Sovereign Metals (SVM) Q4 2024 TU earnings summary

Executive summary

• Rio Tinto exercised options, investing A$18.5m to increase its stake to 19.76%, supporting Kasiya Rutile-Graphite Project advancement in Malawi.

• Kasiya Pilot Phase completed dry mining trial, confirming efficient mining with standard equipment and low-cost, low-carbon potential.

• High-quality graphite for lithium-ion batteries produced, with 99.99% LOI and low impurities, supporting battery anode qualification.

• Commenced trading on OTCQX, expanding access to U.S. investors.

• MoU signed with Palladium Group to support local agricultural and social development initiatives.

Financial highlights

• Cash at bank at quarter end was A$31.6m; post-Rio Tinto investment, total available funding is approximately A$50.0m.

• No debt outstanding at quarter end.

• Net cash outflow from operating activities for the quarter was A$4.7m.

• Payments for mining exploration activities totaled A$3.8m for the quarter.

• Payments to related parties during the quarter were A$362,000.

Outlook and guidance

• Optimisation study and Pilot Phase ongoing, with focus on hydraulic mining trials, bulk sample preparation, and soil rehabilitation.

• Further graphite testwork and product qualification for the lithium-ion battery sector planned.

• Continued collaboration with Rio Tinto on technical and marketing aspects.

• Additional community and social development programs to be advanced.