Some volume?, page-35

SRZ is rising with the tin price. At current tin prices the project is payable with payback 3 years and IRR 45%.

But you really need payback under 2 years and IRR over 65% to get the market excited . , for that we need tin around US$25,000. At US$30,000 we make US$30milion cash flow pa ..and the market goes berko over SRZ.....valuation will hit $60 to $80million not $14million can that happen?

recent commentary a few months ago from Macquarie on tin:

Macquarie observes more optimism in the tin market as refined output has been reduced in several countries. China has been attempting to supplement its ore supply from Myanmar and sourcing concentrates from Australia's Renison mine in Tasmania.China has been importing large amounts of tin ingot with much of the additional material going to Shanghai. Macquarie attributes this to securing a raw materials base for the large electronics manufacturing sector of which tin solder is a key component.Given China's willingness to stockpile a range of other commodities Macquarie is not surprised tin is on the list. Hence, the broker finds enough reasons to adjust its supply/demand balance estimates and anticipates the tin market will move slowly into deficit over the next few years.Macquarie also highlights the Yunnan provincial government's announcement it is willing to finance up to 80% of 40,000t of tin reserves, assessing such an accumulation, if it occurred, would lead to severe shortages and a sharp rally in the price. Nevertheless, it is likely to be difficult for Yunnan to pursue this course and the broker keeps stockpiling expectations moderate.


The interesting aspect to this is that China claim it has 40% of world tin resources, yet are importing tin from their mortal enemy Australia via Renison. Either they are lying about their tin resources ( they lie abut everything these days) , or the resources are such poor quality they are not worth mining.

Whatever the case the tin market is finely balanced , in 2011 tin hit US$30,000 on the back of general bullishness and inflationary expectations in industrial metals. Same thing is going on now, except this time we add steroids to the mix.

Of course there is the issue of financing and PFS, but in a tin bull market these issues are put aside, the trend is your friend and the trend is up.