Home » Sovereign Metals (SVML) (Page 5)
Category Archives: Sovereign Metals (SVML)
#SVML Sovereign Metals Ltd – Testwork Delivers Superior Quality Graphite
Graphite circuit feed prepared at Sovereign’s existing Lilongwe laboratory facility has produced high quality concentrates in benchtop and pilot-scale flotation and cleaning
· Four independent laboratories all successfully produced high-grade graphite concentrate averaging over 97% Total Graphite Content (TGC) with flotation recoveries exceeding 90%
· Flotation results demonstrated 1.44% TGC run-of-mine Kasiya ore upgrades to more than 55% TGC rougher concentrate without crushing or milling, process steps typically required for producing graphite concentrates from hard-rock deposits; contributing to the unique low cost characteristics of Kasiya’s saprolite hosted graphite
· Graphite concentrates indicate exceptionally low levels of sulphur compared to typical hard-rock graphite peers – a key metric to qualify as active anode material for lithium-ion batteries
· Results are part of ongoing testwork being undertaken as part of the Company’s graphite marketing and active anode qualification strategy, supervised by Dr Surinder Ghag
· Downstream testwork to produce and characterise Coated Spherical Purified Graphite (CSPG) active anode material continues at German graphite consultancy ProGraphite GmbH
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce the results of graphite testwork completed at multiple independent laboratories in Australia, Canada and South Africa.
Graphite flotation and cleaning testwork was conducted on graphite circuit feed from Sovereign’s Kasiya Rutile-Graphite Project (Kasiya or Project) at four different laboratories, which all successfully produced high-grade graphite concentrate (94.9%-97.8% TGC) at high flotation recoveries (91.2%-97.2%).
The testwork demonstrated excellent results using a conventional flowsheet that was consistent across all laboratories, thus confirming Sovereign’s ability to produce a high quality graphite concentrate.
Managing Director Frank Eagar commented: “Our ability to upgrade Kasiya ore at 1.4% graphite to a 55% rougher concentrate without any crushing or milling, highlights more of the unique qualities of Kasiya. There are very limited other graphite projects with these characteristics. The pilot-scale results also confirm that Kasiya produces high-grade concentrates with very low sulphur levels at high recoveries. Simply put, Kasiya will be a standout producer of high-quality graphite concentrate at industry low operating costs.”
Classification 2.2: This announcement includes Inside Information
ENQUIRIES
|
Frank Eagar (South Africa/Malawi) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
|
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat |
|
|
|
|
|
Joint Brokers |
|
|
Stifel |
+44 20 7710 7600 |
|
Varun Talwar |
|
|
Ashton Clanfield |
|
|
|
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
The graphite circuit feed provided to the various laboratories was produced at the Company’s existing laboratory facility in Lilongwe, Malawi, where it was screened and separated over a wet shaking table.
Figure 1: Holman Wilfley 2000 wet shaking table in action demonstrating clear separation between Rutile HM, waste and Graphite
The graphite feed grades of 3.5%-4.0% TGC to the graphite circuit are significantly higher than the Mineral Resource Grade of 1.44%, highlighting the ~2.4-2.8-fold upgrading of graphite grades when ROM ore passes through the front-end rutile gravity separation circuit.
This demonstrates the ease of separating the rutile heavy mineral and graphite streams from the front end of the Kasiya Pre-feasibility Study process flowsheet. Subsequently, the two product streams pass into distinct, industry-standard, final product flowsheets. This further highlights the commercial benefits of having both rutile and graphite mineralisation co-existent in the same soft saprolite-hosted orebody.
The first stage of upgrading the graphite feed, rougher flotation, achieved very high rejection (>90%) of waste materials to rougher tails, producing a rougher concentrate with more than 55% TGC and very high recoveries (94%-98%) in laboratory scale testing consistently across all four laboratories. Upgrading the graphite feed at very high recoveries and rejection of non-graphitic minerals without run-of-mine milling is another of Kasiya’s significant advantages, supporting the lowest cost graphite production.
The rougher concentrate was further upgraded through laboratory scale flotation, cleaning and polishing stages, producing high-grade concentrates at high graphite circuit recoveries.
Figure 2: High-level process flowsheet for rutile and graphite production at Kasiya
Pilot-scale testwork confirmed the laboratory-scale results with >90% TGC recovery to high-grade graphite concentrates (<180-micron concentrate at 96.9% TGC and >180-micron concentrate at 97.2% TGC).
