Join our daily newsletter At The Bell to receive exclusive market insights
- Sovereign Metals (SVM) enters FY24 with an investment of $40.4 million from Rio Tinto (RIO)
- During Q4 FY23, the company continued advancements toward the completion of its Kasiya project PFS, aimed for completion in Q1 FY24
- As the PFS nears completion, the company’s graphite project is primed to become a significant global source of critical raw materials
- The company’s graphite pre-concentrate awaits delivery to international laboratories for processing into a final graphite product through flotation
- SVM shares last traded at 49.5 cents
Sovereign Metals (SVM) has entered the new financial year with an investment of $40.4 million from Rio Tinto (RIO), subsequently becoming a 15 per cent strategic investor in the company
During Q4 FY23, the company continued advancing towards completing its Kasiya project pre-feasibility study (PFS), which is aimed to be completed by the end of Q1 FY24.
Sovereign’s Kasiya project is poised to become one of the largest and lowest-cost producers of natural rutile and natural graphite worldwide.
In Q4, the company initiated a graphite bulk sample program for Kasiya to facilitate qualification, downstream test work, and product development.
Initial downstream results revealed suitability for use in lithium-ion batteries, with the graphite exhibiting near-perfect crystallinity above benchmarks at 99.95 per cent, indicating high electrical conductivity.
The company’s graphite pre-concentrate awaits delivery to international laboratories for processing into a final graphite product through flotation.
Sovereign’s product marketing strategy focuses on partnering with high-quality firms during the technical study and development phases to ensure product qualification and marketability.
As global demand for high-quality flake graphite and natural rutile continues to grow, Sovereign’s Kasiya project is poised to play a critical role in supplying the essential raw materials needed for sustainable and clean energy solutions.
Sovereign announced a cash balance of $5.6 million at the quarter’s end.
SVM shares last traded at 49.5 cents.
