Sovereign Metals Reports $722 Million NPV Uplift From Monazite By-Product Scoping Study at Malawi Project

MT Newswires Live
Yesterday

Sovereign Metals (ASX:SVM) said a scoping study for recovery of a monazite concentrate as a by-product from its Kasiya Project in Malawi has returned a base case pre-tax net present value (NPV) uplift of about $722 million, according to a Wednesday Australian bourse filing.

The study showed an incremental capital to first production of about $29 million and potential upside NPV of $883 million, the filing added.

The company said the study targets steady-state production of 2,626 tonnes per year of monazite rare earth concentrate containing 1,485 tonnes per year of total rare earth oxides, with an incremental base case pre-tax internal rate of return of about 151% and payback of about 1.5 years.

The study also showed a maiden monazite mineral resource estimate of 524.4 million tonnes at 0.01% monazite, with life-of-mine revenue of $2.1 billion over an initial 23-year mine life and steady-state incremental earnings before interest, taxes, depreciation and amortization of $48 million, the filing added.

The company's shares rose 2% in recent Wednesday trade.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10