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.

View full SVM profile View Profile

Sovereign Metals Ltd Timeline

Related Articles

white-rock-minerals_matt-gill-presenting-Melb-May-2017-757x468.JPG
June 02 2017
We are joined by Matthew Gill, CEO and managing director, in Proactive Q&A Sessions™.
1510522937_cobalt-blue_joe-in-korea.jpg
November 13 2017
The company is the only "pure play cobalt" ASX-listed company with >80% leverage to cobalt.
diamond
January 30 2018
Tango Mining is looking forward to a strong 2018, as diamond production comes on stream from two mines

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

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