Figure 3: Graphite flotation test work at Australia-based ALS Global
HIGHLY FAVOURABLE IMPURITY PROFILE
Kasiya concentrates have very low levels of sulphur. Sulphur can be difficult to remove in the purification processes required to produce anode materials. Other major impurities important for anode material purification processes are iron (Fe), silicon (Si) and aluminium (Al). The Kasiya material has exceptionally low levels of all of these impurities. Benchmarked against the Chinese Standard (China dominates the supply of graphite for battery anodes) this could potentially lead to significant commercial advantages during purification and Kasiya’s potential as a long term secure source of graphite ex-China.
|
|
Kasiya |
Benchmarks |
|||
|
|
Concentrate |
Concentrate |
Combined |
China |
Example Chinese Product 2 |
|
Graphite (TGC%) |
96.9% |
97.2% |
97.0% |
>94% |
96.0% |
|
Sulphur (S) (%) |
<0.02% |
<0.02% |
<0.02% |
<0.5% |
0.23% |
|
Iron (Fe) (%) |
0.48% |
0.46% |
0.47% |
<1.00% |
0.55% |
|
Silicon (Si) (%) |
0.60% |
0.80% |
0.68% |
n/d |
1.25% |
|
Aluminium (Al) (%) |
0.24% |
0.28% |
0.26% |
n/d |
0.38% |
1. National Standard of China – Flake Graphite (GB/T 3518-2023)
2. Asbury Carbons – A Study Comparing the Performance of Natural Flake Graphite from Two Different Geographical Regions (https://asbury.com/media/1170/a-study-comparing-the-performance-of-natural-flake-graphite.pdf)
CONTINUING DOWNSTREAM TEST WORK
Kasiya concentrate has been sent for downstream testwork at respected graphite consultancy ProGraphite to produce and characterise CSPG active anode material for lithium-ion batteries. ProGraphite is conducting shaping, purification, and coating testwork to produce CSPG and evaluate the electrochemical performance of Kasiya CSPG. This will provide baseline data for further optimisation and engagement with off-takers. Initial outcomes of this test work are expected to be released in the coming weeks.
Competent Person Statement
The information in this report that relates to Metallurgical Testwork is based on information compiled by Dr Surinder Ghag, PhD., B. Eng, MBA, M.Sc., who is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Dr Ghag is engaged as a consultant by Sovereign Metals Limited. Dr Ghag has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Ghag consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Exploration Results is based on information compiled by Mr Samuel Moyle, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Moyle is the Exploration Manager of Sovereign Metals Limited and a holder of ordinary shares and unlisted performance rights in Sovereign Metals Limited. Mr Moyle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Moyle consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this announcement that relates to the Mineral Resource Estimate is extracted from an announcement dated 5 April 2023 entitled ‘Kasiya Indicated Resource Increased by over 80%’ which is available to view at www.sovereignmetals.com.au 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. The original announcement is available to view on 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 Operating Costs, Metallurgy (rutile and graphite) is extracted from an announcement dated 28 September 2023 entitled ‘Kasiya Pre-Feasibility Study Results’ 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.
|
Ore Reserve for the Kasiya Deposit |
|
||||||
|
Classification |
Tonnes |
Rutile Grade |
Contained Rutile |
Graphite Grade (TGC) (%) |
Contained Graphite |
RutEq. Grade* |
|
|
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 taken from the PFS ** Any minor summation inconsistencies are due to rounding
|
Kasiya Total Indicated + Inferred Mineral Resource Estimate at 0.7% rutile cut-off grade |
|||||
|
Classification |
Resource |
Rutile Grade |
Contained Rutile |
Graphite Grade (TGC) (%) |
Contained Graphite |
|
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 the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (‘MAR’). Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.
#SVML Sovereign Metals LTD – Increased Graphite Bulk Sample Capacity
Industrial scale spiral concentrator to be installed at Sovereign’s expanded laboratory and testing facility in Lilongwe in coming weeks
· Spiral throughput capacity of up to 10 tonnes per hour of ore for graphite and rutile sample preparation
· Installation and commissioning led by Sovereign’s Head of Project Development, Mr Paul Marcos, who previously worked for Base Resources on their Kwale and Toliara projects and for Iluka Resources across various mineral sands operations
· Final graphite concentrate for bulk sample battery anode testwork and qualification advancing under the supervision of Sovereign’s Chief Technology Officer – Graphite, Dr Surinder Ghag
· Sovereign is targeting a market-leading position as the world’s largest and lowest-cost producer of rutile for the titanium industry, and flake graphite for the lithium-ion battery market
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce that following the appointment of graphite specialist Dr Surinder Ghag as Chief Technology Officer – Graphite, the Company will be increasing graphite pre-concentrate sample preparation from its existing testing facility in Lilongwe, Malawi.
In the coming weeks, Sovereign will install and commission a spiral concentrator containing industrial-scale MG12 spiral equipment at the Company’s laboratory and testing facility in Lilongwe, enabling the preparation of rutile concentrate and graphite circuit feed from its Kasiya Rutile-Graphite Project (Kasiya or Project) at a bulk scale. The graphite circuit feed will be sent to specialised laboratories where flotation, purification, spheronisation and coating testwork for the battery anode segment will take place in line with Sovereign’s strategy to commercialise Kasiya’s graphite by-product.
Managing Director Frank Eagar commented: “The intellectual property that Dr Ghag and Mr Marcos bring to Sovereign has meant that we can expand and expedite our graphite commercialisation strategy significantly. The infrastructure, along with the ability to provide large amounts of graphite concentrate to the lithium-ion battery industry for battery anode product qualification, offers Sovereign a big advantage. With a world-class team in place and alongside our strategic investors, Rio Tinto, Kasiya is moving ahead at a considerable pace.”
