The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
"But if tin goes to $40,000 or $50,000, then suddenly Afritin becomes a multi-bagger winner. "
Tin prices have moved $2000 pt towards the lower price mentioned above.....since the article was written 10 days ago....
This will be interesting....
"The market will be updated on the optimisation results confirming the successful extraction of these rare earths from the +/- 38 million tonnes of gypsum contained in the two residue stacks at Phalaborwa once available."
With tin prices reaching new record highs today...will ATM get a re rating soon?
https://uk.investing.com/commodities/tin-streaming-chart
Why did Hummingbird sell out their 105 stake last month?
Who bought it?
Moneyweek today....our friend Dominic Frisby...
The commodities bull market that began in spring 2020 may be over – or just consolidating, depending on your point of view.
But there is one metal for which the only way is up, as the song goes. And that is tin.
Energy, metals and soft commodities could all go into bear markets and lose 30% or even 50%. The US dollar index could go back above 100. Interest rates could rise. I still think tin goes higher. The shortage of supply is that pronounced.
One is Afritin (LSE: ATM), which is in the early stages of production / late stages of development, depending on if you’re a glass-full or glass-empty kind of person, with its Uis project in Namibia. I own this one as well.
Often you get more leverage in bull markets by buying high-cost producers. Let’s say a company mines a metal for £70/lb and sells the metal for £100/lb. It makes £30/lb. The price of the underlying metal goes up to £110/lb, and so the profits of the company increase by a third.
Now let’s say a company mines the metal at £90/lb. If the metal price goes to £110/lb its profits double. High-cost producers can be very rewarding in bull markets. In bear markets, however, you can get destroyed.
Afritin’s flagship Uis project is a little too dependent on the lithium and tantalum by-product to be economically viable for its tin alone at $25,000 or $30,000 a tonne. But if tin goes to $40,000 or $50,000, then suddenly Afritin becomes a multi-bagger winner.
"Despite coming under pressure last week, tin prices have recovered strongly on the back of consistent news of supply disruptions. The extended lockdown in Malaysia will see MSC unable to restart production, while Yunnan Tin's annual maintenance has begun."