REG - Sovereign Metals Ltd - June 2025 Quarterly Report
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RNS Number : 3595T Sovereign Metals Limited 31 July 2025
NEWS RELEASE I 31 JULY 2025
JUNE 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
June 2025 including advances made at its Kasiya Rutile-Graphite Project
(Kasiya or the Project) in Malawi.
HIGHLIGHTS DURING AND SUBSEQUENT TO THE QUARTER
DFS Progresses with Completion of Geotechnical Program and Power Supply MOU
Signed
· In April 2025, the Company announced that several geotechnical
drilling programs were underway at all critical project infrastructure
locations across Kasiya.
· Geotechnical investigations were successfully completed subsequent to
the quarter end, with preliminary findings confirming favourable subsurface
conditions for infrastructure construction.
· In May 2025, Sovereign and Electricity Supply Corporation of Malawi
(ESCOM) entered into a non-binding Memorandum of Understanding (MOU) to ensure
the long-term supply of electricity to Kasiya, establishing a framework for
negotiating future definitive agreements.
· In May 2025, the World Bank approved a US$350m grant to support
Malawi's Mpatamanga Hydropower Storage Project to significantly increase
Malawi's installed capacity by 2030.
Japan's Toho Titanium Confirms Kasiya Rutile's Suitability for Producing
High-Performance Products
· During the quarter, one of Japan's premier titanium metal producers,
Toho Titanium Company Limited (Toho Titanium), confirmed that natural rutile
from Kasiya is suitable for manufacturing its high-specification titanium
products critical to aerospace and industrial applications.
· Toho Titanium is a cornerstone supplier in the global titanium value
chain, serving the world's most demanding aerospace and industrial
manufacturers.
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 coating optimisation testwork achieved successful coated
spherical purified graphite (CSPG) production characteristics with superior
performance metrics to support advancing offtake discussions.
Expanded Conservation Farming Program Increases Crop Yields Fourfold
· Sovereign's 2025 Conservation Farming Program increased crop yields
for participating farmers by four times (4x), with the top farmer achieving a
10x yield versus traditional farming techniques.
· Sovereign has adopted Conservation Farming as one of the cornerstones
of its livelihood improvement initiatives for the Kasiya Project.
Next Steps
Over the quarter ending September 2025, Sovereign will:
· continue to advance the Kasiya Definitive Feasibility Study (DFS),
including finalising mining fleet design, process plant configuration, and
mine gate-to-vessel logistics solutions;
· advancing 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
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
DFS GEOTECHNICAL PROGRAMS COMPLETE
In April 2025, the Company announced that several geotechnical drilling
programs were underway at Kasiya as part of the DFS. Subsequent to the
quarter, the programs were successfully completed.
The extensive programs, conducted by ARQ Geotech (Pty) Ltd and with oversight
from the Sovereign-Rio Tinto Technical Committee, represent a critical
milestone in the Project's ongoing DFS. The continued progress demonstrates
momentum towards advancing this Tier-1 project.
The geotechnical investigations 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.
Understanding subsurface conditions is crucial for predicting interactions
between in-situ geological strata and the overlying infrastructure. The
geotechnical data will inform the design of foundations, earthworks, slope
stability measures, and material suitability; ultimately contributing to safe,
efficient, and cost-effective 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.
Preliminary Findings
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. Consistent stratigraphy and suitable subsurface conditions
enable more standardised foundation designs and construction approaches across
infrastructure areas, potentially reducing engineering complexity and
construction costs. The findings will be integrated into detailed engineering
design work to optimise infrastructure placement, foundation design, and
construction methodologies.
Figures 1-4 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.
POWER SUPPLY MOU SIGNED AS WORLD BANK APPROVES MALAWI HYDROPOWER PROJECT
In May 2025, Sovereign announced that it had entered into a non-binding MOU
with ESCOM (Malawi's national electricity utility) to ensure the long-term
supply of electricity to the Kasiya Project. The MOU establishes the framework
for negotiating the following future definitive agreements:
· Project Implementation Agreement, including construction and
installation of a new 132kV overhead power line, and
· Power Supply Agreement, for the provision of bulk power supply from
Malawi's national grid.
