Southern Palladium has appointed Roger Baxter as executive chairman of the company, after he was appointed non-executive chairman at the beginning of this year.
After playing “a key role in advancing the profile of the company while overseeing proper and due governance at the board level,” Baxter will now assume the role of executive chairman for the company.
“Baxter’s role as executive chairman will see him focusing on investor and government relations, which complements the role of Johan Odendaal as managing director who is overseeing the more technical aspects of advancing the company’s 70% interest in the pre-development platinum group metal Bengwenyama Project,” Southern Palladium said yesterday.
Southern Palladium also advised that a pre-feasibility study for the Bengwenyama project was nearing completion. The company is hoping to release results of the pre-feasibility study for the project at the end of this month.
The Bengwenyama Project is located along South Africa’s Bushveld Complex, described as a significant underground mining region with established expertise and infrastructure.
“I am excited by the prospect of a more active role at Southern Palladium, which is emerging as a significant platinum group metal producer,” Baxter said.
“My focus as an executive of the company will be on investor and government relations. In this context, I will soon be embarking on Southern Palladium’s first North American roadshow together with Odendaal.”
Following his appointment as executive chairman, Baxter’s remuneration has increases to A$160 000 (around R1.89 million) per annum. He has the option to utilise part of this as options to acquire ordinary shares in the company subject to shareholder approval at Southern Palladium’s Annual General Meeting scheduled for next month.
Despite making advances with its Bengwenyama project, Southern Palladium believes that the global platinum group metals (PGM) market will remain under-supplied over the next three years as companies in the industry, especially those in South Africa, restructure their operations to match suppressed prices of the metal.
Nonetheless, Southern Palladium is pressing ahead with its project.
“The pre-feasibility study remains on schedule to be completed in early Q4 2024 (and) is ongoing with continuous review by SRK. Southern Palladium remains well funded to complete the PFS from existing cash reserves,” it said.
As at the end of June, Southern Palladium held about A$5.43 million (about $3.5m) in cash resources compared to A$6.85m in the quarter to March 2024.
It said this amount excludes cash held by the company’s 70% subsidiary, Miracle Upon Miracle Investments which had A$790 000 as at the end of June quarter.
Earlier this year, the company completed extensive scoping studies that indicated the development of a high-grade, low-capital intensity reef underground mining operation at the Bengwenyama project with a post-tax net present value of $700m.
Southern Palladium is of the view that there is a well-established downstream smelting and refining process for PGM concentrates within South Africa.
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