One of the Highest margin titanium deposits AND as a bonus – The lowest cost graphite project in the world.
NPV $1.54 Billion – Up 80% for a modest 12% more capex. Using conservative prices.
Expanded Scoping Study shows Kasiya as a Tier-One minerals project, being the largest natural resource of rutile and the largest graphite resource in the world,” Dr Julian Stephens, managing director, said.
Sovereign Metals Ltd, (ASX: SVM; AIM: SVML) has demonstrated “exceptional economics” in a scoping study that included low capital and operating expenses and high margins for the Kasiya Rutile Project.
This study highlights Kasiya’s potential to be a major producer of natural rutile/graphite in international markets. Kasiya can achieve steady production of 265,000 tonnes of raw rutile over 25-year mine life.
The company anticipates that the project will require minimal capital expenditures to reach the first production. They cite “exceptional” infrastructure which allows for cost reductions and provides flexibility.
Sovereign’s study indicated that Kasiya would operate at a low cost and high margin because of its deposit size, zero strip ratio for soft, friable, high-grade mineralisation, ability to hydro-mine, conventional processing, deposit placement, and low transport costs.
“Tier-one minerals project”
“The expanded scoping study shows Kasiya to be a tier-one mineral project, being the largest natural resource of rutile and one the largest graphite resources worldwide,” Sovereign Metals managing Director Dr Julian Stephens stated.
“Both minerals are on the Critical Minerals Lists of the US and EU, and rutile has an extreme market supply shortage.
“These factors make Kasiya a strategic project that has the potential to become a major supplier in both the rutile- and graphite markets.
“The project is a result of existing high-quality infrastructure, and has inherent ESG benefits (environmental. social. and governance).
Natural rutile is much more carbon-efficient than other titanium feedstocks. Natural graphite is an important component of lithium-ion battery components, which are crucial for decarbonizing the global economy.
“Further the majority of power required for the Kasiya mine operation will be supplied via renewable hydro and solar, giving the mine a low carbon footprint.”
“The Kasiya Rutile Project’s future development will have significant benefits for Malawi in terms of GDP, royalties, taxes and employment. It will also provide opportunities for local community development and business opportunities.”
Sovereign based its scoping study on conservative commodity price estimates. A long-term rutile cost of US$1,254 per ton compared with the current spot price at over US$2,200/tonne and a long-term natural graphite basket price of US$1,085 per ton compared to the current equivalent of US$1,223/tonne.
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