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.

Regards,

Peter Blight
Managing Director, Stellar Resources