Sovereign Metals
Primary tickers: ASX:SVM, AIM:SVML, OTCQX:SVMLF
Stage of development: Exploration, Development
Primary minerals: Rutile (Titanium), Graphite
Project to promote: Kasiya Rutile-Graphite Project
Project location: Malawi
Website: www.sovereignmetals.com.au
Sovereign Metals Limited is focused on developing its Kasiya Rutile-Graphite Project in Malawi to become a leading global supplier to the titanium and graphite industries. Kasiya is the world’s largest natural rutile deposit – the purest, highest-grade naturally occurring titanium feedstock – and the world’s second-largest flake graphite deposit – a battery mineral essential for various globally vital industries.
Major shareholders:
Rio Tinto Group – 18.5%
Sprott Inc. – 7.2%
Management Ownership – 11%
Financials
What is your rationale for taking part 121 Mining Investment?
What are your key goals for the next 3, 6 and 12 months?
3 Months:
Progress on DFS
6 Months:
DFS Complete
12 Months:
Advance towards FID
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
General macroeconomic and equity market risks. Management has worked towards mitigating geological, operational, processing, financing risk factors.
What do you think makes your company such a compelling investment?
Genuine Tier 1 Project which can become a multi-decade mine which would make Sovereign the largest and lowest cost producer of both rutile and graphite.
What are the top 3 key investor takeaways?
– Outstanding and compelling project economics: US$2.3Bn NPV; 27% IRR; US$400m EBITDA pa for 25 years
– Strong commodity fundamentals of proven products:
— Kasiya Rutile is of premium quality, able to supply a growing Titanium industry facing massive shortages in rutile
— Kasiya Graphite has been shown to be suitable for use in 94% of end market uses including batteries and refractories
– Rio Tinto is strategic investor: invested ~A$60m to complete a DFS.