The MOU follows discussions with ESCOM regarding the provision of electricity
to the Kasiya Project in preparation for construction and operation. The total
installed capacity in Malawi is currently 549MW, with approximately 73% of
this capacity coming from hydropower.
During Stage 1, Kasiya's power demand will amount to 30MW, increasing to 60MW
at steady-state production in Year 6 of operation. To supply power from the
hydro-based grid network, a 132kV overhead transmission line will be
constructed to connect the Kasiya site to the Nkhoma substation, approximately
97km away. Nkhoma has been identified as the most suitable connection point
based on power reliability, technical feasibility, and environmental and
social considerations. This line will supply the 132/33kV Kasiya bulk intake
substation.
The purpose of the MOU with ESCOM is to record the mutual understanding for
negotiation in good faith of a Project Implementation Agreement and a Power
Supply Agreement (Definitive Agreements). The MOU is non-exclusive and
non-binding and remains subject to negotiation and execution of the Definitive
Agreements. The MOU will expire upon execution of the Definitive Agreements or
on 30 June 2026, whichever is the earliest, but it can be mutually extended by
12 months.
Figure 5: Nkhoma substation has capacity for connection to the Kasiya
operation.
(Source: Millenium Challenge Corporation, USA)
Mpatamanga Hydropower Storage Project
On 15 May 2025, the World Bank approved a US$350m grant to support Malawi's
Mpatamanga Hydropower Storage Project (MHSP), a large infrastructure operation
aiming to "transform the country's energy landscape and its economic
development trajectory." (Source: World Bank)
In September 2022, the Malawian Government selected a consortium of strategic
sponsors, which currently owns the MHSP, and consists of Electricité de
France (EDF) and SN Malawi BV, which in turn is owned by the UK Government's
development finance institution, British International Investment plc, the
Norwegian Parliament's development finance institution, Norfund, and global
energy company TotalEnergies SE. Once complete, the US$1.5 billion MHSP will
deliver 358MW of additional generation capacity to the Malawi electricity
grid.
MHSP is one of several large energy projects in Malawi supported by the World
Bank Group, reflecting the institution's strong commitment to supporting this
sector as an essential enabler of economic growth and development.
In a World Bank press release, Nathan Belete, World Bank Division Director for
Malawi, Tanzania, Zambia and Zimbabwe commented: "This new hydropower project
is a game-changer for Malawi, capable of catalyzing transformative change in
productive economic sectors such as mining, agri-business and tourism. As the
country works on driving its economic development agenda, this new source of
clean and reliable energy will help drive business growth, create jobs, and
improve the lives of millions of Malawians."
TOHO TITANIUM VALIDATES KASIYA RUTILE FOR HIGH-SPECIFICATION TITANIUM PRODUCTS
In June 2025, the Company announced that one of Japan's premier titanium metal
(sponge and ingot) producers, Toho Titanium, confirmed the suitability of
natural rutile from Sovereign's Kasiya 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.,
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.
Figure 6: 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)
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 flowsheet with no requirements for
flotation or acid leaching.
World-class specification rutile products were reported ranging from 95.0% to
97.2% TiO2 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 (d50 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.
NEW GRAPHITE TARIFF ENVIRONMENT UNDERSCORES KASIYA'S GLOBAL SIGNIFICANCE
Subsequent to the quarter end, 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 7: 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.
EXPANDED CONSERVATION FARMING PROGRAM INCREASES CROP YIELDS FOURFOLD
During the quarter, Sovereign announced the results of its 2025 Conservation
Farming Program harvest season at Kasiya.
As part of Sovereign's commitment to improving livelihoods and local
communities near the Kasiya Project, the Company launched a Program in 2024 to
support the development of successful smallholder farmers. Local farmers
received training to increase maize crop yield, protect soil from erosion and
degradation and ultimately improve long-term food security.
