REG - Sovereign Metals Ltd - March 2025 Quarterly Report
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RNS Number : 7378G Sovereign Metals Limited 30 April 2025
NEWS RELEASE I 30 APRIL 2025
MARCH 2025 QUARTERLY REPORT
Sovereign Metals Limited (ASX:SVM, AIM:SVML, OTCQX:SVMLF) (Sovereign or the
Company) is pleased to provide its quarterly report for the period ended 31
March 2025.
HIGHLIGHTS DURING AND SUBSEQUENT TO THE QUARTER
Optimised PFS Results Reaffirm Kasiya's Globally Strategic Significance
· In January 2025, the Optimised Prefeasibility Study (OPFS) was
completed with oversight from the Sovereign-Rio Tinto Technical Committee.
Results of the OPFS reaffirmed Kasiya's potential to become one of the largest
and lowest-cost producer of natural rutile and natural flake graphite while
generating exceptional economics
· Various optimisations have led to superior project delivery,
operational flexibility, environmental and social outcomes compared to the
2023 Prefeasibility Study (PFS)
Successful Rehabilitation of Kasiya Test Pit
· During the quarter, rehabilitation of the land at the test pit site
mined during the Pilot Mining and Land Rehabilitation (Pilot Phase)
substantially progressed. Site backfill completed and soil remediation work
concluded in December 2024, with landowners accessing the site through to
January 2025 to plant and cultivate crops without missing a planting season
Kasiya Graphite Suitable for >94% of End-Use Markets
· Test work completed during the quarter has demonstrated that Kasiya
graphite is suitable for use in the three key segments that account for over
94% of the ~1.6Mtpa global demand for natural flake graphite-battery anodes,
refractories and expanded/expandables
· Sovereign intends to produce a 96% graphite concentrate at an
incremental cost of US$241/t (FOB)
DFS Geotechnical Programs in Progress
· Subsequent to the quarter, the Company announced that extensive
geotechnical investigations are underway at key project infrastructure
locations across Sovereign's Kasiya Project. Results will support layout and
engineering design for the Kasiya Definitive Feasibility Study (DFS)which is
due Q4 2025
Next Steps
· Over the course of the quarter ending June 2025, Sovereign will
continue to advance the DFS, publish an upgrade to the Mineral Resource
Estimate (MRE), continue with further graphite testwork and graphite offtake
discussions, and further its community and social development programs in
Malawi.
Enquiries
Frank Eagar, Managing Director & CEO Sapan Ghai, CCO
South Africa / Malawi London
+27 21 140 3190 +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
Optimised PFS Results Reaffirm Kasiya's Globally Strategic Significance
During the quarter, the Company announced the results of an OPFS for its
Kasiya Rutile-Graphite Project (Kasiya or the Project) which was undertaken
following a strategic investment by Rio Tinto Mining and Exploration Limited
(Rio Tinto) in 2023. Under the Investment Agreement, a joint Technical
Committee was established to oversee the development of Kasiya. The OPFS was
conducted with oversight from the Sovereign-Rio Tinto Technical Committee.
Following input from various organisations, including internationally
recognised, independent consultancies, the Company's owner's team, and subject
matter experts from Rio Tinto, the OPFS has reconfirmed Kasiya as a leading
global future supplier of strategic critical minerals outside of China.
The OPFS proposes a large-scale, long-life operation to deliver substantial
volumes of natural rutile and graphite while generating significant returns.
Table 1 below summarises the key findings from the OPFS and includes a
comparison to the PFS results released 16 months ago, in September 2023.
It is important to note that the results for the 2023 PFS in Table 1 have not
been updated or adjusted for inflation since their release.
