Southern Palladium Ltd. · ASX:SPD
Southern Palladium — London Platinum Week 2024
23 slides from Southern Palladium's conference presentation, May 16, 2024
Slide 1: London Platinum Week Presentation
16 May 2024 London Platinum Week Presentation Southern Palladium Limited (ASX Code: SPD and JSE Code: SDL) releases the Company’s Investor Presentation for London Platinum Week 2024. Authorised by the Managing Director. For further information, please contact: Johan Odendaal Managing Director Southe
Slide 2: JORC Compliance Statement
Moreover, an assessment conducted by mining industry consultants CSA Global in 2021, has identified a significant exploration target beyond the currently explored area. The Company is led by a seasoned on-ground management team, including some of South Africa's most distinguished mining industry exe
Slide 3: Bengwenyama Project Update
BENGWENYAMA PROJECT UPDATE THE NEXT SIGNIFICANT PGM PRODUCER ON THE EASTERN LIMB INVESTOR PRESENTATION – LONDON PLATINUM WEEK 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 COOPERATIVE PARTNERSHIP Create Stakeholder Value • Timely and efficient delivery of a significant new mine • Environmental Responsibility • Uphold the highest safety standards. THE BENGWENYAMA PGM project in the heart of the Eastern Limb o
Slide 6: Bengwenyama Project Key Features
BENGWENYAMA PROJECT KEY FEATURES KEY OUTCOMES FROM THE INDEPENDENT MINXCON SCOPING STUDY: • +30-year mine life averaging 330,000 ozpa PGM (6E) from the Total Merensky Reef and UG2 Reef UG2 Reef Resource: 26.22 Moz (7E) • Total mining inventory of 10.9Moz. 54% (5.8Moz) at Indicated status • Low capit
Slide 7: Conceptual Layout of Mine Site
BENGWENYAMA: CONCEPTUAL LAYOUT OF MINE SITE HYBRID MINING – CONVENTIONAL STOPING WITH MECHANISED DEVELOPMENT 2 MILLION TONNES PER YEAR AT FULL PRODUCTION RATE PAGE PAGE 5
Slide 8: Plant Layout
BENGWENYAMA: PLANT LAYOUT CONVENTIONAL MF2 PLANT DELIVERING 85% RECOVERIES ~2 Mtpa UG2 Reef @ 6.55g/t (7E) Chrome Conc. 140 Ktpa Recovery ~ 85% for the major Metals PGM Conc. ~50 Ktpa. @ ~2.5% mass pull 330 Kozpa 6E PAGE PAGE 6
Slide 9: Smelter and Refiners
BENGWENYAMA: SMELTER AND REFINERS WELL-ESTABLISHED DOWNSTREAM REFINING PROCESS FOR PGM CONCENTRATE WITHIN SOUTH AFRICA PAGE PAGE 7
Slide 10: Bengwenyama Key Project Results
BENGWENYAMA KEY PROJECT RESULTS MINING INVENTORY TOTALS 11 MILLION OUNCES AT 6.55G/T (7E) Tonnes Grade 4E Grade 7E Content 4E Content 7E Contribution Mining Inventory Mt g/t g/t Koz Koz % Indicated 28.04 5.36 6.47 4,837 5,830 54% Inferred 19.69 5.50 6.66 3,481 4,215 38% Exploration Target 4.17 5.43
Slide 11: Bengwenyama Key Project Results
BENGWENYAMA KEY PROJECT RESULTS 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 * PGM Concentrate (LOM avg) contingency) 50 Kt p.a. @ 2.5% mass pull IRR (post-tax) EBITDA (LOM avg) 21% Annu
Slide 12: Bengwenyama Project Sensitivities
BENGWENYAMA PROJECT SENSITIVITIES A 10% UPLIFT IN PGM PRICES DRIVES A 30% INCREASE IN NPV8 TO +US$900M Change in 6E PGM Price -10% -5% Base +5% +10% Pt Price (USD/oz) 1,080 1,140 1,200 1,260 1,320 Pd Price (USD/oz) 990 1,045 1,100 1,155 1,210 Rhodium Price (USD/oz) 4,500 4,750 5,000 5,250 5,500 Gold
Slide 13: Nearly 90% of Revenues Driven by Platinum, Palladium, Rhodium and Chrome
