REG - Sovereign Metals Ltd - September 2025 Quarterly Report
31/10/2025 07:00
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RNS Number : 6658F Sovereign Metals Limited 31 October 2025
NEWS RELEASE I 31 October 2025
SEPTEMBER 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 30
September 2025 including advances made at its Kasiya Rutile-Graphite Project
(Kasiya or the Project) in Malawi.
HIGHLIGHTS DURING AND SUBSEQUENT TO THE QUARTER
Japanese Government Launches New Nacala Logistics Corridor Development
Initiative
· Japan commits US$7 billion in development funding - $5.5 billion
through joint program with African Development Bank, plus $1.5 billion in
public-private impact investment through Japan's development agency.
· Initiative focuses on capacity expansion, refurbishment, and
resilience upgrades to increase throughput, enhance reliability, and reduce
bottlenecks, positioning Kasiya as a key beneficiary of Japan's mineral
security strategy.
· Nacala Corridor is Kasiya's preferred transport route - providing
lowest-cost pathway from Kasiya to international markets via a deep-water
port.
Various Critical Components of DFS now complete
· Geotechnical investigations successfully completed across all
critical infrastructure locations with oversight from the Sovereign-Rio Tinto
Technical Committee confirming favourable subsurface conditions aligned with
regional geology
o Over 400 individual tests conducted covering mining infrastructure,
tailings storage facility and raw water dam
o Consistent stratigraphy and suitable subsurface conditions to enable more
standardised foundation designs and construction approaches across
infrastructure areas
· Mining fleet specifically engineered for large-scale dry mining
operations following the results of the successful Pilot Mining and Land
Rehabilitation (Pilot Phase).
o No drilling, blasting, crushing or milling required at Kasiya resulting in
low capital outlays and operating costs.
o Equipment selection and supplier identification completed for all
operational requirements across the proposed initial 25-year mine life
· Rehabilitation of land at Pilot Phase test pit site successfully
completed during the quarter, further de-risking DFS
o Exceptional first-year results from its rehabilitation trials at the
Kasiya, delivering critical data that will inform the progressive
rehabilitation strategy for the ongoing definitive feasibility study (DFS).
o Rehabilitation trials achieved 5x crop yield improvement - demonstrating
superior post-mining land productivity versus traditional farming.
New Graphite Tariff Environment Underscores Kasiya's Global Significance
· In July 2025, the U.S. Commerce Department announced 93.5%
preliminary anti-dumping duties on Chinese graphite imports, fundamentally
altering the economics for battery manufacturers seeking secure,
cost-competitive supply chains.
· The new tariff environment highlights Kasiya's potential as the
world's largest and lowest-cost non-Chinese graphite producer with
industry-leading US$241/t incremental cost of production.
Latest Testwork Validates Kasiya Graphite's World-Class Quality to Anode
Manufacturers
· Latest coating optimisation testwork achieved successful coated
spherical purified graphite (CSPG) production characteristics with superior
performance metrics.
· Samples of Kasiya fine flake graphite concentrate have been
distributed to leading natural graphite anode producers and anode project
developers to support development of offtake agreements while validating
market demand for Kasiya's high-quality battery-grade graphite
Kasiya Unaffected by Malawi Raw Mineral Export Order
· Subsequent to the quarter, His Excellency President Peter Mutharika,
the newly elected President of Malawi, announced an Executive Order regarding
the prohibition of the export of raw minerals from the country.
· This prohibition does not apply to the Company or to Kasiya as the
ban only relates to minerals that have not been processed, refined, or
value-added in Malawi.
o With regards to its future planned Kasiya operations, Sovereign has no
plans to export run-of-mine Heavy Mineral Sands as defined in the Executive
Order. All future mineralisation will be extracted and beneficiated in country
to a final premium quality rutile (+95% TiO2) product. The high-quality
Kasiya rutile product is planned to be a direct feedstock for titanium sponge
production for high-end titanium metal products, including aerospace and
defence applications.
o Similarly, Sovereign intends to process the run-of-mine Graphite as
defined in the Executive Order in-country to produce a high-quality graphite
product (96% C) suitable for major industry end markets including battery
producers and refractory manufacturers.
