-taker for smelting, refining and sale of payable metals.

Phased
development

General layout of the Darwendale Project showing the underground mine, concentrator, smelter, administration offices and tailings storage facility
General project layout for the phased development of the Darwendale Project.
  1. Phase 1.

    Mine and concentrator construction · 3.54 Mtpa throughput · approximately 280 koz PGM in concentrate annually

  2. Phase 2.

    Mine and concentrator upgrade, smelter commissioning · 6.7 Mtpa throughput · approximately 570 koz PGM in converter matte annually

  3. Phase 3.

    Full-scale operations · 10.1 Mtpa throughput · approximately 850 koz PGM in converter matte annually

Phase 1
project costs

Phase 1 capital budget estimate showing underground mining, concentrator, power, infrastructure and other project costs
Phase 1 capital budget estimate in millions of United States dollars.

Final Capital Budget Estimate subject to finalization of the FEED/detailed design phase.

Financial
evaluation results

Key financial indicators over the project's 19.4-year operational life
Key financial indicators over
project life (19.4 years) Post-tax; Pre-WHT cash flows 		Ungeared | Real
Project NPV USD 177 million
Project IRR 17.94%
Payback: From start of project: From start of production: 6.4 years 4.7 years
Discounted Payback: From start of project: From start of production: 8.4 years 6.7 years

Financial evaluation
conclusion

The project is financially viable, with reasonable ungeared financial indicators over its circa 20-year operational period, based on metal price scenarios drawn from bank consensus forecasts. The project generates robust cash flows from year 2 of operations, improving profitability over time to an average EBITDA margin of 28%; in line with competing projects.

Project Returns Conclusion

Conclusion

The project is financially viable with reasonable ungeared financial indicators over the circa 20 years operational period, applying the metal prices scenarios based on the bank consensus forecast.

The real and ungeared financial indicators for the final case include:

  • Project NPV of USD 177 million
  • Project IRR of 17.94%
  • Payback of 6.4 years from the start of the project

The project has robust cash flows from year 2 of operations which improve profitability over time to achieve an average EBITDA ratio of 28% — which is considered in line with other competing projects.

Investment
Summary

Darwendale combines a high-grade, low-cost resource with a long mine life, established infrastructure, conventional processing technology, full permitting, and a clear path to expansion, making it one of the most advantageous PGM developments in the region.

Low capex /
operating cost

  • High grade (2.94 4E g/t), shallow (0–350m), thick (2.5–2.75m), flat-dipping ore body ensures lower capex and opex compared to peers.
  • First quartile of total cash cost curve at full capacity.

(1) Benchmarking of the Darwendale project, SFA (Oxford)

Long mine life

  • Initial life of Darwendale of 20 years based on 3.54 Mtpa ROM production and JORC-confirmed resources.

Advantageous
location

  • Required infrastructure is either already in place or available at close proximity, and at relatively low cost.
  • Minimum relocation or resettlement required.

Conventional
technology

  • Underground mechanised bord-and-pillar mining using low-profile trackless mining machinery with conveyors.
  • Industry-standard processing plant design using conventional milling and flotation technology.

Fully permitted
and licensed

  • Mining agreement providing fiscal incentives and tax holidays, with investor-protection provisions in place.
  • EIA licence approved and issued in September 2019.

Expansion with
phases 2 and 3

  • Total resource increase to up to 44 Moz PGM in Phases 2 and 3, with total annual PGM output increasing to approximately 850 koz.
  • Potential for developing an owned smelting facility.