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

• Advanced Definitive Feasibility Study (DFS) with finalized mining fleet design, completed geotechnical programs, and a power supply MOU.

• Secured significant investments, including additional funding from Rio Tinto and a $40 million placement.

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.

• 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 from $34.4 million year-over-year.

• No debt as of 30 June 2025.

• Basic and diluted loss per share was 6.62 cents (2024: 3.34 cents).

Outlook and guidance

• Aims to create long-term shareholder value through Kasiya's development, with ongoing DFS and offtake discussions.

• Plans to progress development activities, but acknowledges inherent risks and uncertainty in achieving milestones.