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South PD - update in Project Value via updated PFS
Southern Palladium (‘the Company’) announced the results of the 2026 Modular Prefeasibility Study Update (‘Updated PFS’) for its 70%-owned Bengwenyama PGM-chrome Project (‘Bengwenyama’ or ‘the Project’), located on the Eastern Limb of South Africa’s Bushveld Complex
Highlights
• Post-tax NPV of USD1,961 million (8% real discount rate, 100% project basis), up from USD857 million in the Optimised Prefeasibility Study (OPFS) – an increase of approximately USD1.1 billion, or 129%.
• IRR increases to 39.1% from 26.4%, with a payback period of 2.8 years from first plant production.
• Peak funding requirement of USD329 million, up from USD279 million in the OPFS due mainly to a stronger South African Rand forecast. The post-tax NPV is now almost six times more than the peak funding requirement.
• Chrome becomes a co-product: chromite recovery of 85.6% (previously 30%) lifts steady-state chrome concentrate production to approximately 1 Mtpa (previously ~350 ktpa), and life-of-mine output to 17.2 Mt of 42% Cr2O3 concentrate (OPFS: 6.0 Mt).
• More PGMs in a premium-grade concentrate: life-of-mine 6E recovery of 87.5% (OPFS: 85%), with 7.7 Moz 6E recovered over a 33-year mine life (OPFS: 7.5 Moz). A final concentrate grade of 505.9 g/t 6E (OPFS: 100 g/t 6E) is expected to enhance the pathway to a smelting and refining agreement.
• Higher margins: All-in Sustaining Cost (AISC) (including by-product costs) (“AISC incl.”) margin of 57% (OPFS: 48%). AISC incl. of USD943/6E oz, and a realised basket price (including by-products) of USD2,210/6E oz.
• Strong leverage to higher prices: every 15% increase in the 6E basket price adds approximately USD454 million to post-tax NPV.
Next steps
• Completion of the DFS, expected at the end of Q1 2027, incorporating the optimised flowsheet.
• Larger-scale confirmatory Jameson cell test work and further flowsheet optimisation.
• Advancement of discussions with potential smelting and refining partners for the premium-grade UG2 PGM concentrate.
• Progressing early box-cut and decline development following the grant of the Mining Right, subject to completion of the relevant waste management and water use permitting processes.
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