From Stock*eadMetals X doubles profitTin prices have shifted...

From Stock*ead
Metals X doubles profitTin prices have shifted wildly in 2022, rising to all time highs as shortages bit before coming back as falling Chinese demand and surprise contributions to warehouse stores alleviated supply issues.At US$23,652/t LME tin is still trading at strong levels, and the primary exposure on the ASX for that thematic is Metals X (ASX:MLX), half-owner of the historic Renison Bell tin mine in Tasmania.

At one point in March LME tin prices were trading at almost US$50,000/t, with some analysts thinking extraordinary tightness in international markets could send prices higher.The Apple Isle has treated MLX well in FY22, with revenue climbing 144% to $228.9 million, basic profit after tax up 669% to $176.3m and net profit attributable to members up 111% to $183.9m.

Record tin prices have seen MLX build a cash balance of $122 million, with net debt of $3.6 million, though the formerly diversified miner which has sold off or spun out gold, nickel and copper mines in the past five years has held off on paying a dividend.Australia’s largest primary tin producer, Metals X posted an increased resource of 272,000t of measured and indicated tin metal in July, with a life of mine plan later this year expected to outline a more than 10-year future for the deposit.It has operated in its current state since 2008, but the area has been mined for the base metal primarily used in electronic solder since the 1890s.