Southern Palladium (ASX:SPD, JSE:SDL) is progressing its flagship Bengwenyama project in South Africa’s eastern Bushveld Complex—home to more than 80% of the world’s platinum group metals (PGM) resources. The company holds a 70% stake in the tier-one asset, which boasts a 40Moz resource, including 8Moz measured and indicated in the high-grade UG2 reef. A 2024 PFS outlined compelling economics: US$1bn post-tax NPV, 28% IRR, and free cash flow of US$220m per year at steady state. With environmental approval in hand and a mining right expected soon, SPD is now updating its PFS to evaluate staged development and reduce the US$450m capex.
In addition to its strong fundamentals, SPD emphasises its favourable jurisdictional and infrastructure advantages. The Bengwenyama project benefits from shallow mineralisation—less than 100 metres deep—and proximity to substations, water sources, and experienced local mining talent. Unlike other emerging PGM regions, South Africa has existing smelting and refining capacity, reducing downstream risk. The company also maintains a 30% community ownership structure through the Bengwenyama community, ensuring alignment and long-term social licence to operate. With PGM prices rising on structural supply deficits and strong hybrid vehicle demand, SPD sees multiple catalysts ahead—including a DFS update in July and further exploration upside—to drive value uplift.
Watch the full presentation for insight into Southern Palladium’s strategy, market conditions, and progress toward development.
