SOVEREIGN METALS LTD

Traditional market downstream test work of graphite concentrate from the Kasiya Rutile-Graphite Project in Malawi has delivered promising results for Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) as it sizes up a diversified global graphite supply chain. The test work, conducted by independent consultancy ProGraphite GmbH in Germany, confirmed the product’s potential suitability for refractory materials – a sector that accounts for 24% of global graphite demand. “These initial test results for traditional graphite applications are very promising,” managing director and CEO Frank Eagar said. “High resistance to oxidation and low levels of sulphur are two key attributes required to produce a premium graphite product for traditional refractory and foundry applications. “Combining these attributes with the > 50% large flakes of the Kasiya resource provides Sovereign with multiple marketing options. “Our evaluation of coarse Kasiya concentrate for traditional applications will continue in the coming months, complementing the optimisation work on the fine (180-micron) fraction for anode materials, where we have also had excellent initial results. “We are very pleased that our test-work program continues highlighting Kasiya’s graphite’s premium quality. “Keeping in mind that graphite is a co-product for Kasiya, when combining these excellent results with one of the largest graphite resources globally, industry-low operating costs and lowest industry comparable greenhouse gas emissions, Kasiya presents significant advantages over its graphite peers as a long-term secure source of supply.” Graphite’s thermal conductivity, low expansion rates and chemical inertness make it a critical component in refractory products such as furnace linings, crucibles and bricks. Some of its key benefits include increased resistance to thermal shock and cracking, reduced thermal gradient and structural damage risks, the ability to repel molten slag and decreased wettability to metals and an improved lifespan of refractory products. The size distribution of Kasiya’s graphite flakes offers considerable optionality. Larger flakes are ideal for refractories, while smaller flakes cater to battery applications. The test-work focused on Kasiya’s coarse flake graphite (>180 microns), a key requirement for refractory applications due to its high oxidation resistance. Initial findings include: The tests, conducted via Thermogravimetric Analysis (TGA), measured weight loss during temperature-controlled heating. Results showed no oxidation during the 400°C hold and limited weight loss up to 650°C, highlighting Kasiya graphite’s resistance to oxidation – an essential characteristic for materials exposed to high furnace temperatures. Additional attributes include low levels of sulphur impurities (0.02%), which further enhance the product’s suitability for refractories. This news from Sovereign is timely, with the recent announcement by key producer China of restrictions on the export of graphite and titanium alloys. Effective December 2024, the controls cover technologies used in civilian and military applications, with natural flake graphite and spherical graphite – key for electric vehicle batteries – falling under these new measures. China currently dominates the market, producing 75% of the world’s flake graphite and 96% of spherical graphite. The company’s Kasiya project, which is being modelled as the world’s largest producer of high-grade titanium feedstock and natural flake graphite, could play a pivotal role in diversifying global supply chains. Sovereign Metals is leveraging these results to engage with potential traditional graphite offtakers while complementing its ongoing optimisation program for battery-grade anode materials. Tests will continue to evaluate Kasiya’s coarse flake graphite for traditional and expandable applications, with additional results expected in the coming months. Palo Alto Networks Inc (NYSE:PANW, ETR:5AP) reported better-than-expected first-quarter adjusted earnings on Wednesday, though revenue narrowly missed estimates, prompting its stock to drop during after-hours trading. The cybersecurity company posted adjusted earnings per share (EPS) of $1.56, exceeding Wall Street’s consensus estimate of $1.48. Revenue rose 14% year-over-year to $2.14 billion, just shy of the $2.12 billion forecast. The firm also announced a 2-for-1 stock split. In terms of the balance sheet, product revenue rose 3.7% year-over-year to $353.8 million, beating estimates of $344 million, while subscription and support revenue climbed 16% to $1.79 billion, slightly exceeding the $1.78 billion forecast. Deferred revenue, a key indicator of future performance, increased 16% to $5.51 billion but missed the $5.59 billion consensus. Meanwhile, research and development expenses surged 17% to $480.4 million, surpassing expectations of $467.3 million. For the second quarter, Palo Alto Networks projects adjusted EPS of $1.54 to $1.56, just in line with the consensus estimate of $1.55, and revenue of $2.22 billion to $2.25 billion, compared to an expected $2.23 billion. The company also issued full-year fiscal 2025 guidance, forecasting EPS of $6.26 to $6.39, slightly above the $6.28 consensus, and revenue of $9.12 billion to $9.17 billion, near analysts’ estimate of $9.13 billion. “Our Q1 results reinforced our conviction in our differentiated platformization strategy,” said chairman and CEO Nikesh Arora. “We see a growing market realization that platformization is the game changer that will solve security and enable better AI outcomes.” Despite the positive earnings surprise, investor concerns over the revenue shortfall and rising expenses weighed on the stock, which was down 5.8% in extended trading.» Mehr auf proactiveinvestors.com

Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) picked up 3.5% to 30.5p after it received a further investment of A$690,00 from Rio Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) after the mining giant exercised its unlisted options to obtain over 1.29 million shares in SVM. This brings Rio Tinto's holding in the company to 19.9%, just two months after the titan made its initial $18.5 million investment and offered its technical and marketing expertise to support the development of the Kasiya natural rutile and graphite deposit.» Mehr auf proactiveinvestors.co.uk

Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) has commenced a hydraulic mining trial at its Kasiya Rutile Project in Malawi to assess the effectiveness and environmental impact of high-pressure water techniques on a large-scale operation. Part of its ongoing optimisation study, the work will be led by Fraser Alexander, a specialist in the field, and follows the successful completion of a dry mining evaluation in July.» Mehr auf proactiveinvestors.co.uk