Next Steps
Over the quarter ending December 2025, Sovereign will:
· continue to advance the Kasiya DFS, for completion in the first
quarter of 2026, including finalising mining fleet design, process plant
configuration, and mine gate-to-vessel logistics solutions;
· advance rutile and graphite offtake discussions; and
· further the Company's community and social development programs in
Malawi.
Enquiries
Frank Eagar, Managing Director & CEO
South Africa / Malawi
+27 21 140 3190
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
JAPAN TARGETS KASIYA TRANSPORT CORRIDOR IN NEW STRATEGIC MINERALS INITIATIVE
During the quarter, the Government of Japan launched a dedicated investment
initiative targeting the Nacala Corridor infrastructure, significantly
strengthening the strategic positioning of the Kasiya Project. As discussed
above Toho Titanium confirmed that natural rutile from Kasiya meets
specifications for high-performance titanium metal production.
The initiative aims to improve transportation infrastructure and promote
industrial development in the Nacala Corridor region, including Malawi, to
increase its value as a transportation route for mineral resources and
ultimately strengthen Japan's global supply chains related to critical
minerals.
Japan's US$7 billion commitment includes US$5.5 billion through the Enhanced
Private Sector Assistance for Africa program, which provides development
funding to African countries through the African Development Bank.
Additionally, US$1.5 billion will be mobilised through Japan's development
agency for direct investment in private sector projects, including mining and
infrastructure developments.
The initiative creates multiple strategic advantages for Kasiya, positioning
the Project as a key beneficiary of Japan's mineral security strategy.
The Nacala Corridor serves as the preferred transportation route for
Sovereign's forthcoming DFS, providing a direct route to the deep-water port
of Nacala and offering Kasiya a low-cost pathway to global markets with
significant capital and operating savings.
Japan's initiative focuses on capacity expansion, refurbishment, and
resilience upgrades to increase throughput, enhance reliability, and reduce
bottlenecks, directly benefiting projects such as Kasiya.
To access the Nacala Corridor, Sovereign plans to construct a six-kilometre
rail spur linking the proposed plant to the Nacala Corridor, ensuring
efficient freight handling. The Company is in discussions with leading
regional logistics providers on rail and port solutions to ensure reliable and
cost-efficient transport of rutile and graphite to international markets.
Figure 1: Bulk cargo trains operating on Nacala Corridor
Figure 2: Kasiya is ideally located on the Nacala Corridor
VARIOUS CRITICAL COMPONENTS OF DFS NOW COMPLETE
Geotechnical Programs Complete
In July 2025, the Company announced the successful completion of comprehensive
feasibility-level geotechnical fieldwork programs at Kasiya.
The geotechnical investigations conducted by ARQ Geotech (Pty) Ltd and with
oversight from the Sovereign-Rio Tinto Technical Committee, provide essential
subsurface data that will inform detailed engineering design and
infrastructure planning across major Project components. The comprehensive
scope covered critical infrastructure areas including mining operations,
process plants, tailings storage facility (TSF), and raw water storage dam -
representing the foundational elements required for the Project's development.
The fieldwork programs employed a sophisticated combination of near-surface
and deep investigation techniques across the project site, with over 400
individual tests conducted to characterise soil and rock profiles
comprehensively.
Initial results indicate highly favourable subsurface conditions that
correlate well with the expected regional geology. The material profiles
encountered across all infrastructure sites show generally consistent
stratigraphy comprising the following:
· Surface topsoil horizon,
· Underlying transported horizon of variable origin (aeolian,
colluvium, and alluvium),
· Reworked residual gneiss transitioning to residual gneiss with depth,
· Deeply weathered soil profile consistently observed across the areas,
· The weathered soil profile transitioning to extremely soft to very
soft rock, and ultimately into hard rock at greater depths, and
· Subsurface materials are generally derived from gneissic bedrock.
Consistent stratigraphy and suitable subsurface conditions to enable more
standardised foundation designs and construction approaches across
infrastructure areas, potentially reducing engineering complexity and
construction costs.
Significantly, ferricrete identified within the transported horizon has been
assessed as potentially reusable as engineered fill material.
Figures 3-6 Clockwise from Top Left: Geotechnical diamond drilling, auger
drilling, seismic geophysics testing using multi-channel analysis of surface
waves (MASW), Cone Penetration Test with pore pressure measurements (CPTu)
rig.
