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South PD - optimised prefeasibility study
• An optimised Pre-Feasibility Study (OPFS) has been completed for the 70%- owned Bengwenyama Platinum Group Metals (PGM) Project, resulting in a new staged development approach with lower capital expenditure estimates and significantly improving the project’s funding attractiveness.
• Several OPFS scenarios were presented by the company’s consultants, Minxcon. The SPD Board has evaluated these scenarios and believes that a staged production option, provides the best balance between unlocking project value and allowing the Company to fund project development with minimal future dilution for shareholders.
• Key parameters of the OPFS are set out below:
- Project level NPV8 (after tax, 100% basis) for the OPFS is estimated at USD857m (AD1.3bn) and an internal rate of return of 26.4%.
- A staged production proposal, assuming an initial Stage 1 production rate of 100ktpa expanding after 4 years to 200ktpa.
- Peak funding requirement of USD279m – representing a 38% reduction (USD173m) to the peak funding total set out in the PFS – with Stage 2 expansion capital to be funded through cashflow.
- Importantly, Stage 1 is expected to be a strongly cash generative project in its own right, meaning that it should be able to attract traditional market-related debt project financing
- Cash costs for both Stage 1 and Stage 2 remain attractive and lie within the lowest quartile for PGM projects globally.
• The above valuations were done on the Prefeasibility Study (“PFS”) (refer ASX Announcement 28 October2024) basket price of USD1,557/6Eoz which is 6% below the current basket price (7 July 2025) of USD1,662/6Eoz.
• The option to utilise existing mineral processing infrastructure in the area — which could result in further significant reductions to peak funding requirements — is being evaluated.
• Near-term catalysts: Issue of Mining Right anticipated in the near term. Fullyfunded infill drilling and metallurgical test work program, to be incorporated with OPFS results into planned Definitive Feasibility Study (DFS).
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| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
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