Sovereign Metals Limited · ASX:SVM
Sovereign Metals — Investor Presentation (February 2025)
25 slides from Sovereign Metals's investor presentation, February 2025
Slide 1: Optimised PFS Outcomes
OPTIMISED PFS OUTCOMES FEBRUARY 2025 ASX: SVM | AIM: SVML | OTCQX:SVMLF ABN: 71 120 833 427
Slide 2: Disclaimers and Disclosures
DISCLAIMERS AND DISCLOSURES AUTHORISATION STATEMENT This presentation has been approved and authorised for release by the Company’s Managing Director & CEO, Mr Frank Eagar. DISCLAIMER NOTICE This presentation has been prepared as a summary only and does not contain all information Sovereign Metals L
Slide 3: A Genuine Tier 1 Mining Project
A GENUINE TIER 1 MINING PROJECT Revenue Ave: US$640M LOM: US$16.4Bn EBITDA Ave: US$409M LOM: US$10.2Bn Net Present Value1 25yr LOM US$2.3Bn Market Cap 70% of mineral <US$0.3Bn resource remains unmined Source: Sovereign Metals; market capitalisation as at 24th January 2025 3 1. Pre-tax NPV at 8% disc
Slide 4: Our Proposition Is Simple
OUR PROPOSITION IS SIMPLE # 1 #1 POTENTIALLY LARGEST RUTILE LARGEST RESOURCE PRODUCER GLOBALLY GLOBALLY # 2 1 # POTENTIALLY LARGEST GRAPHITE LOWEST COST RESOURCE PRODUCER GLOBALLY GLOBALLY 4 Source: Sovereign Metals; refer to ASX Announcement dated 22 January 2025: “Kasiya – Optimised PFS Results”
Slide 5: Our Project Kasiya Is Globally Strategic
OUR PROJECT KASIYA IS GLOBALLY STRATEGIC Titanium and Graphite are Critical and Strategic Minerals for the US, EU & NATO Kasiya is the world’s largest natural rutile AND the world’s second-largest natural flake deposit graphite deposit NATURAL RUTILE RESOURCES FLAKE GRAPHITE RESOURCES (Mt Contained
Slide 6: Recent Developments
RECENT DEVELOPMENTS RIO TINTO PILOT OPTIMISED DEFINITIVE STRATEGIC PHASE PFS FEASIBILITY INVESTMENT COMPLETED COMPLETED STUDY A$60 Million Successful mining, Completed with Expected invested for 19.9% processing, input from Rio Q4 2025 of Sovereign deposition and Tinto subject Metals Limited rehabil
Slide 7: OPFS Results Informed by Pilot Phase Achieved in Conjunction with Rio Tinto
OPFS RESULTS INFORMED BY PILOT PHASE ACHIEVED IN CONJUNCTION WITH RIO TINTO BEFORE MINED PROCESSED REHABILITATED 6 Months 10 Hectares 170,000m3 Trial Program Pilot Site Material Mined 7
Slide 8: Optimised PFS Completed in January 2025
OPTIMISED PFS COMPLETED IN JANUARY 2025 SUPERIOR PROJECT DELIVERY, OPERATIONAL FLEXIBILITY, PERMITTING, ENVIRONMENTAL AND SOCIAL OUTCOMES MINING METHOD PLANT LOCATION TAILINGS & WATER POWER • Dry mining using • Initial 12Mtpa South • TSF volumes reduced • Hydro-sourced grid draglines and trucks plan
Slide 9: Optimised PFS – Operating Outcomes
OPTIMISED PFS – OPERATING OUTCOMES Input from world- OPFS Results 2023 PFS class consultancies, Jan 25 Sep 23 Sovereign’s owner’s Initial Mine Life Years 25 25 team, and subject matter experts from Plant Throughput Mtpa 12 12 Rio Tinto (Stage 1: Years 1-4) Plant Throughput Mtpa 24 24 (Stage 2: Years
Slide 10: Optimised PFS – Exceptional Economic Returns
OPTIMISED PFS – EXCEPTIONAL ECONOMIC RETURNS Kasiya is well OPFS Results 2023 PFS Jan 25 Sep 23 positioned to become the lowest NPV 8% (Pre-tax) US$M 2,322 2,419 cost producer of both rutile and IRR (Pre-tax) % 27% 32% graphite Total Revenue US$M 16,367 16,121 Economic Ave. Annual EBITDA US$M 409 41
Slide 11: Simple Conventional Mining
SIMPLE CONVENTIONAL MINING 11 Source: Sovereign Metals; Liebherr Group; Caterpillar Inc.
