Sovereign Metals logs US$2.2B net present value

·     Sovereign Metals reported a pre-tax net present value of US$25.1 million in its June quarterly report.

·       The company share price was down at $0.50 following the announcement.

·       The company aims to advance its US-focused critical minerals strategy for the Kasiya Project.

Sovereign Metals (ASX:SVM) released its June quarterly report on July 30, delivering a pre-tax net present value of US$2.2 billion for the Kasiya Project.

The performance follows prior exploration updates from earlier in the year that aimed to establish baseline resource valuations across the Malawi assets.

"Sovereign's DFS firmly positions Kasiya as one of the world's most important future sources of critical minerals, de-risked technically and from a standpoint," said Sovereign Metals Managing Director & CEO Frank Eagar.

The report outlined initial capital expenditure of US$16.2 billion over a 25-year mine life.

Following the announcement, the Sovereign Metals share price was down at $0.50.

The business previously secured non-binding memorandums of understanding for product offtake with commercial entities such as Mitsui and Traxys.

Earlier operational workstreams also evaluated monazite by-product streams to capture heavy rare earth elements like dysprosium, terbium, and yttrium.