Sovereign Metals highlights potential of Kasiya project as a US-focused venture
Published: 02:49 30 Jul 2026 EDT
Sovereign Metals Ltd (ASX:SVM, OTCQX:SVMLF, AIM:SVML, FRA:SVM), in its quarterly activities report, told investors it aims to position the Kasiya project as a non-Chinese source of titanium feedstock, graphite and potentially heavy rare earths for US and allied supply chains, backed by A$25.1 million of cash at the end of June.
The Malawi-based project’s definitive feasibility study produced a pre-tax net present value of US$2.2 billion and a 23% internal rate of return. Capital expenditure to first production is estimated at US$727 million, with steady-state annual EBITDA forecast at US$476 million and pre-tax free cash flow at US$452 million.
Kasiya is designed to produce 222,000 tonnes of natural rutile and 275,000 tonnes of natural flake graphite annually. Sovereign plans to move existing non-binding offtake arrangements with Mitsui and Traxys towards definitive agreements while expanding discussions with US government and industry stakeholders.
The company is also evaluating monazite recovered from the project’s tailings stream as a potential third revenue source. Work will now focus on a heavy rare earth technical-economic study and mineral resource estimate, while Sovereign progresses its mining licence application and project financing strategy.
