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.

Following on from the release of an attractive scoping study for the Bengwenyama project, SPD has
finalised a drill programme to allow the finalisation of an updated MRE and the completion of a pre-feasibility study by the end of 2024.

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.

Jewel of the East: Bengwenyama Scoping Study released:

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.