It was a quiet week for PGM headlines, with no fresh company results from the major South African primary producers. The two verified developments both came from the Bushveld Complex's margins: Southern Palladium sharply raised the projected value of its Bengwenyama project on better chrome recoveries, and Tharisa closed its financial year with higher platinum group metal output as its Karo project in Zimbabwe moved into construction. A five-week strike at Sibanye-Stillwater's Montana operations, resolved on October 7, remained part of the backdrop to US palladium and platinum supply but falls outside this week's reporting window.
The week's top stories#
Southern Palladium more than doubles Bengwenyama's valuation#
Southern Palladium published an updated prefeasibility study on Tuesday, October 13, lifting Bengwenyama's post-tax net present value to $1.96 billion, up from an $857 million figure in the earlier study, using an 8% discount rate, according to MiningMX. The company said the jump was driven mainly by higher chrome recoveries, increasing to 85.6% from 30% in the earlier study, and a long-term platinum price forecast 45% higher at $1,738 per ounce. The realised PGM basket price is now expected to be $2,210/oz over the life of mine, up 57% on the previous assessment. Executive chairman Roger Baxter said Bengwenyama was "no longer simply a PGM project with chrome credits, but a PGM-chrome co-product operation." Steady-state chrome concentrate production increases to about a million tons a year from 350,000 tons in the previous study. The company said it will have competition as Northam Platinum and Impala Platinum-backed project Waterberg Joint Venture is also seeking offtake deals. For background on how Bushveld deposits are structured, see DailyPlatinum's PGM mining explainer.
Tharisa ends FY2026 with higher PGM output, Karo construction underway#
Tharisa reported on the same day that fourth-quarter PGM production reached 41,000 ounces for the three months to end-September, up 3.5% on the prior quarter, with chrome concentrate output rising 5.8% to 416,700 tons, according to MiningMX. For the full year, PGM production rose 11% to 153,700oz, while chrome output was 1.56 million tons, both within Tharisa's estimates. At Karo, construction has moved from bulk earthworks into fabrication and structural steel work, with first ore to the mill still targeted for the fourth quarter of 2027. Tharisa has invested $240m in Karo against estimated project capex of $516m. CEO Phoevos Pouroulis said the year marked the point at which Tharisa's growth moved "from planning into construction." Peel Hunt maintained its buy recommendation and 185 pence target price. More on the company's operations is available on DailyPlatinum's Tharisa page.
Prices and market context#
Neither update captured a live market print, but each disclosed dated, company-specific pricing. Tharisa's average PGM basket price for the year increased 61% to $2,607/oz from $1,615/oz, while the average metallurgical-grade chrome price rose 9% to $290/t. Prices softened in the fourth quarter, with the PGM basket price falling 5.4% quarter on quarter to $2,535/oz and chrome down 6.9% to $285/t. Southern Palladium's Bengwenyama study separately assumes a long-term platinum price of $1,738/oz, with the basket including gold, for which Southern Palladium forecasts a 79% higher price of some $3,500/oz, over its multi-decade mine life, underlining how far-dated project economics now build in a stronger PGM pricing environment than earlier studies did. Readers can track current platinum and palladium levels on DailyPlatinum's platinum price page and palladium price page once markets reopen Sunday evening, New York time.
What to watch next week#
- Southern Palladium offtake progress: the higher-grade concentrate positions the company to advance talks on an offtake agreement with a smelting and refining partner, with competition from the Waterberg Joint Venture.
- Tharisa's underground ramp-up: first ore from the underground development should reach the Tharisa plant in the current quarter.
- Karo Platinum construction: commissioning is planned between July and October 2027, with steady-state production of 220,000 to 230,000 oz a year expected about six months after first ore reaches the mill.