Wrap Text
Short-Form: Interim Financial Report for the period ended 31 December 2022
Southern Palladium Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 646 391 899
ASX share code: SPD
JSE share code: SDL
ISIN AU0000220808
SHORT-FORM: INTERIM FINANCIAL REPORT FOR THE PERIOD ENDED 31 DECEMBER 2022
Shareholders of Southern Palladium Limited (ASX:SPD/JSE:SDL)(Southern Palladium or the Company) are
advised that Southern Palladium has today published its Interim Financial Report for the period ended
31 December 2022.
HIGHLIGHTS:
• Revenue increased by 100% to $47,391 (31 December 2021: $Nil)
• Operating loss increased by 913% to $3,786,692 (31 December 2021: $373,684)
• Basic loss per share decreased by $0.008, down 13% (31 December 2021: loss of $0.06)
• Headline loss per share decreased by $0.018, down 30% (31 December 2021: loss of $0.06)
• Bengwenyama project drilling well underway, and the new boreholes have assisted in getting a better
understanding of the geology.
• New block (Far East Block) previously excluded from the planned drilling programme and resource
estimation is being targeted.
• Decision taken to initiate the prefeasibility study.
• Mining Right application process accelerated.
COMMENTARY:
Phase 1 Drilling Programme
During the half year exploration drilling of the Phase 1 drilling programme conducted by drilling contractor,
GeoMech (Pty) Ltd on the Bengwenyama project (‘Bengwenyama’), started with the aim to confirm and
refine the existing 3D structural model for the shallower areas on the Eastern portion of the farm
Eerstegeluk 327 KT where the depths are expected to range from approximately 60m to 550m, with an
average depth of around 288m. This will be followed by the Phase 1b programme which will comprise infill
drilling across a narrower drilling grid (~350m grid).
Drilling is now well underway, and the new boreholes have assisted in getting a better understanding of
the orebody. A decision was made to drill in the far east corner (Far East Block) of the orebody which was
previously excluded from the planned Phase1 drilling programme and resource estimation. Drillholes in this
area all intersected the UG2 reef and confirms the UG2 reef does continue into the Far East Block. As at 31
December 2022, a total of 21 drillholes have been completed and spread over the entire targeted shallow
resource and shallow exploration target area and have confirmed that the UG2 reef at Bengwenyama is
continuous – a key objective of the Phase 1 drill programme.
Of these, the UG2 Reef has been encountered in 18 holes, two appear to have been faulted out at the
expected depth and; in one case the reef was not developed. Of the 21 drillholes, eight were expected to
intersect the Merensky Reef as they were drilled east of the subcrop. Of these, six intersected the Merensky
Reef and two were faulted.
Following the completion of these initial drillholes there have been two significant changes to the drill
programme. An additional 13 drillholes (and possibly more) will target the newly identified Far East Block.
The planned drillholes in the dome structure are likely not to be drilled following a review of geological
information. There has been no change to the drilling budget presented in the SPD prospectus.
Assays (refer ASX Announcement 20 December 2022) from five UG2 intercepts indicated a grade of 10.9g/t
(6PGE+Au), over reef widths averaging 71cm. The six PGEs consist of Platinum, Palladium, Rhodium, Iridium,
Ruthenium and Osmium. Collectively, the 6PGE assay results offered promising insights into the significant
potential of the other three Platinum Group Metals – Iridium, Ruthenium and Osmium - as well as the
mineralisation of Base Metals and Chromite that will be delivered in the PGM and Chrome concentrates at
the Bengwenyama Project.
Technical Studies
Consulting firm, Minxcon (Pty) Ltd (‘Minxcon’) has completed an internal Scoping Study on the
Bengwenyama project. The Scoping Study confirmed that extracting the UG2 represents the best potential
project development option but also recognises the potential to simultaneously mine the upper Merensky
Reef in future.
The board has taken the decision to initiate the prefeasibility study following the recommendation from
Minxcon and is also now considering the lodgement of a Mining Right application earlier than forecast.
