Sovereign Metals (SVM) H2 2026 earnings summary

Executive summary

• Focused on developing the Kasiya critical minerals project in Malawi, the world's largest natural rutile and one of the largest flake graphite deposits, with a new rare earth concentrate (REC) by-product opportunity.

• Definitive Feasibility Study (DFS) completed, confirming Kasiya as a large, low-cost, strategic minerals producer, with deepening engagement with U.S. government and industry for critical minerals supply.

• Post-DFS, a scoping study confirmed the viability of REC recovery, positioning Kasiya as a globally significant source of rare earths.

Financial highlights

• Pre-tax NPV8 of US$2.2 billion on capex to first production of US$727 million; NPV to capex ratio of 3.0x.

• Steady state annual EBITDA of US$476 million and pre-tax, unlevered free cash flow of US$452 million.

• Total revenue of US$16.2 billion over an initial 25-year mine life.

• Operating cost of US$450/t product (FOB Nacala), supporting strong margin resilience.

• Net loss for the year ended 30 June 2026 was $25.6 million, improved from $40.4 million in 2025, mainly due to lower exploration and evaluation expenses.

• Cash and cash equivalents at 30 June 2026 were $25.1 million, with no debt.

Outlook and guidance

• Prioritising a U.S.-focused critical minerals strategy, advancing offtake discussions with Mitsui, Traxys, and other strategic partners.

• Next steps include REC marketing, offtake agreements, and integrating rare earths into Kasiya's definitive development case, with a pre-feasibility study targeted for 2027.

• Ongoing engagement with U.S. government and allied supply chains to position Kasiya as a secure, non-Chinese source of titanium, graphite, and rare earths.