The Australian’s Barry Fitzgerald writes of the building interest in tin mining despite a fall in price. In fact, Macquarie Group believes the current price weakness is a good opportunity to invest longterm as the key factors behind the fall are likely to abate.
Stellar Resources is one of four pure tin plays in the market. Its Heemskirk Tin Project has great potential to develop and puts Stellar in a strong position to reap the benefits. While a number of junior companies keep experiencing losses, some players, like Redbank Copper, return to trade as investors are moving back into the mining sector.
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The Australian published an article today on Stellar Resources’ promising future as the demand for tin grows.
Resources Editor Barry Fitzgerald states that at a time when interest in metals in general has dropped, interest in tin has been building. The article predicts an increase in price performance, “given the building supply pressures surrounding the metal at a time when stocks are low.”
The article reports that Macquarie’s commodities desk believes the time for investing in tin is now, as factors behind weak stocks are abating and the “current price weakness is a good opportunity to go long”.
The article also refers to PhillipCapital’s positive report on Stellar Resources by Pieter Bruinstoop and states that, “On a comparative basis, Stellar was rated as the cheapest tin equity exposure. Given that at yesterday’s share price of 4.6c Stellar had an enterprise value of $7.6 million, it is easy to see where Bruinstroop was coming from.”
The Australian recommends that “now is the time to stuff some tin stocks in the bottom drawer,” as the tin deposits held by Stellar provide great leverage for what most believe are better days for tin, since stock is expecting a medium to long-term bounce that will make the investment worthwhile.
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Stellar Resources’ transformation from a multi-commodity explorer to a junior company in order to focus on tin exploration is well reported in Paydirt’s feature. Its now 100%-owned Heemskirk Tin Project is considered to be the highest-grade undeveloped tin projects in Australia and is likely to compete with Renison Bell in the nearest future. The article proceeds by describing last year’s exploration activities at Heemskirk, centred on resource drilling at three key deposits.
Stellar is certain that in the next five years it will help fill the gap between global demand for tin and tin production.
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