The spiral concentrator is currently in its final stages of testing at engineering consultancy Paterson & Cooke’s Cape Town laboratory, after which it will be dispatched to Lilongwe, Malawi. The spiral is identical size and scale to that designed in the Pre-feasibility Study flowsheet for the Kasiya Rutile-Graphite Project and will have a throughput capacity of up to 10 tonnes of ore per hour for sample preparation.
Sovereign’s Head of Project Development, Mr Paul Marcos, has led the spiral installation project. Mr Marcos has 30 years of mineral sands operations, engineering, and consulting expertise. Before joining Sovereign in July 2021, Mr Marcos spent over ten years working on Base Resources Limited (Base) projects both in a design role with Ausenco and then on Base’s owner’s team.
Mr Marcos was involved with the original Kwale Project and then Kwale North and Kwale Phase 2 Projects in Kenya and also the Toliara Project’s Scoping, Pre-Feasibility and Definitive Feasibility Studies in Madagascar. Between 1996 and 2004, Mr Marcos worked at major mineral sands producer Iluka Resources Limited in a number of production, mineral processing and project development roles.
Sovereign’s newly appointed graphite specialist Chief Technology Officer – Graphite, Dr Surinder Ghag, will be responsible for graphite testwork programs and product qualification. A highly qualified metallurgist, Surinder brings over 25 years of industry experience, including developing graphite test work programs, ore-to-anode graphite strategies, anode plant feasibility studies, and project development and commissioning.
Figure 1: Final stages of assembling the spiral plant at Paterson & Cooke, South Africa
Classification 2.2: This announcement includes Inside Information
ENQUIRIES
|
Frank Eagar (South Africa/Malawi) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
|
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat |
|
|
|
|
|
Joint Brokers |
|
|
Stifel |
+44 20 7710 7600 |
|
Varun Talwar |
|
|
Ashton Clanfield |
|
|
|
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (‘MAR’). Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.
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.
Sovereign Metals #SVML – Quarterly report for the period ended 31 March 2024.
Sovereign Metals Limited (Company or Sovereign) (ASX:SVM & AIM:SVML) is pleased to provide its quarterly report for the period ended 31 March 2024.
HIGHLIGHTS
Extension to Rutile Mineralisation at Kasiya
· Wide-spaced regional reconnaissance drilling, outside the current JORC (2012) Mineral Resource Estimate (MRE) area, identified an 8km extension of mineralisation to the south, which remains open along strike and at depth.
· Follow-up drilling is now underway focusing on the region to the north of the current Resource footprint, with results expected in the coming weeks.
Representative Bulk Sample Shipped & Project Optimisation
· During the quarter, the Company composited, despatched and delivered a 30 tonne sample representative of the first probable 10 years of mining from the Kasiya rutile-graphite project (Kasiya or the Project) to a leading engineering consultancy laboratory in South Africa. The ore sample will be used for advanced material handling tests as part of the Project optimisation.
· Sovereign continues its optimisation test work and technical studies for Kasiya in colaboration with strategic investor, Rio Tinto.
Key Appointments
· During the quarter, Sovereign appointed highly experienced environmental and social specialist Mr Marco Da Cunha, as its new Lead Environmental, Social and Governance (ESG) Officer. Mr Da Cunha has almost 20 years of experience in environmental and social management and more recently was part of Rio Tinto’s Simandou iron ore project team in Guinea.
· Highly experienced, Africa-based social specialist consultancy, SocialEssence were appointed to the Company’s owners team to lead social and community development programs in Malawi. SocialEssence has a strong and successful track record of implementing social responsibility programs across southern Africa, including at First Quantum Minerals’ Zambian project.
· During the quarter, Sovereign also made three senior appointments and promotions across key legal, permitting and technical functions in Malawi, strengthening the Company’s in-country capabilities.
· Subsequent to the quarter, Sovereign announced the appointment of consultant Dr Surinder Ghag to Sovereign’s owner’s team as Chief Technology Officer – Graphite. Dr Ghag will assist Sovereign’s graphite strategy in qualifying the graphite product Kasiya for lithium-ion battery anodes.
Commissioning of Conservation Farming Program in Malawi
· During the quarter, Sovereign progressed its Conservation Farming Program (Program) in Malawi as part of its sustainability initiatives related to the development of Kasiya.
· The Program is aimed at improving the livelihoods of local communities through the creation of successful smallholder farmers.
· Subsequent to the quarter, the Company announced that it is estimated the Program has tripled crop yields in a season that is predicted have 20% lower yields due to El Niño weather.
Appointment of Stifel as Joint Broker
· During the quarter, Sovereign appointed Stifel Nicolaus Europe Limited, a subsidiary of Stifel Financial Corp (Stifel), as joint broker to the Company. Stifel is a full-service investment bank, offering securities brokerage, trading, research, underwriting and corporate advisory services.
· Stifel will work alongside Sovereign’s incumbent brokers, Joh. Berenberg, Gossler & Co KG, and SP Angel Corporate Finance LLP.
· At the end of the quarter, Sovereign is in a strong financial position with cash at bank of approximately A$36.6 million and no debt.
