In a recent presentation at the Proactive One2One Investor Conference, Sapan Ghai Chief Commercial Officer of Sovereign Metals Limited, outlined the company’s ambitious goals and significant achievements. Sovereign Metals, dual-listed on the ASX and AIM, aims to become the world’s largest and lowest-cost producer of two critical minerals, titanium (in the form of rutile) and natural graphite, with minimal emissions.
The company’s Kasiya project in Malawi boasts the world’s largest rutile deposit and the second largest flake graphite resource globally. A significant milestone was the acquisition of a 15% stake by Rio Tinto in July 2023 for $14 million, aiding in advancing the definitive feasibility study of Kasiya. The pre-feasibility study completed in September 2023 revealed Sovereign’s potential to be the top producer of rutile and graphite at the lowest cost, projecting an average annual EBITDA of $415 million over an initial 25-year mine life, utilising only 30% of the known resource. The Kasiya project, unique for hosting both rutile and graphite, is notable for its saprolite hosted mineralisation, allowing easy extraction without extensive drilling or blasting.
The company enjoys strong government and community support in Malawi, along with excellent infrastructure. The Rio Tinto investment, besides financial support, offers operational and market access advantages, particularly in qualifying graphite for lithium-ion batteries. Sapan highlighted the importance of rutile, a high-purity and scarce form of titanium, in various industries including defense, medical, and technology. The global titanium market, worth $25 billion, heavily relies on ilmenite; however, rutile’s scarcity is increasing, with major suppliers nearing the end of their resources. Sovereign Metals, with its significant rutile and graphite deposits, stands to capitalise on this growing market gap. The company’s stock price, currently around 23p, is perceived as undervalued given its potential and the scale of its resources