REG - Sovereign Metals Ltd - Japanese Titanium Producer Validates Kasiya Rutile

Sovereign MetalsAnnouncement

10/06/2025 07:00

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RNS Number : 1366M  Sovereign Metals Limited  10 June 2025

 

NEWS RELEASE I 10 JUNE 2025

 

LEADING JAPANESE TITANIUM PRODUCER VALIDATES KASIYA RUTILE FOR
HIGH-SPECIFICATION APPLICATIONS

·     Test work by Japan's Toho Titanium has confirmed that natural rutile
from Kasiya is suitable for producing high-performance titanium metal products

·    Japan accounts for over 15% of global titanium production capacity and
over 60% of non-sanctioned, aerospace-grade titanium, i.e. excluding China and
Russia

·    Titanium is essential for high-growth industries, including
aerospace, defence, and space exploration

o   In 2024, global defence spending increased by 7.4% year on year to
US$2.46 trillion with titanium critical for advanced fighter aircraft, naval
vessels, and precision weapons systems

o   Consumption of titanium in the aerospace industry is forecast to grow
by a compound annual growth rate (CAGR) of 7% over the next decade, more than
doubling to 132kt by 2034

 

Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX:SVMLF) (Sovereign or the
Company), developer of the world's largest known natural rutile deposit, is
pleased to announce that one of Japan's premier titanium metal (sponge and
ingot) producers, Toho Titanium Company Limited (Toho Titanium), has confirmed
the suitability of natural rutile from Sovereign's Kasiya Rutile-Graphite
Project (Kasiya or the Project) for manufacturing high-specification titanium
products critical to aerospace and industrial applications.

Toho Titanium's analysis of a sample of rutile from Kasiya concluded that "it
is of a quality that can be used without any issues". Kasiya's rutile
surpassed the requirements for TiO(2) grade (>95%), low or no deleterious
elements, low radiation value, and suitable particle size distribution and
density.

Toho Titanium represents a cornerstone supplier in the global titanium value
chain, with combined decades of expertise serving the world's most demanding
aerospace and industrial manufacturers. Toho Titanium, together with Japan's
other major titanium metal producer, Osaka Titanium Technologies Co., Ltd.
(Osaka Titanium), account for over 15% of global titanium production capacity
and over 60% of non-sanctioned, aerospace-grade titanium metal production
(i.e. excluding China, which is not qualified to produce aerospace-grade
titanium, and Russia).

Toho Titanium occupies a critical position in titanium supply chains,
supporting the aerospace industry across the United States, Europe, and the
Indo-Pacific region. Recent geopolitical developments have intensified focus
on secure titanium supply chains, creating unprecedented strategic
opportunities and strengthening the strategic nature of Kasiya as a future
supplier of high-grade titanium feedstock.

Managing Director and CEO Frank Eagar commented: "The validation by Toho
Titanium - one of the world's most respected titanium producers - once again
confirms Kasiya's rutile as a premium and purest form of titanium feedstock
for the titanium metals industry. Toho Titanium supplies the most demanding
aerospace applications globally, such as Boeing and Airbus commercial
aircraft. Confirmation that our rutile meets Toho Titanium's exacting
standards for high-specification titanium production validates our position as
a future cornerstone supplier to critical industries. With the world's largest
known rutile deposit, Sovereign is uniquely positioned to capitalise on the
intersection of resource security, aerospace supply chain realignment, and
national defence priorities. Kasiya's exceptional scale and quality, combined
with Malawi's stable jurisdiction, offers unparalleled exposure to one of the
most strategic and rapidly growing mineral markets of our time."

Kasiya Rutile Suitable for all Major End-Use Markets

Bulk scale metallurgical test work conducted by Allied Mineral Laboratories in
Australia has previously confirmed that a premium-grade rutile product can be
produced via a simple, conventional process flow sheet with no requirements
for flotation or acid leaching.

World-class specification rutile products were reported ranging from 95.0% to
97.2% TiO(2) with low impurities and exceptional metallurgical recoveries of
up to 100% (Refer to ASX Announcement: "Outstanding Metallurgical Results at
Kasiya" dated 7 December 2021).

