Stellar project lights up tin market

The May edition of Paydirt reports that despite the challenges tin producers and explorers are facing in the market, many remain bullish the sector will bounce back ‘with history suggesting a tin price recovery is on the cards’.

One explorer and developer ‘prepared for the fight’ is Stellar Resources, who article author, Mark Andrews, describes as a ‘potential rising star in the game’.

Earlier this year Stellar conducted a metallurgical optimisation study at its Heemskirk Tin project in Tasmania, which revealed better tin recoveries (up 7.4% to 79.5%) from the Severn deposit were possible, while average recoveries across all deposits improved by 4.5% to 72.8%. An increase in recoveries has also boosted production potential to 4,520t, resulting in a PFS valuation for the Heemskirk Tin Project of $160 million.

Commenting on Stellar’s credentials as Australia’s best emerging tin producer, Managing Director Peter Blight said, “There is growing interest within the tin industry itself as to where the next sustainable production is going to come from. What the industry is looking for is investible projects and I think we stack up pretty well on the list.”

The article also reports on the big focus for Stellar this year; starting a DFS at Heemskirk, with Andrews suggesting “further metallurgical improvements and resulting cost optimisations will no doubt help Stellar’s pursuit for cash”, with the company looking to secure $10 million.

Shanghai Futures Exchange plans to launch tin contract soon

The Shanghai Futures Exchange (SHFE) is set to expand, with the launch of a new tin future contract. The application has already been lodged with the China Security Regulatory Commission.

SHFE already has 12 futures contracts available for trading including copper, aluminum and steel. SHFE’s expansion into tin trading makes a great deal of sense – China is currently the world’s largest tin producer and consumer.

The tin industry in China has responded positively to the listing of SHFE’s futures contract as tin price transparency will be improved and investment demand for tin will be stimulated.

At one tonne, the tin contract lot size will be markedly smaller than other traded metals at SHFE but the contract will prospectively trade interminably once it is launched.