Sovereign Metals marks major technical and strategic progress at Kasiya Project

Sovereign Metals Ltd. has reported a productive June quarter marked by major technical and strategic progress at its Kasiya Rutile-Graphite Project in Malawi, alongside a boost from changing global graphite dynamics and strong results from its local community programs.

A geotechnical program critical to Kasiya’s Definitive Feasibility Study (DFS) has been completed, while agreements for long-term power supply have advanced in parallel with positive international recognition for the project’s graphite and rutile products. The company also highlighted its expanded conservation farming program, which saw crop yields quadruple for participating farmers.

DFS momentum builds as geotechnical works conclude

Key engineering milestones were met with the successful completion of geotechnical investigations across Kasiya’s critical infrastructure zones, including processing facilities, tailings storage, and water storage areas. Over 400 subsurface tests were conducted during the program, which was managed in collaboration with Rio Tinto’s technical team.

Preliminary findings revealed favourable and consistent subsurface conditions, enabling simplified and standardised engineering designs that could reduce construction costs and complexity. These insights will feed directly into foundation and infrastructure design for the upcoming DFS, targeted for completion in Q4 2025.

Power agreement framework in place as hydropower investment scales

During the quarter, Sovereign signed a non-binding memorandum of understanding (MOU) with the Sovereign and Electricity Supply Corporation of Malawi (ESCOM) to negotiate the construction of a new 132-kilovolt (kV) transmission line and power supply agreement. The project’s Stage 1 power demand is expected to reach 30 megawatts (MW), rising to 60MW at full-scale operations.

The MOU follows broader investment momentum in Malawi’s energy sector, including a US$350 million grant from the World Bank for the 358MW Mpatamanga Hydropower Storage Project. Once developed, this facility is expected to transform energy access for key sectors including mining and manufacturing.

Toho Titanium backs Kasiya rutile for aerospace-grade products

In a significant technical endorsement, Japanese titanium specialist Toho Titanium confirmed that Kasiya’s natural rutile meets the strict specifications required for aerospace and industrial titanium products. The company reported the sample as “of a quality that can be used without any issues.”

This positions Kasiya as a credible future supplier in premium global titanium supply chains. Bulk-scale test work has previously shown Kasiya rutile achieves titanium dioxide (TiO₂) grades of up to 97.2% with minimal impurities — suitable for all major end-use markets.

Graphite test work confirms premium battery anode potential

Sovereign also advanced the battery material potential of its graphite product, with the latest test work validating that coated spherical purified graphite (CSPG) from Kasiya meets critical benchmarks for capacity and efficiency. Prographite GmbH achieved first-cycle efficiency above 94% and discharge capacity well above the 360 milliampere-hours per gram (mAh/g) threshold used by top-tier anode material producers.

The results follow the US government’s recent announcement of 93.5% anti-dumping duties on Chinese graphite, reinforcing Kasiya’s strategic value as a secure, low-cost alternative. With a projected incremental cost of US$241/tonne, Sovereign says Kasiya is well-placed to become the world’s largest non-Chinese natural graphite producer.

ESG progress: Conservation farming delivers 4x yield gains

On the environmental, social and governance (ESG) front, Sovereign reported strong results from its conservation farming initiative, with 350 participating farmers, half of them women, achieving maize yields four times higher than traditional methods. The top-performing farmer produced 12.8 tonnes per hectare, a tenfold increase, allowing for surplus sales and reinvestment into local businesses.

The program forms part of Sovereign’s broader community development commitments, which will continue as part of its DFS-aligned rehabilitation and social planning.

Outlook

Looking ahead to the September quarter, Sovereign plans to:

• Finalise mining fleet and plant design;
• Advance logistics and offtake agreements for rutile and graphite;
• Deliver further updates on social development and rehabilitation planning;
• Complete additional infill drilling to support a mineral resource update;
• Maintain momentum toward DFS completion in late 2025.

Sovereign closed out the June quarter with a strong cash position of A$54.5 million, following net financing inflows of A$37.6 million, which significantly offset operating outflows of A$8.8 million. The company spent A$7.2 million on exploration and feasibility-related activities, including trial mining, metallurgical test work, community programs and drilling – reflecting its continued commitment to advancing Kasiya through to DFS completion in late 2025.