ELEMENTOS LIMITED Noosa Mining Conference
TIN FOR AN ELECTRIC TOMORROW
ersonal use only
Investor Presentation
July 2022
Cautionary statement
onlyThe Optimisation Study (Study) referred to in this announcement has been undertaken for the purpose of assessing the technical and economic viability of developing the Oropesa Tin Project. The Study has been completed to an overall Scoping Study level of accuracy of +/- 35%. It should be
oted that some the work streams in the Study have been undertaken to a more detailed standard of evaluation and definition.
The Study is preliminary in nature, it does include 6% of Inferred Mineral Resources that are considered too speculative geologically to have the ec nomic considerations applied to them that would enable them to be categorized as Indicated or Measured Mineral Resources or Ore Reserves, and there is no certainty that the Study outcomes will be realised during operations or further studies. Mineral Resources are not Ore Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into an Ore Reserves estimate.
useWhile the estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues, the Company is not aware of any such issues. The quantity and grade of reported Inferred Resources are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.
The Study outcomes, Production Target and forecast financial information are based on information that are considered to be at Scoping Study level. The information applied in the Study is insufficient to support the estimation of Ore Reserves. While each of the modifying factors was considered and applied, there is no certainty of eventual conversion to Ore Reserves or that the Production Target will be realised. Further exploration work and evaluation studies are required before Elementos will be in a position to estimate any Ore Reserves or provide any assurance of an economic development case.
Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the Study. The Study is based on ersonalthe Measured, Indicated and Inferred Mineral Resources Estimate compiled and reviewed by Mr Chris Grove (Announced to the ASX on the 8th
November 2021), who is a Member of the Australasian Institute of Mining and Metallurgy and is a Principal Geologist employed by Measured Group Pty Ltd. Mr Chris Grove has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the
ctivity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Mineral Resources. Mr Chris Grove consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Elementos is not aware of any new information or data that materially affects the information included in that release. All material assumptions and technical parameters underpinning the estimates in that ASX release continue to apply and have not materially changed.
Of the Mineral Resources scheduled for extraction in the Study mine production plan, approximately 21% are classified as Measured, 67% as Indicated and 6% as Inferred, with 6% Unclassified (0% grade - dilution). There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the pr duction target itself will be realised. Inferred Resources do not contribute to the production schedule in the first 6 years of operations and only 1% in the first nine years of the proposed development. The production plan includes Inferred Resources in the latter stages of the production schedule. In the attached Scoping Study Figure-16 charts the contributions of Inferred Resources to the mining schedule.
This release contains a series of forward-looking statements. The words "expect", "potential", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties that may cause the actual results, performance or achievements to differ materially from those expressed or implied in any of the forward-looking statements in this release that are not a guarantee of future performance.
Statements in this release regarding the Elementos business or proposed business, which are not historical facts, are forward-looking statements that involve risks and uncertainties. These include Mineral Resource Estimates, metal prices, capital and operating costs, changes in project parameters as plans continue to be evaluated, the continued availability of capital, general economic, market or business conditions, and statements that describe the future plans, objectives or goals of Elementos, including words to the effect that Elementos or its management expects a stated condition or result to occur. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by Elementos, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements.
Elementos has concluded that it has a reasonable basis for providing these forward-looking statements and the forecast financial information included in this release. This includes a reasonable basis to expect that it will be able to fund the development of the Oropesa Tin Project upon successful delivery of key development milestones. The detailed reasons for these conclusions are outlined throughout this ASX release and in Appendix 1 (JORC Code 2012, Table 1. Consideration of Modifying Factors). While Elementos considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Study will be achieved. To achieve the range of outcomes indicated in the Study, pre-production funding in excess of US$86m will likely be required. There is no certainty that Elementos will be able to source that amount of funding when required. Discussions with potential funders have confirmed that a project of this scale will be able to be funded with a combination of Debt and Equity. The company is confident that the capital costs are sufficiently low that raising the required equity will be possible. The company continues to have the full support of its existing largest shareholders and is working with potential offtake partners, brokers, senior debt providers, private equity firms and traditional funders to ensure that the Company will be in a position to fund the project as needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of Elementos' shares. It is also possible that Elementos could pursue other value realisation strategies such as a sale, partial sale or joint venture of the Oropesa Tin Project. This could materially reduce Elementos' proportionate ownership of, and corresponding funding liability, for the Oropesa Tin Project.
No Ore Reserve has been declared. This ASX release has been prepared in compliance with the current JORC Code (2012) and the ASX Listing Rules. All material assumptions, including sufficient progression of all JORC modifying factors, on which the Production Target and forecast financial information are based have been included in this ASX release.
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Tin is the metal most impacted by electrification and new green technologies.
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Tin | ||
use | Lithium | |
Cobalt | ||
Silver | ||
Nickel | ||
Gold | ||
Tungsten | ||
Vanadium | ||
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Graphite
Niobium
Zinc
PGM (Pt, Pd)
Salt
electric | advanced | renewable | computers | energy | ||||||||||
vehicles | robotics | energy | & IT | storage | ||||||||||
Source: Rio Tinto | MIT
Others | Did you know? |
• Tin is a key electrical contact in electronic circuits (solder) printed circuit boards and semi-conductors. It is the electric glue connecting key components.
- Plays role in battery chemicals, battery anodes, alloys and the humble tin can (tin plate).
- Described as the 'spice metal' - critical component in small quantities.
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Tin price strength over past five years, fundamentally based on tight market.
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LME Cash Tin Price US$/tonne1 | US$25,300/t | ||||||||||||
15 July 2022 | $50K | ||||||||||||
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$30K | |||||||||||||
$40K | |||||||||||||
ersonal | $25.3K | ||||||||||||
$20K | |||||||||||||
$10K | |||||||||||||
Jul 2018 | Jul 2019 | Jul 2020 | Jul 2021 | Jul 2022 |
1Source: tradingeconomics.com
- LME tin spot prices briefly breached US$50k/t before global recession fears have pulled it back to US$25.3k/t.
- Shanghai Metals market contract price is ~US$28,200/t Tin metal (15 july2022) (Premium +US$2,900/t, +11%)
- Global tin markets remain tight and forecast to remain in supply deficit which is in juxtaposition to current market price
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Tin market in deficit
Global tin stockpiles remain close to record lows
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Visible Global Tin Stockpiles1 | |||||
London Metals Exchange (LME) | |||||
use | Shanghai Futures Exchange | ||||
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1Source: ITA (International Tin Association) Q3 Update 2021
16Kt
12Kt
8Kt
4Kt
- Tin market appears to be in 4th consecutive year of deficit
- Approximately 6,100 tonnes drawdown in 2021
- 2021 tin market deficit has led to significant stockpile drawdown
- Meaning: Significantly more metal has been purchased by end-users than the smelters have been able to provide - causing global stockpile drawdowns. (Demand > Supply)
- Global visible stockpiles at all time low
- Total LME & SHFE stockpiles at ~5,500 tonnes (June 2022)
- Approximately 5 days of global demand in warehouses
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Elementos Limited published this content on 22 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 July 2022 00:23:03 UTC.