TABLE 1: KEY OPFS METRICS
Units OPFS Results 2023 PFS
Jan 25 Sep 23
Production
Initial Mine Life Years 25 25
Plant Throughput (Stage 1: Years 1-4) Mtpa 12 12
Plant Throughput (Stage 2: Years 5-25) Mtpa 24 24
Average Annual Rutile Produced (95%+TiO(2)) ktpa 222 222
Annual Average Graphite Produced (96% TGC)* ktpa 233 244
Operating and Capital Expenditure
Capex to First Production (Stage 1) US$M 665 597
Total LOM Development Capex US$M 1,127 1,250
Total LOM Sustaining Capex US$M 397 470
Operating Costs (FOB Nacala) US$/t product 423 404
Financial Performance
Total Revenue* US$M 16,367 16,121
Annual Revenue (Average LOM) US$M 640 645
Annual EBITDA (Average LOM) US$M 409 415
NPV(8) (real, pre-tax) US$M 2,322 2,419
IRR (pre-tax) % 27% 32%
Revenue to Cost Ratio x 2.8 2.8
*Annual average graphite produced includes 292kt of graphite processed and
sold in two years post cessation of active ore mining. Average graphite
produced during the 25-year initial mine life only is 240ktpa; total revenue
during the same period is US$15,990 million. All rutile is produced and sold
during the 25-year initial mine life. Note: All cashflows and costs are
presented in US$ real January 2025 terms unless otherwise stated. Operating
costs exclude mineral royalties and community development support costs.
Summary of Optimisations
The OPFS optimises seven key areas compared to the 2023 PFS, as summarised
below.
Mining Method
The PFS proposed a 25-year initial LOM based on a hydraulic mining process
where slurry material would be screened and pumped overland to the processing
plants.
Based on findings from the mining trials undertaken as part of the Pilot
Phase, the OPFS proposes a large-scale open-pit dry mining operation using
draglines and trucking of material to the processing plants. The change in
mining method has not changed the initial mine life of 25 years.
Operating Model
The 2023 PFS envisaged mining would take place on a contractor basis.
During the OPFS, Sovereign undertook a trade-off analysis between the
following operating options:
· Fully owner-operated mine with draglines and trucks purchased by the
owner
· Owner-operated mine with draglines and trucks leased by the owner
· Mining contractor operation using excavators and trucks
Due to the preference for draglines and benefit of flexibility, an
owner-operated mine with leased equipment is selected as the preferred
operating model.
Plant Configuration
Dry mining Kasiya means the material received at the plant is not pre-wet and
pre-scrubbed. Therefore, the OPFS proposes a process plant front end
consisting of two scrubbers and two oversize screens per 12Mt plant. No
further changes are proposed to the processing plant flowsheet.
Plant Location
Per the 2023 PFS, mining would commence in the southern area of the Kasiya
deposit, ramping up to 12Mt per annum (Mtpa) and then scaling up to 24Mtpa in
Year 5 by constructing a second plant module in the same area, reaching
nameplate capacity by the end of that year.
In Year 10 of production, another new 12Mtpa plant module would be built and
commissioned in the northern area of Kasiya, supported by the relocation to
the north of one of the southern plants to maintain a steady state of 24Mtpa.
However, the OPFS has determined the most efficient plant locations to be an
initial 12Mtpa South Kasiya plant followed by the construction of another
12Mtpa North Kasiya plant in year 5 of production, negating any relocation
requirements in later years.
The OPFS maintains the ROM schedule with operations commencing with 12Mtpa of
throughput during the first four years of production (Stage 1) and expanding
to 24Mtpa in year 5, with full capacity reached by end of year 5 (Stage 2).
Tailings Management
Per the PFS, a conventional process would be used to produce rutile and
graphite concentrate with tailings in separate sand and fines streams being
pumped to a conventional TSF. Mined out pit areas would be backfilled as part
of a rehabilitation process.
The OPFS proposes maximising backfilling of pits as undertaken during the
Pilot Phase and the introduction of mud farming on the TSF to accelerate
dewatering. This approach has reduced tailings volumes in the TSF by 44% from
187 Mm³ to 105 Mm³.
Mud farming is a technique used by Rio Tinto at operations such as its
100%-owned Weipa bauxite operations in Queensland, Australia, which has been
in production since 1963 and produced 35.1Mt of bauxite in 2023.
Water Management
The PFS proposed that the primary water supply for the Kasiya mining complex
would be created by building a water storage dam and collecting run-off water
from the greater catchment area. Following the introduction of dry mining and
mud farming, the size of the water storage dam proposed in the PFS has been
significantly reduced, with less process water required and more process water
recovered.
The OPFS mining trials and material deposition tests indicated a water demand
of 10.2 Mm³ per annum, almost a 40% decrease in water requirement from the
PFS (16.7 Mm³). The effect on the water storage dam wall could be a
reduction in volume from 0.79 Mm³ to 0.57 Mm³ and a reduction in dam wall
height from 20 metres to 17 metres.