During the 2024 harvest season, the Program delivered strong results, with
visibly improved crop growth with the 90 participating farmers reporting
harvest yields three-times (3x) higher than previous years despite an El
Niño-driven drought.
In 2025, 350 farmers, of which 50% are female, have participated in the
Program with yield surveys of all farmers who have harvested their crops
demonstrating four times (4x) higher than typical yields from conventional
farming.
The top farmer this season, harvested 12.8 tonnes/ha i.e. a ten-times (10x)
increase in crops, compared to last season's top farmer who achieved 6
tonnes/ha and a five-times (5x) higher crop yield. Top-performing farmers have
not only managed to meet their household food requirements, but have also sold
surplus crop with proceeds being used to upgrade their houses and invest in
trading businesses.
Figure 8: Conservation farming vs. conventional farming methods.
NEXT STEPS
The Company plans to update the market on the following progress in the coming
months:
· Finalisation of mine fleet design and plant configuration,
· DFS-level mine gate to vessel logistics solution,
· Progress in discussions with future potential end-users and offtakers
of rutile and graphite,
· Updates on community and social development programs, including
DFS-level rehabilitation strategy,
· MRE update to be published in conjunction with the DFS following
completion of further infill drilling, and
· Progress of the DFS, which is targeted for completion by Q4, 2025.
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 graphite operating costs
and marketing 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 June 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) 15/09/2027 141.3 Granted
EL0492 SSL 100% Exploration 29/01/2025(3) 29/01/2025(3) 282.2 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(2) 15/09/2027 61.9 Granted
EL0657 SSL 100% Exploration 3/10/2025(2) 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) During and subsequent to the quarter, SSL submitted EL extension
applications prior to their renewal dates in accordance with the 2023 Mines
Act.
(3) Subsequent to the quarter, RLs in relation to EL0492 were granted for a
period of 12 months in accordance with the 2023 Mines Act.
APPENDIX 2: RELATED PARTY PAYMENTS
During the quarter ended 30 June 2025, the Company made payments of A$533,000
to related parties and their associates. These payments relate to existing
remuneration arrangements (executive salaries, director fees, superannuation
and bonuses (A$435,000)) 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) 3,546
Drilling related 610
Assaying and Metallurgical Test-work 320
ESG related (including community and social development programs) 1,059
Malawi Operations (site office, personnel, field supplies, equipment, 1,692
vehicles and travel
Total as reported in Appendix 5B 7,227
There were no mining or production activities and expenses incurred during the
quarter ended 30 June 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 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 30 June 2025
Consolidated statement of cash flows Current quarter Year to date
$A'000
(12 months)
$A'000
1. Cash flows from operating activities - -
1.1 Receipts from customers
1.2 Payments for (7,227) (29,076)
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (706) (1,673)
(e) administration and corporate costs (660) (1,907)
1.3 Dividends received (see note 3) - -
1.4 Interest received 398 1,714
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 (608) (1,793)
1.9 Net cash from / (used in) operating activities (8,803) (32,735)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment (35) (1,091)
(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 (35) (1,091)
3. Cash flows from financing activities 39,937 59,174
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 (2,355) (2,400)
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 37,582 56,774
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 25,847 31,562
4.2 Net cash from / (used in) operating activities (item 1.9 above) (8,803) (32,735)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (35) (1,091)
4.4 Net cash from / (used in) financing activities (item 3.10 above) 37,582 56,774
4.5 Effect of movement in exchange rates on cash held (53) 28
4.6 Cash and cash equivalents at end of period 54,538 54,538
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 5,018 2,827
5.2 Call deposits 49,520 23,020
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) 54,538 25,847
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 (533)
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) (8,803)
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) (8,803)
8.4 Cash and cash equivalents at quarter end (item 4.6) 54,538
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 54,538
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 6.2
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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 July 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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