Southern Palladium Ltd. · ASX:SPD
Southern Palladium — Non-Deal Roadshow (February 2024)
22 slides from Southern Palladium's roadshow presentation, Feb 16, 2024
Slide 1: Amendment - Managing Director's Webinar Presentation
16 February 2024 Amendment - Managing Director’s Webinar Presentation Southern Palladium (ASX:SPD and JSE:SDL), ‘Southern Palladium’ or ‘the Company’) released a presentation titled “Bengwenyama Project Scoping Study - The Next Significant PGM Producer On The Eastern Limb” on the ASX Market Announce
Slide 2: Bengwenyama Project Scoping Study: The Next Significant PGM Producer on the Eastern Limb
BENGWENYAMA PROJECT SCOPING STUDY THE NEXT SIGNIFICANT PGM PRODUCER ON THE EASTERN LIMB INVESTOR UPDATE | FEBRUARY 2024| ASX: SPD | JSE: SDL PAGE 1
Slide 3: 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 4: Southern Palladium: The Bengwenyama Project
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 5: 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 6: Bengwenyama: 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 7: Bengwenyama: 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 8: Bengwenyama: Smelter and Refiners
BENGWENYAMA: SMELTER AND REFINERS WELL-ESTABLISHED DOWNSTREAM REFINING PROCESS FOR PGM CONCENTRATE WITHIN SOUTH AFRICA PAGE PAGE 7
Slide 9: Bengwenyama Key Project Results
BENGWENYAMA KEY PROJECT RESULTS MINING INVENTORY TOTALS 11 MILLION OUNCES AT 6.55G/T (7E) Mining Inventory Tonnes Grade 4E Grade 7E Content 4E Content 7E Contribution ~ 79% of the tonnes in the payback period in the Indicated Mt g/t g/t Koz Koz % Mineral Resource category with the remainder in infer
Slide 10: 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) USD403 million (incl. ~15% USD700 million * PGM Concentrate (LOM avg) contingency) 50 Kt p.a. @ 2.5% mass pull IRR (post-tax) EBITDA (LOM avg) 21% Annu
Slide 11: Nearly 90% of Revenues Driven by Platinum, Palladium, Rhodium and Chrome By-product
BENGWENYAMA: NEARLY 90% OF REVENUES DRIVEN BY PLATINUM, PALLADIUM, RHODIUM AND A CHROME BY-PRODUCT Basket Price: USD1400/6E Oz 5,000 1.40 4,500 1.20 4,000 3,500 1.00 MR/UG2 Ratio 3,000 0.80 USD/oz 2,500 2,000 0.60 1,500 0.40 1,000 0.20 500 “The Bengwenyama project does 0 0.00 not require nickel and
Slide 12: Bengwenyama: 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 13: Bengwenyama: An Emerging First Cost Quartile Producer
BENGWENYAMA: AN EMERGING FIRST COST QUARTILE PRODUCER PAGE 12 Source: Adapted from Rene Hochreiter (NOAH Capital Markets & Sieberana Research, 2023)
Slide 14: 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 15: 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 5.00 SPD A$1.14/oz 4.00 WEZ A$55.51/oz PTM A$9.23/oz 4E Grade (g/t) 3.00 2.00 FME A$2.42/oz BRVO A$34.01/oz Size of Attributable Resource 1.00 CHN A$19.54/oz POD A$0.84/oz Low PGE G
Slide 16: Advancing Bengwenyama to Production: Next Steps
ADVANCING BENGWENYAMA TO PRODUCTION: NEXT STEPS H1 2024 H2 2024 2026-2028 • Construction to • Lodge Environmental • Completion of PFS to commence 2026 Impact Assessment be fully funded from • 2 year construction period (EIA) for Mining existing cash reserves • Concurrent mine Right Application devel
Slide 17: Our Achievements and Goals
OUR ACHIEVEMENTS AND GOALS PROJECT DELIVERY ON-TIME AND ON-BUDGET Community A$19m Drilling Drilling Far East Resource Submit 2nd Interim Updated Complete Feasibility Construction meetings raised in Commenced Intersects Block increases by Mining Resource Scoping PFS and FID Starts IPO June UG2 Reef D
Slide 18: Southern Palladium Limited (ASX:SPD, JSE:SDL)
SOUTHERN PALLADIUM LIMITED (ASX:SPD,JSE:SDL) CORPORATE AND ASSET OWNERSHIP STRUCTURE BOARD OF DIRECTORS – SOUTHERN PALLADIUM (‘SPD’) Southern 9.3% Bengwenyama NON-EXECUTIVE DIRECTORS Palladium Mike Stirzaker NED MUM Community Roger Baxter Johan Odendaal Daan van Heerden NED MUM Limited Non-Executive
Slide 19: PGM Dynamics Are Experiencing a Change
PGM DYNAMICS ARE EXPERIENCING A CHANGE Autocatalysts in Internal Combustion Engine (“ICE”) (Palladium, Platinum and • Platinum market to remain undersupplied Rhodium still the biggest throughout 2025 to 2028. driver) • Concerns about the long-term sustainability of several operations Green hydrogen
Slide 20: Investment Summary
INVESTMENT SUMMARY • The right address amongst Tier 1 operations LOCATION • Excellent access to infrastructure UNLOCKING • Scoping Study outlines significant upside POTENTIAL • Focus is now to improve knowledge of the Northern Horst Block GREEN • Global carbon reduction and ICE emission control has
Slide 21: Appendix
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Slide 22: Appendix 1
APPENDIX: 1 Attributable Enterprise Mkt Cap Cash Enterprise M&I as % of Name and Ticker Exchange Debt (A$m) Resource M,I 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 Activities Report (29
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