Sovereign Metals (SVM) investor relations material

Executive summary

• Scoping Study assessed monazite rare earth concentrate (REC) recovery as a by-product from Kasiya’s existing rutile and graphite flowsheet, with no additional mining or front-end processing.

• Study estimates steady-state output of 2,626 tpa REC containing 1,485 tpa TREO over a 23-year study life; the DFS mine plan and physicals remain unchanged.

• Kasiya is being advanced around a U.S.-focused strategy for rutile, graphite and heavy rare earth supply to the U.S. and allied markets.

Financial highlights

• REC Base Case estimates incremental pre-tax NPV8 of US$722M, IRR of 151%, steady-state annual EBITDA of US$84M and pre-tax unlevered free cash flow of US$82M.

• Western Supply Case estimates incremental pre-tax NPV8 of US$883M, IRR of 172%, annual EBITDA of US$102M and pre-tax unlevered free cash flow of US$99M.

• U.S. Floor Price Case estimates incremental pre-tax NPV8 of US$183M and IRR of 43%; these prices are downside assumptions based on third-party arrangements, not Kasiya contracts.

• September-quarter operating cash outflow was A$4.367M, including A$3.063M exploration and evaluation payments; quarter-end cash was A$20.681M versus A$25.125M at quarter start.

Outlook and guidance

• REC variability testwork, product qualification and marketing with Western processors and government procurement programs are planned; PFS integrating rare earths is targeted for completion in 2027.

• Rutile and graphite offtake discussions with Mitsui, Traxys and other strategic counterparties are intended to progress toward binding agreements, subject to negotiation.

• Further work includes post-DFS studies, the Environmental and Social Impact Assessment, and engagement with U.S. government, development-finance and export-credit institutions.