Community Engagement
Several meetings were held with the Community and Community leaders throughout 2022.
In support of the Mining Right application submission, a Social and Labour Plan that aims to afford extended
upliftment to the Community is currently drafted.
The Bengwenyama-Ya-Maswazi Traditional Council, the sole authority dealing with the affairs of the
Community, held meetings in all seven villages on the lease area and surrounding bordering farms to inform
the Community about current and planned exploration activities by the Company. During this process, a
working group of 14 representatives from the seven villages were elected independently by the Community
to assist the Bengwenyama Traditional Council and Consultants with a field survey. The survey aims to
collect data of the total population, businesses and services on the Bengwenyama project farms to establish
the current socio-economic baseline upon which meaningful strategies will be developed.
SHORT-FORM ANNOUNCEMENT:
This short-form announcement is the responsibility of the directors and is only a summary of the
information in the full announcement.
Copies of the Interim Financial Report are available on the Company's website,
www.southernpalladium.com and at:
https://senspdf.jse.co.za/documents/2023/jse/isse/sdle/interim23.pdf.
Any investment decisions by investors and/or shareholders should be based on a consideration of the full
announcement as a whole and investors and shareholders are encouraged to review the full
announcement, which is available as detailed herein. Copies of the full announcement may also be
requested from the Company via email at andrew.cooke@southernpalladium.com or from the Sponsor at
Sponsorteam@merchantec.com, at no charge.
For and on behalf of the Board
Terence Goodlace
Independent Non-Executive Chairman
For further information, please contact:
Johan Odendaal
Managing Director
Southern Palladium
Phone: +27 82 557 6088
Email: johan.odendaal@southernpalladium.com
14 March 2023
JSE Sponsor
Merchantec Capital
DISCLAIMER
This release includes statements about Southern Palladium that are, or may be deemed to be “forward-looking
statements”. All statements other than statements of historical fact are, or may be deemed to be, forward-looking
statements. Forward-looking statements can generally be identified by the use of forward-looking words such as "expect",
"anticipate", "likely", "intend", "should", "could", "may", "predict", "plan", "propose", "will", "believe", "forecast", "estimate",
"target", "outlook", "guidance" and other similar expressions within the meaning of securities laws of applicable
jurisdictions and include, but are not limited to, indications of, or guidance or outlook on, future earnings or financial
position or performance of Southern Palladium. To the extent that certain statements contained in this release may
constitute “forward-looking statements” or statements about “future matters”, the information reflects Southern
Palladium's intent, belief or expectations as at the date of this release. Any forward-looking statements, including
projections, guidance on future revenues, earnings and estimates, are provided as a general guide only and should not
be relied upon as an indication or guarantee of future performance. Forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause Southern Palladium's actual results, performance or
achievements to differ materially from any future results, performance or achievements expressed or implied by these
forward-looking statements. A number of important factors could cause actual results or performance to differ materially
from the forward-looking statements. Investors should consider the forward-looking statements contained in this release
in light of those disclosures and not place reliance on such statements. Any forward-looking statements, opinions and
estimates in this release are based on assumptions and contingencies which are subject to change without notice, as
are statements about market and industry trends, which are based on interpretations of current market conditions. Neither
Southern Palladium, nor its related bodies corporate or affiliates nor the respective directors, officers, partners,
employees and agents give any warranty, representation, assurance or guarantee that the occurrence of the events
expressed or implied in any of the forward-looking statements in this release will actually occur. In addition, please note
that past performance should not be relied upon as (and is not) an indication or guarantee of future performance.
Except as required by law or regulation, Southern Palladium undertakes no obligation to provide any additional or updated
information whether as a result of new information, future events or results or otherwise. Indications of, guidance or
outlook on, future earnings or financial position or performance are also forward-looking statements.
Media & investor relations inquiries: Sam Jacobs, Six Degrees Investor Relations: +61 423 755 909
Follow @SouthernPalladium on Twitter
Follow Southern Palladium on LinkedIn
Date: 14-03-2023 12:12:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
