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SVM - Sovereign Metals

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Some good results out here. I'm new into the rutile game, so feeling my way. The main interest is the western move away from China to gain critical minerals from trusted sources. I don't think China owns Malawi yet, so this is going to be a critical asset.

Not a minnow, MC $190m, but it's a huge resource. $1.5b NPV (according to Sprott) so running at quite a discount. Might be discounted for country risk, but there's plenty of others mining in the region.


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Not too sure about these non-binding MOUs for off-take, but I guess it's not a bad thing. They're still a fair way off mining I think.

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Updated presentation out this morning which is not sensitive, so must be nothing new in there.

I've been researching the rutile price and it's running around the $1200 a ton mark. Can't find any decent forecast for the supply/demand equation except for the one stockhead has posted up which references TZMI. But that's more in regard to synthetic rutile demand though, not natural. Natural is much lower CO2 cost so is a preferred feedstock. There must be a premium for that.

I think this is flying under the radar and I'm not sure why it seems so cheap to me. A $200m MC with a $1.5b NPV. If gold explorers/developers run at an average 40-50% of NPV then using that logic this should be trading at about a $750m MC, or triple the current price.

In SVM's feasibility study they said they were going to produce about 265kpa rutile for 25 years. @$1200 a ton, that's $318m pa EBITDA. Then add in the graphite which could make this a mine by itself. Crazy cheap at these levels, IMO.

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Price has gone up for five consecutive weeks to get to your R level. It wasn't going to keep on going higher without a break. It did get to a significant number of 0.50. Now you need to see a shallow pull-back (not too much supply) at this level for a few weeks before it can go higher. Chill.
 
peter2 said:
Price has gone up for five consecutive weeks to get to your R level. It wasn't going to keep on going higher without a break. It did get to a significant number of 0.50. Now you need to see a shallow pull-back (not too much supply) at this level for a few weeks before it can go higher. Chill.
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I've been buying this since Sept on fundamentals. Adding on signs of a bottom and upward trend. Just trying to get a conversation started. Not succeeding very well.
 
I'm happy that they're separating these standalone deposits out. The regional things add nothing to Kasiya. Don't even care about the free shares in NGX. Just get on with further off-takes, MRE Q1, PFS Q2, and get this sucker moving!


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My plan is to sell half of this about 80c this year and be free carried for the rest of the run up to Sprott's $1.65 price target and bail completely just before that's hit.

Hopefully that's this year and not 2025.
 
Well, the answer to the please explain was pretty much we know nothing except another project in Malawi received some important approval so this would de-risk Kasiya, which is pretty thin. Then, they say they have some drilling results they hadn’t released and proceed to release them. LOL.

Sprott update on the drilling results. NC on target, $1.65.

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Consolidating well after the inexplicable jump from 40 to 50c on 'no news'. Must be an MRE update next month. Just need to firm up the higher grade areas for a mining plan. It's so big, they just need to start digging this sucker up.

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Massive increase in the Indicated portion of the deposit which is needed for the PFS. They don't need any more rutile in this, just confidence in the deposit for a mining plan and permitting.


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Natural flake graphite will have it's day in the sun. One day.

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Wasn't really expecting this. 'Initial' 15% shareholding...

What's RIO doing with rutile and graphite??


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Sean K said:
Wasn't really expecting this. 'Initial' 15% shareholding...

What's RIO doing with rutile and graphite??


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Hi SeanK

Rio’s interest in Sovereign is rutile potential; thinking, rutile great at producing titanium dioxide and Rio is a world leader at producing titanium dioxide.

Have a very nice night.

Kind regards
rcw1
 
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