Kasiya’s Optimised PFS Highlights Execution Risks Ahead of Definitive Feasibility Study
Sovereign Metals has delivered an Optimised Prefeasibility Study reaffirming Kasiya’s status as a globally significant rutile and graphite project, alongside advancing rehabilitation efforts and positive graphite test results.
- Optimised PFS confirms Kasiya as a leading low-cost producer of rutile and graphite
- Pilot mining phase successfully backfilled with ongoing land rehabilitation
- Positive initial graphite test results for refractory applications
- Infill drilling completed to upgrade Mineral Resource Estimate
- Strong financial position with A$34 million cash and no debt
Optimised Prefeasibility Study Validates Kasiya’s Strategic Importance
Sovereign Metals Limited (ASX:SVM) has released its December 2024 quarterly report, highlighting the completion of an Optimised Prefeasibility Study (OPFS) for its flagship Kasiya Rutile-Graphite Project in Malawi. Conducted under the joint oversight of Sovereign and Rio Tinto’s technical committee, the OPFS reaffirms Kasiya’s potential to become the world’s largest and lowest-cost producer of natural rutile and flake graphite, commodities critical to global supply chains outside China.
The study outlines a 25-year mine life with a staged plant throughput ramping from 12 million tonnes per annum (Mtpa) to 24 Mtpa by year five. Key financial metrics include an average annual rutile production of 222 kilotonnes and graphite production of 233 kilotonnes, generating an average annual revenue exceeding US$400 million and an internal rate of return (IRR) of 27%. These figures represent improvements or parity with the 2023 Prefeasibility Study, achieved through operational optimisations such as a shift to dry open-pit mining and enhanced tailings management.
Pilot Mining Phase Advances Rehabilitation and Environmental Goals
During the quarter, Sovereign progressed its Pilot Mining and Land Rehabilitation phase, successfully backfilling the test pit mined earlier. This milestone allowed the commencement of on-site soil remediation and land rehabilitation activities, demonstrating the feasibility of restoring mined land to sustainable agricultural use post-closure. The pilot phase mined approximately 170,000 cubic meters of material using conventional excavators, with backfilling completed ahead of schedule.
Encouraging Graphite Test Results Open New Market Opportunities
In November 2024, preliminary testwork conducted by ProGraphite GmbH in Germany confirmed that Kasiya’s graphite concentrate meets key specifications for the refractory materials sector, a traditional and sizeable market primarily linked to steel production. Graphite’s resistance to oxidation, chemical inertness, and thermal conductivity make it valuable for furnace linings, brake linings, and other industrial applications. Further testwork on coarse flake graphite for traditional and expandable uses is underway, supporting ongoing offtake discussions.
Resource Upgrade and Financial Health Support Project Momentum
The company completed an infill drilling program focused on the southern portion of the deposit, targeting conversion of Mineral Resource Estimates from Indicated to Measured categories and Ore Reserves from Probable to Proven. Results and an updated resource statement are expected in early 2025. Sovereign remains well-capitalised with approximately A$34 million in cash and no debt, positioning it strongly to advance the Definitive Feasibility Study (DFS) targeted for completion by Q4 2025.
Looking Ahead: DFS, Rehabilitation, and Market Engagement
In the coming months, Sovereign plans to provide updates on the rehabilitation progress, resource upgrades, further graphite qualification testwork, and community development initiatives in Malawi. The company is also progressing discussions with potential end-users of rutile and graphite, aiming to secure offtake agreements that will underpin project financing and development. The DFS will integrate these elements to refine project economics and operational plans.
Bottom Line?
With its Optimised PFS and pilot rehabilitation success, Sovereign Metals is poised to solidify Kasiya’s role in the critical minerals supply chain—next steps will test market appetite and execution risk.
Questions in the middle?
- How will the Definitive Feasibility Study refine capital and operating cost estimates amid evolving market conditions?
- What progress is being made toward securing offtake agreements for rutile and graphite products?
- How will Sovereign balance environmental rehabilitation with operational scaling in the coming years?
