Sovereign Metals shares rise as study points to 90% rare earth margins

Mining Written by: Ian Lyall 10:20 Wed 09 Sep 2026 --> Edited by: Jamie Ashcroft Proactive has a commercial relationship with Sovereign Metals Ltd. This article was produced independently under Proactive's Editorial Standards Policy . Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Sovereign Metals Ltd ( ASX:SVM OTCQX:SVMLF AIM:SVML ) View Price & Profile Sovereign Metals shares rise as study points to 90% rare earth margins Published: 10:20 09 Sep 2026 BST Sovereign Metals Ltd (ASX:SVM, OTCQX:SVMLF, AIM:SVML, FRA:SVM) traded at 27.70p, up 4%, on Wednesday as a scoping study indicated the potential for $84 million in additional annual EBITDA at Kasiya. The scoping study estimates a $722 million increase in Kasiya’s pre-tax net present value, discounted at 8%, from $29 million of additional initial capital. Under the plan, the Malawi developer could potentially recover monazite concentrate from processing waste, using infrastructure designed for Kasiya’s proposed rutile and graphite operation. With rutile and graphite carrying the mining and primary processing costs, the study estimates an approximately 90% operating margin for the additional rare earth circuit. For the rare earth circuit’s proposed 23-year life, the study models steady-state annual output of 2,626 tonnes of concentrate containing 1,485 tonnes of rare earth oxides. On pricing, the base case uses Argus forecasts and assumes buyers pay 50% of contained rare earth value, supporting an estimated 18-month capital payback. Against those potential returns , the preliminary estimates carry a 30% accuracy range in either direction and depend on funding and developing the main project. For context, the rutile and graphite plan requires $727 million before production, while Sovereign says it will likely need additional funding, potentially diluting shareholders. Next, Sovereign plans product qualification and discussions with potential partners, Western processors and government agencies, targeting completion of a rare earth pre-feasibility study in 2027. Continue reading