Sovereign Metals Limited (ASX:SVM, OTC:SVMLF, AIM:SVML) has released a presentation covering its pre-feasibility study (PFS) results for its Kasiya Rutile-Graphite Project in Malawi, which the company says is poised to be the world’s largest and lowest cost producer of rutile and graphite.
Sovereign announced the results of the PFS in late September, projecting a 25 year mine life, bringing in total revenue of US$16 billion and average annual EBITDA of US$415 million over the initial 25 years modelled.
The Kasiya project is positioned to become the world’s largest producer of the titanium feedstock, rutile, at 22,000 tonnes per annum for an initial 25 year life. It also has potential to also be one of the world’s largest natural graphite producers outside of China at 244,000 tonnes per annum.
Natural rutile, an oxide mineral composed of titanium dioxide, is facing a significant global supply deficit that’s forecast to widen considerably in the next five years. The natural graphite market is also moving into deficit as demand rapidly grows in the lithium-ion battery and electric vehicle sectors.
Extremely low carbon footprint
In the PFS presentation, the company presents the Kasiya project as a potentially major critical minerals project with an extremely low carbon footprint. The project benefits from existing high-quality infrastructure and inherent ESG advantages.
An extremely low carbon-footprint operation, it will incorporate climate-smart attributes including hydro-mining with renewables power solution, while its products are critical to the global energy transition.
Natural rutile has a far lower carbon footprint compared to other titanium feedstocks, and natural graphite is a key component in lithium-ion batteries that are crucial to decarbonising the global economy.
The PFS demonstrates that Kasiya is a globally significant project that has the potential to deliver a valuable long-term source of low-CO2 products and generate substantial economic returns. It presents significant opportunity for further upside as only 30% of the current mineral resource was used in the PFS model.
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