NEWS RELEASE
I 19 MARCH
2024
APPOINTMENT OF STIFEL AS JOINT
BROKER
Sovereign Metals Limited (ASX:SVM;
AIM:SVML) (the Company or Sovereign) is pleased to announce the
appointment of Stifel Nicolaus Europe Limited, a subsidiary of
Stifel Financial Corp (Stifel), as joint broker to the Company
with immediate effect. Stifel will work alongside Sovereign's
incumbent brokers, Joh. Berenberg, Gossler & Co KG, and SP
Angel Corporate Finance LLP.
Stifel is a full-service investment
bank, offering securities brokerage, trading, research,
underwriting and corporate advisory services.
Stifel has more than 600 investment
banking professionals which allows them to deliver the full
capabilities of Stifel's institutional capital markets platform,
which are among the most highly regarded in the industry across all
major markets in North America and Europe.
In 2023, Stifel was named US
Mid-Market Equity House of the Year by International Financing
Review (IFR).
ENQUIRIES
Frank Eagar (South
Africa/Malawi)
Managing Director
+61(8) 9322 6322
|
Sam Cordin (Perth)
+61(8) 9322 6322
|
Sapan Ghai (London)
+44 207 478 3900
|
Nominated Adviser on AIM and
Joint Broker
|
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SP Angel Corporate Finance
LLP
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+44 20 3470 0470
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Ewan Leggat
Charlie Bouverat
Harry Davies-Ball
|
|
|
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Joint
Brokers
|
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Stifel
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+44 20 7710 7600
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Varun Talwar
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Ashton Clanfield
|
|
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Berenberg
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+44 20 3207 7800
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Matthew Armitt
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Jennifer Lee
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Buchanan
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+ 44 20 7466 5000
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Sovereign is focused on the
development of its Kasiya project in Malawi. Kasiya is the largest natural rutile deposit and the
second-largest flake graphite deposit in the world.
Sovereign aims to develop a low-CO2 and sustainable
operation to supply highly sought-after natural rutile and
graphite to global markets.
In July 2023, Rio Tinto invested
A$40.4 million in Sovereign resulting in an initial 15%
shareholding. Under the Investment Agreement, Rio Tinto will
provide assistance and advice on technical and marketing aspects of
Kasiya.
Results of the PFS released in late
2023, demonstrated Kasiya's potential to become the world's largest rutile
producer at 222kt per annum and one of the world's largest natural graphite
producers outside of China at 244kt per annum based on an
initial 25 year life-of-mine.
Delivering compelling economics with
a post-tax NPV8 of US$1.6 Billion and post-tax IRR of
28%, this long-life, multi-generational operation was modelled to
initially generate over US$16 Billion of revenue and provide an
average annual EBITDA of US$415 Million per annum.
Kasiya's PFS modelling was limited
to only 25 years meaning substantial production rate and mine life
upside exists, with an initial Probable Ore Reserves
declared of 538Mt, only
representing 30% of the total Mineral Resource.
Competent Person Statement
The information in this announcement that relates to the
Mineral Resource Estimate is extracted from an announcement dated 5
April 2023 entitled 'Kasiya Indicated Resource Increased by over
80%' which is available to view at www.sovereignmetals.com.au
and is based on,
and fairly represents information compiled by Mr Richard Stockwell,
a Competent Person, who is a fellow of the Australian Institute of
Geoscientists (AIG). Mr Stockwell is a principal of Placer
Consulting Pty Ltd, an independent consulting company. Sovereign
confirms that a) it is not aware of any new information or data
that materially affects the information included in the original
announcement; b) all material assumptions included in the original
announcement continue to apply and have not materially changed; and
c) the form and context in which the relevant Competent Persons'
findings are presented in this announcement have not been
materially changed from the original
announcement.
The information in this announcement that relates to
Production Targets, Ore Reserves, Processing, Infrastructure and
Capital Operating Costs, Metallurgy (rutile and graphite) is
extracted from an announcement dated 28 September 2023 entitled
'Kasiya Pre-Feasibility Study Results' which is available to view
at www.sovereignmetals.com.au.
Sovereign confirms that: a) it is not aware of any new information
or data that materially affects the information included in the
original announcement; b) all material assumptions and technical
parameters underpinning the Production Target, and related forecast
financial information derived from the Production Target included
in the original announcement continue to apply and have not
materially changed; and c) the form and context in which the
relevant Competent Persons' findings are presented in this
presentation have not been materially modified from the
Announcement.
Ore
Reserve for the Kasiya Deposit
|
|
Classification
|
Tonnes
(Mt)
|
Rutile Grade
(%)
|
Contained Rutile
(Mt)
|
Graphite Grade (TGC)
(%)
|
Contained Graphite
(Mt)
|
RutEq. Grade*
(%)
|
Proved
|
-
|
-
|
-
|
-
|
-
|
-
|
Probable
|
538
|
1.03%
|
5.5
|
1.66%
|
8.9
|
2.00%
|
Total
|
538
|
1.03%
|
5.5
|
1.66%
|
8.9
|
2.00%
|
|
|
|
|
|
|
| |
* RutEq. Formula: Rutile Grade x
Recovery (100%) x Rutile Price (US$1,484/t) + Graphite Grade x
Recovery (67.5%) x Graphite Price (US$1,290/t) / Rutile Price
(US$1,484/t). All assumptions are taken from this Study ** Any
minor summation inconsistencies are due to rounding.
Kasiya Total Indicated + Inferred Mineral Resource Estimate at
0.7% rutile cut-off grade
|
Classification
|
Resource
(Mt)
|
Rutile Grade
(%)
|
Contained
Rutile (Mt)
|
Graphite Grade (TGC)
(%)
|
Contained
Graphite
(Mt)
|
Indicated
|
1,200
|
1.0%
|
12.2
|
1.5%
|
18.0
|
Inferred
|
609
|
0.9%
|
5.7
|
1.1%
|
6.5
|
Total
|
1,809
|
1.0%
|
17.9
|
1.4%
|
24.4
|
Forward Looking Statement
This release may include forward-looking statements, which may
be identified by words such as "expects", "anticipates",
"believes", "projects", "plans", and similar expressions. These
forward-looking statements are based on Sovereign's expectations
and beliefs concerning future events. Forward looking statements
are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of Sovereign, which could
cause actual results to differ materially from such statements.
There can be no assurance that forward-looking statements will
prove to be correct. Sovereign makes no undertaking to subsequently
update or revise the forward-looking statements made in this
release, to reflect the circumstances or events after the date of
that release.