Podium Minerals (ASX:POD) moves Parks Reef into validation after concentrator optimisation
Podium Minerals Managing Director Rod Baxter spoke with MarketOpen to further discuss the Company’s Phase 3 optimisation results for the proposed Parks Reef PGM Concentrator and the work now underway to validate the revised flowsheet. The program has delivered a 31% relative improvement in flotation 3E recovery to 67%, while maintaining approximately 80% overall 3E recovery. The stronger flotation performance has also allowed the targeted downstream PGM Value Recovery Circuit to be reduced in scale, with leaching circuit size down approximately 50% and power requirements approximately 40% lower. This update sets out the next stage of work, including broader validation across Starter Mine #1, additional metallurgical testing and project advancement activities funded through an approximately $4 million funding package.
What has materially changed in the Parks Reef concentrator following the Phase 3 optimisation work?
The key change is that higher recovery of the PGMs is now being achieved through the primary Flotation Circuit. The 3E recovery has improved by 31% relative to the Phase 2 baseline, from 51% to 67%. Overall Concentrator recovery remains approximately 80% 3E. That stronger primary recovery in the Flotation Circuit reduces the amount of material reporting to the downstream PGM Value Recovery Circuit, allowing us to simplify that part of the process. The targeted leaching circuit size is now approximately 50% smaller, with power requirements approximately 40% lower and shorter leach residence time. We have also eliminated the oxygen utility requirement. At the same time, the combined product grade has increased from 82 g/t to 97 g/t 3E. These are meaningful optimisation outcomes because they improve recovery and product grade while reducing the intensity of the proposed flowsheet. The next step is to validate those outcomes across representative material from Starter Mine #1 before they are incorporated into future development studies.
What does the smaller and simpler downstream recovery circuit change for the project from a capital and operating perspective?
The smaller downstream circuit changes the intensity of the proposed processing route. Because the Flotation Circuit is now recovering a greater proportion of the PGMs upfront, the PGM Value Recovery Circuit has less material to process. This has allowed us to reduce the targeted leaching circuit size by approximately 50%, reduce power requirements by approximately 40% and also reduce leach residence time. The oxygen utility has also been eliminated. In combination, those changes support a smaller, simpler and lower intensity Concentrator while maintaining approximately 80% overall 3E recovery. The announcement identifies potential to improve capital efficiency and operating performance, but we are not presenting those potential benefits as completed project economics. The current work is still at the validation stage. Our focus is to demonstrate that the optimised performance can be consistently replicated across a broader range of representative sulphide composites from the proposed Starter Mine #1 area. That validation is required before the optimised flowsheet progresses into future engineering and development studies.
What still needs to be demonstrated before the 67% flotation recovery can be considered robust across the proposed Starter Mine #1 area?
The key requirement is to demonstrate consistent performance across a broader range of representative sulphide composites from the proposed Starter Mine #1 area. The 67% flotation recovery was achieved on the PRDD012 composite, which was selected from drilling on the same traverse as PRDD009, the Phase 2 baseline composite. PRDD012 delivered 50% 3E recovery before optimisation and 67% after optimisation. The 67% result represents a 17 percentage point increase on PRDD012 pre-optimisation recovery and a 31% relative improvement against the PRDD009 Phase 2 baseline. We are now moving beyond that optimisation sample. The validation program is testing composites designed to reflect target mining widths and average process feed grades, with testing across multiple cores. The objective is to confirm that the optimisation outcomes can be consistently replicated across representative material from the proposed Starter Mine #1 area. Successful validation would further reduce technical risk, strengthen confidence in the proposed Concentrator design and support progression to the next stage of project development.
How are you sequencing validation, the remaining metallurgical work and the next stage of project development studies?
We are sequencing the work so that validation of the optimised Concentrator provides the next technical gate, while the supporting metallurgical programs continue in parallel. Current validation testing is focused on representative sulphide composites from the proposed Starter Mine #1 area. Our phased pathway runs from optimisation, which was the subject of our recent announcement last week, through validation, to integration into project development studies. Our approach is therefore to build the technical evidence progressively rather than move directly from a single optimisation result into a development study. Once validation is completed, the results are intended to provide an important foundation for future engineering and development work. The timing of completion is not specified in the announcement. The immediate milestone is therefore completion of the broader validation program and the supporting technical work required to advance Parks Reef into the next development stage. At the same time, we have commenced early investigations on drill core from recent deep drill holes as part of a broader program of work to confirm metallurgical performance at depth. This work is currently focused on PGM mineralogical characterisation and comminution testing.
What are the key milestones investors should watch as Parks Reef moves from optimisation through validation and into development studies?
The immediate milestone is validation of the optimised Concentrator across a broader range of representative sulphide material from Starter Mine #1. That work is intended to establish whether the Phase 3 optimisation outcomes can be consistently replicated across the relevant material and to further reduce technical risk. Alongside that validation, we are progressing PGM mineralogical characterisation and comminution testing on deep drill core. These workstreams are intended to strengthen the technical basis for the proposed Concentrator and support future engineering and development studies. Together, these workstreams are aimed at demonstrating that the Phase 3 result can be repeated across Parks Reef, rather than treating it as a single-sample outcome. The current results have improved flotation recovery, maintained approximately 80% overall 3E recovery in the Concentrator, and reduced the scale and intensity of the downstream recovery circuit. The next test is whether those outcomes can be demonstrated consistently across representative material, providing the basis for the next stage of Parks Reef development.
Does this optimisation work change the Company’s existing Mineral Resource estimate or previous studies for Parks Reef?