Classification 2.2: This announcement includes Inside Information
ENQUIRIES
|
Mr Frank Eagar (South Africa/Malawi) +27 76 753 5377 |
Sam Cordin (Perth) |
Sapan Ghai (London)
|
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat |
|
|
|
|
|
Joint Brokers |
|
|
Stifel |
+44 20 7710 7600 |
|
Varun Talwar |
|
|
Ashton Clanfield |
|
|
|
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
Alan Green covers Sovereign Metals #SVML, Acuity Risk Management #ACRM & Karelian Diamond Resources #KDR on this week’s Stockbox Research Talks
Alan Green covers Sovereign Metals #SVML, Acuity Risk Management #ACRM & Karelian Diamond Resources #KDR on this week’s Stockbox Research Talks
Sovereign Metals #SVML – Graphite Expert Appointed to Kasiya Development Team
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce the appointment of consultant Dr Surinder Ghag to Sovereign’s owner’s team as Chief Technology Officer – Graphite. Dr Ghag will assist Sovereign’s graphite strategy in qualifying the graphite product from its Kasiya Rutile-Graphite Project (Kasiya or Project) for lithium-ion battery anodes.
A highly qualified metallurgist, Dr Ghag brings 25 years of industry experience including developing graphite test work programs, ore-to-anode graphite strategies, anode plant feasibility studies, and project development and commissioning. Recently, Dr Ghag was instrumental in developing an environmentally friendly and commercially viable method for purifying graphite, working alongside the Australian Government scientific research entity CSIRO (Commonwealth Scientific and Industrial Research Organisation). Prior to his work in graphite, Dr Ghag’s work included process engineering at various Australian mineral sands operations.
A major component of graphite sales agreements is customer qualification. As Chief Technology Officer- Graphite, Dr Ghag will be responsible for designing and delivering graphite downstream test work programs to be aligned with graphite product development and qualification as Sovereign continues discussions with battery anode processors, end-users, and potential future offtake partners.
Upon the appointment, Managing Director Frank Eagar commented:
“I am pleased to welcome Dr Ghag as we continue to strengthen our owner’s team in preparation for project execution. Kasiya will deliver the world’s lowest cost, lowest carbon footprint graphite. Dr Ghag joining Sovereign will significantly enhance our graphite metallurgical expertise and understanding of the downstream market to translate Kasiya’s bottom-of-the-cost curve advantage into significant active anode market capture.”
Previously reported initial characterisation test work on Kasiya’s graphite has indicated excellent suitability for use in lithium-ion batteries with high purity and high crystallinity being the key features (see ASX announcement from 8 June 2023: Kasiya Graphite Shows Excellent Suitability For Use in Lithium Ion Batteries,https://www.investi.com.au/api/announcements/svm/fe3830af-843.pdf).
Additional spheronisation and purification testwork is presently underway at a leading German graphite laboratory to validate key parameters at a larger scale with results imminent.
Furthermore, Sovereign is currently undertaking a graphite bulk sampling program to produce large quantities of flake graphite product for further downstream test work and initial product qualification to support ongoing discussions with battery anode processors, end-users, and potential future offtake partners.
BACKGROUND TO KASIYA’S MARKET-LEADING GRAPHITE POTENTIAL
Kasiya is the world’s largest known rutile (titanium) deposit hosting a JORC-Compliant Mineral Resource Estimate (MRE) of 17.9Mt. It is also one of the largest known flake graphite resources with a MRE of 24.4Mt.
Sovereign’s Prefeasibility Study (PFS) confirmed Kasiya as a potential major critical minerals project with an extremely low CO2footprint delivering significant long-term volumes of natural rutile (the highest-grade, purest, natural titanium feedstock) and graphite (a key component of an electric vehicle battery) while generating significant economic returns. Both titanium and natural graphite are critical to several of the world’s economies as well as crucial to decarbonisation solutions required to meet “Net-Zero” and other targets set by policymakers.
The PFS confirmed Kasiya’s potential to be the world’s largest natural graphite producer at 244kt per annum of graphite concentrate. On an incremental cost basis, Kasiya would also be the world’s lowest-cost graphite producer at US$182 per tonne (FOB Nacala).
In June 2023, downstream test work on Kasiya’s graphite demonstrated it to have superior qualities, showing excellent suitability for use in lithium-ion batteries. In July 2023, Rio Tinto invested A$40.4 million in Sovereign resulting in an initial 15% shareholding. Under the Investment Agreement, Sovereign and Rio Tinto will work together to qualify Kasiya’s graphite product with a particular focus on supplying the spherical purified graphite segment of the lithium-ion battery anode market.
ENQUIRIES
|
Frank Eagar (South Africa/Malawi) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
|
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat |
|
|
|
|
|
Joint Brokers |
|
|
Stifel |
+44 20 7710 7600 |
|
Varun Talwar |
|
|
Ashton Clanfield |
|
|
|
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
#SVML Sovereign Metals – SUSTAINABLE FARMING ON TARGET TO TRIPLE CROP YIELD
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to provide an update on its previously announced Conservation Farming Program (Program) in Malawi.
The Company is actively executing its Environmental, Social, and Governance (ESG) Strategy whilst developing the Kasiya Rutile-Graphite Project (Kasiya or Project). The Program is aimed at improving the livelihoods of local communities through the creation of successful smallholder farmers. Farmers have enthusiastically adopted the Program with 90 participants within the Project area being trained in low-input-cost, high-yield sustainable farming techniques. A further 300 farmers will be added during the 2024 planting season.