The premium chemical parameters and particle sizing (d(50) 126μm, 8.6%
<75μm) of Kasiya's rutile indicate that the product is suitable for all
major end-use markets. Specifically, Kasiya's rutile product specification
makes it a suitable feedstock for superior, high-performance titanium metal
products.

Confirmation that Kasiya's rutile can be used by Toho Titanium establishes
Sovereign Metals as a credible future supplier to the global titanium
industry's most discerning customers. This technical endorsement, combined
with Kasiya's unmatched scale and strategic location, positions Sovereign as a
potential market leader in the titanium supply chain.

 Table 1: Kasiya Rutile Specification
 Constituent         Kasiya

                     (Sovereign Metals)
 TiO(2)         %    95.7
 ZrO(2)+HfO(2)  %    0.18
 SiO(2)         %    0.70
 Fe(2)O(3)      %    0.98
 Al(2)O(3)      %    0.44
 Cr(2)O(3)      %    0.10
 V(2)O(5)       %    0.58
 Nb(2)O(5)      %    0.37
 P(2)O(5)       %    0.018
 MnO            %    0.007
 MgO            %    0.001
 CaO            %    0.011
 S              %    0.005
 U+Th           ppm  30

Selected rutile product specification derived from bulk testwork on samples
representing the first three years of mining, which is broadly representative
of the overall Kasiya Ore Reserve.

Figure 1: 2024 Global Titanium Sponge Production Capacity by Non-Sanctioned
Countries Qualified to Produce Aerospace-Grade Titanium Products

(Source: US Geological Survey; "Other" includes USA and India)

 

Figure 2: Processed rutile sample from Kasiya

Titanium's Growing Strategic and Critical Status

According to the International Institute for Strategic Studies, a
world-leading authority on global security, political risk and military
conflict, global defence spending surged to US$2.46 trillion in 2024,
representing a 7.4% real-terms increase as nations respond to escalating
security challenges. This increase in defence expenditure is driving
unprecedented demand for titanium-intensive military platforms, including
advanced fighter aircraft, naval vessels, and precision weapons systems.

Titanium's unique properties - exceptional strength-to-weight ratio, corrosion
resistance, and high-temperature performance - makes it irreplaceable in many
conventional and advanced military systems. Consequently, titanium has been
officially classified as a critical mineral by the United States, European
Union, United Kingdom, Canada, Australia, and Japan, reflecting its strategic
importance to national security and economic competitiveness.

The ongoing conflict in Ukraine and rising tensions in the Indo-Pacific have
highlighted critical vulnerabilities in titanium supply chains, as titanium
production is concentrated in geopolitically sensitive regions. Historical
supply dependency on Russia prompted an urgent reassessment of supply
security, and in December 2024, NATO designated titanium as a
defence-critical, strategic mineral essential for the Allied defence industry.

The recent signing of various critical minerals cooperation agreements,
including between the United States and Saudi Arabia, announced during U.S.
President Donald Trump's May 2025 visit, underscores the strategic importance
of titanium supply security. Notably, Toho Titanium's joint venture facility
in Saudi Arabia, operating at full capacity with an annual production of
15,000 tonnes, demonstrates the growing importance of secure titanium supply
partnerships outside traditional Russian and Chinese-dominated markets.

Aerospace Sector Driving Unprecedented Titanium Demand

The commercial aerospace sector is one of the fastest-growing sources of
titanium demand, driven by the ramp-up of commercial aircraft production,
next-generation engine programs, and expanding global aviation capacity. Each
modern commercial aircraft contains 15-20 tonnes of titanium components,
concentrated in critical structural elements, engine components, and landing
gear systems. The consumption of titanium in the aerospace industry is
forecast to grow at a CAGR of 7% over the next decade, more than doubling to
132kt by 2034 (Source: Project Blue market intelligence).

According to PricewaterhouseCoopers, the aerospace and defence industry saw an
11% increase in revenues in 2023 to US$829 billion, with civil aviation
companies leading the way. Boeing Commercial Airplanes' revenue increased by
30%, with revenues from tier 1 suppliers GE Aerospace, Rolls-Royce, and Safran
being higher by more than 20%.

Aircraft manufacturers reported that titanium shortages have impacted
production schedules following the disruption of supply from Russia by
sanctions and import restrictions. In April 2025, Airbus signed a titanium
supply agreement with Saudi Arabia, demonstrating the importance of securing
alternative supply chains outside Russian-dominated markets.