Mining Method and Fleet Design Finalised
During the quarter, the Company finalised the selection of mining equipment
specifically designed for large-scale dry mining operations at Kasiya.
Following the successful 2024 Pilot Phase, which confirmed that Kasiya ore can
be efficiently mined using conventional dry mining techniques, the
comprehensive fleet design encompasses both primary mining operations and
support activities across the Project's proposed initial 25-year life of mine.
The dry mining approach, detailed in the Optimised Prefeasibility Study
(OPFS), will deliver superior project delivery, operational flexibility, and
environmental outcomes. The fleet deployment follows a strategic phased
approach, with a total of ~200+ equipment units to be purchased over the mine
life, including replacements.
The Company has conducted a comprehensive market analysis and identified
leading global equipment manufacturers as potential suppliers, including
Caterpillar Inc., Komatsu Ltd., Liebherr Group, Hitachi, Ltd., and Volvo
Group.
Primary mining equipment includes draglines, large excavators, mine trucks and
front-end loaders. Support equipment will include dozers, graders, articulated
dump trucks, and other light vehicles, along with ancillary equipment.
Figure 7: Example of a dragline excavator in action (Source: Liebherr Group)
Successful Rehabilitation Further De-Risks DFS
In August 2025, the Company announced exceptional first-year results from its
rehabilitation trials at Kasiya, delivering critical data that will inform the
progressive rehabilitation strategy for the ongoing DFS.
The successful rehabilitation trials address a key component of Kasiya's
development pathway, demonstrating that post-mining land can achieve superior
agricultural productivity compared to pre-mining conditions. With maize yields
of 5.2 tonnes per hectare, compared with the regional average of 1 tonne per
hectare, the trials validate Sovereign's progressive mining, backfilling, and
rehabilitation approach, which will be integrated into the DFS.
The 10-hectare pilot program achieved a 5x increase in crop yield through soil
remediation, engaged 28 local farmers as partners, and demonstrated the
effectiveness of the rehabilitation process for scaled-up implementation.
Sovereign followed a systematic six-step rehabilitation process that
successfully restored the disturbed land back to productive agricultural use:
1. Land preparation with complete backfill and grading to original
contours.
2. Soil nutrient enhancement via application of locally sourced lime,
biochar and fertilisers.
3. Mechanical integration using community-sourced equipment.
4. Strategic planting of bamboo blocks with intercropped maize and
legumes.
5. Harvest success delivering 5.2 tonnes/hectare average yield.
6. Year-round productivity enabled by drip irrigation for winter farming
programs.
The rehabilitation approach combines proven agronomic practices with
innovative techniques, including biochar application, precision nutrient
management, and intercropping with Giant Bamboo, creating a replicable model
for broader Kasiya development. These rehabilitation results will be
integrated into Sovereign's progressive rehabilitation strategy within the
DFS, supporting:
· Project-specific closure provisioning through demonstrated
restoration success.
· Enhanced community value proposition via improved post-mining
land productivity.
· Proven environmental stewardship.
· Strengthened ESG positioning.
Figures 8-9: LEFT - Test pit site during the mining trials (September 2024)
& RIGHT - Rehabilitation site with mature crop (May 2025)
NEW GRAPHITE TARIFF ENVIRONMENT UNDERSCORES KASIYA'S GLOBAL SIGNIFICANCE
In July 2025, the Company announced that the latest testwork on graphite from
Kasiya has delivered highly successful results. The testwork focused on
optimising the coating process for conversion of Kasiya-derived spherical
purified graphite (SPG) coated spherical CSPG while maintaining premium
performance.
The results will assist with ongoing offtake discussions with anode
manufacturers. Sovereign is developing Kasiya to potentially become the
world's largest and lowest-cost natural graphite producer outside of China
with an incremental cost of graphite production of US$241/t.
