Wrap Text
Environmental Authorisation received and Updates for the development of the Bengwenyama PGM Project
Southern Palladium Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 646 391 899
ASX share code: SPD
JSE share code: SDL
ISIN AU0000220808
("Southern Palladium" or "the Company")
Environmental Authorisation received and Updates for the development of the Bengwenyama PGM
Project
Highlights:
• Environmental Authorisation (EA) for the Bengwenyama Project has been issued by the Department
of Mineral and Petroleum Resources (DMPR)
• EA approval is a major milestone leading to the award of the Project's Mining Right, marking a key
step forward in the development of the Bengwenyama Platinum Group Metals (PGM) Project
• Revised PFS progressing well for the implementation of a phased project development approach at
Bengwenyama with lower up-front capital costs
Southern Palladium (ASX:SPD and JSE:SDL), 'Southern Palladium' or 'the Company') is pleased to
announce that the Department of Mineral and Petroleum Resources (DMPR) has granted Environmental
Authorisation (EA) for a Mining Right (underground mining) and related infrastructural activities to SPD's
70% subsidiary, Miracle Upon Miracle Investments, for the development of the Bengwenyama platinum
group metals project.
Managing Director Johan Odendaal, said: "We continue to make meaningful progress toward the
development of our flagship Tier 1 Bengwenyama Project, with the recent grant of the Environmental
Authorisation (EA) marking a major milestone. The EA paves the way for the award of the Mining Right
and reflects the strength of our permitting work, including a comprehensive environmental impact
assessment and a compliant public participation process. This milestone demonstrates our commitment
to responsible development and sets a clear path toward project execution.
In parallel, we are refining the development pathway outlined in the original Pre-Feasibility Study. A
revised Stage 1 plan—focused on a smaller-scale, lower-capex operation producing 80,000tpm via a single
decline and truck haulage—is now well progressed, and is expected to significantly reduce up-front capital
requirements for project development. Results of the study are currently being finalised with updated PFS-
level outputs scheduled to be announced in June."
ENVIRONMENTAL AUTHORISATION
South Africa's DMPR has granted Environmental Authorisation (EA) for a Mining Right and related
infrastructural activities The EA has been issued with reference to the National Environmental
Management Act, 1998 (Act No. 107 of 1998) ("NEMA").
In making its decision, the DMPR stated that it had made the following findings:
• the potential impacts of the proposed site had been thoroughly investigated by SPD and mitigation
measures were clearly outlined by the Company;
• the public participation process complied with the regulations; and
• no objection had been received to date.
Pursuant to the EA terms, SPD will now notify all registered interested and affected parties, who will then
have 20 days in which to lodge an objection. Objections, if any, will be heard by the Minister of Forestry,
Fisheries & the Environment.
PROJECT UPDATE
As outlined in the March Quarterly Report, the Company's expert consultants have been advancing
studies on potential enhancements to the Bengwenyama October 2024 Pre-Feasibility Study (PFS). The
Company is currently evaluating a revised development strategy comprising a two-stage approach to
unlock the value inherent in the asset with lower up-front capital costs:
• Stage 1 proposes mining 80,000 tonnes per month (tpm) from a single decline with truck haulage.
• Stage 2 would expand production to 200,000tpm, as proposed in the earlier PFS, and can be initiated
at a later date (subject to funding) once Stage 1 is successfully operating.
SPD and its consultants are in the process of refining the revised plan, with the aim of delivering PFS-level
results in June. Preliminary analysis suggests a material reduction in upfront capital expenditure, due to
the smaller-scale plant and single-decline access. Importantly, this revised approach with lower up-front
costs is expected to be financeable through traditional debt and equity channels. Stage 1 economics could
be further improved using nearby infrastructure. This scenario is currently being assessed by the
Company and would be contingent on reaching satisfactory commercial terms with a third party.
October 2024 Pre-Feasibility Study
The October 2024 PFS produced strong project economics, generating an NPV8 of US$1.06 billion, an
internal rate of return of 28% and a payback of around 3.5 years on average production of ~400Kozpa
PGMs (6E) and 350Ktpa chromite concentrate for a 29-year mine-life (LoM).
Independent analysis has shown that the Bengwenyama project will be a first quartile cash cost producer.
The PFS calculations were reviewed by external expert consulting group SRK. Details are summarised in
the table below:
Project Metrics Results
Mill throughput at steady state 2.4Mtpa
Head grade (LOM) 6.1g/t 6E
Annual steady state production 400Kozpa (6E)
Steady state chrome production 350Ktpa
Pre-production funding requirement US$385 million
EBITDA (LoM average) US$300 million pa
Cash costs (LoM average) US$644/6E oz
AISC (LoM average) US$800/6E oz
Basket price US$1,557/6E oz
Exchange rate (ZAR/US$)* 19.57
EBITDA margin 50%
Reserve base 6.29Moz (6E)
Mine life 29 years
NPV8 (post tax) US$1.06 billion
IRR (post tax) 28%
Payback period 3.5 years
*Long-term PGM price assumptions: Pt US$1,200/oz Pd US$1,100/oz Rh US$6,190/oz
It is comforting to know that despite current depressed price levels the Basket price at current prices is
only 6% less than the price used in the PFS.
For further information, please contact:
Johan Odendaal
Managing Director
Southern Palladium
Phone: +27 82 557 6088
Email: johan.odendaal@southernpalladium.com
20 May 2025
JSE Sponsor
Merchantec Capital
Media & investor relations inquiries: Sam Jacobs, Six Degrees Investor Relations: +61 423 755 909
Follow @SouthernPalladium on Twitter
Follow Southern Palladium on LinkedIn
Date: 20-05-2025 10:54:00
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