Podium Minerals (ASX:POD) signs non binding PGM partnership memorandum

Podium Minerals has entered into a non binding memorandum of understanding with U.S. based PGM Processing LLC to evaluate the development of an integrated Australia and U.S. platinum group metals critical minerals supply chain involving the Parks Reef PGM Project in Western Australia.

Highlights

The memorandum provides a framework for Podium and PGM Processing to undertake feasibility work and develop a business case for the proposed supply chain.

Podium’s upstream and midstream development focus is complementary to the existing midstream and downstream capabilities of PGM Processing.

PGM Processing is a privately held U.S. critical minerals business specialising in the recovery, processing and production of PGMs and other critical materials.

Founded in 2019, the business was established to strengthen U.S. domestic critical minerals production and reduce dependency on foreign supply chains across the critical minerals spectrum.

The company owns and operates an industrial smelter complex in Duncan, Oklahoma, which recovers PGMs and other critical minerals from automotive, petrochemical, abatement and industrial catalysts, associated industrial waste byproducts and slag reprocessing.

Its broader activities include sourcing and collecting diverse feed material, producing metal products, and undertaking metal management and trading activities.

PGM Processing currently operates 2 continuous feed plasma arc furnaces at the Duncan processing hub. A 3rd furnace is being installed and is due to be commissioned in early 2027.

At steady state production levels, this provides the company with an installed production base of approximately 450,000oz of 3E PGMs per annum.

Under the memorandum, the parties will evaluate the development, construction, ownership and operation of a midstream PGM recovery, processing and smelting hub in Western Australia, potentially operated by Podium and PGM Processing.

An expansion of the existing smelting and processing capabilities in Oklahoma will also be considered.

The proposed supply chain includes treating and upgrading Parks Reef PGM concentrate at either facility, or at both facilities, to produce higher grade smelter alloy products.

It also contemplates establishing and using marketing and sales channels to customers and refiners in the U.S., leveraging PGM Processing’s existing trading capabilities.

Potential areas of broader cooperation include other primary PGM supply opportunities, diversification into allied metals and an expansion into downstream PGM recycling in Australia.

Successful advancement of the integrated supply chain may also improve access to government and private sector critical minerals project funding opportunities, including potential concessional financing through the Export Import Bank of the United States and Export Finance Australia.

Podium Managing Director and Chief Executive Officer Rod Baxter commented:

“We look forward to working closely with the PGMP team over the coming months to develop a detailed Collaboration Agreement and progress the technical, commercial and execution case.”

The memorandum outlines a 3 stage process, Stage 1 involves working towards the completion and execution of a Collaboration Agreement within 6 months of signing the memorandum, or a later date agreed by the parties.

This document would define the scope, responsibilities and execution structure for the work required to develop and assess the opportunity.

Following execution of the Collaboration Agreement, Stage 2 would comprise a pre feasibility program and the preparation of a business case to assess the viability of the proposed supply chain.

Technical investigations may include treating Parks Reef sample concentrate at the Duncan furnaces to produce a furnace alloy, followed by processing through PGM Processing’s existing refinery partners in the U.S.

Subject to a successful viability assessment and an agreed business case, Stage 3 would involve seeking a Project Implementation Agreement.

This would establish the framework for activities required ahead of a final investment decision and the preparation of definitive agreements required for implementation.

Podium Chair Neal Froneman is the chairman and a substantial holder of PGM Processing, while his son, Justin Froneman, is also a substantial holder through Sumsare Resources LLC, with both considered related parties of Podium under the Corporations Act and ASX Listing Rules.

The memorandum automatically terminates if the parties do not agree on the Collaboration Agreement within 6 months, unless extended.

There is no guarantee that binding agreements covering the proposed stages will be concluded, while entry into or implementation of any binding agreements will remain conditional on applicable regulatory or shareholder approvals.