PLATINUM GROUP METALS LTD

External Services

The external services cost over LOM amounts to R6.59 B in total, which translates to R27/t ore milled. Due to the mine being Owner-operated, very few services impacting operating cost will be contracted; therefore, external services contribute only 3.4% to the total LOM operating costs. External services included in the estimate include the central laboratory, contracted security services, TSF operation and management, medical services and waste removal. The laboratory costs are based on a quotation from a service provider and amount to R69 M/yr. Security services were estimated at R15.6 M/yr. An average annual TSF operation and management cost of R48 M, refer to Section 21.5 for more details on TSF costing. Waste removal was calculated by estimating the frequency of trips required to remove domestic, industrial, and medical waste from the site along with cost rates based on travel distance, waste disposal, and service fee estimates.