srz - tin (highest grade + world tin shortage)

Hi All,

Bought a few SRZ recently.

Here is my post from another thread which I will elaborate on:

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SRZ:

- Closed on it's high, up 14%.
- Highest volume in over 2 years.
- Last time there was this much volume it shot up (very quickly) from around the same SP where it started today, up to the mid 20c's - CSD did the same thing (shot up about 500-600%) at the same time.
- CSD leading the way again and SRZ following = easy short-term target of 10-11c and then we will see where/what adventure the TIN TIN takes us on.
- Tin rising and SRZ has some of the best grade tin in the world.
- ~$4M cash in the bank is handy too.
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TECHNICAL:

SRZ 3 Year Weekly Chart:

CSD 3 Year Weekly Chart:

Tin Price 3 Year Chart:

Looks to me that both SRZ & CSD SP's follow the price if Tin. Here is part of the answer from CSD to an ASX Price Query when the last spike occured for both of the companies:

"The Company notes that the LME tin price has appreciated significantly over recent weeks to in excess of US$23,000 today, and as a result companies with exposure to the tin price are receiving increased attention."


FUNDAMENTAL:

- $4M cash in the bank and currently drilling 2 diamond drill holes as part of 5,300 metres of diamond drilling planned over the next 6 months .

- SRZ has the highest Tin grade around, with intercepts from previous drilling of 12m @ 2.58% Tin, 7m @ 3.97% Tin and 1m @ 12.70% Tin (some mines are <1% Tin).

- Heemskirk Mineral Resource 4.4mt grading 1.1% tin - 48kt of contained tin in 3 nearby deposits (highest grade tin project with JORC resource).

- JORC resource estimate upgrade due in March 2013.

- Excellent existing infrastructure.

- Significant exploration potential in known tin field (18km from Australia’s largest tin mine Renison Bell) & potential to be one of Australia’s largest tin producers.

- US$12,780/t cash cost positions Heemskirk competitively on industry cost curve - Current price of Tin/t is ~US$24,000 (pre-feasibility study currently underway).

- 3,900 tpa of tin in concentrate production ranks project as 2nd in Australia to Renison Bell.

- Production in a couple of years.

- Tin supply shortfall for 5 out of last 6 years.

- Lack of new tin mines.


Also for those that think that the major holder (GIP) is going to sell some shares, I think you are barking up the wrong tree:

From the GIP 2012 Annual Report:

"Stellar has estimated that the three deposits comprise an Inferred Resource of 4.4 million tonnes grading 1.1% tin, making Heemskirk the highest grade, undeveloped tin resource in Australia."

"Gippsland retains an interest of almost 20% in SRZ and will benefit considerably from developments at Heemskirk."

Doesn't sound like they will sell and are looking forward to the real pay-off once the project is developed and the money starts flowing in?

Someone mentioned that the SRZ shares held by GIP are "Held for Sale":

Investments/holdings by companies classified as "Held for Sale" doesn't mean that they are going to sell the investment/holding - it's just how they have to be classified in the Balance Sheet according to Accounting Standards.

My two cents.

Cheers.