Sovereign Metals' Optimised PFS Reaffirms Kasiya Potential as Largest & Lowest-Cost Critical Minerals Producer

• Optimised PFS completed with Rio Tinto technical committee oversight, reaffirming Kasiya's potential as largest and lowest-cost strategic critical minerals producer.
• Kasiya projected to deliver US$2.3B NPV, 27% IRR, US$16.4B revenue, and US$423/t operating cost over 25-year initial mine life.
• Kasiya set to produce an average of 222kt natural rutile and 233kt natural flake graphite per year, both designated as critical minerals by the US, EU, and NATO.
• Optimisations made to mining method, plant configuration/locations, tailings management, and water/power solutions to improve operational flexibility and ESG outcomes.
• Strong cash position, support from Rio Tinto investment and technical committee, and compelling project economics position Sovereign well to advance Kasiya to production.

Sovereign Metals Limited (ASX:SVM) is a rutile and natural graphite company focused on the development of its flagship Kasiya project in Malawi. The company's goal is to become a leading producer of these two critical and strategic minerals, designated as such by the US, EU, and NATO, through responsible and sustainable mining practices.

Optimised PFS Confirms Robust Economics

The results of the Optimised Pre-Feasibility Study (PFS), undertaken with input from Rio Tinto's technical committee established through a strategic investment in 2023, reaffirm Kasiya's potential to become the world's largest and lowest-cost natural rutile and graphite producer. Key projected outputs include:

• US$2.3 billion NPV and 27% IRR (pre-tax)
• US$16.4 billion in total revenue over initial 25-year mine life
• US$423/t operating cost, positioning Kasiya as the lowest-cost natural graphite producer outside China
• 222,000 tonnes per annum of natural rutile and 233,000 tonnes per annum of natural flake graphite production on average
• Total capital expenditure of US$665 million to first production

Kasiya Set to Become Top Global Rutile and Graphite Producer

Kasiya, located in central Malawi, hosts the world's largest natural rutile deposit and second-largest flake graphite deposit. Over the 25-year mine life, Kasiya is projected to produce an average of 222kt rutile and 233kt graphite per annum, with steady-state production of 246kt rutile and 265kt graphite, positioning Sovereign as potentially the largest global producer of both minerals.

With reserves at existing rutile mines being depleted, Sovereign is set to become the world's only major natural rutile supplier. For graphite, Kasiya's incremental production cost of US$241/t positions it as the lowest-cost producer outside China. Both rutile and graphite are considered critical minerals by the US, EU and NATO due to their importance in industrial, technological and defense applications.

Sustainable Mining & ESG Focus

The optimised PFS incorporates several improvements to enhance Kasiya's environmental and social outcomes. These include transitioning to dry mining to allow for immediate backfilling of mined pits, maximizing tailings storage through mud farming techniques, and reducing raw water demand and dam size. Sovereign has also successfully demonstrated land rehabilitation, returning mined areas to productive agricultural use.

Critical Minerals for the Future

Both natural rutile and graphite have been designated as critical minerals by major global economies due to their importance in industrial and technological applications. Rutile is the highest-grade natural titanium feedstock while graphite is essential for the production of electric vehicle batteries and other green technologies. With demand projected to soar, Sovereign is well-positioned to become a major global supplier of these strategic raw materials.

The high-grade, at surface rutile-graphite mineralization at Kasiya allows for a simple mining and processing route to produce premium quality rutile and graphite products suitable for advanced applications like aerospace, EV batteries, and green technologies - markets with soaring demand. This positions Sovereign to become a leading supplier of these increasingly strategic raw materials.

For Investors

The optimised PFS confirms Kasiya as a tier-one strategic critical minerals project with potential to deliver significant returns for Sovereign Metals shareholders. The combination of scale, high-quality products, low costs, and strong ESG credentials make Kasiya a compelling project in an increasingly important market.

With a healthy cash balance and backing from major miner Rio Tinto, Sovereign appears well-funded and supported to advance Kasiya through definitive feasibility and into production over the coming years. As the largest rutile deposit globally and second-largest graphite deposit, Kasiya looks set to position Sovereign Metals as an emerging leader in responsibly-sourced critical minerals supply.