Member Info for Valuation-it-is

Troajan Friday 21.22 TUN blog
Thanks for the post on mining cycles. https://www.youtube.com/watch?v=nKM3gzMC4OY

It was revealing to hear that Mining Funds' managers are preferring explorers exposed to finding metals needed for the Electrical revolution i.e. copper/ tin/lithium rather than gold explorers as this helps their ESG credentials.
Also, that there was a preference for copper/tin/lithium mining companies over gold companies as there was little unused stock above ground for the former, whereas there is a large stock above ground for the latter.

That appears to bode well for the likes of ALK, CUSN, Cornish Lithium, SML and perhaps TUN.

Troajan Friday 21.22
Thanks for the post on mining cycles. https://www.youtube.com/watch?v=nKM3gzMC4OY

It was revealing to hear that Mining Funds' managers are preferring explorers exposed to finding metals needed for the Electrical revolution i.e. copper/ tin/lithium rather than gold explorers as this helps their ESG credentials.
Also, that there was a preference for copper/tin/lithium mining companies over gold companies as there was little unused stock above ground for the former, whereas there is a large stock above ground for the latter.

That appears to bode well for the likes of CUSN, Cornish Lithium, SML and perhaps TUN.

Troajan Friday 21.22
Thanks for the post on mining cycles. https://www.youtube.com/watch?v=nKM3gzMC4OY

It was revealing to hear that Mining Funds' managers are preferring explorers exposed to finding metals needed for the Electrical revolution i.e. copper/ tin/lithium rather than gold explorers as this helps their ESG credentials.
Also, that there was a preference for copper/tin/lithium mining companies over gold companies as there was little unused stock above ground for the former, whereas there is a large stock above ground for the latter.

That appears to bode well for the likes of CUSN, Cornish Lithium, SML and perhaps TUN.

Troajan Friday 21.22
Thanks for the post on mining cycles. https://www.youtube.com/watch?v=nKM3gzMC4OY

It was revealing to hear that Mining Funds' managers are preferring explorers exposed to finding metals needed for the Electrical revolution i.e. copper/ tin/lithium rather than gold explorers as this helps their ESG credentials.
Also, that there was a preference for copper/tin/lithium mining companies over gold companies as there was little unused stock above ground for the former, whereas there is a large stock above ground for the latter.

That appears to bode well for the likes of CUSN, Cornish Lithium, SML and perhaps TUN.

South Crofty News: Huge progress visible on the installation of the water treatment plant from the photos in Steve Kingstone's post.

The tin price has shot through $30,000 per tonne and closed yesterday at $32,262.
Clearly, if these prices hold, or are bettered, CUSN's development at South Crofty will become even more attractive and easier to finance.

Companies with high ESG credentials seem likely to be preferred and may command premium pricing. We may see Governmental action to clamp down on destructive mining or its product, which would be to the advantage of PRE, ALK etc.
The article highlights the likliehood of a global inability to produce enough of the minerals needed - not just rare earths but Copper and Lithium, and strangely not mentioned in the article, Tin, - solder for electronic circuits. The UK is fortunate to have mineral deposits especially in the South West with mines moving towards production at Hemerdon and South Crofty.

https://www.telegraph.co.uk/business/2023/01/20/green-revolution-fuelling-environmental-destruction/

Companies with high ESG credentials seem likely to be preferred and may command premium pricing.

https://www.telegraph.co.uk/business/2023/01/20/green-revolution-fuelling-environmental-destruction/

https://www.telegraph.co.uk/business/2023/01/20/green-revolution-fuelling-environmental-destruction/

We are fortunate that TUN and other miners in the UK are extremely environmentally conscious.

https://www.telegraph.co.uk/business/2023/01/20/green-revolution-fuelling-environmental-destruction/

We are fortunate that CUSN and other miners in the UK are extremely environmentally conscious.

