Southern Palladium
Primary ticker: ASX:SPD, JSE:SDL
Stage of development: Exploration, Development
Primary minerals: Palladium, Platinum, Rhodium, Iridium, Ruthenium, Gold, Chrome
Project to promote: Bengwenyama Project
Project location:
Website:southernpalladium.com
Southern Palladium is advancing the Bengwenyama Project, an advanced-stage development located on the Eastern Limb of South Africa’s Bushveld Complex, a globally renowned PGM and chrome hub. The project boasts a Mineral Resource of 40.25 Moz (7E) and JORC probable reserve of 6.29 Moz at 6.17 g/t (6E) on the UG2 reef. A recent prefeasibility study outlined potential annual production of 400,000 oz PGM at 2.4 Mtpa, requiring an initial capital investment of US$385 million. With an all-in sustaining cost of $800/oz (6E), the project delivers a compelling post-tax NPV8 of US$1.059 billion.
Cash: AUD 5.12M
Debt: NIL
Major shareholders:
Nicolas Daniel Resources – 14%
Nurinox – 9%
Robert Keith – 6%
Legacy Platinum Corp – 6%
HSBC Custody Nominees – 5%
Management ownership – 17%
Financials
Management Profile
Johan Odendaal – Managing Director – SPD
Johan Odendaal is a Mineral Economist and holds a B.Sc. degree in Geology, a B.Sc. Hons degree in Mineral Economics and a M.Sc. degree in Mining Engineering. Johan is director and co-founder of mining consulting firm Minxcon (2005) and has 36 years’ experience in the mining and financial industry. This includes 19 years as an independent mining consultant and 12 years as a financial analyst involved in mine-financial analysis and valuations and corporate advisory. He headed mining research at a leading South African broking firm and spent several years at Merrill Lynch as Vice President.
Mike Stirzaker – Non-Executive Director – SPD
Mike Stirzaker has a B.Com (University of Cape Town) and qualified as a Chartered Accountant (Australia) whilst working with KPMG. He has over 40 years’ commercial experience, mainly in mining finance and mining investment with various companies including being Joint Managing Director of boutique resource adviser, RFC Group Limited, and from 2010 to 2019 was a partner at the private equity mining fund manager, Pacific Road Capital. Mike has held numerous listed company non-executive directorship roles and is currently an independent non-executive director of Energy Fuels Inc.
Daan van Heerden – Non-Executive Director – SPD
Daan van Heerden holds a M.Com., a B.Eng Mining Engineering and has a Mine Managers Certificate. He has over 35 years’ experience in the mining industry and has obtained significant experience in managing mining operations in South Africa and abroad, both underground and open cast, for world-class major mining companies and for junior mining companies. He was responsible for new business development for two major mining companies and has experience in mining mergers and acquisitions.
What is your rationale for taking part in 121 Mining Investment?
Larger Institutional investors, South African Institutions and Access to Debt markets and other capital markets
What recent news would you like to highlight to investors attending?
20241028: Announce Pre-Feasibility Study results – Project NPV of US$ 1.059bn
20241023: Bengwenyama PGM Mineral Resource increases to 40.25Moz
20240810: Appointment of Roger Baxter as Executive Chairman
20240812: Submission of EIA Report a milestone for Bengwenyama Project
20240611: Lindi Nkosi-Thomas appointed as Non-Executive Director
20231206: Metallurgical testing shows potential PGM recoveries of 85%
20231002: Bengwenyama Project Mining Right Application Submitted
20231023: Geotechnical Study Establishes Mine Design Parameters
What are your key goals for the next 3, 6 and 12 months?
3 Months:
Complete an option study review and select the preferred option to proceed to the Feasibility Study.
6 Months:
Feasibility Study
Complete regulatory requirements, including the granting of a mining right.
12 Months:
Feasibility Study and FID
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Global economic environment which poses challenges to raising capital.
What do you think makes your company such a compelling investment?
World-Class Project: The project boasts a shallow, high-grade ore deposit with a significant resource base strategically located near major infrastructure, ensuring cost-effective and efficient development.
Exceptional Leadership: Our management team has a proven track record in the platinum group metals (PGMs) sector, backed by extensive expertise in South African mine development and operations.
Favourable Market Dynamics: Global carbon reduction initiatives, advancements in hydrogen production, hybrid vehicle technologies, and the rise of extended-range BEVs are driving renewed demand for PGMs. The market outlook is further bolstered by PGMs being designated as critical minerals on priority lists of major economies.
These elements position us uniquely to deliver significant value to our investors while contributing to the global shift towards cleaner and more sustainable technologies.
What are the top 3 key investor takeaways?
Prime Location: The project is strategically situated in a well-established mining area with access to existing key infrastructure and downstream beneficiation facilities, ensuring operational efficiency.
Unique Opportunity: As one of the last remaining shallow platinum projects with a substantial resource base on the Eastern Limb of the Bushveld Complex, it represents a rare opportunity for significant growth, especially for a junior mining company.
Long-Term Potential: The resource is extensive, with the potential to support a large-scale, long-life mining operation, offering sustained value creation over the years.