Power
The 2023 PFS envisaged a hybrid hydro-generated grid power plus solar power
system solution.
The Malawi grid reliability has improved since completion of the PFS and is
expected to further improve considerably with the commissioning of the
country's first HV transmission interconnector to Mozambique in Q2 2025.
This will provide the Project with sufficient power and therefore the OPFS
proposes to connect the Project's power system to the hydro-sourced grid
network only. This mitigates any risks associated with commissioning a new
solar power project and reducing the overall power tariff by eliminating the
need for an Independent Power Producer as per the 2023 PFS.
Successful Rehabilitation of Kasiya Test Pit
In March 2025, the Company announced that the rehabilitation of the land at
the test pit mined during the Pilot Phase has been substantially progressed.
Soils remediation work was concluded in December 2024 with landowners
accessing the site between December 2024 and January 2025 to plant and
cultivate crops without missing a planting season.
All soil remediation works as well as planting was done by hand with the use
of a grader and tractor to prepare the soils. Sovereign employed the local
landowners to work with us in both the soil remediation and planting work, so
they were able to directly experience and learn about our rehabilitation work
on their land.
Sovereign is working closely with the landowners to ensure that the crops
provide a good yield in 2025, while simultaneously testing a variety of
rehabilitation crops. This includes the intercropping of giant bamboo with
maize, which will be retained by the landowners.
Sovereign is committed to ensuring that all mined-out land is appropriately
rehabilitated to support sustainable farming practices after closure. The soil
remediation methods aim to revitalise the soils within a two-to-three-year
timeframe and to ensure that soils can be sustainably farmed in the long term.
The remediation of soil to a depth of 1 metre from surface, will ensure the
land can support small-scale or full-commercial farming operations.
Kasiya Graphite Suitable for >94% of End-Use Markets
In February 2025, the Company announced that downstream testwork completed on
graphite from Kasiya confirmed that Kasiya's graphite has the key
characteristics required for use in refractory applications.
Graphite's key properties for use in refractory applications are its
resistance to oxidation, chemical inertness and good thermal conductivity.
Graphite products for refractory applications typically require larger flake
sizes than the smaller graphite flake products used to produce battery anode
materials. Larger flake size graphite products tend to attract significantly
higher prices than smaller flake products.
During the same month, Sovereign announced that further testwork confirmed
that Kasiya graphite has the key characteristics required for use in
expandable (fire retardant) and expanded (gaskets, seal, and brake lining)
applications.
Sovereign had previously announced in 2024 that Kasiya graphite had produced
outstanding battery anode material. Together with the refractories and
expanded/expandables market, Kasiya's graphite is suitable for over 94% of
end-use markets.
In Q4 2024, Syrah Resources Limited (the world's largest, publicly listed
natural graphite producer outside of China) reported a price for smaller flake
graphite concentrate to be used for battery anode production of US$564 per
tonne (CIF) based on third-party sales. In December 2024, large flake graphite
used in the refractory sector achieved prices of up to US$1,193/t (based on
data from Benchmark Mineral Intelligence).
The incremental cost of producing a tonne of graphite from Kasiya under
Sovereign's recently announced Optimised Prefeasibility Study is US$241/t (see
announcement "Kasiya - Optimised PFS Results" dated 22 January 2025) making
Kasiya the only advanced graphite project capable of competing with current
Chinese graphite production costs.
Figure 5: Natural Graphite Cost Curve including China
(Sources: See Appendix 4)
DFS Geotechnical Programs in Progress
In April 2025 and subsequent to the quarter, the Company announced that
several geotechnical drilling programs are underway at Kasiya as part of the
DFS. The results of the programs will be used to support the infrastructure
layout and engineering design.
Selected locations are based on the findings of the OPFS announced in January
2025. The OPFS proposes a large-scale, long-life operation to deliver
substantial volumes of natural rutile and graphite while generating
significant returns. The Project layout was determined by evaluating
technical, environmental and social factors.
Infrastructure covered by the geotechnical programs includes the processing
plant areas, the tailings storage facility (TSF) area, the raw water storage
dam, the Kasiya substation, and other mining infrastructure. Various
geotechnical and geophysics methods are being used across the project site
area.
