Platinum Group Metals Ltd. press release

Platinum Group Metals Ltd. Reports Third Quarter 2026 Results

2026-07-15

TSX - Toronto Stock Exchange · Platinum · Palladium · Rhodium · Gold · Copper · Nickel · Canada · Corporate Finance

Vancouver, British Columbia and Johannesburg, South Africa--(Newsfile Corp. - July 15, 2026) - Platinum Group Metals Ltd.(TSX: PTM) (NYSE American: PLG) ("Platinum Group", "PTM" or the "Company") reports the Company's financial results for the third quarter of fiscal 2026 dated May 31, 2026, and provides an update and outlook. The Company's material property is the Waterberg project located on the Northern Limb of the Bushveld Complex in South Africa (the "Waterberg Project"). The Waterberg Project is planned as a fully mechanised, shallow, decline access platinum, palladium, rhodium and gold ("4E" or "PGM") mine, including by-product copper and nickel production, and is projected to be one of the largest and lowest cost underground platinum group metals ("PGM" or "PGMs") mines globally. The Company's near-term objectives are to advance the Waterberg Project to a development and construction decision, including the arrangement of construction financing and concentrate offtake agreements.

For details of the condensed consolidated interim financial statements (the "Financial Statements") and Management's Discussion and Analysis ("MD&A") for the nine months ended May 31, 2026, please see the Company's filings on SEDAR+ (www.sedarplus.ca) or on EDGAR (www.sec.gov). Shareholders are encouraged to visit the Company's website at www.platinumgroupmetals.net. Shareholders may receive a hard copy of the complete Financial Statements and MD&A from the Company free of charge upon request.

All amounts herein are reported in United States Dollars unless otherwise specified. The Company holds cash in Canadian Dollars, United States Dollars, and South African Rand. Changes in exchange rates may create variances in the cash holdings or results reported.

Project Ownership

As of May 31, 2026, the Waterberg Project is owned by Waterberg JV Resources (Pty) Ltd. ("Waterberg JV Co."), which is in turn owned by Platinum Group (37.42%), Mnombo Wethu Consultants (Pty) Ltd. ("Mnombo") (26.00%), HJ Platinum Metals Company Ltd. ("HJM") (21.95%) and Impala Platinum Holdings Ltd. ("Implats") (14.63%). Platinum Group holds a further 12.97% indirect interest in Waterberg JV Co. through a 49.90% interest in Mnombo.

HJM was established in 2023 by Japan Organization for Metals and Energy Security ("JOGMEC") and Hanwa Co. Ltd. ("Hanwa") as a special purpose company to hold and fund their aggregate future equity interests in the Waterberg Project. The combined Waterberg JV Co. ownership of JOGMEC (12.19%) and Hanwa (9.76%) were consolidated into a 21.95% interest held by HJM going forward, with JOGMEC to fund 75% of future equity investments into HJM and Hanwa the remaining 25%.

Since early 2024, Implats has not funded their share of Waterberg Project cash calls and their interest in Waterberg JV Co. has diluted by approximately 0.37%. Platinum Group has funded Implats' shortfall and the Company's direct interest in Waterberg JV Co. has increased concurrently with Implats' dilution.

Recent Events

On May 31, 2026, Waterberg JV Co. and Discovery Drilling (Pty) Ltd. entered a contractor agreement for the drilling of fourteen NQ boreholes for the purpose of obtaining 600 kg to 800 kg of T-Zone ore material for metallurgical testing purposes. Plugged boreholes from earlier drilling programs are to be re-entered to reduce drilling costs, with two or three deflections to then be completed in the mineralized T-Zone for each borehole. Drilling commenced in mid-June and to date approximately 398 kgs of T-Zone ore material has been collected from six completed boreholes and fourteen deflections. T-Zone samples are to be logged, assayed, and processed for metallurgical testing, including conventional flotation testing and Jameson Cell flotation testing.

On May 8, 2026, at the Annual General Meeting of Waterberg JV Co., a supplemental budget (the "Supplemental Budget") of Rand 27.4 million (approx. $1.69 million) was approved by shareholders for funding of the fiscal 2026 portion of a T-Zone Mining Study (the "T-Zone Study") aimed at assessing the viability of developing the Waterberg Project in stages, beginning with a smaller, lower cost T-Zone mine. The Supplemental Budget had been approved earlier by the board of directors of Waterberg JV Co. at a meeting held on March 27, 2026. A further Rand 22.69 million (approx. $1.40 million) to complete the T-Zone Study is expected to be approved as a component of the upcoming fiscal 2027 budget, which commences on September 1, 2026. The Supplemental Budget is in addition to the Stage Six Budget described below. The T-Zone Study is being completed by a team of specialists including engineering firm Stantec Consulting International Ltd. and South African engineering firm DRA South Africa Projects (Pty) Ltd. Engineering oversight and project management are being provided by South African engineering firm Fraser McGill (Pty) Ltd. ("Fraser McGill").

