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Interim Financial Report for the period ended 31 December 2023
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
INTERIM FINANCIAL REPORT FOR THE PERIOD ENDED 31 DECEMBER 2023
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 2023.
HIGHLIGHTS:
• Revenue increased by 819% to A$435,475 (31 December 2022: A$47,391)
• Operating loss from operations for the period decreased to A$3,152,766 (31 December 2022: loss of
A$3,786,692)
• Basic loss per share decreased to A$0.035, down 33% (31 December 2022: loss of A$0.052)
• Headline loss per share decreased to A$0.035, down 33% (31 December 2022: loss of A$0.052)
COMMENTARY:
The main business activity of the Company is the advancement of its Bengwenyama Platinum Group Metal
("PGM") project, located in South Africa. Southern Palladium ("SPD") is well-funded to complete its Pre-
Feasibility Study ("PFS") at Bengwenyama, which already contains an Indicated and Inferred Mineral
Resource Estimate of 26.22Moz (6PGE+Au). (Refer to ASX/JSE announcements of 7 December 2023 and
1 February 2024).
SPD has a 70% equity interest in Miracle Upon Miracle Investments (Pty) Ltd ("MUM"), a South African private
company with a 100% interest in the Bengwenyama project situated within two farm boundaries –
Eerstegeluk and Nooitverwacht.
Scoping Study Results
In late January 2024, the company received the results of the technical Scoping Study, yielding a satisfactory
outcome. The study concentrated exclusively on the UG2 reef, which boasts a resource of 15.72 million
ounces, with 6.52 million ounces classified as an Indicated Resource.
Notable financial metrics include a Net Present Value (NPV8) of US$700 million, an Internal Rate of Return
(IRR) of 21%, and a Free Cash Flow (Post-tax, real terms) amounting to approximately US$135 million at a
steady state, projected over a 30-year mine life. The total tonnage mined is estimated to be around 52 million
tonnes (~10.9 moz 7E), resulting in an average annual production rate of 330 Koz PGM (6E). Initial direct
capital expenditure for mine development is anticipated at US$408 million, and the project is forecasted to
achieve payback within four and a half years from the start of planned production.
Bengwenyama Key Project Results
Note: * Indicative NPV ignores residual value beyond modelled life or any exploration upside and hence is not considered
The valuation provided does not account for the remaining resource in the Merensky reef (MR) and UG2, as
well as the Exploration Target areas. It is important to note that nearly 90% of the revenues are generated
from platinum, palladium, rhodium, and a chrome by-product.
Community Engagement
Southern Palladium is actively engaged with the community, placing a strong emphasis on promoting
inclusivity and project awareness. Ethical inclusion is prioritised, ensuring fair representation through
collaboration with the Bengwenyama Royal Family, Traditional Council, and other community
representatives. Weekly virtual exploration meetings are conducted with two community representatives,
along with the environmental and exploration management consulting firm contracted for the project.
Additionally, monthly meetings involve extended representation from the broader Royal Family, Traditional
Council, and community representatives. Quarterly feedback meetings are held to give feedback to the
broader community.
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 on the JSE cloudlink at:
https://senspdf.jse.co.za/documents/2024/jse/isse/sdle/interim24.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.
Southern Palladium has a primary listing on the Official List of the Australian Securities Exchange (ASX) and a
secondary listing on the Main Board of the Johannesburg Stock Exchange (JSE).
The interim financial statements were reviewed by BDO Audit (WA) Proprietary Limited ("BDO"), who
expressed an unmodified review conclusion thereon. Shareholders are advised that BDO's full report is
available with the full announcement at the following link:
https://www.southernpalladium.com/site/investor-centre/asx-announcements or from the Company
Secretary who is contactable at andrew.cooke@southernpalladium.com.
For and on behalf of the Board
Roger Baxter
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 2024
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: 14-03-2024 09:18:00
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