The Program has already yielded visibly higher crop growth. Preliminary yield estimates have been undertaken through a cob-count and sizing exercise of all 90 farmers. Yields are conservatively estimated at 3.2 tonnes per hectare, tripling average conventional crop yields. This is despite Malawi’s crop yields expected to be 22.5% lower than average this year due to the El Niño weather phenomenon.
Increases in maize (corn) production will be quantified in the coming months during the harvest season. Farmers participating in the Program expect to begin harvesting in May 2024, and are looking forward to a bumper harvest, despite the much drier than usual year caused by El Niño, causing widespread drought across southern Africa.
The Program ultimately aims to provide a platform where successful smallholder farmers can produce sufficient surplus crops to generate sustainable household income.
Figures 1 & 2 – Left: planted field using traditional techniques & Right: Field farmed under the Program showing substantially more crop growth
Sovereign’s Managing Director, Frank Eagar commented, “The incredible improvements in expected maize yields is beyond expectations and is another example of the positive impacts the Kasiya Project will have on our local communities. The 90 farmers in the Program comprise 50% women and 10% vulnerable people. We will maintain this equal opportunity policy as the Program is rolled out across Kasiya. At a time when Malawi and other southern African countries are facing severe drought due to weather conditions, Sovereign takes its social responsibility very seriously and is already delivering tangible benefits for the local community.”
The Program is being implemented by Sovereign’s experienced team on the ground, which previously ran a very successful program for First Quantum Minerals Limited’s Zambian operations, where its conservation farming program has been effectively operating since 2010. Between 2020 and 2022 harvest crops increased by 67% from 6,000 tonnes to 10,000 tonnes of maize, with over 7,000 farmers in the program at the end of 2022.
Conservation farming as a system aims to protect soil from erosion and degradation and increase crop yields. It involves three main principles:
1) minimum soil disturbance, such as no-till farming,
2) maintenance of a permanent soil cover, such as cover crops or crop residues and
3) diversification of plant species, such as crop rotation.
This is a highly important program for Malawi with maize making up two-thirds of national calorie intake, with nine out of ten farming households producing maize, devoting over 70% of their land to growing it. Sovereign has already identified the next season’s farmers, with the Program being scaled up from 90 to 300 farmers in the 2024/2025 agricultural season. This quantity of farmers will prove that the program successfully increases agricultural production in a sustainable manner, during Sovereign’s upcoming Definitive Feasibility Study. Sovereign plans to roll out Conservation Farming as its cornerstone livelihood restoration and improvement project for the Kasiya Project in the medium to long term.
Figure 3 – On-site Program leader, Mr Duncan Chinkanda with local farmers and team members showing Program adopted crops on the left and traditionally farmed land on the right
ENQUIRIES
|
Frank Eagar (South Africa/Malawi) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
|
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat Harry Davies-Ball |
|
|
|
|
|
Joint Brokers |
|
|
Stifel |
+44 20 7710 7600 |
|
Varun Talwar |
|
|
Ashton Clanfield |
|
|
|
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
#SVML Sovereign Metals LTD – Follow-Up Drilling Initiated North of Kasiya
FOLLOW-UP DRILLING INITIATED NORTH OF KASIYA RESOURCE AREA
· Wide-spaced regional follow-up drilling for the Kasiya Project underway focusing on the region to the north of the current resource footprint, with results from the drill program expected in the coming weeks
· Recently reported reconnaissance drilling to the south identified an 8km extension of mineralisation which remains open along strike and at depth
· Kasiya is already the largest natural rutile deposit and second-largest flake graphite deposit in the world
· Kasiya’s current MRE of 1.8 Billion tonnes at 1.0% rutile and 1.4% graphite comprises broad and contiguous zones of high-grade rutile and graphite that occur across an area of over 201km2
· Optimisation program for the Kasiya Project continues in conjunction with our strategic investor, Rio Tinto
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to report that the Company has initiated a follow-up 400 metre spaced drill program at its tier one Kasiya Rutile-Graphite Project (Kasiya) in Malawi. The program will focus on determining the boundaries and extent of mineralisation north of the known Mineral Resource Estimate (MRE) area.
The 70+ hole hand-auger drill program has been designed to target areas where mineralisation was identified in earlier wide-spaced regional hand-auger drilling. The target area is up to 20km north of the current MRE boundary. Drilling is currently underway and will be completed in the coming weeks. Four hand-auger teams have been deployed under the supervision of Sovereign’s in-country technical team.
Samples will be initially processed in the Company’s Lilongwe own lab facility and then shipped for final analysis at certified international laboratories. Results from the drill program are expected in the coming weeks.
SOUTHERN EXTENSION
In February 2024, the Company announced regional hand-auger drilling south of the Kasiya MRE footprint had identified significant strike extensions of approximately 8km across a number of parallel mineralised zones ranging from 400m to 2km in width.
All newly defined mineralisation in the south remains open at depth due to the limitations of the hand-auger drilling method but are expected to continue to the saprock boundary normally between 20 and 30 vertical metres from surface. The multiple mineralised zones identified remain open along strike both to the north and south.