Slide 12: Simple Conventional Processing
SIMPLE CONVENTIONAL PROCESSING 12 Source: Sovereign Metals
Slide 13: Premium Products and Metallurgy
PREMIUM PRODUCTS AND METALLURGY Kasiya Rutile Specification Kasiya Sierra Rutile* Kwale Constituent (Sovereign Metals) (Sierra Rutile Limited) (Base Resources) TiO2 % 95.7 96.3 96.2 ZrO2+HfO2 % 0.18 0.78 0.72 SiO2 % 0.70 0.62 0.94 Fe2O3 % 0.98 0.38 1.25 Al2O3 % 0.44 0.31 0.23 Cr2O3 % 0.10 0.19 0.17
Slide 14: Optimised Tailings Management & Rehabilitation
OPTIMISED TAILINGS MANAGEMENT & REHABILITATION 14 Source: Sovereign Metals; McCosker Contracting
Slide 15: Kasiya's Graphite Produces Outstanding Anode Material
KASIYA’S GRAPHITE PRODUCES OUTSTANDING ANODE MATERIAL Kasiya graphite testwork to date Graphite Concentrate Spherical Purified Graphite Coated SPG (Kasiya Product) (SPG) (CSPG: Anode Material) High-grade concentrate Conventional purification Very low BET1 96.5-97.9% TGC 99.99% ≤2.0m2/g Low impuritie
Slide 16: Kasiya Is Connected to the Global Markets
KASIYA IS CONNECTED TO THE GLOBAL MARKETS 16
Slide 17: Rio Tinto Is a 19.9% Strategic Investor in Sovereign
RIO TINTO IS A 19.9% STRATEGIC INVESTOR IN SOVEREIGN AND A GLOBAL LEADER IN TiO2 WITH 14% MARKET SHARE 2019-2023 Average NORTH AMERICA Sorel-Tracey (100%; Quebec) – TiO2 slag (1.2Mtpa capacity) 1.1 Mt MAJOR RIO Havre-Saint-Pierre (100%; Quebec) – Ilmenite TiO2 slag production TINTO TITANIUM AFRICA O
Slide 18: Rio Tinto Investment Agreement Highlights
RIO TINTO INVESTMENT AGREEMENT HIGHLIGHTS Total of $60 million for 19.9% of Sovereign Metals Limited INVESTMENT Australian Takeover Code mandatory bid threshold is 20% TECHNICAL Technical Committee comprising 3 Rio Tinto + 3 Sovereign representatives COMMITTEE Sovereign holds Chairmanship and castin
Slide 19: Rutile Supply Declines While Titanium Demand Increases
RUTILE SUPPLY DECLINES WHILE TITANIUM DEMAND INCREASES TITANIUM DEMAND RUTILE SUPPLY RUTILE PRICE INCREASING DECREASING INDICATES DEFICIT TITANIUM FEEDSTOCK DEMAND RUTILE SUPPLY (Source: TZMI) (Source: TZMI) 800 10 600 TiO2 units (Mt) TiO2 units (kt) 400 5 Iluka Resources Q4 2024 Rutile Price: US$1,
Slide 20: Upcoming Newsflow
UPCOMING NEWSFLOW Updated Mineral Resource Estimate CAPITAL STRUCTURE (as at 24 Jan 2025) Share Price A$0.755 | 39p | $0.4795 Rehabilitation Outcomes Market Cap A$453 | £234m | US$285 Updated Life Cycle Assessments Shares in Issue 600m Performance Rights 17.4m Traditional-Use Graphite Testwo
Slide 21: Appendices
APPENDICES
Slide 22: Appendix 1: Kasiya Resources & Reserves
APPENDIX 1: KASIYA RESOURCES & RESERVES Kasiya Mineral Resource Estimate at 0.7% Rutile Cut-off (inclusive of Ore Reserves) Rutile Mineral Resource Tonnes Contained Rutile Graphite Grade Contained Graphite Grade Category (Mt) (Mt) (TGC, %) (Mt) (%) Indicated 1,200 1.0% 12.2 1.5% 18.0 Inferred 609 0.
Slide 23: Appendix 2: Natural Rutile Resources Containing >2Mt
APPENDIX 2: NATURAL RUTILE RESOURCES CONTAINING >2Mt Ref Project Company Status Source 2023 Annual Report 1 Sembehun Lemoil Company Limited DFS https://sierra-rutile.com/media/52zon0go/sierra-rutile-2023-annual- report.pdf 2023 Annual Report 2 Namakwa Tronox Holdings plc Production https://s1.q4cdn.
Slide 24: Appendix 3: Natural Flake Graphite Resources Containing >10Mt
APPENDIX 3: NATURAL FLAKE GRAPHITE RESOURCES CONTAINING >10Mt Ref Project Company Status Source 1 Balama Syrah Resources Production https://www.syrahresources.com.au/our-business/reserves-resources Volt Resources https://api.investi.com.au/api/announcements/vrc/716eabf2-08b.pdf 2 Bunyu Stage 1 FS Co
Slide 25: Appendix 4: Rio Tinto Investment Agreement
APPENDIX 4: RIO TINTO INVESTMENT AGREEMENT Investment Agreement • (Governance) – (Technical Committee & Access to Information) Until the Investor End Date, Rio As part of the investment by Rio Tinto, the Company has agreed to provide Rio Tinto with Tinto and the Company will establish a technical co
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