Dilution Risks Loom as Podium Advances Parks Reef with $2.6M Raise

Capital Raise to Advance Metallurgical Work

Podium Minerals Limited (ASX: POD) has announced a fully underwritten, non-renounceable pro-rata entitlement offer to raise approximately $2.6 million before costs. The offer is priced at 2.3 cents per share, representing a 19.1% discount to the recent five-day volume-weighted average price, and includes one free attaching option for every two new shares issued. This capital injection is earmarked to accelerate metallurgical test work at the company’s flagship Parks Reef Project in Western Australia.

The metallurgical program focuses on enhancing the flotation process, specifically targeting improved rejection of unwanted gangue material and boosting the grades of platinum group metals (PGMs) and base metals in the concentrate feed. These improvements are critical to optimising downstream refining circuits and ultimately increasing the economic viability of the project.

Strategic Expansion and Resource Growth

In a strategic move earlier this year, Podium acquired EV Nickel’s Range Well Nickel Project, adjacent to Parks Reef, expanding its tenement footprint by nearly 1.7 times. This acquisition not only broadens the company’s resource base but also opens potential avenues to streamline project development and enhance future operations.

Complementing this expansion, Podium recently updated its mineral resource estimate, incorporating a substantial copper and PGM-gold mineralised horizon at the Parks Reef Zone. This update adds approximately 140,000 tonnes of copper-gold mineralisation above the existing resource, increasing the overall metal basket value by 21% to A$3,529 per 5E PGM ounce at current spot prices.

Market Positioning and Industry Engagement

Podium’s Executive Chairman, Rod Baxter, highlighted the company’s progress and strategic positioning amid a recovering PGM market. The company’s recent membership in the World Platinum Investment Council (WPIC) aligns it with leading global PGM producers, providing valuable market intelligence and engagement opportunities.

The PGM sector is currently experiencing structural supply deficits, with primary supply heavily reliant on Russian and Southern African production. This dynamic, coupled with depleting above-ground stocks and elevated lease rates, points to a positive outlook for PGM prices, which Podium aims to leverage through its advancing Parks Reef Project.

Offer Underwriting and Risk Considerations

The entitlement offer is fully underwritten by Leeuwin Wealth Pty Ltd and jointly managed with Cumulus Wealth Pty Ltd. Eligible shareholders can subscribe on a 1-for-6 basis, with the offer expected to open on June 5, 2025, and close on June 12, 2025. The company cautions shareholders about potential dilution effects if they do not participate.

Podium also disclosed a comprehensive risk framework covering dilution, funding adequacy, operational challenges, environmental compliance, and market volatility. The company acknowledges that while the funds raised will advance key metallurgical work and maintain its expanded tenement package, additional financing may be required to fully realise project objectives.

Looking Ahead

With this capital raise, Podium is poised to deepen its technical understanding of the Parks Reef ore and improve beneficiation processes that are central to the project’s future success. The company’s strategic acquisitions and resource upgrades position it well to capitalise on anticipated PGM market improvements, though execution risks and market uncertainties remain.