Sovereign Metals Ltd (ASX:SVM, OTCQX:SVMLF, AIM:SVML, FRA:SVM), in its quarterly report, highlighted that it is advancing plans to add rare earths production at its Kasiya project in Malawi after a scoping study indicated a potential US$722 million uplift in pre-tax net present value.
In its September quarterly report, the company highlighted a proposed US$29 million additional processing circuit that could recover rare earth concentrate from the planned rutile operation’s tailings, without additional mining or front-end processing. The study estimated US$84 million of additional annual underlying earnings, or EBITDA, at steady state and a capital payback of approximately 1.5 years.
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The proposed circuit could produce 2,626 tonnes of concentrate annually, containing 1,485 tonnes of rare earth oxides, over an initial 23-year operating life. The estimates remain preliminary, with the scoping study carrying an accuracy range of plus or minus 30%.
Sovereign ended September with A$20.7 million in cash, compared with A$25.1 million three months earlier. Operating cash outflows totalled A$4.4 million during the quarter.
The company is progressing rutile and graphite offtake discussions with Mitsui, Traxys and other counterparties, alongside rare earths product qualification and marketing. A pre-feasibility study integrating rare earths into Kasiya’s development plans is targeted for completion in 2027.
