tin cracked AUS28,000, no doubt caught up in the nickel inspired...

tin cracked AUS28,000, no doubt caught up in the nickel inspired base metals rally

the C2 costs are $18,000 per tonne. Fast Start production is 1250 tonnes pa and the original PFS was 4,200pa

at current tin prices using C2 cash flow pa is $12million for FS and $42million PFS

not quite good enough for debt financed development

Capex is around $45million FS and $110million PFS

However at AUS$35,000 tin price FS cash flow pa is $21million and PFS is $71million.

That means debt financed development is very doable, though there is still a big chunk of equity needed. JV makes sense, SRZ shareholders get a 50% free carry via JV and debt

In 2009 to 2011 tin rallied from US11,000 to 30,000 over 2 years. Tin stocks went nuts.



It is for this reason that I believe that a sustained tin price rally may produce exceptional returns using a JV model. That would imply SRZ value closer to $100million rather than $10million, or say 15c a share after further dilution.

Lets see!