Sovereign Metals saw an increase in share price of 3.2% to 25.8p in late morning trading on Tuesday after the mining company reported strong potential for its Kasiya mine in its half-year report.
The group is currently aiming to develop a sustainable natural rutile and graphite large-scale operation in Malawi with offtake destined for the global market.
The company’s results confirmed its Kasiya mine as a globally significant rutile project.
Kasiya is reportedly the largest underdeveloped rutile deposit in the world, and has been earmarked for a low-carbon operation powered by 100% hydro and solar renewable energy.
The group predicted the project could yield a multi-decade mining operation and provide a stable rutile source, while contributing to Malawi’s economy.
Sovereign Metals reported an estimated Life of Mine (LoM) total revenue for its Kasiya Rutile project of $6.2 billion, alongside an annual average LoM revenue of $251 million.
The company added that the price of rutile of welding tends to attract “significant premiums to bulk rutile prices in the titanium pigment sector.”
The mining group chose not to pay a dividend for the half-year period, and did not pay a dividend over 2020.