Sovereign Metals (SVM) H2 2025 earnings summary

Executive summary

• Focused on developing the Kasiya rutile-graphite project in Malawi, the world's largest natural rutile and second-largest flake graphite deposit.

• Completed an Optimised Pre-Feasibility Study (OPFS) confirming Kasiya's potential as a large, low-cost producer of strategic minerals.

• Advanced the Definitive Feasibility Study (DFS), with key milestones including mining fleet design, geotechnical programs, and a power supply MOU.

• Secured significant funding, including a $40 million placement and an $18.5 million investment from Rio Tinto.

Financial highlights

• Net loss for the year ended 30 June 2025 was $40.4 million, up from $18.6 million in 2024, mainly due to increased exploration and evaluation expenses.

• Interest income rose to $2.04 million (2024: $1.82 million).

• Cash and cash equivalents at 30 June 2025 were $54.5 million, up from $31.6 million in 2024.

• Net assets increased to $55.4 million (2024: $34.4 million), driven by new equity funding.

Outlook and guidance

• Plans to complete the DFS and continue discussions with potential offtake partners.

• Aims to position Kasiya as a leading global supplier of rutile and graphite, benefiting from new global trade dynamics and supply chain realignment.