KASIYA PROJECT HITS MAJOR MILESTONE

Sovereign Metals has released an updated Mineral Resource Estimate (MRE) for its Kasiya rutile and graphite project in Malawi, reinforcing the project’s status as the world’s largest known rutile deposit and the second-largest flake graphite resource globally. The March 2026 update lifts Measured and Indicated (M&I) tonnes by 38% to 1,652 million tonnes and increases total contained rutile by 13% to 20.24 million tonnes, replacing the April 2023 estimate for integration into the Definitive Feasibility Study (DFS) mine schedule.

A key highlight of the update is the declaration of the first Measured Resource at Kasiya, covering 107 million tonnes at 1.05% rutile and 1.56% total graphitic carbon (TGC). This resource is designated for the first six years of planned operations, offering the highest-confidence classification under the JORC code, which is critical for lenders and offtake counterparties assessing early cash flows and project bankability.

Project Structure and Production Advantages

Kasiya is primarily a rutile operation, with graphite produced as a by-product—a unique configuration globally. Graphite contributes additional revenue at an incremental production cost of US$241 per tonne, below the Chinese benchmark of US$257 per tonne, without requiring separate capital investment or downstream processing. The flat, near-surface saprolite ore body allows mining without drilling, blasting, crushing, or grinding, simplifying operations and reducing costs and execution risk relative to hard-rock peers.

The processing route is straightforward, consisting of loading, scrubbing, and wet concentration, producing high-quality rutile (>95% TiO₂) and graphite concentrate (96–98% carbon), with a significant portion in medium to jumbo flake sizes—a factor that enhances market pricing potential. At full-scale steady-state production, Kasiya will generate 246,000 tonnes of rutile and 265,000 tonnes of graphite per annum, positioning it as a global leader in natural flake graphite production.

Economics and Pre-Feasibility Highlights

The Optimised Pre-Feasibility Study (OPFS) completed in January 2025 models a pre-tax NPV8% of US$2,322 million, an IRR of 27%, and average annual EBITDA of US$409 million at a 64% margin, with capital expenditure to first production at US$665 million. Graphite contributes incremental margin to the project, enhancing the overall economics without proportionate overhead costs.

Strategic Partnerships and Financing Pathway

Sovereign Metals has secured strategic backing and offtake agreements to strengthen its commercial position. Rio Tinto holds a 19.9% stake, participating in a joint technical committee to validate the DFS. A Memorandum of Understanding (MoU) with Traxys covers up to 80,000 tonnes of graphite per annum, tied to the US Project Vault program, supporting non-Chinese supply chain alternatives. Additionally, collaboration with the International Finance Corporation (IFC) advances project finance readiness.

Next Steps and Milestones

The immediate focus is the completion of the DFS, alongside permitting, mining license applications, environmental impact assessment, and the transition to funded agreements covering both project finance and offtake commitments. These milestones mark the path from the study phase to a potential construction decision in 2026.

Outlook

The March 2026 MRE update consolidates Kasiya’s geological foundation, strengthens confidence among investors, lenders, and offtake partners, and positions the project for commercial-scale operations. With a unique low-cost rutile-focused production model complemented by graphite by-product margins, strategic partnerships, and a clear DFS path, Kasiya is on track to become a globally significant, bankable mineral project with strong economic and market potential.