Cornish Metals shares were firmly higher on Wednesday after the tin miner announced a solid economic assessment of its South Crofty tin mine in Cornwall.
Cornish Metals has reported a positive independent Preliminary Economic Assessment (PEA) for its South Crofty tin project confirming the project’s economic viability with an impressive after-tax Net Present Value (NPV) of US$201 million and an Internal Rate of Return (IRR) of 29.8%.
The South Crofty project is poised to become a low-cost and long-life tin mining operation with a current 14-year life of mine. It is expected to produce a high-grade, clean tin concentrate, positioning it as a significant tin producer in Europe. This is particularly promising given the growing demand for tin, a critical metal essential for the energy transition. Tin is also widely used in electronics.
Project economics highlights:
- US$201 million after-tax NPV8% and 29.8% IRR at base case tin price of US$31,000 /tonne
- US$235 million after-tax NPV8% and 32.8% IRR at the current US$32,625 /tonne LME tin price
- Capital payback period of 3 years after-tax
- Total after-tax cash flow of approximately US$626 million from start of production, peaking at US$82 million in the second year of production
- Average annual earnings before interest, taxes, depreciation and amortisation (“EBITDA”) of US$83 million and 62.1% EBITDA margin in years 2 through 6
Cornish Metals shares were 15% higher at the time of writing.
“Congratulations to Cornish Metals’ technical team on completion of this Preliminary Economic Assessment of the South Crofty tin project,” said Ken Armstrong, Interim CEO and Director of Cornish Metals.
“This PEA is an important milestone for Cornish Metals and our goal of bringing responsible tin mining back to Cornwall and the United Kingdom. South Crofty is a strategic asset as tin is recognised as a critical metal by the United Kingdom and other national governments, while there is currently no primary tin production in Europe or North America.”
