Platinum Group Metals Ltd. Shares Surge 10.95% on Strategic Saudi Partnership, Waterberg Project Advances

Shares of Platinum Group Metals Ltd. (PLG) surged 10.95% on Wednesday, reaching their highest level since September 2025, with an intraday gain of 13.81%. The rally reflects renewed investor optimism amid strategic developments and project milestones.

The stock’s upward momentum follows a key partnership announced in November 2024, where the company signed a memorandum of understanding with Ajlan & Bros Company and the Saudi Ministry of Investment to establish a platinum group metals (PGM) smelter and base metal refinery in Saudi Arabia. This initiative aligns with PLG’s broader strategy to localize processing for its Waterberg Project, aiming to reduce shipping costs and environmental impacts. The project’s success hinges on securing long-term offtake agreements and finalizing financing, which remain critical near-term hurdles.

Progress on the Waterberg Project, PLG’s flagship asset, has also fueled positive sentiment. In February 2025, the project secured an interim budget to advance pre-construction work, including a feasibility study for the Saudi smelter. The project’s revised definitive feasibility study highlighted its potential as a low-cost, high-capacity underground PGM mine, with production expected to include platinum, palladium, rhodium, gold, and by-product metals. Infrastructure advancements, such as secured power and water access, further underscore operational readiness.

Despite these developments, PLG faces challenges, including regulatory risks in South Africa, where domestic beneficiation policies could delay export plans for raw PGM concentrate. Additionally, the company must finalize project financing and concentrate offtake agreements to proceed with construction. A recent 3.2% share price drop in late September 2023, following a capital-raising private placement, highlighted lingering investor skepticism about the firm’s ability to meet financial obligations and execute on timelines.

PLG’s strategic pivot to diversify revenue streams through PGM-based battery technologies, such as its Lion Battery Technologies initiative, aims to mitigate risks from declining demand in traditional sectors like automotive. Collaborations with academic and industry partners, including Florida International University, position the company to capitalize on emerging markets in energy storage. However, the broader PGM industry remains vulnerable to supply chain disruptions and geopolitical trade shifts, which could impact pricing and demand dynamics.

Looking ahead, PLG’s ability to secure financing, advance the Waterberg Project, and solidify long-term partnerships will be pivotal in sustaining investor confidence. The recent price rebound suggests market recognition of these strategic efforts, though continued transparency and execution on key milestones will be essential to maintaining momentum.