Kasiya DFS Shows US$2.2B NPV8, US$727M Capex, 222,000t Rutile & 275,000t Graphite
Sovereign Metals’ DFS for the Kasiya project in Malawi shows a pre-tax NPV8 of US$2.2 billion, initial capex of US$727 million and projected annual EBITDA of US$476 million. The 25-year mine life targets annual production of 222,000 tonnes of rutile and 275,000 tonnes of graphite with free cash flow of US$452 million.
1. DFS Highlights
Kasiya’s DFS delivers a pre-tax NPV8 of US$2.2 billion and an IRR of 23%, underpinning life-of-mine revenue of US$16.2 billion over 25 years. It forecasts annual EBITDA of US$476 million, free cash flow of US$452 million and requires initial capex of US$727 million to reach first production.
2. Production and Mine Life
Development is planned in two stages, starting with a 12 million tonnes-per-annum operation before expanding to 24 Mtpa in year five. At steady state, the mine is expected to produce 222,000 tonnes of natural rutile and 275,000 tonnes of flake graphite each year.
3. Cost Competitiveness
Operating costs are estimated at US$450 per tonne FOB Nacala for combined outputs, while graphite production costs are around US$216 per tonne. The co-product nature of Kasiya’s soft, free-dig orebody and streamlined flowsheet positions it at the low end of global cost curves.
4. Strategic Market Impact
Kasiya’s dual output could rank it among the world’s largest rutile and graphite producers, addressing tightening rutile supplies and heavy graphite market concentration. This diversification supports Western supply chains seeking alternatives in high-specification titanium feedstocks and battery anode materials.