Placement and Corporate Update
In March 2025, Sovereign completed a placement of 47,058,824 new fully paid
ordinary shares at an issue price of A$0.85 to raise gross proceeds of A$40
million (Placement). Following the Placement, Sovereign has over A$65 million
in cash and no debt.
To date, Rio Tinto has invested A$60 million into Sovereign to fund completion
of the DFS. The DFS is expected to be completed in Q4 2025, thereby providing
Rio Tinto with up to 180 days to exercise its option to become operator of the
Kasiya Project. Rio Tinto did not participate in the Placement as they believe
the Company has sufficient funds to complete the Kasiya DFS.
Accordingly, Rio Tinto's shareholding in Sovereign remains at approximately
119.4 million shares. Due to the issuance of new shares under the Placement,
Rio Tinto's relative shareholding has decreased from 19.9% to 18.5% (refer to
change in substantial holding notice dated 4 April 2025).
Rio Tinto, via the joint Sovereign-Rio Tinto Technical Committee, continues to
be supportive of the Project and, as a strategic investor, continues to play
an integral part in the Kasiya DFS process, including site visits, project
environmental and social workstreams, with their subject matter experts
involved in numerous aspects of the Project.
As discussed above, the Kasiya DFS remains on track for completion in Q4 2025.
Upon announcement of the DFS results and under the July 2023 Investment
Agreement, Rio Tinto will have up to 180 days to exercise its option to become
the operator of the Kasiya Project and be granted exclusive marketing rights
for 40% of Kasiya's annual production.
Next Steps
The Company plans to update the market on the following progress in the coming
months:
· Rehabilitation component of the Pilot Phase
· MRE upgrade following 2024 infill drilling program
· Further graphite test work results as the Company continues to
advance the qualification of its graphite product for the lithium-ion battery
and traditional graphite sectors
· Progress in discussions with future potential end-users of rutile and
graphite
· Updates on community and social development programs
· Progress of the DFS, which is targeted for completion by Q4, 2025
Competent Person Statement
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.
The information in this announcement that relates to the Exploration Results
(metallurgy - rutile and graphite) is extracted from announcements dated 8 May
2024, 15 May 2024, 4 September 2024 and 21 November 2024, 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
announcement.
The information in this announcement that relates to the Mineral Resource
Estimate is extracted from Sovereign's 2024 Annual Report and is based on, and
fairly represents information compiled by Mr Richard Stockwell, a Competent
Person, who is a fellow of the Australian Institute of Geoscientists (AIG). Mr
Stockwell is a principal of Placer Consulting Pty Ltd, an independent
consulting company. 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 2024 Annual
Report continue to apply and have not materially changed; and c) the form and
context in which the relevant Competent Persons' findings are presented in
2024 Annual Report have not been materially changed from the disclosure in the
2024 Annual Report.
Ore Reserve for the Kasiya Deposit
Classification Tonnes Rutile Grade Contained Rutile Graphite Grade (TGC) (%) Contained Graphite RutEq. Grade*
(Mt)
(%)
(Mt)
(Mt)
(%)
Proved - - - - - -
Probable 538 1.03% 5.5 1.66% 8.9 2.00%
Total 538 1.03% 5.5 1.66% 8.9 2.00%
* RutEq. Formula: Rutile Grade x Recovery (100%) x Rutile Price (US$1,484/t) +
Graphite Grade x Recovery (67.5%) x Graphite Price (US$1,290/t) / Rutile Price
(US$1,484/t). All assumptions are from the Kasiya PFS ** Any minor summation
inconsistencies are due to rounding
Kasiya Total Indicated + Inferred Mineral Resource Estimate at 0.7% rutile
cut-off grade (inclusive of Ore Resreves)
Classification Resource Rutile Grade Contained Rutile Graphite Grade (TGC) (%) Contained Graphite
(Mt)
(%)
(Mt)
(Mt)
Indicated 1,200 1.0% 12.2 1.5% 18.0
Inferred 609 0.9% 5.7 1.1% 6.5
Total 1,809 1.0% 17.9 1.4% 24.4
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.
