Ann: Severn Drilling Update, page-11

Worth going over the 2019 SS for Heemskirk and having a look at the sensitivity analysis. The prices they used at this point in time topped out at $24k/t USD which was before the massive 2021/22 bull run in Tin where prices were fetching up to $50k/t USD.


Extrapolating this analysis using Excel, $30k/t USD ($29k/t right now) for LME Tin at .67 AUD/USD resulted in a pre-tax NPV at $281m~ on a capex figure of just $57m.

MLX has already had a good run on the comeback of Tin yet SRZ hasn't really moved. Plot the Tin Price, MLX SP and SRZ SP and it will demonstrate this. I think the 18m volume the other day is a bit of smoke.

A SP of 1.3c with $4m cash gives us a $9m EV for a company which owns 100% of the highest undeveloped grade Tin project in Aus, going into what may very well be another bull market for Tin. I am anticipating there will be renewed interest in this project with the PFS this year and the Tin Price continuing to rise.