These results indicate the potential to expand the already significant, high-grade rutile and graphite MRE at Kasiya.
Figure 1: Southern mineralised extensions at Kasiya
ENQUIRIES
|
Frank Eagar (South Africa/Malawi) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
|
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat Harry Davies-Ball |
|
|
|
|
|
Joint Brokers |
|
|
Stifel |
+44 20 7710 7600 |
|
Varun Talwar |
|
|
Ashton Clanfield |
|
|
|
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
Competent Person Statement
The information in this announcement that relates to the Exploration Results is extracted from the announcement dated 1 February 2024 entitled ‘Extensions to Rutile & Graphite Mineralisation at Kasiya’. 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 the Mineral Resource Estimate is extracted from an announcement dated 5 April 2023 entitled ‘Kasiya Indicated Resource Increased by over 80%’ which is available to view at www.sovereignmetals.com.au 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. The original announcement is available to view on 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 Operating Costs, Metallurgy (rutile and graphite) is extracted from an announcement dated 28 September 2023 entitled ‘Kasiya Pre-Feasibility Study Results’ which is available to view at www.sovereignmetals.com.au and is based on, and fairly represents information compiled by . 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.
|
Ore Reserve for the Kasiya Deposit |
|
||||||
|
Classification |
Tonnes |
Rutile Grade |
Contained Rutile |
Graphite Grade (TGC) (%) |
Contained Graphite |
RutEq. Grade* |
|
|
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 taken from the PFS ** Any minor summation inconsistencies are due to rounding
|
Kasiya Total Indicated + Inferred Mineral Resource Estimate at 0.7% rutile cut-off grade |
|||||
|
Classification |
Resource |
Rutile Grade |
Contained Rutile |
Graphite Grade (TGC) (%) |
Contained Graphite |
|
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.
Sovereign Metals #SVML – Representative bulk sample shipped
Sovereign Metals Limited (ASX: SVM; AIM: SVML) (the Company or Sovereign) is pleased to announce that our spiral drilling program has extracted, despatched and delivered 30 tonnes of ore from the Kasiya Rutile- Graphite Project (Kasiya or Project) in Malawi to Paterson & Cooke (P&C). P&C, based in Cape Town, South Africa, is a leading engineering consultant in the mining sector.
Highlights:
- First 30 tonnes of ore from Kasiya delivered to engineering consultant laboratory in South Africa
- Ore sample to be used for advanced material handling tests as part of PFS optimisation
- Testwork program designed and approved in collaboration with strategic investor Rio Tinto
The material is representative of ore expected to be mined in the first ten years of production and will be used for advanced bulk laboratory scale test work to optimise technical elements of the previously announced Kasiya Pre-feasibility Study (PFS). These areas include larger-scale pumping, tailings characteristics and dewatering.
Managing Director Frank Eagar commented: “I must commend our geology and logistics teams who, in a very short space of time, successfully extracted and delivered this large representative sample from Kasiya to Paterson & Cooke. This represents a significant step in our ongoing project delivery. Importantly, it also demonstrates the effectiveness of the day-to-day technical involvement of our strategic investor, Rio Tinto, in assisting Sovereign with the Kasiya Project optimisation and bringing this tier one project closer to development.”
As a global leader, P&C has over 30 years of industry experience and expertise in slurry pipeline systems, tailings and mine waste handling, mine backfill, and mineral processing. P&C’s laboratory in Cape Town has a pipe loop facility that will be used to test specific parameters related to the mining, transportation, and handling of Kasiya ore.
The project team, comprising Sovereign and Rio Tinto representatives, designed the test work program, which the Technical Committee then approved. The Technical Committee comprises three Sovereign employees, including Managing Director Frank Eagar, and three Rio Tinto employees, including Rio Tinto’s General Manager for Kasiya. The Technical Committee provides recommendations and advice on technical matters relating to the Project. It was established in line with the Investment Agreement between Sovereign and Rio Tinto following Rio Tinto’s A$40.4 million investment into Sovereign to become a 15% strategic investor.
ENQUIRIES
Frank Eagar (South Africa/Malawi) Managing Director
+61(8) 9322 6322
Forward Looking Statement
Sam Cordin (Perth) +61(8) 9322 6322
Sapan Ghai (London) +44 207 478 3900
Sovereign Metals #SVML – Appointment of Stifel as Joint Broker
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce the appointment of Stifel Nicolaus Europe Limited, a subsidiary of Stifel Financial Corp (Stifel), as joint broker to the Company with immediate effect. Stifel will work alongside Sovereign’s incumbent brokers, Joh. Berenberg, Gossler & Co KG, and SP Angel Corporate Finance LLP.
Stifel is a full-service investment bank, offering securities brokerage, trading, research, underwriting and corporate advisory services.
Stifel has more than 600 investment banking professionals which allows them to deliver the full capabilities of Stifel’s institutional capital markets platform, which are among the most highly regarded in the industry across all major markets in North America and Europe.
In 2023, Stifel was named US Mid-Market Equity House of the Year by International Financing Review (IFR).
