Sovereign Metals shares jump 10% as Kasiya feasibility study confirms $2.2bn project value

Shares in Sovereign Metals Ltd (ASX:SVM, OTCQX:SVMLF, AIM:SVML, FRA:SVM) rose 10% to 40.20p after the company published a definitive feasibility study for its Kasiya rutile and graphite project in Malawi, confirming a pre-tax net present value of $2.2 billion against initial capital expenditure of $727 million. The study, completed with technical oversight from Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF), projects steady-state annual EBITDA of $476 million and free cash flow of $452 million over a 25-year mine life, with total revenue of $16.2 billion.