On March 10, 2026, the Company entered into an Equity Distribution Agreement with BMO Nesbitt Burns Inc. and Beacon Securities Limited (the "Canadian Agents") and BMO Capital Markets Corp. (the "U.S. Agent" and together with the Canadian Agents, the "Agents") for a new at-the-market equity program (the "2026 ATM") to distribute up to $60.0 million (or the equivalent in Canadian dollars) of Common Shares (the "Offered Shares"). The Offered Shares may be issued by the Company to the public from time to time, through the Agents, at the Company's discretion until December 13, 2026. Offered Shares under the 2026 ATM will be sold at the prevailing market price at the time of sale. The net proceeds of any such sales will be used for staged development programs at the Waterberg Project and general, corporate and administrative expenses.

On September 17, 2025, the board of directors of Waterberg JV Co. unanimously approved a sixth stage of work in the amount of Rand 92.1 million (approximately $5.11 million at the time) for fiscal year 2026 ("Stage Six Budget"), to allow for the continuation of work programs underway. The Stage Six Budget was subsequently approved by a consent resolution of the requisite majority shareholders on September 26, 2025. The interim budget covers the period ending August 31, 2026, and includes some components of a $21.0 million pre-construction work program approved in principle for the Waterberg Project by the directors and shareholders of Waterberg JV Co. on October 18, 2022 (the "Pre-Construction Program").

On May 29, 2025, Platinum Group reported the closing of a non-brokered private placement of common shares of the Company ("Common Shares") at a price of $1.26 per Common Share. An aggregate of 800,000 Common Shares were subscribed for and issued to existing major beneficial shareholder, Hosken Consolidated Investments Limited ("HCI") through its subsidiary Deepkloof Limited, resulting in gross proceeds to the Company of $1.0 million (the "Private Placement"). Closing of the Private Placement allowed HCI to return to a 26% interest in the Company at that time.

On September 16, 2024, the Company reported positive results from an Independent Definitive Feasibility Study Update (the "Waterberg DFS Update") for the Waterberg Project. The associated technical report entitled "Waterberg Definitive Feasibility Study Update, Bushveld Igneous Complex, Republic of South Africa", with an effective date of August 31, 2024, was filed on SEDAR+ on October 9, 2024. The Waterberg DFS Update was prepared by independent qualified persons in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and Subpart 229.1300 and Item 601(b)(96) of the SEC's Regulation S-K (collectively, "S-K 1300"). The Waterberg DFS Update included revised mineral resource and mineral reserve estimates. For details of the Waterberg DFS Update see the Company's news release dated September 16, 2024, the MD&A, and the technical report referred to above.

Results For the Period Ended May 31, 2026

During the three month period ended May 31, 2026, a total of 1,059,233 Common Shares were sold pursuant to the 2026 ATM at an average price of $1.90 for gross proceeds of $2.01 million before directly attributable costs of $0.05 million.

On December 5, 2024, the Company entered into an Equity Distribution Agreement with the Agents for an at-the-market equity program (the "2025 ATM") to distribute up to $50.0 million of Common Shares. Sales of Common Shares on the NYSE American commenced on January 22, 2025, and to the completion of the 2025 ATM on January 23, 2026, the Company sold an aggregate of 22,726,804 Common Shares at an average price of $2.20 for gross proceeds of $50 million before deducting directly attributable costs paid to the Agents of $1.25 million. During the nine month period ended May 31, 2026, 13,785,310 Common Shares were sold pursuant to the 2025 ATM at an average price of $2.67 for gross proceeds of $36.82 million before directly attributable costs of $0.92 million.

During the nine months ended May 31, 2026, the Company incurred a net loss of $2.88 million (May 31, 2025 - net loss of $3.40 million). General and administrative expenses during the period were $2.88 million (May 31, 2025 - $2.78 million). Share based compensation expense was $1.01 million (May 31, 2025 - $0.79 million). The foreign exchange gain recognized in the current period was $0.08 million (May 31, 2025 - gain of $0.06 million) due primarily to the U.S. Dollar rising in value relative to the Canadian Dollar during the nine month period.