ENQUIRIES
|
Frank Eagar (South Africa/Malawi) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
|
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat Harry Davies-Ball |
|
|
|
|
|
Joint Brokers |
|
|
Stifel |
+44 20 7710 7600 |
|
Varun Talwar |
|
|
Ashton Clanfield |
|
|
|
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Buchanan |
+ 44 20 7466 5000 |
ABOUT SOVEREIGN
Sovereign is focused on the development of its Kasiya project in Malawi. Kasiya is the largest natural rutile deposit and the second-largest flake graphite deposit in the world. Sovereign aims to develop a low-CO2 and sustainable operation to supply highly sought-after natural rutile and graphite to global markets.
In July 2023, Rio Tinto invested A$40.4 million in Sovereign resulting in an initial 15% shareholding. Under the Investment Agreement, Rio Tinto will provide assistance and advice on technical and marketing aspects of Kasiya.
Results of the PFS released in late 2023, demonstrated Kasiya’s potential to become the world’s largest rutile producer at 222kt per annum and one of the world’s largest natural graphite producers outside of China at 244kt per annum based on an initial 25 year life-of-mine.
Delivering compelling economics with a post-tax NPV8 of US$1.6 Billion and post-tax IRR of 28%, this long-life, multi-generational operation was modelled to initially generate over US$16 Billion of revenue and provide an average annual EBITDA of US$415 Million per annum.
Kasiya’s PFS modelling was limited to only 25 years meaning substantial production rate and mine life upside exists, with an initial Probable Ore Reserves declared of 538Mt, only representing 30% of the total Mineral Resource.
Sovereign Metals #SVML – Half Year accounts
Kasiya is the largest rutile deposit in the world with more than double the contained rutile as its nearest rutile peer, Sierra Rutile. The Kasiya Mineral Resource Estimate (MRE) is 1.8 Billion tonnes (Bt) at 1.0% rutile resulting in 17.9 Million tonnes (Mt) tonnes of contained natural rutile and 24.4Mt of contained graphite. The MRE has broad zones of very high-grade rutile which occurs contiguously across a very large area of over 200km2. Rutile mineralisation lies in laterally extensive, near surface, flat “blanket” style bodies in areas where the weathering profile is preserved and not significantly eroded. Kasiya’s graphite co-product MRE is 1.8Bt at 1.4% graphite, containing over 24.4Mt of graphite.
SUMMARY AND HIGHLIGHTS DURING AND SUBSEQUENT TO PERIOD END
PFS Results
· Results of the PFS released in late 2023 demonstrated Kasiya’s potential to become the world’s largest rutile producer at an average of 222kt per annum and one of the world’s largest natural graphite producers outside of China at an average of 244kt per annum based on an initial 25 year life-of-mine (LOM)
· PFS delivered compelling economics with a post-tax NPV8 of US$1.6 Billion and post-tax IRR of 28%. This long-life, multi-generational operation was modelled to initially generate over US$16 Billion of revenue and provide an average annual EBITDA of US$415 Million per annum
· The PFS modelling was limited to only 25 years with an initial Probable Ore Reserves declared of 538Mt, representing only 30% of the total Project MRE
Project Optimisation
· Sovereign advanced optimisation test work and technical studies for Kasiya with the Company’s strategic investor, Rio Tinto
· Significant field activities and a number of test work programs have commenced in order to provide data for the Project optimisation phase
· The Company aims to become the world’s largest, lowest cost and lowest-emissions producer of two critical minerals – titanium (rutile) and graphite
Rio Tinto invests $40.6m to become a 15% Strategic Investor
· Rio Tinto made an investment of A$40.6 million in Sovereign resulting in an initial 15% shareholding plus options to increase their position to potentially 19.99% within 12 months
· Rio Tinto’s investment represents a significant step towards unlocking a major new supply of low-CO2 natural rutile and flake graphite
· Under the Investment Agreement, Rio Tinto will provide assistance and advice on technical and marketing aspects including Sovereign’s graphite co-product, with a primary focus on spherical purified graphite for the lithium-ion battery anode market
Key Management Appointments to Drive Project Optimisation and Development at Kasiya
· Appointment of experienced African based mining executive, Mr Frank Eagar, as the new Managing Director and CEO
· Previous Managing Director Dr Julian Stephens has transitioned to Non-Executive Director
· Key technical appointments of experienced African engineering, social, environmental and legal teams to work on project optimisation and advancing the development of the Kasiya Project
Lithium-Ion battery graphite program upscaled
· Over 60 tonnes of ore was extracted targeting production of an initial 600kg of natural graphite for lithium-ion battery anode test work and product qualification
· The upscaled graphite qualification program will support ongoing Project studies
· Sovereign and Rio Tinto have agreed to collaborate to qualify graphite from Kasiya, with a particular focus on supplying the spherical purified graphite (SPG) segment of the lithium-ion battery anode market. 
