Slide 1: Investor Webinar Presentation
28 August 2024 Investor Webinar Presentation Southern Palladium Limited (ASX Code: SPD and JSE Code: SDL) releases the Company’s Investor Presentation for an Investor Webinar to be held later today. Anyone wishing to attend the webinar must register using the below link. Webinar Details Date and tim
Slide 2: Company holds 70% stake; JORC Compliance Statement
The Company, holding a 70% stake in the project, will primarily concentrate on delivering a Pre-Feasibility study. Additionally, following the completion of a geophysical survey conducted in 2022 and the September 2023 submission of the Mining Right application, they will oversee the completion of t
Slide 3: Bengwenyama PGM Project: Mineral Resource Update
BENGWENYAMA PGM PROJECT: MINERAL RESOURCE UPDATE INVESTOR PRESENTATION – 28 August 2024 | ASX: SPD | JSE: SDL PAGE 1
Slide 4: Disclaimer
DISCLAIMER The following disclaimer applies to this investor presentation (Presentation). You should read this disclaimer carefully before reading or making any other use of this Presentation or any information contained in this Presentation. By accepting this Presentation, you represent and warrant
Slide 5: Southern Palladium
SOUTHERN PALLADIUM OUR PURPOSE – CREATE SHARED VALUE THROUGH EASTERN LIMB COOPERATIVE PARTNERSHIP • New Resource update confirms Tier 1 PGM project: 35 Moz / Bengwenyama • Shallow orebody: Early UG2 development focus ~ 250m Project • High grade orebody: Measured resource section of the UG2 at a grad
Slide 6: Our Achievements and Goals
OUR ACHIEVEMENTS AND GOALS PROJECT DELIVERY ON-TIME AND ON-BUDGET – KEY MILESTONES A$19m Submit Updated 3rd MRE Drilling Submit EIA Update Complete Feasibility; Construction raised in IPO Mining Right Scoping Commenced Report PFS FID Starts June 2022 Application Study 35.3Moz Jun 2022 Aug 2022 Sept
Slide 7: Scoping Study Results – Feb 2024
SCOPING STUDY RESULTS– FEB 2024 1 330KOZ PGM PER YEAR AT US$771/OZ. NPV8 OF US$700M POST TAX 2 Mtpa UG2 Reef Peak Funding Requirement NPV8% (post-tax) US$403 million (incl. ~15% US$700 million 2 PGM Concentrate (LOM avg) contingency) 50 Kt p.a. @ 2.5% mass pull IRR (post-tax) EBITDA (LOM avg) 21% An
Slide 8: Scoping Study Results – Mining Inventory Totals
SCOPING STUDY RESULTS– FEB 2024 1 MINING INVENTORY TOTALS 11 MILLION OUNCES AT 6.55G/T (7E) ~ 79% of the tonnes in the payback period in the Indicated Mineral Resource category with the remainder in inferred. There is still a total of 4.8 Moz 7E indicated (~80% of the indicated mining inventory) in
Slide 9: Bengwenyama UG2 Mineral Resource Update
BENGWENYAMA UG2 MINERAL RESOURCE UPDATE 1 FOCUS IS STILL ON THE MOST ECONOMIC UNIT, THE UG2 REEF: 25MOZ • UG2 Mineral Resource (M+I+I) now totals 24.81 Moz • M&I Mineral Resource has increased by 25% to 8.17 Moz (7E) • M&I at a grade of 9.89 g/t over 73 cm 10.30 Moz (7E) Inferred • 28% of the UG2 M&
Slide 10: 81% Increase in Inferred Resources
BENGWENYAMA UG2 MINERAL RESOURCE UPDATE 1 81% INCREASE IN INFERRED RESOURCES • Both the Merensky and UG2 are tabular orebodies. • Drillhole data obtained confirmed the continuity of the UG2 reef to and beyond the Nooitverwacht boundary. • Inferred UG2 reef could be extrapolated further to the NOOITV
Slide 11: Bengwenyama Mineral Resource – Comparative Increase
