Key Highlights

  • Southern Palladium shares were up 8.84% at $1.79 during the 10 November 2026 trading session.
  • The Updated PFS reported a post-tax NPV of US$1.961 billion, an IRR of 39.1% and a 2.8-year payback.
  • The Mining Right for the Bengwenyama Project was granted on 7 August 2026 for an initial 30 years.

Southern Palladium Limited (ASX:SPD) shares were trading higher during the 10 November 2026 session, up 8.84% at $1.79 at midday AEDT. The S&P/ASX 200 was also higher in the same session, up 1.13% at 9,131.90 around 12:30 pm AEDT. Southern Palladium is a dual-listed platinum group metals company developing the Bengwenyama PGM-chrome project on the Eastern Limb of South Africa’s Bushveld Complex. The company’s most recent update was its Quarterly Report for the period to 30 September 2026, released on 28 October 2026, which followed an Updated Prefeasibility Study announced on 13 October 2026.

About the company

Southern Palladium is a dual-listed platinum group metals company, trading on the ASX and the JSE. Its flagship Bengwenyama PGM-chrome project covers about 5,280 hectares on the Eastern Limb of the Bushveld Complex in South Africa. The project hosts a combined JORC Mineral Resource of 40.25 million ounces and a 6.29 million ounce 6E Probable Ore Reserve within the UG2 reef.

Updated PFS announced on 13 October 2026

The Updated PFS reported a 129% increase in forecast post-tax NPV to US$1.961 billion on an 8% real discount rate and a 100% project basis. It also reported a post-tax IRR of 39.1% and a payback of 2.8 years from first production, with a planned mine life of 33 years. The study incorporates DFS-level metallurgical outcomes, an optimised processing design and updated cost estimates.

Metallurgical test results announced in July estimated 85.6% full-plant chromite recovery, compared with 30% in the earlier PFS, and an overall PGM recovery of 87.6%. The company said these results nearly trebled chrome production, making chrome the third-largest Revenue earner after rhodium and platinum.

Permitting and cash position

The Mining Right was granted by South Africa’s Department of Mineral and Petroleum Resources on 7 August 2026. The board has approved early box-cut and decline development, subject to outstanding waste management and water use permitting. Cash at 30 September 2026 was A$20.06 million, compared with A$23.88 million at 30 June 2026, excluding A$1.13 million held by its 70% subsidiary.

The company holds 70% of Miracle Upon Miracle Investments, which owns the project, with the remaining 30% held by the Bengwenyama Traditional Council on behalf of the community.

Sector Context

PGM markets are influenced by automotive and industrial demand, and by platinum and palladium Supply from established South African producers. Chrome is a co-product that the company said could add value to the project.

Risks to Consider

  • Development is subject to outstanding waste management and water use permits, which have not yet been granted.
  • The Updated PFS is a study, and production, Capital and operating costs may differ from the estimates in the study.
  • Cash declined over the six months to September, and the company will need further funding for mine development.

What to Watch Ahead

  • Waste management and water use permit decisions for the Bengwenyama Project.
  • Completion of the definitive feasibility study works and progress on early box-cut and decline development.
  • Prices for PGMs and chrome, which underpin the updated economic case.

Final Word

Southern Palladium’s update reflects a shift from feasibility studies toward staged development of Bengwenyama. The outstanding permits and the progress of early development will indicate the project’s next stage.