PGMs
accelerating DFS activities and preparing for a final investment decision. This momentum, combined with supportive PGM market fundamentals, has been reflected in our share price performance and growing institutional interest.” Baxter added that strong global appetite for high-quality, responsibly developed critical mineral projects was evident during recent engagements, including the Future Minerals Forum in Saudi Arabia. PGM market drivers PGMs have experienced a dramatic reversal in fortunes, rebounding strongly from the 2023–2024 price slump. Platinum has outperformed most other metals in 2025, rising more than 100% year-on-year and reaching record highs in early 2026, frequently exceeding US$2 000–US$2 800 /oz. Palladium has also staged a strong recovery, increasing by more than 50%, while rhodium continues to support higher basket prices for producers. Demand for PGMs remains anchored in the automotive sector, where catalytic converters account for more than 80% of palladium and rhodium demand and approximately 40% of platinum consumption. Additional demand drivers include stricter emissions regulations, growth in hybrid vehicles, industrial applications, and expanding hydrogen fuel cell technologies. Emerging demand from data centres, electronics, AI infrastructure, and hydrogen power is tightening supply and providing longer-term price support. “With gold prices at record highs, investors are increasingly turning to platinum jewellery, particularly in China and India,” says Odendaal. “Looking ahead, demand from data storage and AI-related technologies is expected to grow significantly. Platinum and ruthenium are used in hard disk drives, while hydrogen applications will continue to expand.” He adds that the automotive industry’s shift toward hybrid vehicles is positive for PGM demand, as hybrids require higher PGM loadings than traditional ICE vehicles. Supply constraints and outlook Despite strong demand, South Africa’s PGM industry—which accounts for 70–90% of global platinum reserves—faces significant structural, economic, and logistical challenges that have constrained production. “Looking ahead, we expect further tightening in the PGM market, particularly given the deferral of ICE phase-out timelines,” Odendaal says. “Major producers such as Valterra Platinum, Impala Platinum, Sibanye-Stillwater, Northam Platinum, and Ivanplats are well positioned, and Southern Palladium looks forward to joining their ranks.” n
Ariel view of site.
Ariel view of the drilling on site.
Drilling on site.
Platinum Group Metals • PGMs—platinum, palladium, rhodium, ruthenium, iridium, and osmium—are prized for their catalytic, chemical, and physical properties • They are critical to emissions reduction, hydrogen fuel cells, electronics, medical devices, and advanced manufacturing • South Africa supplies approximately
70% of global platinum, 35% of palladium, and 81% of rhodium
16 MODERN MINING www.modernminingmagazine.co.za | March 2026
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