Herald Sun: Smart Money is on Tin Mining, and Stellar has a better than even chance of making the jump to production

In his daily ‘In The Black’ column for the Herald Sun, John Beveridge argues that mining might not be the “flavour of the month” with investors, but within mining “lie some pockets of great interest”.

Beveridge reports that tin is attracting smart money, with the prospect of lower production out of Indonesia and greater use in solar panels, lithium ion batteries and to replace lead in solder. He writes: “Junior explorer Stellar Resources is highly leveraged to any improvement in the tin price with its high grade Heemskirk tin project in Tasmania showing potential to start production in a higher tin price environment by late 2017 or early 2018.”

To read the full article, including comment from Stellar Resources Managing Director Peter Blight, please visit: http://www.heraldsun.com.au/business/in-the-black/invion-aims-to-silence-dreaded-smokers-cough/story-fni0d787-1227275541411

Shortage of supply will strengthen tin price in coming years

At the recent Prospectors and Developers Association of Canada conference, corporate advisory firm Hallagarten & Co’s principal and mining strategist, Chris Eccleson, spoke of how tin’s muted performance in 2014 obscured the potential for price rises and robust margins in the coming years. Eccleson revealed that most commentators and market participants believed that current prices represented a trough, and concluded that “overall, we have things set up for a pretty bullish-looking scenario in tin for the next few years.”

Discussing the global tin market, Eccleson noted how Indonesia, Malaysia and China were currently closed markets, and Bolivia and Burma were attached with high political risks. He said that there had been some interest in the old Australian regions, which is positive news for developers and explorers such as Stellar Resources.

To read more about this story featured in Mining Weekly, click on the link below:

www.miningweekly.com/article/shortage-of-supply-will-stoke-tin-price-higher-in-coming-years-2015-03-09

Paydirt: A Stellar Year

In the February edition of Paydirt, Stellar Resources Managing Director Peter Blight spoke with Rhys Dickinson to reflect on the great success the company had enjoyed in 2014 and discuss why even more excitement lies ahead.

Last year Stellar announced the results of a successful three-hole drilling campaign at Queen Hill, proving that tin mineralisation potentially extended an additional 150m down plunge of Queen Hill’s existing mineral resource.

Speaking about this positive result, Blight commented: “What the latest drill hole is suggesting is that there is very good potential in that deeper zone to find more mineralisation and possibly the three deposits (Queen Hill, Severn and Motana) coming together as you go deeper down. That’s all quite encouraging.”

During the interview, the Stellar MD explained how much of Stellar’s focus this year would be on the Severn deposit’s high grade areas: “We didn’t get around to doing drilling at Severn last year, mainly because we launched into this review of geology. That’s now given us some better ideas for targeting Severn, particularly focusing on the high grade tin areas,” he said. “We are still formulating the programme at the present time but the intention is to test some of these ideas in the early part of 2015.”

Overall, Blight believes that Stellar’s good work in 2014 has it poised for production in 2017: “We think the project is very highly ranked against the other tin development proposals out there, and the key advantage is the grade of the project and the infrastructure we have around us in Tasmania.”

Tin Miner in Australia To Boost Supplies as Indonesia Cuts Sales

Bloomberg’s Chanyaporn Chanjaroen reports on Australia’s largest tin miner boosting supplies despite cuts in sales from Indonesia. The company plans to increase output by about 14 percent, despite a two-year slump in prices. ITRI‘s Peter Kettle reacted positively to the news saying, “Myanmar and Australia are really the only things that stand out in terms of supply increase.” The mine in Tasmania has produced 6,000 to 8,000 tons annually for more than 40 years. The news is encouraging for Stellar Resources as it continues to expand activities around its Heemskirk Tin Project, also located in Tasmania, to realise its goal of becoming the second largest tin producer in Australia.

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

http://www.bloomberg.com/news/2015-01-19/tin-miner-in-australia-boosts-supply-as-indonesia-limits-exports.html

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.

http://www.theaustralian.com.au/subscribe/news/1/index.html?sourceCode=TAWEB_WRE170_a&mode=premium&dest=http://www.theaustralian.com.au/business/opinion/burmese-exports-dent-investor-hopes-for-tin-sector/story-fnciihm9-1227117609683&memtype=anonymous

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.

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

http://www.proactiveinvestors.com.au/companies/news/53056/stellar-resources-to-raise-12-million-to-fund-heemskirk-tin-project-drilling-53056.html

It might be tin but it’s a Stellar opportunity

Resource Stocks’ Andrew Mole writes of Stellar Resources’ shift of focus from iron ore to tin as tin industry is where the company sees its future. Its biggest tin project, Heemskirk, contains the highest-grade tin in Australia and has an excellent exploration potential. To confirm the full potential of the project, the company will conduct a pre-feasibility study which is expected to be completed in 2013.

While Stellar is mainly focused on Tasmania and tin, it continues working on other exploration projects, including Tarcoola iron ore project in South Australia and uranium deposit next to Tarcoola.

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

http://stellar.synotivewebdesign.com/wp-content/uploads/2012/03/201203-resources-stock-article.pdf

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