To view all figures and illustration, please refer to the announcement here:
https://api.investi.com.au/api/announcements/svm/39a3e3b4-818.pdf
(https://api.investi.com.au/api/announcements/svm/39a3e3b4-818.pdf)
APPENDIX 1: SUMMARY OF MINING TENEMENTS
As at 31 March 2025, the Company had an interest in the following tenements:
Licence Holding Entity Interest Type Licence Renewal Date Expiry Term Date(1) Licence Area (km(2)) Status
EL0609 MML 100% Exploration 25/09/2026 25/09/2028 219.5 Granted
EL0582 SSL 100% Exploration 15/09/2025 15/09/2027 141.3 Granted
EL0492 SSL 100% Exploration 29/01/2025 29/01/2025(2) 454.9 Granted
EL0528 SSL 100% Exploration 27/11/2025 27/11/2025 16.2 Granted
EL0545 SSL 100% Exploration 12/05/2026 12/05/2026 24.2 Granted
EL0561 SSL 100% Exploration 15/09/2025 15/09/2027 61.9 Granted
EL0657 SSL 100% Exploration 3/10/2025 3/10/2029 2.3 Granted
EL0710 SSL 100% Exploration 1/02/2027 1/02/2031 38.4 Granted
Notes:
SSL: Sovereign Services Limited, MML: McCourt Mining Limited
(1) An exploration licence (EL) covering a preliminary period in accordance
with the Malawi Mines and Minerals Act (No 8. Of 2019) (2019 Mines Act) is
granted for a period not exceeding three (3) years. Thereafter two successive
periods of renewal may be granted, but each must not exceed two (2) years.
This means that an EL has a potential life span of seven (7) years under the
2019 Mines Act. ELs that have come to the end of their term can be converted
by the EL holder into a retention licence (RL) for a term of up to 5 years
subject to meeting certain criteria. All of Sovereign's ELs were originally
granted under the 2019 Mines Act. On 28 June 2024, the Mines and Minerals Act
(2023) (2023 Mines Act) was gazetted and came into force. As previously
disclosed, the New Act introduces amendments to improve transparency and
governance of the mining industry in Malawi. Sovereign notes the following
updates in the New Act which may affect the Company going forward: (i) ELs
granted under the 2023 Mines Act will be granted for an initial period of 5
years with the ability to extend by 3 years on two occasions (total 11 years);
(ii) the Malawian Government maintains a right to free equity ownership for
large-scale mining licences but the New Act has removed the automatic free
government equity ownership with the right to be a negotiation matter; and
(iii) A new Mining and Regulatory Authority will be responsible for
implementing the objectives of the New Act.
(2) SSL has applied for RLs in relation to EL0492 in accordance with the
2023 Mines Act.
APPENDIX 2: RELATED PARTY PAYMENTS
During the quarter ended 31 March 2025, the Company made payments of A$318,000
to related parties and their associates. These payments relate to existing
remuneration arrangements (executive salaries, director fees, superannuation
and bonuses (A$221,000)) and provision of serviced office facilities, company
secretarial services and administration services (A$97,000).
APPENDIX 3: MINING EXPLORATION EXPENDITURES
During the quarter, the Company made the following payments in relation to
mining exploration activities:
Activity A$'000
Feasibility Studies (DFS, OPFS, Pilot Phase ) 3,810
Drilling related 566
Assaying and Metallurgical Test-work 526
ESG related (including community and social development programs) 621
Malawi Operations - Site Office, Personnel, Field Supplies, Equipment, 1,470
Vehicles and Travel
Total as reported in Appendix 5B 6,993
There were no mining or production activities and expenses incurred during the
quarter ended 31 March 2025.