At May 31, 2026, finance income consisting of interest earned in the nine month period amounted to $0.97 million (May 31, 2025 - $0.14 million). Basic and diluted loss per share for the nine months ended May 31, 2026, was $0.02 (May 31, 2025 - $0.03).

Accounts receivable at May 31, 2026, totalled $0.21 million (August 31, 2025 - $0.08 million) while accounts payable and other liabilities amounted to $0.77 million (August 31, 2025 - $0.78 million). Accounts receivable were comprised primarily of value added taxes repayable to the Company in South Africa. Accounts payable consisted primarily of accruals and payables related to accounting costs, legal costs and project engineering and maintenance costs on the Waterberg Project.

Total expenditures on the Waterberg Project, before partner reimbursements, for the nine month period ended May 31, 2026, were approximately $1.8 million (May 31, 2025 - $1.6 million). At period end, $55.2 million (May 31, 2025 - $48.0 million) in accumulated net costs were capitalized to the Waterberg Project. Total expenditures on the property since inception to May 31, 2026, are approximately $92.9 million. For more information on mineral properties, see Note 3 of the Financial Statements.

Waterberg Project Update

In addition to the T-Zone metallurgical drilling campaign described above, small scale physical work activities recently commenced at the Waterberg Project and more work is planned, including work on initial road construction, construction water supply, and first stage accommodation facilities. Progress is in varying stages, with first contractor site establishment planned for August 2026. A construction manager to oversee activities was recently appointed by Fraser McGill's project office and is now on-site.

During March 2023, Waterberg JV Co. assisted two local landowners to apply for Mining Permits to mine aggregate for Waterberg JV Co.'s construction purposes. Waterberg JV Co. has received responses on requests for quotation sent to contractors to start to mine, extract, crush and stockpile the aggregate for use in road upgrade work proximal to the Waterberg Project Mine Site. Tender documents are being assessed with a view to appoint a contractor within the fourth fiscal quarter of 2026.

Waterberg JV Co. prepared applications to ESKOM Holdings (SOC) Limited ("Eskom") for Cost Estimate Letters and paid Eskom for a Budget Quotation for establishment/construction of a temporary 22kV, 3MVA electrical feed to the Waterberg Project Mine Site for use during construction and development. Detailed engineering work is underway to determine the best route for a ±30km powerline, associated equipment selection, and initial procurement activities for construction once approved by Eskom.

The establishment of servitudes for power line routes and detailed planning and permitting with Eskom for approximately a 70 km, 132MvA permanent line to the Waterberg Project is ongoing. Power line environmental and servitude work is being completed by specialist consultants and a high voltage engineering company, Kumena Consulting Pty Ltd. (previously Private National Grid and TDx Power assisted Waterberg JV Co.), in coordination with Eskom.

Waterberg JV Co. has completed the next phase of certain necessary maintenance and water infrastructure upgrades on the farm Early Dawn. Waterberg JV Co. is awaiting available dates from the Capricorn District Municipality and Blouberg Local Municipality to formally hand over this completed phase of the project. Waterberg JV Co. also intends to commence with the necessary maintenance of certain water infrastructure on the farm Ketting. A contractor has been appointed, and Waterberg JV Co. has received formal written approval from the Capricorn District Municipality to commence with work. Waterberg JV Co. is still in the process of obtaining the Community's consent to commence with the necessary maintenance. Both of these water infrastructure upgrades form a part of a Bulk Water Reticulation Local Economic Development ("LED") Programme under the Waterberg JV Co. Social & Labour Plan ("SLP").

Site establishment for a Medical Clinic Upgrade LED Programme on the farm Goedetrouw has been completed. A number of local community members have been appointed as contract labour and the work commenced in early June 2026. The upgrades will cost in the region of R2.2m (approx. $134,000).

The Company continues to work closely with regional and local communities and their leadership on mine development plans to achieve optimal outcomes and best value to all stakeholders. A new five year SLP commencing in 2026 has been developed with community input and was submitted to the Department of Mineral and Petroleum Resources ("DMPR") for review and approval in late 2025. Waterberg JV Co. submitted its annual SLP compliance report and an annual Mining Charter compliance report to the DMPR on May 21, 2026.

The process to obtain surface lease agreements with both the Ketting and Goedetrouw communities is ongoing. Draft surface lease agreements have been exchanged with Goedetrouw and Ketting community representatives and their legal counsels. Formal independent expert land valuations have been completed. An application for a water use license and an application for land use rezoning are pending the completion of surface lease agreements.

