Tin development company First Tin (LON:1SN) has completed the Definitive Feasibility Study (DFS) for its Taronga Tin Project located in northeastern New South Wales.
First Tin is now working on the completion and submission of the environmental impact statement and moving the project through the final approval processes with the regulatory authorities, while concurrently progressing financing and offtake discussions for the next phase of development.
Results from the DFS show the $176 million (US$116 million) capex project, which is owned by First Tin’s wholly owned Australian subsidiary Taronga Mines, will produce an average of 3,600 tonnes of tin in concentrate.
The DFS was completed at a conservative base case tin price of $39,394 (US$26,000) per tonne, with pre-tax NPV8 and IRR of $143 million and 24% respectively (post-tax $98 million and 20%)
Pre-tax NPV8 increases to $331 million and IRR to 42% (post-tax $230 million and 34%) at the current tin price of $50,739 (US$33,097) per tonne as of 26 April 2024.
The Taronga Tin Project has low C1 site cash costsof $18,192 (US$12,007) per tonne of tin produced and all-in-sustaining-costs(AISC) of $24,005 (US$15,843) per tonne of tin sold. The company says this places Taronga in the lowest half – and close to lowest quartile – on the global cost curve.
Taronga’s EBITDA margin is above 50% at the current tin price.
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