The Phase 3 program involves metallurgical optimisation and validation work. The Phase 3 announcement does not report an update to the Parks Reef Mineral Resource estimate or project studies. The Company has confirmed that it is not aware of any new information or data that materially affects the previously reported Parks Reef Mineral Resource information and that all material assumptions and technical parameters underpinning the Mineral Resource estimate continue to apply and have not materially changed. The optimisation and validation work is intended to provide an important foundation for future engineering and development studies.
What is the expected timeframe for completing the validation program?
The timing of completion is not specified in the Phase 3 announcement. The immediate milestone is completion of the broader validation program and the supporting technical work required to advance Parks Reef into the next development stage. The Company will provide further market updates as the work progresses.
How does the improved 67% flotation recovery and 97 g/t combined grade compare with the Company’s previous results for Parks Reef?
The Phase 2 baseline reported 51% flotation recovery and a combined product grade of 82 g/t 3E. Phase 3 optimisation has lifted flotation recovery to 67% (a 31% relative improvement) and combined grade to 97 g/t 3E, while maintaining approximately 80% overall 3E recovery. These are the results now being carried into the validation program.
Share Purchase Plan (SPP)
Podium also has a Share Purchase Plan open to shareholders — what is it, and how does it relate to this technical update?
The SPP gives Eligible Shareholders the opportunity to acquire new shares at an issue price of $0.034 per share, without brokerage, commissions or other transaction costs. The price represents a 17.8% discount to the volume-weighted average market price over the 5 trading days preceding the SPP announcement. Podium is targeting to raise up to approximately $4 million under the SPP, which is underwritten to the target amount. Where the SPP is oversubscribed, sub-underwriters will be afforded the opportunity to participate in a top-up share placement on the same terms as the SPP, to potentially raise up to an additional $2 million. The Placement is intended to be conducted following completion of the SPP. Funds raised are intended to support targeted workstreams that advance Parks Reef, including further metallurgical test work, site works and ongoing corporate activities.
How is the approximately $4 million funding package being directed towards the next phase of technical and project work?
The approximately $4 million funding package is directed primarily towards continuing the technical work and advancing Parks Reef. Approximately $1.2 million is allocated to metallurgical testing, including continuation of Phase 3 test work, mineralogy and testing of deep hole cores. A further $0.95 million is allocated to project advancement, covering in-fill metallurgical and associated technical workstreams, project baseline activities and study planning. Approximately $0.25 million is allocated to rehabilitation and site works at Parks Reef and Range Well. We have allocated approximately $1.15 million to general working capital and corporate overheads supporting project advancement, and $0.45 million to offer costs. The funding therefore supports the current stage of the program rather than assuming a completed development case. If any funds are raised under the top-up placement, these will be applied towards commencing key environmental and other long lead study workstreams as well as business and corporate development. Our focus remains on funding the technical and project work required to move the development pathway forward.
How much can eligible shareholders apply for, and is the offer underwritten?
Eligible Shareholders can apply for shares in the SPP in the amounts and manner set out in the SPP Booklet, up to an aggregate maximum of $30,000. The SPP is underwritten by Leeuwin Wealth up to the target amount of $4 million, subject to the terms of the underwriting arrangements. The underwriting applies to the targeted $4 million and not to oversubscriptions. Where the SPP is oversubscribed, sub-underwriters will be afforded the opportunity to participate in a separate top-up share placement to potentially raise up to an additional $2 million. The top-up placement is subject to an oversubscribed SPP, and is intended to be conducted following completion of the SPP.
When does the SPP close, and when will shareholders know the outcome?
The SPP closes at 5:00pm (AWST) on Friday, 28 August 2026, subject to the Company’s right to vary the timetable or close earlier. The SPP Booklet states that the results announcement and issue of shares are due by Friday, 4 September 2026, with quotation of the new shares on ASX scheduled for Monday, 7 September 2026. The timetable may be varied by the Company.
What is the SPP issue price and how does it compare with recent market prices?
The SPP issue price is $0.034 per share. This represents a 17.1% discount to the ASX closing price on the last trading day before the SPP was announced, and a 17.8% discount to the volume-weighted average price over the 5 trading days preceding the SPP announcement.
Looking ahead: key dates and next announcements
What should shareholders watch for over the coming weeks?
The SPP closes at 5:00pm (AWST) on 28 August 2026, with the SPP Booklet providing for the results announcement and issue of shares by Friday, 4 September 2026. The Phase 3 validation program is continuing in parallel, with its completion timing not specified in the Phase 3 announcement. Further ASX announcements will provide updates as the respective workstreams progress.
Beyond the SPP outcome, what are the next milestones for Parks Reef?
The next substantive milestone is completion of the broader validation program across representative Starter Mine #1 material, alongside deep drill core testing, PGM mineralogical characterisation and comminution testing. Results are expected to feed into future engineering and development studies for Parks Reef, with timing to be confirmed as the program progresses.
Will there be further briefings on either the SPP or the concentrator results?
The Company will continue to provide market information through ASX announcements and, where appropriate, investor briefings and market updates. Shareholders should refer to ASX announcements for the latest information on the SPP and the Phase 3 technical work.
Building the technical basis for development
The Phase 3 program has moved Parks Reef from flowsheet optimisation into broader validation. The immediate task is to establish whether the improved recovery and simplified processing architecture can be consistently reproduced across representative material from Starter Mine #1. That work is supported by further deep core testing which incudes mineralogical studies and comminution testing, with funding also directed towards project advancement and study planning. The objective is to build the technical evidence required for the next stage of engineering and development studies.