The recognized leadership and the majority of community members living on the farms Goedetrouw, Ketting and Early Dawn have expressed their support for the Waterberg Mine. Notwithstanding such support there are opponents. A Court Case filed in March 2024 by certain members of the Early Dawn community seeking condonation and challenging the grant of the Waterberg Mining Right in 2021 is unadjudicated. No mine infrastructure is planned for location on the farm Early Dawn.

Two appeals to the inclusion of the farms Bonne Esperance and Too Late into the Waterberg Mining Right were received in 2025, one from a member of a faction within the Early Dawn community, and the other from an NGO called the Wildlife and Environment Society of South Africa. The farms in question are down dip of the current mineral reserve at the Waterberg Project, would only ever be accessed from underground, and would not likely be scheduled for mining until approximately 50 years of mining have occurred.

A final draft Heritage Management Plan ("HMP") was submitted to the South African Heritage Resource Agency ("SAHRA") on March 9, 2026. SAHRA provided its final approval of the HMP on April 14, 2026. One formal appeal had been received directly by Waterberg JV Co. SAHRA advised that a panel to review the appeal was appointed on May 29, 2026, and a hearing is scheduled to take place on July 21, 2026.

Outlook

Approximately $9.2 of the $21.0 million Pre-Construction Program described above remains to be completed, including proposed work on initial road access, water supply, essential site facilities, a first phase accommodation lodge, a site construction power supply and advancement of the Waterberg SLP. Remaining components are being undertaken in phases as incremental budgets are approved. The Stage Six Budget and the Supplemental Budget allow for the continuation of work during the period ending August 31, 2026.

The Company and Waterberg JV Co. are assessing commercial alternatives for mine development financing and concentrate offtake. As a part of the Company's investigation of smelting and base metal refining options, the Company has engaged in discussions with all South African integrated producers with a view to negotiating formal concentrate offtake arrangements for the Waterberg Project. To date no terms have been agreed. As an alternative, over the past three years the Company has studied and proposed the establishment of smelter and base metal refinery facilities located in either Saudi Arabia or South Africa.

Before any processing of materials in Saudi Arabia could occur, South African Government authorization for the export of concentrate or matte would be required and such approval has been requested. Senior South African Government officials have stated their preference for beneficiation to occur in South Africa. The Company is also investigating opportunities to collaborate and co-invest with smaller furnace operators in South Africa who are interested to modify and expand their existing operations such that the efficient processing of Waterberg Project concentrate could be undertaken. In such a scenario the Waterberg Project could be developed in stages so that smelting capacity could also be developed in stages.

The base case for mine development in the Waterberg DFS Update is focused first on lower cost, bulk mining of F-Zone material from the F-Central deposit, followed by later mining from the T-Zone. Although no decision has been made to alter the base case scenario, given the current price and outlook for gold, one concept being investigated in the T-Zone Study (as described above) is to begin staged development at the Waterberg Project, first with decline development into the T-Zone, followed by smaller scale T-Zone mining and then later expansion into the F-Central deposit at the scale planned in the Waterberg DFS Update. As compared to F-Central ore, proven and probable reserves for the T-Zone have a more favourable 4E prill split of approx. 29% platinum (28% F-Central), 51% palladium (66% F-Central), 1% rhodium (1% F-Central) and 19% gold (5% F-Central). T-Zone proven and probable reserves also have a higher 4E grade of 3.84 g/t (2.68 g/t F-Central).

The F-Central deposit, with true mining widths (hanging wall to footwall) of up to 107 metres, and with approximately 87% of production planned from mining widths more than 15 metres, is very favourable to low-cost bulk mining. The T-Zone, with approximately 92% of production planned from mining widths between 2.4 metres and 15 metres, and 8% from areas up to 20 metres thick, also allows for bulk mining (being longitudinal longhole stoping), albeit at a higher cost per tonne versus the F-Central deposit.

At current metal prices, increased revenue per tonne from mining the T-Zone would more than offset higher mining costs, and may allow for a lower capex, staged development approach as described above. The T-Zone Study is examining the financial impact of deferring capital for power lines, paste backfill, milling capacity, and underground conveyors, while first operating a T-Zone mine before using free cash flow to then develop a second stage F-Central mine. T-Zone ore and waste can be trucked to surface for processing during initial mining stages, allowing for a shortened ore build-up period and a reduced capital footprint in both underground development and other underground infrastructure requirements. The use of Jameson Cell high-intensity, compact flotation technology is also being investigated.