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Bridge Street Capital Partners – A low cost, long mine life project with a financeable path to +400koz PGMs.

Investment view: The Bengwenyama project genuinely seems to be one of the “jewels’ of the Eastern Limb of the Bushveld. Viability of this long mine life, low cash cost project has been further enhanced with recent price moves by the platinum group metals (PGM) driven by on-going supply deficits and what to us looks like emerging strong investment and jewellery demand out of Asia. These price moves, sustainable in our view, underpin the attractiveness of SPD’s 70%-owned Bengwenyama project.

Bridge Street Capital Partners – Site Visit Confirms the Quality of Bengwenyama PGM Project

Bridge Street Capital Partners have undertaken a site visit to the emerging Tier 1 Bengwenyama Platinum Group Metals (PGM) project located on the Eastern Limb of the Bushveld Intrusive Complex in South Africa. In their earlier reports they presented the case that the Eastern Limb represents an important source of PGM concentrates as the mature and high cost Western Limb projects are progressively exhausted. It is increasingly evident following discussions with industry representatives and South African analysts that one or two of the Eastern Limb mines are also under pressure, and new mines will be needed. SPD, with its low cost/long mine life 70%-owned Bengwenyama project, appears to be very well positioned.

Bridge Street Capital Partners – Jewel of the East

To say that the results of the Bengwenyama Scoping Study surprised us is somewhat of an understatement. Production forecasts are significantly higher than we’d thought, capital lower and opex significantly lower. This is largely attributable to an impressive 7E mineable grade of 6.55g/t, the highest UG2 grade on the Eastern Limb with the bulk of the mining inventory under 500m vertical depth. Using relatively conservative commodity prices, project economics are impressive, with an NPV8 of just under US$700m (100% basis, after tax) and an IRR of 21%. This is a special project – in our view the best greenfield PGM project globally – and one which deserves far more attention than the market is currently paying.

Global Mining Research – Southern Palladium Low Cost PGM Developer

Southern Palladium is a small cap project developer, with its main assets a platinum-group metal prospect in the Eastern Limb of the Bushveld Complex in South Africa. The Bengwenyama prospect is adjacent to operating mines, it is high grade and most importantly is shallow, allowing for both low capital costs and quicker than usual development times to first production. SPD is fully B-BBEE (Broad-based Black Economic Empowerment) compliant with local people holding 30% of the project.

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