Figure 10: Natural Flake Graphite Industry Cost Curve for Projects at
Prefeasibility Stage or Later
(Sources: See Appendix 4)
The global graphite supply chain is experiencing fundamental realignment
following the U.S. Commerce Department's 17 July 2025 announcement of 93.5%
preliminary anti-dumping duties on Chinese graphite imports. Combined with
existing tariffs, this creates an effective 160% barrier on Chinese graphite,
fundamentally altering the economics for battery manufacturers seeking secure,
cost-competitive supply chains. China currently controls approximately 75% of
global graphite production and 97% of anode material processing, creating
critical supply chain vulnerabilities that major battery manufacturers are now
actively addressing.
Tesla, Inc. (Tesla) and Panasonic were among companies that opposed the new US
tariffs, with Tesla's submission to the U.S. Government stating that U.S.
graphite producers have yet to demonstrate the "technical ability to produce
commercial quantities" of graphite at the quality and purity required by Tesla
and other battery cell manufacturers.
Once developed, Kasiya has the potential to become the world's largest and
lowest-cost natural flake graphite producer, offering battery manufacturers a
strategic alternative to Chinese supply chains for anode material feedstock.
The latest successful coating testwork is a further demonstration of Kasiya's
increasing strategic importance.
LATEST TESTWORK VALIDATES KASIYA GRAPHITE'S WORLD-CLASS QUALITY TO ANODE
MANUFACTURERS
Optimisation testwork conducted by Prographite GmbH (Prographite) has once
again demonstrated the exceptional characteristics of Kasiya graphite for CSPG
production. The optimisation process successfully achieved target coating
specifications and optimised inputs into the coating process while maintaining
the premium performance metrics that position Kasiya graphite among the
highest-quality sources globally (refer to Announcement "Outstanding Battery
Anode Material Produced From Kasiya Graphite" dated 4 September 2024 for
previously announced premium performance metrics).
Pitch coating is a standard refinement process where carbon-rich pitch
material is applied to spherical graphite particles to create protective
layers that enhance battery performance and longevity, turning SPG into CSPG.
The latest testwork systematically evaluated pitch content to achieve optimal
performance parameters.
Key achievements from the process include:
· Process Efficiency Demonstrated: Coating requirements optimised while
maintaining superior CSPG characteristics
· Premium Performance Maintained: All target specifications achieved
for discharge capacity (>360mAh/g) and first cycle efficiency (>94%)
· Physical Properties Achieved: Specific surface area (<4m²/g) and
tap density (>1.0 g/cm³) specifications met
The electrochemical test results demonstrate the consistently high quality of
CSPG produced from Kasiya graphite:
Table 1: Electrochemical Half-Cell Testing Results
Pitch Coating Level Initial Charge (mAh/g) Initial Discharge (mAh/g) First Cycle Efficiency (%)
Baseline (100%) 390 369 94.64
Optimised (60%) 388 366 94.36
The data confirms that Kasiya graphite consistently delivers discharge
capacity well above the critical 360mAh/g threshold while achieving first
cycle efficiency above 94% - both key specifications for premium-quality
natural graphite anode materials.
KASIYA UNAFFECTED BY MALAWI RAW MINERAL EXPORT ORDER
Subsequent to the quarter, the Company acknowledged the Executive Order by His
Excellency President Peter Mutharika, the newly elected President of Malawi,
regarding the prohibition of the export of raw minerals from the country.
This prohibition does not apply to the Company or the Kasiya Rutile-Graphite
Project (Kasiya or Project), as the ban applies only to minerals that have not
been processed, refined, or value-added in Malawi.
With regards to its future planned Kasiya operations, Sovereign has no plans
to export run-of-mine Heavy Mineral Sands as defined in the Executive Order.
All future mineralisation will be extracted and beneficiated in country to a
final premium quality rutile (+95% TiO2) product.
The high-quality Kasiya rutile product is planned to be a direct feedstock for
titanium sponge production for high-end titanium metal products, including
aerospace and defence applications. Similarly, Sovereign intends to process
the run-of-mine Graphite as defined in the Executive Order in-country to
produce a high-quality graphite product (96% C) suitable for major industry
end markets including battery producers and refractory manufacturers.
The Company continues to work with the Government of Malawi and the Malawi
Mines Department for the ongoing development of the Kasiya Project.
NEXT STEPS
Various new workstreams are being adopted into the DFS, with completion
expected in the first quarter of 2026. These include enhanced focus on plant
design and configuration, and environmental and social impact workstreams.
