Stellar Resources and the Tin Market – A year in review

It’s been quite a busy year for Stellar Resources and the tin market overall, and as 2012 comes to a close there are several activity highlights we look back on.

In January 2012 Stellar secured 100% ownership of its Heemskirk project and in March a 10,000 metre drilling programme at the site began, with drilling set to continue into 2013.

The latest drilling extended the Severn deposit mineralisation 100 metres below historical drill intersections to 550 metres below surface, and a resource increase is scheduled for second quarter 2013.

In April, Stellar conducted a site visit to the Heemskirk Tin Project for investors, media and other stakeholders. Attendees were able to view the progress we have made in our tin exploration efforts and what lies in store for 2013.

So what will the new year look like for Stellar and the tin market?

We will continue diamond drilling, having exceeded the halfway mark in our 10,000m program along with ongoing metallurgical testwork for Heemskirk.

Our processing plant design and costing is already underway and our environmental baseline work is well advanced at this stage. Also, we will begin our social impact studies.

In March 2013, plans are in place to review and upgrade the resource estimate and also to upgrade our mine design and development schedule in June.

We aim to complete the preliminary feasibility study on the Heemskirk project by mid-year with mine construction scheduled in 2014 and production in 2015.

Our next international conference will be Mines & Money Hong Kong in March 2013 where we will continue to share the tin story.

Despite facing some supply and demand challenges in 2013 the tin market mean forecast for the annual average LME cash settlement tin price in 2013 is $23,400/t and the mean forecast for the annual average China domestic tin price in 2013 is RMB 162,900 yuan/t. Both of these are higher than the average prices in the year to the end of November 2012 – $20,940/t and 157,400yuan/t respectively.

The market outlook for tin is positive with a gradual strengthening tin supply and demand expected throughout the year. As new applications for tin are developed and tin continues to be used as a replacement for lead in solder, it is expected to be a good year for tin and for Stellar.

(Source: ITRI)

Tin market moving through the right cycle

Stellar attends International Tin Research Institute (ITRI) seminar in London

Stellar Resources recently attended the International Tin Research Institute (ITRI) seminar in London, where Stellar CEO, Peter Blight, joined industry participants and tin-focused investors to hear ITRI’s latest view on the tin market outlook.

The overall outlook is positive for tin with potential growth in the use of tin as a doping agent for some structural steel and further penetration of tin solder into the lead market.

Tin is being added to improve the corrosion characteristics of steel plate used in the construction of bridges, which reduces the high costs associated with having to regularly re-paint bridges. For example, the painting of the Golden Gate Bridge is an ongoing task and a primary maintenance job as the steel needs protection from the high salt content in the air which can cause it to corrode and rust.

The increase in penetration of tin solder into the lead market has been via previously exempted areas such as medical and military uses due to tin having to establish a reliability record before it could be used in these applications. Also, China’s domestic solder market has started to lose their exemptions resulting in increased demand for tin solder.

So, as the year comes to a close, the outlook for tin is positive. In addition, a slowdown in production in Indonesia, which represents one third of the world’s tin supply, provides the opportunity for new projects to enter the industry.

The next few years appear to be the right cycle for tin with prices likely to go up. However, a caution remains to ensure that prices don’t spike and curb demand.

Click here to listen to Peter Blight’s interview with BRR following the ITRI seminar. For more information about ITRI, visit www.itri.co.uk.

Stellar shines at Mines & Money London

Stellar Resources participated in Mines & Money London 2012 last week (December 2 – 6). As Europe’s biggest mining investment and raising event, Stellar Resources took a fresh approach in sharing its tin story.

Stellar surprised visitors to the booth with a real tin man. The tin man, or solder’s ‘new man’ was a novel approach to explaining Stellar’s Heemskirk Tin Project.

Stellar Resources tin man 2

Stellar has the potential to become the second largest Australian tin producer, featuring the highest grade undeveloped tin resource in Australia, and with transport infrastructure, power and water on its doorstep.

This tin man had a heart that represented the Project, located in Tasmania, Australia.

Mines & Money bring together over 3,000 investors, financiers, brokers and senior mining executives.

For more information about Mines & Money London 2012 please visit http://www.minesandmoney.com/london/

Stellar Resources tin man 1

Tin looks to seal a place in animal healthcare

The growing use of tin in consumer products such as smartphones, iPods and lithium batteries has been well documented and awareness among consumers is growing. However, the use of tin compounds in animal healthcare has been limited to date, but is proving to be innovative and growth in this potential market looks promising.

The International Tin Research Institute (ITRI) has been following the use of tin in the development of a range of animal healthcare formulations for preventing and treating skin diseases in bovine, equine, canine and other animal sectors.

In the United States, leading animal healthcare players such as Pfizer have used tin compounds in their products to treat and heal hoof wounds and infections and to kill bacteria in foot baths for dairy cattle. Formulas used in antimicrobial applications comprise of tin fluoride and zinc sulphate.

