Southern Palladium advances Bengwenyama project amid share price volatility

Southern Palladium's share price slid a whopping 7.5% on Friday even though it reported "strong progress" across the feasibility study of the Bengwenyama platinum project and early mine planning workstreams, while regulatory milestones were advanced.

The share price closed 7.55% lower at R24.50 on the JSE, but the price has ramped up considerably from only R3.15 a year ago, albeit in a market that has seen sharp commodity price increases over the 12 months.

The Australia and JSE-listed company, which holds a 70% stake in the project through subsidiary Miracle Upon Miracle Investments, said in a quarterly update to December 31 the project continued to demonstrate credentials as one of the "highest-quality PGM developments globally." The project lies in the heart of South Africa's Bushveld Complex – the largest source of PGMs in the world.

This was according to Southern Palladium's chairman Roger Baxter, the former CEO of Minerals Council South Africa, who said in the update: "The December quarter has been an important period of value creation. Key milestones on the regulatory front have positioned the company for near-term receipt of the mining right."

A successful A$20 million capital raising had materially strengthened the balance sheet and would ensure the company was "fully funded to unlock the next phase of development," he said.

This included accelerating the feasibility study activities and preparing for a final investment decision. The operational momentum, with supportive PGM market fundamentals, had been reflected in the recent share price performance and growing institutional interest in the company, said Baxter.

"Having just represented Southern Palladium at the Future Minerals Forum in Saudi Arabia earlier this month, it's clear there is a strong global appetite for high-quality, responsibly developed critical mineral projects," said Baxter.

He said that alongside a busy international engagement schedule, their team was focused on execution at Bengwenyama Platinum as they work to unlock the full value of the exceptional asset for shareholders and community stakeholders in 2026.

On the feasibility study, drilling and metallurgical assays were completed and geotechnical drilling was progressed across the Southern block. Intersections achieved to date had aligned with geological expectations, reinforcing confidence in the continuity and quality of the UG2 reef, said Baxter.

Surface geotechnical drilling and pitting across the North Decline, Southern Decline and plant site areas to inform infrastructure and decline design was completed. Stage 1 mine development planning accelerated, with detailed optimisation of decline designs to intercept the shallow UG2 reef and support early de-risking of project development.

Additional geotechnical drilling was planned for early 2026 across shallower zones (<50–80 metres) to better define the dome structure border in the south and confirm geological structure and rock competency, supporting final decline and mine designs.

Meanwhile, all documentation required under Section 23 of the Mineral and Petroleum Resources Development Act (MPRDA) had now been submitted. The Environmental Guarantee had also been lodged. There was continued close engagement with regulators at regional and national levels to expedite the final granting of the mining right.

The company's cash balance of A$22.58 million (September 30, 2023: A$6.90m) excluded cash held by Miracle Upon Miracle Investments of A$0.95m (A$0.54m). Project delivery models also continued to be assessed, including a hybrid EPC (engineering, procurement and construction)/EPCM (engineering, procurement and construction management) approaches.

Early-year processing options, including third-party concentrator treatment versus an SPD-owned processing facility were being asssessed. The platinum group metals basket was one of the best performing commodities in 2025, led by material price increases for platinum (120%), palladium (64%), rhodium (97%) and ruthenium (158%).

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