According to CAPA - Centre for Aviation, Boeing's and Airbus's combined
backlogs exceed over 14 years with each aircraft requiring substantial
titanium content for structural components and engine systems, while
traditional supply sources remain constrained by geopolitical sanctions and
trade restrictions.

About Toho Titanium

Toho Titanium, established in 1953, is a leading producer of titanium metals
with significant production capacity. Toho Titanium produces 25,000 tonnes of
titanium metals per annum, excluding 15,000 tonnes from a joint venture
facility in Saudi Arabia. The company operates advanced manufacturing
facilities that supply critical materials for aerospace and industrial
markets.

 Enquiries
 Frank Eagar, Managing Director & CEO

 South Africa / Malawi

 +27 21 140 3190

 Sapan Ghai, CCO

 London

 +44 207 478 3900

 

 Nominated Adviser on AIM and Joint Broker     
 SP Angel Corporate Finance LLP               +44 20 3470 0470
 Ewan Leggat

 Charlie Bouverat
                                               
 Joint Broker                                  
 Stifel                                       +44 20 7710 7600
 Varun Talwar
 Ashton Clanfield

 Buchanan                                     + 44 20 7466 5000

 

Forward Looking Statement

This release may include forward-looking statements, which may be identified
by words such as "expects", "anticipates", "believes", "projects", "plans",
and similar expressions. These forward-looking statements are based on
Sovereign's expectations and beliefs concerning future events. Forward looking
statements are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of Sovereign, which could cause actual
results to differ materially from such statements. There can be no assurance
that forward-looking statements will prove to be correct. Sovereign makes no
undertaking to subsequently update or revise the forward-looking statements
made in this release, to reflect the circumstances or events after the date of
that release.

 

The information contained within this announcement is deemed by Sovereign to
constitute inside information as stipulated under the Regulation 2014/596/EU
which is part of domestic law pursuant to the Market Abuse (Amendment) (EU
Exit) Regulations (SI 2019/310) ("UK MAR"). By the publication of this
announcement via a Regulatory Information Service, this inside information (as
defined in UK MAR) is now considered to be in the public domain.

Competent Persons Statement

The information in this presentation that relates to the Exploration Results
(metallurgy - rutile) is extracted from announcements dated 7 December 2021,
16 December 2021, 28 September 2023 and 22 January 2025 which are available to
view at www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware
of any new information or data that materially affects the information
included in the original announcement; b) all material assumptions included in
the original announcement continue to apply and have not materially changed;
and c) the form and context in which the relevant Competent Persons' findings
are presented in this report have not been materially changed from the
original announcements.

 

The information in this announcement that relates to Production Targets, Ore
Reserves, Processing, Infrastructure and Capital and Operating Costs is
extracted from an announcement dated 22 January 2025, which is available to
view at www.sovereignmetals.com.au. Sovereign confirms that: a) it is not
aware of any new information or data that materially affects the information
included in the original announcement; b) all material assumptions and
technical parameters underpinning the Production Target, and related forecast
financial information derived from the Production Target included in the
original announcement continue to apply and have not materially changed; and
c) the form and context in which the relevant Competent Persons' findings are
presented in this presentation have not been materially modified from the
original announcement.

 

In relation to the disclosure of visual information, Sovereign cautions that
the images displayed are for general illustrative purposes only, and that the
samples displayed and visual methods of mineralisation identification and
estimation of mineral abundance should not be considered as a proxy or
substitute for laboratory analysis. Laboratory analysis would be required for
the grades of mineralisation. Visual information also potentially provides no
information regarding impurities or deleterious physical properties relevant
to valuations.

 

 Enquiries
 Frank Eagar, Managing Director & CEO

 South Africa / Malawi

 +27 21 140 3190

 Sapan Ghai, CCO

 London

 +44 207 478 3900

 

 Nominated Adviser on AIM and Joint Broker     
 SP Angel Corporate Finance LLP               +44 20 3470 0470
 Ewan Leggat

 Charlie Bouverat
                                               
 Joint Broker                                  
 Stifel                                       +44 20 7710 7600
 Varun Talwar
 Ashton Clanfield

 Buchanan                                     + 44 20 7466 5000

 

 

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