Southern Palladium’s flagship Bengwenyama Platinum Group Metals (PGM) Project has received Environmental Authorisation (EA) from South Africa’s Department of Mineral and Petroleum Resources (DMPR), marking a major step toward full-scale development. This approval brings the project closer to securing a Mining Right and advancing to the execution phase. Meanwhile, the revised Pre-Feasibility Study (PFS) is progressing well, supporting a phased development approach aimed at reducing up-front capital costs. The Bengwenyama Project holds the potential to create thousands of jobs and generate significant economic benefits for the region.

The Environmental Authorisation, awarded to Southern Palladium’s 70%-owned subsidiary Miracle Upon Miracle Investments, follows a comprehensive environmental impact assessment and a robust public participation process. According to the DMPR, the company’s studies thoroughly investigated potential impacts, outlined clear mitigation measures, and complied fully with regulatory requirements. Notably, no objections were received during the public participation phase.

As stipulated by the EA, Southern Palladium will now notify all registered stakeholders, who will have 20 days to lodge any objections. Should objections arise, they will be reviewed by the Minister of Forestry, Fisheries & the Environment.

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Managing Director Johan Odendaal welcomed the approval, stating: “We continue to make meaningful progress toward the development of our flagship Tier 1 Bengwenyama Project. The recent grant of the Environmental Authorisation marks a major milestone, reflecting the strength of our permitting work and our commitment to responsible development. This sets a clear path toward project execution.”

Alongside regulatory progress, Southern Palladium is revising its development strategy for Bengwenyama. The company is now pursuing a two-stage, lower-capital approach. Stage 1 will focus on mining 80,000 tonnes per month via a single decline and truck haulage, significantly reducing upfront capital requirements. Stage 2 would later expand production to 200,000 tonnes per month, as outlined in the October 2024 Pre-Feasibility Study (PFS).

The revised plan is expected to be more attractive to traditional debt and equity financiers, with updated PFS-level results scheduled for release in June 2025. The company is also exploring the use of nearby infrastructure to further improve project economics.

Strong Project Economics

The October 2024 PFS highlighted the Bengwenyama Project’s robust fundamentals:

• Project NPV8 of US$1.06 billion
• Internal rate of return (IRR) of 28%
• Payback period of approximately 3.5 years
• Average annual production of ~400,000 ounces of PGMs (6E) and 350,000 tonnes of chromite concentrate
• 29-year mine life

With the Environmental Authorisation secured, the company is well-positioned to obtain the Mining Right and advance to the execution phase of the project. The revised Pre-Feasibility Study is on track for completion in June, with a final investment decision expected in 2026.