Sovereign Metals' Kasiya Graphite Suitable for Refractory Use
Why we think this is good
The RNS provides positive updates on the suitability of Kasiya's graphite for refractory applications, a large and premium market. Key highlights include the graphite meeting or exceeding critical characteristics required for refractories, and the low production cost of US$241/t providing a competitive advantage. No significant negative factors or red flags were identified.
Key Points
- Kasiya graphite concentrate confirmed to meet or exceed all critical characteristics required for refractory applications
- Refractories market is the second largest end-user of natural graphite (24%) after batteries sector (52%)
- Refractories use coarser (larger) flake graphite products, which typically attract a premium over smaller flake-size products used in the batteries sector
- Kasiya's incremental cost of graphite production per the recently announced Optimised Prefeasibility results is US$241/t (FOB)
- Leading German laboratories ProGraphite and Dorfner Anzaplan completed a comprehensive testwork program of Kasiya's graphite concentrate
- Results will be used for customer engagement and potential offtake discussions
Summary
Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX: SVMLF) announced that testwork on graphite from its Kasiya Rutile-Graphite Project has confirmed the graphite is suitable for use in refractory applications. The comprehensive testwork programs were completed by leading German laboratories ProGraphite and Dorfner Anzaplan, demonstrating Kasiya graphite concentrate contains very low impurities, providing a competitive advantage. The refractories market is the second largest end-user of natural graphite, requiring larger, coarser graphite flakes. Kasiya's incremental cost of graphite production is US$241/t (FOB), which is low. The results will be used for customer engagement and potential offtake discussions.