BENGWENYAMA: NEARLY 90% OF REVENUES DRIVEN BY PLATINUM, PALLADIUM, RHODIUM AND A CHROME BY-PRODUCT Basket Price: USD1382/6E Oz 5,000 1.40 4,500 1.20 4,000 3,500 1.00 3,000 0.80 USD/oz 2,500 2,000 0.60 1,500 0.40 1,000 0.20 500 0 0.00 “The Bengwenyama project does Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 A
Slide 14: It's All About the Grade
BENGWENYAMA: IT’S ALL ABOUT THE GRADE Tonnes Production 4E Company Mine/Project Milled Grade 4E p.a AISC AISC Mtpa g/t kozpa ZAR/t USD/4E oz Marula 2.0 3.78 210 2,200 1,150 Modikwa 2.6 3.58 240 2,700 1,550 Bengwenyama 2.0 5.42 290 2,706 970 Two Rivers 3.6 2.54 240 2,050* 1,650 Mototolo 2.8 3.36 250
Slide 15: An Emerging First Cost Quartile Producer
BENGWENYAMA: AN EMERGING FIRST COST QUARTILE PRODUCER PAGE 13 Source: Adapted from Rene Hochreiter (NOAH Capital Markets & Sieberana Research, 2023)
Slide 16: Very Inexpensive Ounces and Now With an Attractive Scoping Study
BENGWENYAMA: VERY INEXPENSIVE OUNCES AND NOW WITH AN ATTRACTIVE SCOPING STUDY 6.00 High PGE Grade / Inexpensive Ounces SPD A$2.28/oz 5.00 4.00 PTM A$11.43/oz WEZ A$50.14/oz 4E Grade (g/t) 3.00 FME A$2.15/oz 2.00 BRVO A$21.61/oz Size of Attributable Resource 1.00 POD A$2.16/oz CHN A$20.26/oz - Low PG
Slide 17: Advancing Bengwenyama to Production: Next Steps
ADVANCING BENGWENYAMA TO PRODUCTION: NEXT STEPS Q2 2024 H2 2024 2026-2028 • Construction to • Lodge Environmental • Completion of PFS commence 2026 Impact Assessment to be fully funded • 2-year construction (EIA) for Mining from existing cash period Right Application reserves • Concurrent mine proce
Slide 18: Our Achievements and Goals
OUR ACHIEVEMENTS AND GOALS PROJECT DELIVERY ON-TIME AND ON-BUDGET Community A$19m Drilling Drilling Far East Resource Submit 2nd Interim Updated Complete Feasibility Construction meetings raised in Commenced Intersects Block increases by Mining Resource Scoping PFS and FID Starts IPO June UG2 Reef D
Slide 19: Corporate and Asset Ownership Structure
SOUTHERN PALLADIUM LIMITED (ASX:SPD,JSE:SDL) CORPORATE AND ASSET OWNERSHIP STRUCTURE BOARD OF DIRECTORS – SOUTHERN PALLADIUM (‘SPD’) Southern 9.3% Bengwenyama NON-EXECUTIVE DIRECTORS Palladium Mike Stirzaker NED MUM Community Roger Baxter Johan Odendaal Limited Non-Executive Managing Director Daan v
Slide 20: PGM Dynamics Are Experiencing a Change
PGM DYNAMICS ARE EXPERIENCING A CHANGE Autocatalysts in Internal Combustion Engine (“ICE”) (Palladium, Platinum and • Platinum market to remain undersupplied Rhodium still the biggest throughout 2025 to 2028. driver) • Concerns about the long-term sustainability of several operations Green hydrogen
Slide 21: Investment Summary
INVESTMENT SUMMARY • The right address amongst Tier 1 operations LOCATION • Excellent access to infrastructure UNLOCKING • Scoping Study outlines significant upside POTENTIAL • Focus is now to improve knowledge of the Northern Horst Block GREEN • Global carbon reduction and ICE emission control has
Slide 22: Appendix
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Slide 23: Appendix 1: Peer Comparison
APPENDIX: 1 Attributable Enterprise Mkt Cap Cash Enterprise M&I as % of Name and Ticker Exchange Debt (A$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, December 2023 Quarterly Scoping Study Activi