Sovereign Metals

Website: www.sovereignmetals.com.au
Primary ticker: ASX:SVM
Stage of development: Development
Primary minerals: Graphite
Project to promote: Malingunde

Live financials

Sovereign Metals is focused upon developing the world’s lowest cost high-quality graphite operation in Malawi.

Sovereign has recently announced the results of the PFS study for the Company’s Malingunde Saprolite-Hosted Graphite Project. The results of the PFS consolidated our view that Malingunde is the world’s best graphite project. The high-grade, soft, free-dig saprolite-hosted ore, requiring no primary crush or grind combined with a simple and proven flowsheet results in low capital intensity and extremely low operating costs (less than US$300/t at steady state).

Management Profile

Julian Stephens – Managing Director

Dr Stephens is a Geologist with over 20 years experience in mineral exploration across many commodity types, and has spent 10 years working on minerals projects in Malawi.

Julian identified, secured and led the team that discovered the Malawi Flake Graphite Project,


Sam Cordin – Business Development Manager

Mr Cordin is an experienced Chartered Accountant who commenced his career at a large international accounting firm and has since been involved with a number of ASX and AIM listed exploration and development companies operating in the resources sector, including most recently Salt Lake Potash Limited.

What is your rationale for attending 121 Mining Investment?

Sovereign Metals is seeking to promote and inform the broader investor community about the development of its Malingunde deposit, particularly the attractive investment case associated with a low-cost operation when compared to our hard rock peers.

What recent news would you like to highlight to investors attending?

November 2018 – PFS Study for the Malingunde Graphite Project

Sovereign has recently announced the results of the PFS study for the Company’s Malingunde Saprolite-Hosted Graphite Project. The Company is very pleased with the results of the PFS which consolidated our view that Malingunde is the world’s best graphite project. The high-grade, soft, free-dig saprolite-hosted ore, requiring no primary crush or grind combined with a simple and proven flowsheet results in low capital intensity and extremely low operating costs (less than US$300/t at steady state).

What are your key goals for the next 3, 6 and 12 months?

3 Months:

1. Commence the DFS
2. Continue and finalise offtake discussions
3. Commence finance strategy

6 Months:

1. Release of the DFS
2. Binding offtake agreements

12 Months:

1. Completion of financing for Malingunde development 2. FID for Malingunde

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

The state of the graphite market is opaque, with significant growth in forecast demand primarily due to forecast growth in Li-ion battery technology. However, increases in graphite prices due to increased demand are likely to be tempered by the large pipeline of supply currently in development.

In developing the world’s lowest cost graphite project, Sovereign is well positioned to generate significant cashflow regardless of the state of the graphite market, and anticipates selling its product into traditional graphite markets as well as the battery market.

In a sentence, what do you think makes your company such a compelling investment?

Sovereign Metals is a one-of-a kind graphite project, that has been developed and studied with a pure focus on cost, and at a scale that can be sold into existing and future markets with future optionality to expand.

Low cost and ability to sell product are the essential factors in the ability to economically develop any industrial mineral project.