BENGWENYAMA MINERAL RESOURCE – COMPARATIVE INCREASE Combined Mineral Resource for the UG2 and Merensky Reef now totals 35.32 Moz, up 35% from previous estimate Source: ASX Announcement 7 December 2023 PAGE 9 ASX Announcement 27 August 2024 Note: 7E ounces plus Nooitverwacht 4E ounces
Slide 12: Inexpensive Ounces Now With Updated Resource
BENGWENYAMA UG2 MINERAL RESOURCE UPDATE 1 INEXPENSIVE OUNCES NOW WITH UPDATED RESOURCE High PGE Grade / Inexpensive Ounces Size of Attrib Size of utabl Attributable Resource e Reso urce Low PGE Grade / Expensive Ounces Note: Calculations based on data sourced from Company Reports tabled in Appendix
Slide 13: PGM Dynamics Are Experiencing a Change
PGM DYNAMICS ARE EXPERIENCING A CHANGE Basket Price UG2 - USD1,328/oz • Decline in primary mine production: South Africa’s PGM production profile likely to MR – USD1,186/0z decline marginally over the next few years as older deep level shafts face closure. • Decline in Recycling: Recycling rates hav
Slide 14: Short Term Outlook
BENGWENYAMA UG2 MINERAL RESOURCE UPDATE 1 SHORT TERM OUTLOOK UG2 Reef Depth Below Surface • PFS on track for completion in early Q4 2024 targeting the shallow end of the orebody. • The Environmental Impact Assessment (EIA) report submitted - acknowledgment letter from the DMRE issued on 22 July 2024
Slide 15: Investment Summary
INVESTMENT SUMMARY • The right address amongst Tier 1 operations LOCATION • Excellent access to infrastructure UNLOCKING • Scoping Study outlines significant upside POTENTIAL • Resource upgrade highlights quality and scale of mineralisation GREEN • Global carbon reduction the growing green hydrogen
Slide 16: Appendix
Appendix PAGE 14
Slide 17: Mineral Resource Estimate (JORC Code 2012), August 2024
MINERAL RESOURCE ESTIMATE (JORC CODE 2012), 1 AUGUST 2024 Tonnes Thickness 4E 7E Cu Ni Moz Reef Resource Category Moz (4E) Mt (m) (g/t) (g/t) (%) (%) (7E) Merensky Indicated 21.59 2.05 2.48 2.75 0.04 0.12 1.72 1.91 Merensky Inferred 77.90 1.97 3.10 3.43 0.03 0.12 7.77 8.60 Merensky Total 99.49 1.99
Slide 18: EV/oz Calculations
EV/OZ CALCULATIONS Attributable Enterprise Mkt Cap Cash Enterprise M&I as % of Name and Ticker Exchange Debt (A$m) Resource M,I Grade (4E g/t) Value (A$) Sources Status (A$m) (A$m) Value (A$m) total Resources & I (4E Moz) /Resource oz 30 June 2023 Annual Report, June Scoping Study 2024 Quarterly Act
Slide 19: Southern Palladium Limited (ASX:SPD, JSE:SDL)
SOUTHERN PALLADIUM LIMITED (ASX:SPD,JSE:SDL) CORPORATE AND ASSET OWNERSHIP STRUCTURE BOARD OF DIRECTORS – SOUTHERN PALLADIUM (‘SPD’) NON-EXECUTIVE DIRECTORS Mike Stirzaker NED MUM Roger Baxter Johan Odendaal Bengwenyama Non-Executive Managing Director Daan van Heerden NED MUM Lindi Nkosi Chairperson
Slide 20: Platinum Group Metal Industry - 2024
PLATINUM GROUP METAL INDUSTRY -2024 Platinum Supply - 5,681koz Palladium Supply – 6,454koz Rhodium Supply - 704koz Secondary Supply – 1,335koz Secondary Supply – 2,919koz Secondary Supply – 295koz A’ Platinum Demand – 7,614 koz Palladium Demand – 9,731koz Rhodium Demand – 1,064koz PAGE 18 Source: Jo
Slide 21: Platinum Group Metal Industry - 2024
PLATINUM GROUP METAL INDUSTRY -2024 Platinum Palladium Supply Rhodium Supply Platinum Demand Palladium Demand A’ Rhodium Demand PAGE 19 Source: Johnson Matthey PGM Market Report 2024