APPENDIX 4: FLAKE GRPAHITE OPERATING COST INFORMATION
1. China weighted average C1 cash cost source: Benchmark Mineral
Intelligence
2. Cumulative Demand & China graphite production source: S&P
Global Market Intelligence
3. Company specific disclosure sources as follows:
Company Project Stage of Development C1 Cash Costs (FOB) Steady State Production Current Production Notes Source
US$/t tpa tpa
Black Rock Mining Mahenge Financing post DFS 466 89,000 - Operating costs are for first 10 years therefore prodcution of first 10 years Company Announcement: Black Rock Completes FEED and eDFS Update (10 October
only shown 2022)
Blencowe Resources Orom-Cross PFS Complete 482 101,000 - - Company Announcement: Major Milestone as Blencowe Delivers US$482M NPV
Pre-Feasibility Study for Orom-Cross Graphite Project (19 July 2022)
Ecograf Epanko BFS Complete 508 73,000 - - Updated Epanko Ore Reserve (25 July 2024)
Epanko Pre-Development Program Delivers Outstanding Results (28 April 2023)
Evion Maniry DFS Complete 657 56,400 - Production of 56.4ktpa is from year 4. Years 1-3 production is 39ktpa BlackEarth Minerals Maniry Graphite Project Definitive Feasibility Study (3
November 2022)
Evolution Energy Chilalo DFS Complete 773 52,000 - Operating costs are for first 9 years of produciton Company Announcement: FEED and updated DFS confirms Chilalo as a standout high
margin, low capex and development-ready graphite project (20 March 2023)
Falcon Energy Materials Lola Updated DFS Complete 588 92,435 - - SEDAR Filing: Lola Graphite Project NI 43-101 Technical Report - Updated
Feasibility Study (7 April 2023)
Focus Graphite Lac Knife FS Complete 413 50,000 - Converted from Canadian Dollars to US Dollars based on exchange rate used in Company Announcement: NI 43-101 Technical Report - Feasibility Study Update
source document of 1.00 CAD / 0.736 USD Lac Knife Graphite Project Québec, Canada (14 April 2023)
Graphite One Graphite Creek PFS Complete 1,394 51,813 - Production and costs relate to Graphite Creek Mine and not the proposed Company Announcement: Graphite One Advances its United States Graphite Supply
graphite manufacturing facility Chain Solution Demonstrating a Pre-tax USD$1.9B NPV (8%), 26.0% IRR and 4.6
Year Payback on its Integrated Project (29 August 2022)
Mineral Commodities Skaaland Production 1,434 10,000 10,000 Production based on annual operating target, costs based on latest reported Quarterly Activities Report: September 2024
(MRC) numbers for September 2024
Mineral Commodities Munglinup DFS Complete 491 54,000 - Company Announcement: Robust
(MRC) (https://www.mineralcommodities.com/wp-content/uploads/2020/01/Munglinup-DFS-Results-90-ownership.pdf)
Munglinup
(https://www.mineralcommodities.com/wp-content/uploads/2020/01/Munglinup-DFS-Results-90-ownership.pdf)
DFS Results Allow MRC to Move to 90% Ownership of
(https://www.mineralcommodities.com/wp-content/uploads/2020/01/Munglinup-DFS-Results-90-ownership.pdf)
Munglinup
(https://www.mineralcommodities.com/wp-content/uploads/2020/01/Munglinup-DFS-Results-90-ownership.pdf)
Graphite Project (8 January 2020)
(https://www.mineralcommodities.com/wp-content/uploads/2020/01/Munglinup-DFS-Results-90-ownership.pdf)
NextSource Materials Molo Construction 541 150,000 - Figures relate to Molo expansion case. Company Announcement: Nextsource Materials announces robust feasibility study
Operating Costs are US$392.59/t Minesite Operating Cost plus Selling Cost of results for Molo Mine expansion to 150,000 tonnes per annum of Superflake®
US$148.80 graphite concentrate (12 December 2023)
NGX Malingunde PFS Complete 396 52,000 - - Company Presentation: Clean Energy Minerals in Africa (August 2024)
Nouveau Monde Graphite Matawinie Construction 443 103,328 - Exchange rate used as per technical report Technical Report: Feasibility Study for the Matawinie Property
Renascor Siviour DFS Complete 472 150,000 - Company Announcement: Siviour Battery Anode Material Study Results (8 August
2023)
Syrah Resources Balama Production 455 240,000 - Production based on Company guidance of 20kt per month production rate. Company Quarterly Activities Report September 2024 (30 October 2024)
Operating costs based on midpoint of Balama C1 cost (FOB Nacala/Pemba)
medium-term guidance of US$430-480 per tonne.
