Sovereign Metals (SVM) has reported findings from the Kasiya Pre-Feasibility Study (PFS). The Study scopes a Stage 1, 12Mtpa operation, expanding to 24Mtpa throughput by Year 6. In full operation, the project is expected to be the world’s largest producer of rutile and one of the largest producers of graphite outside of China. The project is expected to continue well beyond its currently scheduled 25-year mine life with current Reserves representing only 30% of the project MRE. Based on the current market capitalisation funding of now higher initial capital costs could be tricky if SVM was tackling Kasiya’s development alone. However, in our view this is unlikely to become an issue as we suspect strategic shareholder Rio Tinto (RIO) will make a corporate move on SVM well before the project is built.
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