Sign up Australia
Proactive Investors - Run By Investors For Investors

Sovereign Metals study reveals lowest cost for Graphite Project

A rare combination of low costs and a realistic scale of production.
Sovereign Metals study reveals lowest cost for Graphite Project
Sovereign is expected to achieve payback in under two years

Sovereign Metals’ (ASX:SVM) scoping study has revealed capital and operating costs at the very bottom of the graphite supply cost-curve for its Malingunde Graphite Project in Malawi.

The results of the scoping study demonstrate the potential for the Malingunde Project to support an annual graphite concentrate production of circa 44,000 tonnes over an initial mine life of 17 years.

Malingunde’s estimated total operating costs of circa US$301 per tonne concentrate is the lowest of any reported ASX-listed peer company of <300,000 tonnes per annum scale.

Furthermore, the total capital cost of US$29 million to produce circa 44,000 tonnes of concentrate per annum is the lowest capital intensity compared to Sovereign’s peers.

This has enabled the company to prepare a scoping study with a rare combination of low capital and operating costs at a realistic scale of production.

Importantly, Sovereign is expected to achieve payback in under two years using conservative graphite pricing assumptions.

The project will use a simple process flow sheet with no primary crush or grind, leading to low processing costs and lower capital requirements.

Sovereign is targeting a simple mining and processing operation, selling reasonable volumes of high-quality graphite concentrates into existing markets.

The company is in a unique position of targeting the economic production of graphite without relying on extreme size to achieve economies of scale.

Sovereign’s share price increased circa 67% during the past three months, last trading at $0.13.





Register here to be notified of future SVM Company articles
View full SVM profile View Profile

Sovereign Metals Ltd Timeline

Related Articles

1506662375_emmerson-resources_rob-bills-1-highres-757.jpg
September 29 2017
Rob Bills, managing director, talks exclusively with Proactive Investors.
Uranium
May 15 2017
Kazakhstan's decision to curtail uranium output by 10% from its mines gave a shot in the arm to the sector
Great Boulder Resources' Stefan Murphy at the Proactive's CEO Sessions
September 15 2017
Stefan Murphy discussed the highly anticipated Mt Venn next steps at Proactive's CEO Sessions.

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use