Between 2007 and 2010, Pallinghurst completed seven transactions which provided exposure to four separate, but adjacent Platinum Group Metals (“PGM”) deposits.
In 2012 Pallinghurst merged all four deposits and created Sedibelo, which with its 100-million-ounce reserve base has one of the world’s largest undeveloped PGM deposits. It has the best safety record in the industry and benefits from being open-pit and shallow mining, as compared to most of the industry being deep underground. At the time of the consolidation, Sedibelo placed a 16.2% stake with the South African Industrial Development Corporation for US$415 million (ZAR3.24 billion).
The PGM industry went through a difficult period in recent years, however during 2018 the industry began to see signs of a potential recovery. All major PGM producers experienced a substantial increase in value in 2019 as prices for PGMs (particularly palladium and rhodium) surged to record levels; with a positive industry outlook, Pallinghurst believes Sedibelo is ideally positioned to take advantage of the improving market conditions.