Southern Palladium Boosts Cash to A$22.6m, Advances Bengwenyama DFS and Permitting

Progress on the Ground

Southern Palladium Limited (ASX, SPD) has reported robust progress during the December 2025 quarter on its flagship Bengwenyama platinum group metals (PGM) project located in South Africa’s prolific Bushveld Complex. The company completed extensive metallurgical drilling targeting the unoxidised UG2 reef zones, confirming the continuity and quality of the orebody. Complementary geotechnical drilling and surface pitting across key infrastructure sites have provided critical data to refine civil and mine design parameters.

These technical advancements underpin the accelerated Definitive Feasibility Study (DFS), which is crucial for de-risking the project and moving towards a Final Investment Decision (FID) in 2026. Notably, Stage 1 mine development planning has been fast-tracked, with detailed optimisation of decline designs to intercept the shallow UG2 reef, reflecting a strategic focus on early project delivery.

Regulatory Milestones and Environmental Compliance

On the regulatory front, Southern Palladium lodged its Environmental Guarantee in October 2025, satisfying a key financial provision under South African mining regulations related to mine rehabilitation and closure. This submission, alongside the completion of the Environmental Authorisation process earlier in the year, means all documentation required under Section 23 of the Mineral and Petroleum Resources Development Act (MPRDA) has now been submitted. The company is actively engaging with regional and national regulators to expedite the granting of the Mining Right, a pivotal milestone that would unlock full project development potential.

Financial Strength and Market Context

Southern Palladium successfully completed a two-tranche placement raising A$20 million at $1.10 per share, supported by cornerstone investors including its largest shareholder and new global institutional participants. This capital injection has materially strengthened the company’s balance sheet, boosting cash reserves to A$22.58 million (excluding subsidiary cash), and fully funding the completion of DFS works and early mine development activities.

The timing of this capital raise is particularly opportune given the strong fundamentals in the PGM market. In 2025, key metals such as platinum, palladium, rhodium, and ruthenium saw substantial price increases, platinum up 120%, rhodium nearly doubling, and ruthenium surging 158%. The World Platinum Investment Council forecasts continued supply deficits through to 2030, supporting a bullish outlook for PGM prices. Southern Palladium’s current spot basket price is significantly higher than the conservative assumptions used in its Optimised Pre-Feasibility Study, suggesting considerable upside to project valuation.

Looking Ahead

In the coming quarter, Southern Palladium plans to submit representative samples for metallurgical testing, continue evaluating processing and offtake options, and make key operational appointments including a Commercial Manager, Project Manager, and Underground Mining Manager. The company will also issue requests for proposals for early box cut and decline development works, and procure an independent audit-style review of its DFS and resource estimates.

With a strengthened financial position, advancing regulatory approvals, and a supportive commodity backdrop, Southern Palladium is well positioned to unlock the full value of the Bengwenyama project. The company’s focus on execution and international engagement reflects its ambition to become a leading supplier of responsibly developed critical minerals.