Stellar Resources: 2014 Year In Review

As 2014 draws to a close, we reflect on the year that has passed and the broader tin market.

This year has proven to be an exciting time for Stellar Resources with several important advances for the Heemskirk Tin Project:

  • Metallurgical testing to refine and validate the processing circuit has demonstrated potential for improved recovery.
  • Diamond drilling down-plunge of the Queen Hill deposit has shown that ore-grade tin mineralisation is present at depth.
  • Work commenced on the satellite St Dizer tin prospect to determine its role in the overall project.
  • Permitting commenced with submission of a Notice of Intent to the Tasmanian Environment Protection Authority.

In addition, we won the support of a major new investor in Capetown S.A, a Luxembourg-based company with a long association with the tin industry and a desire to see Stellar take Heemskirk into production.

There are a number of tin projects in the world competing for access to a tightening tin market. BGR (German Geological Institute) has studied many of these projects and concluded that Stellar’s Heemskirk project is one of seven that are likely to be developed before 2020.

Within the global tin market, 2014 saw demand continue to recover from a low base set in 2012. However, that did not translate into higher prices as expected, due to increased supply from unreported sources in Myanmar and Indonesia. The current tin price of $20,300 per tonne is at a low point in the cycle and represents a price at which 10% of the industry is unprofitable. Supply is adjusting to the current price and should continue to adjust in 2015.

Looking forward, the common opinion from industry experts is that a gap between supply and demand will emerge and grow as depletion affects production from traditional sources. As this scenario emerges, prices are expected to rise above the US$25,000/tonne level required to encourage new production.

In 2015, Stellar Resources will continue to expand its activities around its Heemskirk Tin Project to realise its goal of becoming the second largest tin producer in Australia.

We thank you for your continued support and look forward to keeping you up to date in the New Year.


Peter Blight
Managing Director, Stellar Resources

Burmese Exports Dent Hopes for Tin Sector

The Australian’s Robin Bromby writes of the tough conditions in the tin mining sector in 2014, but outlines the opportunities for relatively low-cost investments in tin. Stellar Resources is listed as one such opportunity due to its high-grade tin resource and its Heemskirk Tin Project in Tasmania.

To read the full article, click on the link below. Please note a paywall may appear. To continue reading the article, follow the prompts.

Indonesian smelters setting their own tin price

Bloomberg reported that trade on the Indonesia Commodity and Derivatives Exchange (ICDX) was weak due to the country’s tin producers holding out for sales above the benchmark spot rate in London to try to counter a decline in prices.

Citing almost a USD$400 premium, smelter members on the ICDX were offering prices between USD$500 – USD$600 a metric ton above the contract on the London Metal Exchange.

The opinion from Peter Kettle of International Tin Research Institute (ITRI) was that Indonesian sellers were not prepared to follow the London Metal Exchange price down.

David Lennox, a resource analyst at Fat Prophets commented that the Indonesian members could be testing the market and if the reaction was positive then maybe there was some underlying strength in the market.

The Bloomberg article also said smelters don’t want to sell cheap because ore prices are very high and prefer to build up stockpiles, on expectations that the price will rise to a decent level, probably at USD$23,000 a ton.

The decision was defended by Jabin Sufianto, chairman of Association of Indonesian Tin Exporters, stating that the weak trade on the ICDX was simply because of the price.

Trade on the ICDX totalled 4,855 tons in August, 3,810 tons in July and 4,660 tons in June, exchange data show. On September 11 cargoes of the metal were sold above the London price and prior to that the last trade was on August 27, when the PB300 contract, the most active, was at $22,080 a ton. That was $398 above the LME spot price that day, Bloomberg calculations show. Inventories tracked by the LME climbed 4.4 per cent to 12,295 tons in August. The reserves dropped 1,085 tons to 10,210 tons yesterday, the lowest since May, according to LME data compiled by Bloomberg.

Implemented by the Indonesian government, the minimum price for tin contracts is decided by an exchange committee in the ICDX daily. Sales made through an auction system can’t be made below this daily rate, which is officially known as the Suggested Opening Bid.

According to BNP Paribas SA, it is reported that the global demand for tin will outstrip supplies for a fifth year in 2014. The market will have a global deficit of 13,000 tons this year and 10,000 tons in 2015.

Source Bloomberg: Tin Smelters in Indonesia Holding Out for Premiums to LME

Stellar Resources to raise $1.2 million to fund Heemskirk tin project drilling

Stellar Resources has announced its intention to fund an optimisation drilling in Tasmania by offering $1.2 million. The Indonesian Government’s ban on exports of unprocessed tin offers Stellar the opportunity to meet fast-growing demand as supplies become increasingly constrained. Capetown, an experienced operator in the tin recycling industry, has become Stellar’s largest shareholder which can be interpreted as highly beneficial for the company.

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Stellar scopes field for Heemskirk partner

Paydirt Magazine’s Mark Andrews reports on Stellar Resources’ search for an industry participant willing to assist in funding the Heemskirk tin project. It is believed to be a good time to commence the project as the tin industry is showing a steady improvement after two years of recession. Despite the changes to tin regulations in Indonesia that might impact the industry, Heemskirk stands out against peers in the field by being the highest-grade undeveloped tin deposit in Australia and is expected to move forward. Stellar sees new opportunities and room for improvement and intends to continue investing in drilling to expand current Heemskirk resources.

To read the full article, click on the link below:

Permission for reproduction received by Paydirt.

Indonesian tin shipments fall in July

The article talks about the fall in tin shipments from Indonesia due to new purity standards, which has resulted in the continuously rising tin prices. The fall has been forecasted and is considered to be the largest since January 2012. However, this is an advantageous situation for tin project developers like Stellar Resources as the demand for tin is growing. In fact, Stellar’s recent pre-feasibility study demonstrated technical and economic viability of its Heemskirk Tin project in Tasmania.

The article supports its analysis by providing a brief summary of Macquarie’s research findings that show the rise tin usage.

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Stellar Resources: Australian tin’s new number two

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.

To read the full article, click on the link below:

Nothing tinny about metal’s prospects in world market

The Age’s Peter Ker writes of new opportunities for Australian mining companies due to both external and internal factors, such as Indonesia’s changes to mining laws, growing demand for tin in Australian electronics industry, and the shortage of tin around the country.

Moreover, being a smaller sector with fewer players compared to “A-list” sections of Australian mining industry, tin mining provides every business opportunity for all tin producers. Stellar Resources is one of them, with its flagship project, Heemskirk Tin.

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