Following increased US investor and strategic interest in Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) and its Kasiya Rutile-Graphite Project in Malawi, shares in the company have commenced trading on the OTCQX® Best Market to provide access to a broader eligible US investor base.
The OTCQX is the highest market tier of OTC Markets on which more than 12,000 US and global securities trade.
Sovereign previously traded on the OTC Pink Market and has been upgraded to the OTCQX as it meets high financial standards, follows best-practice corporate governance and has demonstrated compliance with applicable securities laws.
Trading on OTCQX began on July 5, 2024, and will enhance the visibility and accessibility of Sovereign to US investors. Sovereign shares are trading under the ticker symbol SVMLF.
Focused on becoming market leader
Sovereign is focused on becoming a market leader in supplying two critical minerals to global markets: titanium, in the form of rutile, and graphite.
China currently dominates the supply of both critical minerals. Rutile is the purest, highest-grade natural form of titanium dioxide (TiO2) and is the preferred feedstock in manufacturing titanium pigment and producing titanium metal.
Titanium is essential for various industries, including aerospace, defence, pigments, medical and consumer technologies. According to the US Geological Survey, China and Russia control ~70% of the global primary titanium supply chain.
Currently, the US relies entirely on foreign sources for titanium sponge, yet based on the US Commerce Department’s Bureau of Industry and Security, titanium supports 15 out of 16 critical infrastructure sectors deemed essential by the federal government.
Graphite is vital for the energy transition as the largest component of lithium-ion batteries used in electric vehicles and other energy storage solutions. Graphite anode material can be up to 50% of the mass of a typical lithium-ion battery.
According to S&P Global, in 2023, 77% of the world’s graphite production came from China, with the US importing 42% of its graphite supply from China.
In December 2023, China imposed several restrictions on the export of graphite concentrate. In May 2024, the US Government imposed a 25% tariff on all natural graphite imported from China from 2026 onwards.
Sovereign’s 100% owned Tier-One Kasiya Rutile-Graphite Project (Kasiya) in Malawi, is the world’s largest known rutile deposit and second-largest flake graphite deposit.
Kasiya can become a long-term secure source of natural graphite supply outside China.
Through numerous technical studies, Sovereign has already confirmed that the Kasiya project could be the world’s largest and lowest-cost producer of rutile and graphite and is currently undertaking an optimisation study.
Its strategic investor Rio Tinto (ASX:RIO) continues to provide assistance and advice on technical and marketing aspects of Kasiya. With sustainability a core pillar of Sovereign’s strategy, Kasiya would also have the lowest greenhouse gas emissions of any high-grade titanium feedstock or graphite producer.