The potential market for the use of tin in animal healthcare is difficult to assess at this point, but ITRI and others are confident that its use will expand as demand increases and its successful application continues to be noticed.

Although tin may be getting its feet wet in animal healthcare, it remains a critical new metal for many new technological breakthroughs. The challenge the industry faces is the potential supply squeeze with Peru closing its largest mine, and production in Peru and Indonesia slowing down with China flatlining.

For tin to continue to explore potential new markets and applications, production of new supplies is needed.

Sources: ITRI, FDA

cow

Recycling and Sustainability: Tin scrap not going to waste

Tin is one of the higher valued base metals and the infrastructure to reclaim tin is well-developed with recycling rates for the metal significantly high. Tin is the 51st most abundant element in the earth’s crust at about two parts per million (ppm) compared with 63 ppm copper, 94 ppm zinc and 12 ppm lead and therefore is not easy to find.

Tin waste which is generated during the production process is referred to as ‘new scrap’ and usually remains the property of the manufacturers. For example, the side trimmings built on a coil of tinplate in a steel mill would be continually redirected back into the production process without leaving the plant. Detinning works are often performed on new tinplate scrap from tin mills and can manufacturing plants and from old scrap in the form of used tin cans.

The Recycling Input Rate (RIR) for tin in 2010 was estimated to be 31.6%. This takes into account use of both secondary refined tin metal and scrap and secondary alloys. Total use of tin in secondary materials other than refined metal in 2010 amounted to about 74,000 tonnes.

The outlook for tin use over the coming years is strong, with global electronic equipment production forecast to increase to 7.5 per cent in 2014, therefore underpinning demand for solders and copper alloys. Although recycling of tin scrap is an important part of sustainability in tin mining, supply is still expected to lag behind until the gap can be filled by new tin supply projects due to come online over the next few years, including Stellar’s Heemskirk Tin Project.

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Sources: The Metal Casting, ITRI Tin Use and Recycling Survey 2011

Octa Phillip Initiates Research on Stellar

Research Initiated with a Buy Recommendation and 34cps 12 month price target
Stellar Provides investors with the opportunity to “leverage the tin price through a high grade deposit”
“Stellar has nearly 50kt of tin in JORC Resources and Octa Phillip expects that there is much more metal in SRZ tenements”

 

Please click here to download Octa Phillip’s research report.

Tin powers up conversations

Poor battery life and the need to constantly recharge mobile devices like smartphones can often be a huge pain for consumers.
However, thanks to tin, lithium ion batteries which are commonly found in today’s mobile devices can last more than three times longer. As a result this has helped meet the huge demand for better batteries used to power up mobile phones, cameras, iPads and other multimedia devices.

So how is this possible?

Graphite, which has traditionally been used for the anode, one of the two main components in a battery cell, is more often than not being replaced by tin. The metal is able to hold more lithium ions than graphite, thereby increasing the energy storage capacity of a battery cell by nearly three times.

When you charge a battery, lithium ions travel from the cathode to the anode, where the anode holds onto the lithium ions to store the energy. When you use a battery, the lithium ions then move from the anode to the cathode and let loose electrons in the process.

It may sound complicated, but in reality, it means mobile devices can be charged faster and remain switched on for longer.

So next time you’re interacting on your mobile phone, take a moment to remember the role tin has played in ensuring your device is powered up for maximum enjoyment.

iphone

Sources:
Forbes, the

Interview with ITRI tin expert Peter Kettle

Following the International Tin Research Institute’s (ITRI) Investing in Tin seminar last week, ITRI’s Peter Kettle sat down with BRR Media to offer his expertise on the outlook for the tin market and industry.
Peter discusses the current uses for tin, demand outstripping supply and his view on rising tin prices.

Please click here to view the interview.

Stellar hosts ITRI seminar in Melbourne as part of the Australian Tin Tour

Stellar Resources was delighted to welcome Peter Kettle, Manager of Statistics and Market Studies at the International Tin Research Institute (ITRI) to the RACV Club in Melbourne on Monday 17 September as part of the Australian Tin Tour.

ITRI is the UK-based international tin industry association representing two-thirds of the world’s refined metal production. Its main objective over its 80-year history has been to support tin usage.

Peter provided guests with an up-to-date overview of the outlook for the tin industry and answered many robust questions about the current state of the tin market and its many uses and applications.

The four-year CRU commodity outlook for tin is hot with a strong price outlook as demand from China and the electronics market continues to outstrip current supply.

Peter Kettle told an audience of 40, “It is an exciting time for tin, with new markets being explored and tin replacing lead as the preferred solder.”

Despite the positive outlook for tin, Peter reminded guests that continued investment and support for tin is needed to maintain production levels and fulfill demand.

Stellar Resources is part of the ITRI Explorers and Developers Group and is developing the Heemskirk Tin Project in Tasmania, part of the next generation of new mine projects.

Click here to view Peter’s presentation, and for further information about ITRI visit www.itri.co.uk.