Sovereign Metals Ltd (ASX:SVM, OTCQX:SVMLF, AIM:SVML, FRA:SVM) has outlined a pivotal March quarter, headlined by a definitive feasibility study (DFS) confirming the scale and economics of its Kasiya rutile-graphite project in Malawi, alongside a major resource upgrade and early-stage offtake agreements.

The DFS positions Kasiya as a globally significant critical minerals project, with strong projected margins, long mine life and potential upside from additional by-products.

Key outcomes from the study include:

Pre-tax NPV of US$2.2 billion, based on initial capex of US$727 million (3.0x NPV/capex ratio)

Annual EBITDA of US$476 million and free cash flow of US$452 million at steady state

Forecast total revenue of US$16.2 billion over an initial 25-year mine life

Operating costs of US$450 per tonne (FOB Nacala), supporting resilience across cycles

Planned production of 222ktpa rutile and 275ktpa graphite

The company said the DFS confirms Kasiya’s potential to become the world’s largest producer of natural rutile and flake graphite, both designated as critical minerals by Western economies.

Importantly, the study incorporates real-world data from pilot mining programs and has been completed with oversight from a technical committee including Rio Tinto.

Ahead of the DFS, Sovereign delivered a substantial mineral resource upgrade:

Total resource increased to 2.1Bt at 0.96% rutile and 0.95% graphite

Contained rutile lifted to 20.3Mt and graphite to 20.0Mt

Measured and indicated rutile rose 32% to 16.1Mt

First-ever Measured resource declared, covering at least six years of planned operations

The upgrade significantly improves confidence in early mine production and supports the project’s bankability and financing pathway.

Sovereign also advanced commercial discussions, signing non-binding memoranda of understanding with global partners:

Mitsui for up to 70,000tpa of rutile (more than 50% of Phase 1 output)

Traxys for graphite sales of ~40,000tpa, potentially rising to 80,000tpa

These agreements highlight growing demand for secure, non-Chinese supply chains in both titanium and battery materials markets.

During the quarter, the company confirmed the recovery of high-value heavy rare earth elements from monazite within the project’s tailings stream.

Preliminary analysis indicates elevated levels of dysprosium, terbium and yttrium — critical inputs for defence, electronics and clean energy technologies — with concentrations significantly higher than many global producers.

Kasiya vs five largest REE producers.

Notably, this material could be recovered at near-zero incremental cost, offering potential upside beyond the DFS economics.

Sovereign ended the quarter with $29.3 million in cash and around 6.3 quarters of funding runway, while continuing to invest in feasibility, ESG programs and project development.

Looking ahead, the company plans to:

Progress environmental and social approvals

Advance binding offtake agreements

Further assess rare earth recovery potential

Continue community and rehabilitation programs in Malawi

Bamboo and maize intercropping system & Sovereign's rehabilitation showing maize intercropped with bamboo.

With a large, high-confidence resource base, strong projected economics and growing strategic interest, Kasiya is shaping as a key future supplier of critical minerals to global markets.