A recent research report by Taylor Collison, published on February 27, 2013 has upheld a ‘Speculative Buy’ recommendation for Stellar Resources.
The research reported that tin market conditions are continuing to improve, with major producers such as China imposing export limitations due to a drop in mine grades and a lack of consistent supply.
The San Rafael Mine in Peru will also wind production down over the next few years, opening up a major supply gap. Tin industry analysts believe 70,000 tonnes per annum of new supply will need to be generated to meet world demand from 2017.
Stellar’s revised Heemskirk resource released last month delineated a global resource of 6.28 million tonnes at 1.14 per cent tin, a 49 per cent increase in contained tin metal tonnes. Mineralisation has been defined down to a depth of ~500m at the Severn resource, and a scoping study completed in 2011 highlighted a robust operation at Heemskirk.
Taylor Collison nominated Stellar as “one of the very few ASX companies offering a pure exposure to the tin market” and note that Heemskirk is proving to be a significant tin deposit with exploration upside in a proven region.
Click here to read the research report.
Source: Taylor Collison