ASX:SVM News | FINWIRES

Sovereign Metals Outlines Post-DFS Workstreams for Malawi Project

Sovereign Metals (ASX:SVM) is set to advance post-definitive feasibility study (DFS) workstreams for its Kasiya rutile-graphite project in Malawi over the June quarter and beyond, including finalization of the Environmental and Social Impact Assessment, according to a Wednesday Australian bourse filing.The company said it will advance offtake discussions and progress toward binding definitive agreements with Mitsui, Traxys, and other strategic counterparties.Further work to characterize the monazite mineralization at Kasiya is also planned, the company added, including detailed mineralogical characterization, assessment of heavy rare earth concentrate recovery rates, and evaluation of the potential scale and economics of rare earth production as a by-product.

ASX:SVM

Asia60d ago

Sovereign Metals Says DFS Confirms Large-Scale Potential at Malawi Rutile-Graphite Project

Sovereign Metals (ASX:SVM) said a Definitive Feasibility Study (DFS) for its Kasiya rutile-graphite project in Malawi confirms steady-state annual earnings before interest, tax, depreciation, and amortization of $476 million and free cash flow of $452 million, according to a Thursday Australian bourse filing.The company said the study found total revenue of $16.2 billion over an initial 25-year mine life, with a pre-tax net present value (NPV) of $2.2 billion, an NPV to capital expenditure ratio of 3.0 times, and capital expenditure to first production of $727 million.Sovereign Metals said operating costs of $450 per tonne of product on a free-on-board basis at Nacala underpin margin resilience across commodity cycles.The company said monazite concentrate recovered from the rutile processing circuit contains elevated levels of the heavy rare earths dysprosium, terbium, and yttrium, representing a potential third revenue stream at minimal incremental cost, with all three elements currently subject to Chinese export restrictions.Sovereign Metals said the heavy rare earth potential of the project was not included in the DFS, with evaluation currently underway.

ASX:SVM