Scoping Study Shows Kasiya's Strategic Rare Earths Potential

Key points

• Kasiya Project can potentially deliver strategic rare earths as a by-product.
• Study shows potential for 2,626tpa of monazite rare earth concentrate.
• Projected to add US$722M pre-tax NPV8 with a 151% IRR.
• No additional mining or front-end processing required.

Full summary

Sovereign Metals Limited has announced the results of a Scoping Study for its Kasiya Project in Malawi, which indicates the potential to recover monazite concentrate with elevated levels of critical rare earths as a by-product. The study reveals that the project can potentially produce 2,626 tonnes per annum of monazite rare earth concentrate (REC) containing 1,485 tonnes of total rare earth oxides (TREO) at steady state. The concentrate includes significant amounts of dysprosium, terbium, yttrium, samarium, and gadolinium, all under Chinese export controls. The study estimates an incremental pre-tax net present value (NPV8) of US$722 million with an internal rate of return (IRR) of 151%, based on initial capital of approximately US$29 million. The project's economics are robust, with near-zero incremental operating costs and a 90% operating margin.

Guidance

Incremental pre-tax NPV8: US$722M, Incremental IRR: 151%, Incremental capital cost: US$29M

Outlook

Sovereign Metals plans to integrate rare earths into Kasiya's development case and engage with potential partners to explore strategic opportunities.