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  • Sovereign Metals (SVM) announces results from an expanded scoping study for its Kasiya rutile project in Malawi
  • The study shows “exceptional economics” with low capital and operating costs and high margins
  • The company said this study highlights Kasiya’s potential to become a major player in the production of natural rutile and graphite in international markets
  • Rutile and natural graphite are deemed critical raw materials for the US and EU based on economic importance and supply risk
  • SVM shares drop 5.49 per cent on the market this afternoon, trading at 43 cents per share at 12:55 pm AEST

Sovereign Metals (SVM) has announced results from an expanded scoping study for its Kasiya rutile project in Malawi.

The study has shown “exceptional economics” with low capital and operating costs and high margins.

The company said the study highlights Kasiya’s potential to become a major player in the production of natural rutile and graphite in international markets.

Kasiya could have an estimated steady-state production of 265,000 tonnes of rutile and 170,000 tonnes of graphite over a 25-year mine life.

According to the company, the study showed a significant increase in net present value (NPV) and earnings before interest, taxes, depreciation, and amortisation (EBITDA) from the initial scoping study in 2021.

NPV jumped 79 per cent to US$1.5 billion (A$2.1 billion) with an annual EBITDA up 101 per cent to US$323 million (A$461 million).

Rutile and natural graphite are an extremely favourable market as they are deemed critical raw materials for the US and EU based on economic importance and supply risk.

“The expanded scoping study demonstrates Kasiya is a tier-one minerals project being the largest natural rutile resource and one of the largest graphite resources in the world,” Managing Director Dr Julian Stephens said.

“The project benefits from existing high-quality infrastructure and has inherent ESG advantages. Natural rutile has a far lower carbon footprint compared to other titanium feedstocks used in the pigment industry, and natural graphite is a key component in lithium-ion batteries — crucial to de-carbonising the global economy.”

SVM shares dropped 5.49 per cent on the market this afternoon, trading at 43 cents per share at 12:55 pm AEST.

SVM by the numbers
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