Capital Metals

Capital Metals presents a high-potential investment in the mineral sands sector, driven by the Taprobane Project's outlier-grade resource of 17.6% THM, which enables low-capex development and high margins compared to global peers. The updated financial model projects a post-tax NPV8 of US$180 million (base case) and US$289 million (upside), with an IRR of 73% and payback in 3.9 years over an initial 9-year mine life, generating US$845 million in revenues and average annual production of 265 ktpa valuable heavy minerals. Stage 1 capex is reduced to US$20.9 million, producing 125 ktpa of >90% HMC for export, with staged expansion unlocking further value through resource growth from ongoing drilling.​

The project's simple metallurgy supports >98% recoveries for key titanium and zircon minerals, yielding a revenue mix of approximately 41% ilmenite, 28% zircon, 19% rutile, and 12% garnet, leveraging rising global demand for these critical materials in pigments, ceramics, and renewables. Located in Sri Lanka's Eastern Province, Taprobane benefits from proximity to ports and highways, minimizing logistics costs, while two initial industrial mining licenses and an advancing Environmental Impact Assessment de-risk permitting.​

Capital Metals' commitment to ESG excellence includes low environmental footprint mining with continuous rehabilitation, creation of 300 direct jobs, and community programs in education, water access, and agriculture, fostering strong local stakeholder support. With the company funded beyond FID and an MoU with Ambeon for project-level debt/equity, Taprobane offers significant re-rating potential from its current share price of ~5.25p to 27p (base) or 44p (upside) per share.​

Capital Metals Plc is guided by an experienced leadership team with proven expertise in mineral sands development, resource finance, and Sri Lankan operations. Executive Chairman Greg Martyr brings over 30 years in resource investment banking, including roles as Global Head of Mining and Metals at Standard Chartered and President of a 500koz Americas gold producer, ensuring strategic oversight for project advancement. Chief Operating Officer Stuart Forrester, with a track record at Rio Tinto, Iluka Resources, and Chemours, specializes in full-lifecycle mineral sands projects from construction to reclamation.​

Chief Financial Officer Anthony Eastman, a CAANZ and ICAEW member with experience at Ernst & Young and listed mining firms, drives financial strategy and funding initiatives. Technical Manager Richard Stockwell contributes 20+ years in mineral sands geology, including 12 years at Iluka Resources, supporting resource expansion and drilling programs. In Sri Lanka, Country Manager Iranga Dunuwille, a UK-qualified chartered accountant with 20 years in local corporate and government sectors, oversees in-country execution alongside Operations Manager Harsha Udawatta and Project Manager Sanjeeva Rajashilpa, both with extensive project management backgrounds in mining and heavy industry.​

The Board includes Non-Executive Director Savanth Sebastian of Ambeon Capital, providing Sri Lankan financial and industrial insights; Bruce Griffin with 34+ years in natural resources finance; James Leahy, focused on European green transition and mineral sands; Aravinda de Silva, former Sri Lanka cricket captain and Ambeon shareholder; and Teh Kwan Wey, with corporate finance experience from Lazard and Kuala Lumpur Kepong. This blend of global mining acumen and local expertise positions Capital Metals to navigate development challenges and deliver stakeholder value.​

Capital Metals is pursuing a phased, capital-efficient growth strategy for the Taprobane Project, targeting FID by December 2025 and Stage 1 production in early 2027, with scalability to 2.7 Mtpa over four stages to support a 9-10 year initial mine life expandable via resource upside. Recent 2025 drilling has expanded the initial mining area resource 15x to 4.3-13.1 Mt (depending on cut-off), confirming consistent high grades from surface to 15m depth, while ongoing programs target further southern and western extensions across the 108 km² license area. Engineering progress includes completed process flow diagrams, 3D models, and logistics studies for a Mineral Technologies-supplied wet concentrator plant, enabling off-the-shelf deployment at 175 tph for Stage 1.​

Sustainability is integral, with free-dig mining, immediate tailings rehabilitation, and an on-site nursery reducing footprint, alongside carbon-efficient physical processing. Community engagement drives job creation (300 direct roles with 5x multiplier), skills training, and initiatives in education, women's groups, and agriculture, building trust in eastern Sri Lanka. Strategic partnerships, including Ambeon's US$4 million investment and MoU for FID funding, secure pathways for debt, equity, and offtake agreements, minimizing dilution while leveraging Colombo-based synergies.​

Exploration continues to de-risk and grow the resource, with potential for multi-generational output, while openness to industry investors enhances funding flexibility. This disciplined approach, combining high-grade simplicity, local alliances, and ESG focus, positions Capital Metals to transition from development to a leading mineral sands producer in Asia.

As of late 2025, Capital Metals Plc maintains a lean financial position with a market cap of ~£34 million, fully funded beyond FID through recent investments totaling ~US$5 million, including US$4 million from Ambeon Capital for 12.2% equity. The Taprobane Project's Stage 1 capex stands at US$20.9 million, supporting 0.7 Mtpa throughput and 125 ktpa HMC production, with total project economics showing post-tax NPV8 of US$180 million (base) and US$289 million (upside at 10-year life), IRR of 73% (base) and 98% (upside), and cumulative operating cash flows of US$524-794 million. Average annual free cash flow is projected at US$34-50 million over the life of mine, with payback in 3.9 years (base) or 2.8 years (upside).​

The resource supports 265-297 ktpa valuable heavy minerals output, with revenues of US$845-1,209 million driven by high-grade exports via Colombo Port. Funding for full development includes an MoU with Ambeon for project-level equity/debt, plus pursuits of strategic offtakers and industry partners to cover expansion capex. With 491 million shares issued and options/warrants at 8.9%, Capital Metals emphasizes efficient use of inherited advantages like simple mineralogy to deliver low opex and high margins, positioning it for strong returns as production ramps.​

Capital Metals Plc stands at the threshold of transforming the Taprobane Mineral Sands Project into a high-margin, low-impact producer, leveraging one of the globe's richest deposits to deliver substantial value in the critical minerals space. With exceptional grades, a de-risked path to Stage 1 production in 2027, and strong economics (73% IRR, US$180 million NPV), the company offers leveraged exposure to growing demand for titanium, zircon, and garnet in global supply chains.​

Backed by a world-class team blending mining expertise and Sri Lankan insight, plus funding security from Ambeon, Capital Metals is primed for resource growth and scalability, all while upholding rigorous ESG standards through community investment and environmental stewardship. As it approaches FID and construction, the company represents a compelling opportunity for investors seeking high-reward development assets in a supportive jurisdiction, with potential for significant share price appreciation and long-term sustainable returns.