First Tin (LSE:1SN), a tin development company with projects in Australia and Germany, said an updated definitive feasibility study for its wholly owned Taronga Tin Project in New South Wales has sharply increased the asset's value.
The study, combined with a conceptual Phase 2 mine life extension, puts the project's combined post-tax net present value at AUS$246 million using a long-term tin price of US$40,000 per tonne, up from A$98 million in the 2024 study.
At the current spot tin price of US$55,675 per tonne, the combined post-tax net present value rises to A$580 million, with a post-tax internal rate of return of 33.7%.
The Phase 1 development sits within the existing permitted pit limits, while Phase 2 would draw on recently upgraded resources and require permitting closer to the time.
Life of mine cash costs of A$24,575 per tonne of tin produced place Taronga in the lower half of the global cost curve, and the mine plan implies an EBITDA margin above 60% at spot prices with a 24-month payback. The mining strip ratio for Phase 1 has been reduced to 0.79:1, and high pressure grinding rolls have been added to the plant design to improve processing robustness.
"With the DFS update complete and environmental permitting progressing through the final stages, our priorities are now to complete project financing, advance Taronga towards construction and progress offtake arrangements", chief executive Bill Scotting said.
The company said financing and offtake discussions are well advanced, with further announcements expected in due course.
News Intelligence what this means for the company
First Tin's updated feasibility study for Taronga more than doubles the project's post-tax NPV to A$246 million at the company's long-term tin price assumption (US$40,000/t), and to A$580 million at current spot prices (US$55,675/t), with a 33.7% IRR and 24-month payback. The economics rest on a reduced strip ratio of 0.79:1 and a conceptual Phase 2 extension; the company is now focused on project financing, offtake agreements, and advancing toward construction with environmental permitting in final stages.
The valuation uplift is material relative to the prior A$98 million NPV, but hinges on tin prices remaining at or above current spot levels—a 39% drop to the long-term assumption would halve the headline value. Execution risk remains: financing and offtake arrangements are described as 'well advanced' but not yet closed, and Phase 2 permitting has not yet been sought.
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