GBC AG: First Tin Plc | Rating: Managementinterview

Original-Research: First Tin Plc - von GBC AG

Einstufung von GBC AG zu First Tin Plc

Unternehmen: First Tin Plc
ISIN: GB00BNR45554

Anlass der Studie: Managementinterview
Empfehlung: Managementinterview
Letzte Ratingänderung:
Analyst: Matthias Greiffenberger, Julien Desrosiers

“Both projects have demonstrated robust economics at conservative tin prices.”
 
First Tin is a company dedicated to ethical, reliable, and sustainable tin development, featuring cutting-edge, low capex projects located in Germany and Australia. It is spearheaded by a team of distinguished tin experts, and is committed to establishing itself as a conflict-free tin supplier in areas of low political risk. The company's primary objective is to quickly develop high-value, low capex tin assets in Germany and Australia.  
GBC AG: Hello Mr. Buenger, you were the COO/CTO of Aurubis AG, a leading global provider of non-ferrous metals and one of the largest copper recyclers worldwide. What is your experience with tin and mining?  
Thomas Buenger: I am a base metal, copper, PGM, recycling and semiconductor industry specialist. As a former Head of Aurubis Primary Copper division, I visited and managed a lot of copper mines around the world. When Aurubis acquired Metallos Group in 2018, I integrated all the Metallos sites into the smelter network of Aurubis, therefore enabling Aurubis to become the largest tin producer.
 
GBC AG: Tin is used in all electronics. Can you tell us about the upcoming gap between demand and supply?
 
Thomas Buenger: Tin is a critical metal for a future economy focused on decarbonising and electrifying. It is a vital component of semiconductors, electric vehicles, and other renewable technologies. The International Tin Association (ITA) conducted analysis to forecast tin demand until 2030. The result of this, the was that there will be demand for an additional 100,000 t of tin annually. On the supply side there are 11 projects identified that are mature enough to enter into production until 2030 which can deliver 50,000 tonnes of tin annually, and much of this comes from countries which are experiencing conflict or which have low sustainability thresholds. This tells as that there will still be an insufficient supply of tin to meet the increased demand.
 
GBC AG: With 97% of the world tin supply comes from emerging and developing economies. Is it time for ethically and sustainably produced tin?  
Thomas Buenger: There is a significantly increased demand for an ethical and reliable tin supply to create a more sustainable world. This is driven by legislation – the tin industry is now obliged to disclose their raw material supply chain to prove provenance of tin supply. Additionally, manufacturers are under increased pressure, or are required to demonstrate their scope 1, 2 and 3 emissions, which is creating significant scrutiny over supply chains.
 
GBC AG: How important for Germany to rely on an inland source of Tin? What is the response you are having from the German industrials company?  
Thomas Buenger: There is interest in Germany to set up raw material source within Germany and Europe. The industry follows all mining projects and recently there have been several large German industrial players announcing that they have secured their raw material with long term contracts.  
GBC AG: In 2021, an Optimised Scoping Study was completed for your two main assets. Why is it important to do a Definitive Feasibility Study (DFS)?  
Thomas Buenger: The DFS provides all figures and data required for the technical realisation and the profitability calculation for the project. The DFS results provide the base and the input for the project financing.  
GBC AG: You are focusing on mature and low capex assets. What does low Capex mean in terms of money and how the mature nature of your assets impacts the timeline of your projects compared to usual junior mining companies?
 
Thomas Buenger: The competent persons report provided end of 2021 for Taronga a pre-production Capex of 76m US$ and for Tellerhäuser a Capex of 46m US$. Both projects have demonstrated robust economics at conservative tin prices. We are aiming to bring both assets into production until end of 2025/beginning 2026, making them perfectly placed to provide critical supply at a time of deficit.
 
GBC AG: For Tellerhäuser, you currently have an active Mining Licence already in place until 30 June 2070 for the extraction of mineral resources. Are there any additional permits you require before production? And when do you expect to receive them?  
Thomas Buenger: There are some further permitting steps required to construct and commission our Tellerhäuser mine. I expect that we will have all our relevant permits for this asset approved in the next 12 months.  
GBC AG: There is currently a 24,000m ongoing drilling program. What will this help you achieve? When can we start expecting results?  
Thomas Buenger: There are drilling and data mining programs ongoing at both our Taronga and Tellerhäuser assets. For Taronga I expect a resource update during Q2/2023 and for Tellerhäuser I expect a resource update during July/August 2023.
 
GBC AG: As of June 30th, 2022, you had 21.90M in cash, are you fully funded for the DFS completion for both projects?  
Thomas Buenger: First tin still has a very healthy cash position which will be sufficient to complete the DFS at our Taronga asset. As recently announced in an operational update released to the market on 13th March, drilling delays at our Tellerhäuser asset have unfortunately resulted in a delay to this DFS until 2024. However we will still be significantly advancing our Tellerhäuser asset towards completion with the available funds we have.
 
GBC AG: Can you give us an idea when do you expect an investment decision to be made for the Tellerhäuser mine project?  
Thomas Buenger: That decision will depend on the result of the DFS, in addition to the overall market conditions for tin. Notably, the project has demonstrated robust economics even at US$25,000 per tonne pricing.  
GBC AG: In the best-case scenario, when could the asset be producing its first tin concentrate?
 
Thomas Buenger: Our Tellerhäuser mine is expected to produce its first tin concentrate end 2025/beginning 2026.
 
GBC AG: We cannot emphasis enough of the importance of sustainability focus for a mining project in Germany. Can you discuss your ESG priorities and your current ESG ranking?
 
Thomas Buenger: First Tin Plc achieved a BB rating for its inaugural ESG rating by DigBee. Despite our short history, ESG has been a central focus from day one and our vision to leave no trace remains a key priority. The Digbee ESG assessment is a further demonstration of our commitment to transparent reporting of our performance and progress as we work to achieve the highest levels of ESG compliance and practice across our operations. We also plan to establish a benchmark mine for ESG conformity and minimal footprint with our Tellerhäuser project.  
GBC AG: Finally, can you share your longer-term outlook? Where will First Tin PLC be in 3 to 5 years’ time?
 
Thomas Buenger: In 3 to 5 years First Tin Plc aims to be a leading tin concentrate producer both our assets in Germany and Australia in operation and producing a total output of around 6000 tonnes of tin annually.  
GBC AG: Thomas Buenger, thank you very much for the interview.  

Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/26651.pdf

Kontakt für Rückfragen
GBC AG
Halderstrasse 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung
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Date (time) of completion: 27.03.2023, 17:15 Date (time) first distribution: 29.03.2023, 12:00

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