These workstreams have been included in the DFS work program to ensure it
meets many of the requirements of potential future lenders, including
development finance institutions, export credit agencies and potential future
offtakers.
The Company will continue to update stakeholders regarding progress,
including:
· Mineral Resource update;
· active discussions with US-based and "allied-nation" offtakers of
rutile and graphite;
· environmental and social impact assessments; and
· infrastructure and logistics planning.
Competent Person Statement
The information in this announcement that relates to the exploration results
(metallurgy - graphite) is extracted from an announcement dated 28 July 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 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 announcement have not been
materially changed from the original announcement.
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 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 announcement have not been materially modified from the
original announcement.
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.
APPENDIX 1: SUMMARY OF MINING TENEMENTS
As at 30 September 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(2) 15/09/2028 69.8 Granted
EL0561 SSL 100% Exploration 15/09/2025(2) 15/09/2028 30.7 Granted
EL0657 SSL 100% Exploration 3/10/2028 3/10/2031 2.3 Granted
EL0710 SSL 100% Exploration 1/02/2027 1/02/2031 38.4 Granted
RTL0035-RTL0045 SSL 100% Retention N/A 26/06/2026 285.2 Granted
EL0528 SSL 100% Exploration N/A 27/11/2025(3) 16.2 Granted
EL0545 SSL 100% Exploration N/A 12/05/2026(3) 24.2 Granted
Notes:
SSL: Sovereign Services Limited, MML: McCourt Mining Limited
(1) An exploration licence (EL) covering a preliminary period in accordance
with the Mines and Minerals Act (2023) (2023 Mines Act) is granted an initial
period of five (5) years with the ability to extend by three (3) years on two
occasions (a total term of 11 years). 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 not exceeding five (5) years subject to meeting certain criteria or any
conditions imposed on the RL.
(2) The Company has submitted two EL applications, APL0739 (16.2km(2)) and
APL0740 (71.5km(2)), which remain pending as at 30 September 2025.
(3) Licence surrender letters submitted for non-core ELs.
APPENDIX 2: RELATED PARTY PAYMENTS
During the quarter ended 30 September 2025, the Company made payments of
A$350,000 to related parties and their associates. These payments relate to
existing remuneration arrangements (executive salaries, director fees,
superannuation and bonuses (A$252,000)) and provision of serviced office
facilities, company secretarial services and administration services
(A$98,000).
APPENDIX 3: MINING EXPLORATION EXPENDITURES
During the quarter, the Company made the following payments in relation to
mining exploration activities:
Activity A$'000
Feasibility Studies (DFS & trial mining pilot phase) 6,870
Drilling related 519
Assaying and Metallurgical Test-work 420
ESG related (including community and social development programs) 751
Malawi Operations (site office, personnel, field supplies, equipment, 2,675
vehicles and travel
Total as reported in Appendix 5B 11,235
There were no mining or production activities and expenses incurred during the
quarter ended 30 September 2025.
APPENDIX 4: FLAKE GRAPHITE 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 production 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 30 September 2025
Consolidated statement of cash flows Current quarter Year to date
$A'000
(3 months)
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for (11,235) (11,235)
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (427) (427)
(e) administration and corporate costs (307) (307)
1.3 Dividends received (see note 3) - -
1.4 Interest received 697 697
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 (367) (367)
1.9 Net cash from / (used in) operating activities (11,639) (11,639)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment (71) (71)
(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 (71) (71)
3. Cash flows from financing activities - -
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 - -
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 - -
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 54,538 54,538
4.2 Net cash from / (used in) operating activities (item 1.9 above) (11,639) (11,639)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (71) (71)
4.4 Net cash from / (used in) financing activities (item 3.10 above) - -
4.5 Effect of movement in exchange rates on cash held 26 26
4.6 Cash and cash equivalents at end of period 42,854 42,854
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 6,979 5,018
5.2 Call deposits 35,875 49,520
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) 42,854 54,538
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 (349)
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) - -
7.4 Total financing facilities - -
7.5 Unused financing facilities available at quarter end -
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.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (11,639)
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) (11,639)
8.4 Cash and cash equivalents at quarter end (item 4.6) 42,854
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 42,854
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 4
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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: 31 October 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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