Triton Ancuabe DFS Complete 634 60,000 - 2023 updates to DFS do not include updated costs and base case production Company Announcement: Triton Delivers Robust Ancuabe Definitive Feasibility
figures. On 9th December 2024, Triton Minerals announced that it had executed Study and Declares Maiden Ore Reserve (15 December 2017)
a Share Sale and Purchase Agreement with Shandong Yulong Gold Limited for the
sale of at least 70% of its interests in the entities that hold the Ancuabe
Graphite Project
Volt Resources Bunyu Stage 1 FS Complete 670 24,780 - Relates to stage 1 development which has had a feasibility study completed Company Announcement: Feasibility Study Update for Bunyu Graphite Project
Stage 1, Tanzania, delivers significantly improved economics (14 August 2023)
Notes:
1. Blencowe Resources C1 cash costs calculated as US$499/t operating
costs (FOB) less US$17/t royalties as disclosed in the source above
2. South Star Battery Metals Corp.'s Santa Cruz mine not included as
FOB costs not disclosed. For reference, operating costs are disclosed as
US4396/t from source: Technical Report: Updated Resources and Reserves
Assessment and Pre-feasibility Study (18 March 2020)
3. Magnis not included while shares are suspended by the ASX in
December 2023
4. Walkabout's Lindi Project not included following appointment of
voluntary administrators and Receivers in November 2024
5. Leading Edge Materials Woxna Graphite not included as it is
currently under care and maintenance
6. Northern Graphite's Lac des Iles not included due to recent
maintenance
7. Talga Group not shown as latest technical study based on integrated
anode plant strategy
8. Tirupati Graphite not included due to lack of relevant disclosure
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
Sovereign Metals Limited
ABN Quarter ended ("current quarter")
71 120 833 427 31 March 2025
Consolidated statement of cash flows Current quarter Year to date
$A'000
(9 months)
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for (6,993) (21,849)
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (323) (968)
(e) administration and corporate costs (277) (1,247)
1.3 Dividends received (see note 3) - -
1.4 Interest received 286 1,316
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other - Business Development (354) (1,184)
1.9 Net cash from / (used in) operating activities (7,661) (23,932)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment (92) (1,057)
(d) exploration & evaluation - -
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal of: - -
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing activities (92) (1,057)
3. Cash flows from financing activities 63 19,237
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt - (45)
securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing activities 63 19,192
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 33,531 31,562
4.2 Net cash from / (used in) operating activities (item 1.9 above) (7,661) (23,932)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (92) (1,057)
4.4 Net cash from / (used in) financing activities (item 3.10 above) 63 19,192
4.5 Effect of movement in exchange rates on cash held 6 82
4.6 Cash and cash equivalents at end of period 25,847 25,847
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
$A'000
$A'000
5.1 Bank balances 2,827 14,991
5.2 Call deposits 23,020 18,540
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 25,847 33,531
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included (318)
in item 1
6.2 Aggregate amount of payments to related parties and their associates included -
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements available to the entity.
$A'000
$A'000
Add notes as necessary for an understanding of the sources of finance available to the entity.
7.1 Loan facilities - -
7.2 Credit standby arrangements - -
7.3 Other (please specify) 40,000 -
7.4 Total financing facilities 40,000 -
7.5 Unused financing facilities available at quarter end 40,000
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
Sub
seq
uen
t
to
the
end
of
the
qua
rte
r,
the
Com
pan
y
com
ple
ted
a
pla
cem
ent
to
rai
se
gro
ss
pro
cee
ds
of
A$4
0
mil
lio
n
fro
m
new
and
exi
sti
ng
sha
reh
old
ers
,
inc
lud
ing
lar
ge
glo
bal
ins
tit
uti
ona
l
inv
est
ors
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (7,661)
8.2 (Payments for exploration & evaluation classified as investing activities) -
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (7,661)
8.4 Cash and cash equivalents at quarter end (item 4.6) 25,847
8.5 Unused finance facilities available at quarter end (item 7.5) 40,000
8.6 Total available funding (item 8.4 + item 8.5) 65,847
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 9
No
te
:
if
th
e
en
ti
ty
ha
s
re
po
rt
ed
po
si
ti
ve
re
le
va
nt
ou
tg
oi
ng
s
(i
e
a
ne
t
ca
sh
in
fl
ow
)
in
it
em
8
.3
,
an
sw
er
it
em
8
.7
as
"N
/A
".
Ot
he
rw
is
e,
a
fi
gu
re
fo
r
th
e
es
ti
ma
te
d
qu
ar
te
rs
of
fu
nd
in
g
av
ai
la
bl
e
mu
st
be
in
cl
ud
ed
in
it
em
8.
7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
Answer: Not applicable
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer: Not applicable
8.8.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Answer: Not applicable
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 30 April 2025
Authorised by: Company Secretary
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
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