Like the conclusion!
AfriTin PEA plots route to major tin producer
26 April: AfriTin Mining has announced the results of the Preliminary Economic Assessment (PEA) of its Phase 2 expansion at its Uis mine. With forecast output of 9,000 tonnes tin-in-concentrate, Uis could become one of the largest tin mines in the world.
The Uis mine, located in Nambia, was historically operated between 1958 and 1991. Since acquiring the project, Afritin has begun to re-establish the mine using a two-phased approach.
Since 2019, AfriTin has operated Uis as a tin project. In this initial Phase of the redevelopment, Uis has produced some 500 tonnes of tin-in-concentrate annually. There are plans to expand the product range to include lithium and tantalum.
The success of tin production in Phase 1 has enabled Afritin to begin working on the second phase of development. Today’s PEA results represent the first step of this expansion.
The Phase 2 expansion sees Uis output rising to some 9,000 tonnes of tin-in-concentrate annually. Along with 1,000 tonnes of tantalum concentrate and 450,000 tonnes of 4% lithium petalite concentrate. Based on tin prices of US$ 40,500/tonne, the Phase 2 mine is forecast to record revenue of US$ 880 million annually and has a Net Present Value (NPV8%) of some US$ 2.1 billion.
With an initial CAPEX of US$ 440 million, Phase 2 is a significant investment. However, AfriTin forecasts a 1.5-year payback period, based on the significant aforementioned revenue. Phase 2 work is scheduled to take place between Q4 2023 – when the Phase 1 Expansion finishes – and 2026, when AfriTin aims to bring the expanded processing plant online. Further drilling is planned to expand the mineral resource, as well as further metallurgical testing to optimize by-product recovery.
Our view:
?Phase 2 expansion is an exciting step for AfriTin. Planned output of 9,000 tonnes tin-in-concentrate would place Uis amongst the largest mines globally. This additional tonnage will help to reduce the deficit between demand and production of refined tin, although the market is forecast to remain tight.
Hannam & Partners 24.7p target
AfriTin Mining (“ATM”) has released a Preliminary Economic Assessment
(“PEA”) on a potential Phase 2 expansion of its flagship Uis project in Namibia.
The study delivered a staggering US$2.1bn post-tax NPV on Phase 2, based on an
assumed 10Mtpa run-of-mine operation producing ~15ktpa of tin concentrate
alongside 450ktpa of “by-product” petalite lithium concentrate and 1ktpa of
tantalum concentrate. The PEA is by definition an early-stage study and uses
non-JORC compliant Reserve (134Mt) and Resource (206Mt) tonnage targets, as
well as applying (roughly) current spot tin and lithium prices. However, we
believe estimated capex of US$440m and opex of US$35/ROM tonne (all-in)
appear conservative relative to our forecasts, and should carry a greater level of
certainty given ATM’s experience in constructing and operating the Phase 1
project. Indeed, with the PEA showing higher estimated tin and lithium output vs
H&Pe, the US$2.10bn Phase 2 NPV exceeds the ~US$1.64bn NPV our model
would generate, if we were to apply ATM’s pricing and WACC inputs, all else
equal. This suggests upside risk to our GBp 24.7/sh target valuation, which
currently includes just US$273m in risked value for Phase 2
Worth reading this.......well researched
https://123fbf98-9dbf-4c2d-b5ae-06aab332d574.filesusr.com/ugd/c2fe35_c6e2e3b2756d433da3f128e77cd879ee.pdf
Interesting presentation by AV today........lithium could soon be the cash cow as well as tin......
Lithium use....when asked...he said ATM were in discussions with "globally prominent end users" in the battery sphere.
Who might those be??
"Lithium carbonate prices in China were at 496,500 yuan/tonne in early April, marking an 80% gain so far in 2022 amid soaring global demand and supply scarcity. Surging energy prices due to Russia’s invasion of Ukraine strengthened the appeal to transition away from fossil fuels, adding to the booming demand of electric vehicles. After rising 157% to 3.2 million units in 2021, electric vehicle sales in China are expected to cross 5 million in 2022. Also, Deloitte forecasts a 29% compound annual growth in electric vehicle sales, totalling 32% of new car sales by 2030. At the same time, reports from Mineral Benchmark Intelligence indicate that Chinese lithium inventories remain low. The difficulty for miners to find new sources or develop new technologies to source lithium from brines make producers unable to match higher demand. Lithium’s supply deficit is estimated to expand to 26,000 in 2022 and 300,000 by 2030."
Interesting that the Rare Earth ETF in USA very strong yesterday
https://twitter.com/rainbowrearths/with_replies
Will this happen to ATM too?
4 April 2022
"Atlantic Lithium Limited (AIM: ALL, OTC: ALLIF, "Atlantic Lithium" or the "Company"), the African focused lithium exploration and development company, announces the appointment of Canaccord Genuity Limited as the Company's financial advisor.
In recent months, Atlantic Lithium has received unsolicited enquiries from multiple parties interested in acquiring all or part of the Company and/or its assets. Canaccord Genuity Limited will assist in evaluating the merit of these enquiries."
What is George B referring to in the final para of Modern Mining article?
"“We have some exciting news in the pipeline and
are bolstered by the latest news from the US prov
ing the key role that rare earths will play in the future
of the global economy and in the green transition,”
says Bennett. ?
Portfolio matters
https://www.youtube.com/watch?v=95TJXJjANt4