LB Wed 23.23
Many thanks for posting. The video is a cracking and detailed review of operations and progress to a recent date. A bit like a visit to the mine for an investor. VSA / TW are doing a great job helping us understand the re-arrangements of the flow sheet and what has/will be done. It is good to have the feedback from AM/MT. What we need now is positive news from Devon Council, the Environment Agency and providers of finance - the sooner the better.

Propinquity 9.27

I was wondering about that too. I think it is because the first two trades were at 0 .3p and 0.39p near the outer limits of the spread and so triggered notification of a large percentage change.

LB 16.12
I am not sure that sharing tin processing plant would work. It is one thing to ship a few hundred tonnes of concentrate around, but ore for processing even after z ray sorting would be a huge tonnage. Without a rail link at present I would have thought that a non starter, just because truck movements are limited.
On the tungsten side, TUN were thinking of a processing plant in Plymouth in the freeport area. Clearly one of the advantages TUN offers the UK is resilience of supply, independent of China. If concentrate has to be shipped to China for processing it would nullify the advantage as well as undermining the ESG benefits/characteristics. So a plant in Plymouth has got to be a priority - profitability permitting. However fuel costs in the UK detract from the economic logic.

lovelyboy "but it seems the Tin numbers have crept up a notch. Going from memory - so need to check. "
Good morning, LB
I think, (but do not know) they may have fallen.
The recent news item states "Projects Hemerdon average annual production to be 2,900 tonnes of tungsten trioxide in concentrate and 310 tonnes of tin in concentrate."
Previously around IPO...........
VSA was estimating average tin production at 402 tonnes per annum.

Not sure if I am comparing apples with apples. One may be a concentrate tonnage the other a contained metal tonnage, but on the face of it they are the same.

Otherwise, costs /unit appear to have risen sharply despite the re-jig of production processes.
At IPO, life of mine costs were US $103 per mtu and have become "LOM C1 cash-cost of £135 per mtu of WO3" in the last RNS. One is $ the other £. So it looks as if the cost /mtu is up about 60%.

It is unsettling to think this degree of change can occur in such a short period. I am wondering if to some extent costs may return to nearer IPO levels in the future as Ukrainian inspired inflation and covid supply shortages reverse.

Given CUSN is likely to be producing significantly more tin than TUN, I wonder whether the logic of combining their efforts at some point in the processing might yield cost savings. Depends on when the tin is separated from the W03 perhaps. Any thoughts?

lovelyboy - good morning.
Agreed - it is good to have the update at last and to see the NPV figures for the new FS operations, which on the base case correspond to ten times the current market capitalisation (share price at 15.5p) and perhaps more, if W03 recoverabilities improve. So plenty of upside for the share price IF the Environment Agency/Devon Council gives the go ahead with the necessary two outstanding permits AND IF finance is arranged.
My view is that permits will be forthcoming - on grounds of both local employment resulting from a re-start and the national interest in having a domestic source of Tungsten (and therefore the UK and US not being reliant on China) both of which in my view more than offset the slight increase in environmental concerns over noise dust transport, which the company has tried hard to minimise.
Given the attractive returns forecast (IRR of 25 to 32%) financing looks highly likely to be forthcoming too.
Conclusion -Encouraging news indeed.

Good to see the price of tin jumped 4.9% yesterday to $28,756/tonne, making the SC project even more attractive.

North Flag Many thanks for the posts
There is a huge change visible compared to the last set of photos. Cracking news! Installation is going ahead rapidly it seems. Great to hear the "old legends" are helping set up the switch room base. That's why many investors or in this share - they can see it is bringing worthwhile, high quality, productive jobs back to the area. And contributing to the production of a resource to make the UK/ democratic West, more resilient. Not just a promising investment - doing a lot of good .

Up another 2.2% to $27409/tonne
https://www.lme.com/en/Metals/Non-ferrous/LME-Tin#Trading+day+summary

jamrock
A broker will put an offer in for you, inside the spread,saving you near 10%, for a commission of 2%.