Southern Palladium's PFS results

Southern Palladium (ASX:SPD) has announced the results of a Pre-Feasibility Study for its 70%-owned Bengwenyama Platinum Group Metal project in South Africa. The study highlights the project's economic viability with a post-tax NPV of USD 1.059 billion and an IRR of 28%.

Analysis of Southern Palladium's strategic announcement

Southern Palladium has released positive results from a Pre-Feasibility Study for the Bengwenyama PGM project, highlighting its potential as a significant Tier 1 asset. The study reports a Probable Ore Reserve of 31.72 million tonnes, a 29-year life of mine, and an expected annual production of 400,000 ounces of PGM at a steady state. With an estimated AISC of USD 800 per 6E ounce, the project is competitive on the global PGM cost curve. Southern Palladium is moving towards a Definitive Feasibility Study by 2025, aiming for project financing discussions and mining rights by late 2025. The company emphasizes collaboration with the local community and adherence to environmental and social standards.

Executive insights on PFS results

The results of the Pre-Feasibility Study underscore the robust potential of the Bengwenyama PGM project, with its significant ore reserves and attractive economic metrics. We are committed to advancing this project towards the next stage of development while maintaining our focus on environmental and social governance.