Sovereign Metals Limited (ASX:SVM) Announces Optimised PFS Results for Kasiya
Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX:SVMLF) has successfully completed an Optimised Pre-feasibility Study (OPFS) for its Kasiya Rutile-Graphite Project. The study was guided by a technical committee in collaboration with Rio Tinto, which highlighted Kasiya’s potential as a significant low-cost producer of critical minerals.
Key Financial Metrics
The OPFS indicates substantial economic returns with a pre-tax net present value (NPV) of US$2.3 billion, an internal rate of return (IRR) of 27%, and average annual EBITDA of US$409 million. Sovereign anticipates operating costs to be US$423 per tonne, contributing to an estimated total revenue of US$16.4 billion over the project’s estimated lifespan.
Project Optimisations
Optimisations identified in the OPFS include a shift to a dry mining method, improving operational flexibility and reducing costs. The mining plan maintains an initial life of 25 years, with production expected to reach 12 million tonnes per annum in the early years, escalating to 24 million tonnes per annum by year five.
Environmental Management
The development plan emphasises environmental integrity, proposing a tailings management strategy aimed at reducing overall impact, supported by advanced techniques such as backfilling and mud farming.
Executive Comments
Frank Eagar, Managing Director and CEO, stated, “The level of accuracy and confidence in the economic and technical fundamentals of Kasiya have taken a massive step forward. The successful completion of large-scale field trials, in particular for dry mining, the high degree of technical rigour by our enhanced owner’s team, and Rio Tinto’s technical support have all contributed to confirming Kasiya’s potential to become a long-life, low-cost, secure source of two genuine critical and globally strategic minerals.”
Next Steps
Moving forward, Sovereign Metals plans to progress to a Definitive Feasibility Study (DFS) to further advance the Kasiya Project, building on the strong foundation established by the OPFS.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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