This graphite qualification program coincides with China’s announced curbs on exports of natural graphite, a critical mineral for the US, EU, Japan and Australia
Figures 2 & 3: Bulk sample mechanised spiral drilling and sampling at Kasiya in November 2023
Extensions to Rutile & Graphite Mineralisation at Kasiya
· Wide-spaced regional reconnaissance drilling, outside the current JORC (2012) compliant MRE area, identified a 8km extension of mineralisation to the south which remains open along strike and at depth
· Results are testament to the world-class scale of the Kasiya deposit and demonstrate potential for a future increase of the Kasiya’s MRE, which is already the largest natural rutile deposit and second largest flake graphite deposit in the world
Figure 4: Southern newly defined mineralised extensions at Kasiya
Strong Support from the Government of Malawi
· The Government of Malawi has applauded the timely investment by Rio Tinto and marked it as a milestone towards realising the country’s aspirations of growing the mining sector as a priority industry
· PFS demonstrates Kasiya’s potential to provide significant socio-economic benefits for Malawi including fiscal returns, job creation, skills transfer and sustainable community development initiatives
· With mining being one of the key pillars for growth under Malawi’s economic development strategy (Agriculture, Tourism, Mining – ATM Policy) and the potential for Kasiya to be a project of national significance, the Government has constituted an Inter-ministerial Project Development Committee to work alongside the Company to assist in the permitting process
Highly-experienced social specialist appointed
· Africa-based social specialist consultancy, SocialEssence were appointed to lead social and community development programs for Sovereign in Malawi
· SocialEssence joins Sovereign’s Owners Team and will design, implement, and manage several social and community initiatives which will feed into Project studies and permitting
· SocialEssence has a strong and successful track record of implementing social responsibility programs across southern Africa, including at First Quantum Minerals’ Zambian project
Commissioning of Sustainable Farming Initiative in Malawi
· Sovereign initiated a Conservation Farming Program in Malawi as part of its sustainability initiatives related to the development of Kasiya
· Local farmers will be trained in sustainable farming techniques to increase maize crop yield; protect soil from erosion and degradation; and to improve long term food security
· Supporting local communities in addressing their social priorities is a core principle of Sovereign’s ESG Strategy as the company advances the development of Kasiya
· Sovereign’s owner’s team have previously implemented this program at First Quantum Minerals’ Zambian operations where over 7,000 farmers were participating in the program by 2022
Figure 5: Local communities embracing the conservation farming program
Transfer of Malingunde licence to NGX Limited
In January 2024, NGX Limited (NGX) was issued with a retention licence of the Malingunde graphite project which fully completed the demerger of Sovereign’s standalone graphite projects. In 2023, Sovereign successfully demerged its standalone graphite projects (Nanzeka Project, Malingunde Project, Duwi Project and Mabuwa Project) into NGX, which listed on ASX in June 2023.
OPERATING RESULTS
The net operating loss after tax for the half year ended 31 December 2023 was $6,976,503 (2022: $8,486,503) which is attributable to:
(i) Interest income of $938,402 (2022: $138,366) earned on term deposits held by the Group;
(ii) exploration and evaluation expenditure of $5,027,397 (2022: $5,792,042), which is attributable to the Group’s accounting policy of expensing exploration and evaluation expenditure (other than expenditures incurred in the acquisition of the rights to explore) incurred by the Group in the period subsequent to the acquisition of the rights to explore up to the successful completion of definitive feasibility studies for each separate area of interest. The exploration and evaluation expenditure in the current period predominately relates to the Group’s PFS at its Kasiya Project in Malawi;
(iii) business development expenses of $996,548 (2022: $1,130,083) which are attributable to the Group’s investor and shareholder relations activities including but not limited to public relations costs, marketing and digital marketing, broker and advisor fees, travel costs, conference fees, business development consultant fees and costs of the Group’s ASX and AIM listings; and
(iv) non-cash share based payments expenses of $1,089,974 (2022: $1,061,657) which is attributable to the Group’s accounting policy of expensing the value of shares, incentive options and rights (estimated using an appropriate pricing model) granted to key employees, consultants and advisors. The value of incentive options and rights is measured at grant date and recognised over the period during which the option and rights holders become unconditionally entitled to the incentive securities.
FINANCIAL POSITION
At 31 December 2023, the Group had cash reserves of $39,436,707 (30 June 2023: $5,564,376) placing it in an excellent financial position to continue with the development of Kasiya.
At 31 December 2023, the Company had net assets of $44,263,313 (30 June 2023: $9,672,569), an increase of 358% compared with the prior period. This is largely attributable to the increase in cash reserves following the investment made by Rio Tinto in the period.
SIGNIFICANT POST BALANCE DATE EVENTS
Other than the above, there are no matters or circumstances which have arisen since 31 December 2023 that have significantly affected or may significantly affect:
· the operations, in periods subsequent to 31 December 2023, of the Group;
· the results of those operations, in periods subsequent to 31 December 2023, of the Group; or
· the state of affairs, in periods subsequent to 31 December 2023, of the Group.
AUDITOR’S INDEPENDENCE DECLARATION
Section 307C of the Corporations Act 2001 requires our auditors, Ernst & Young, to provide the directors of Sovereign Metals Limited with an Independence Declaration in relation to the review of the half year financial report. This Independence Declaration is on page 17 and forms part of this Directors’ Report.
This report is made in accordance with a resolution of the directors made pursuant to section 306(3) of the Corporations Act 2001.
For and on behalf of the Directors
Link here to view the full financial statements