Elementos submits key regulatory documents to advance the Oropesa Tin Project

Elementos (ASX: ELT) has submitted three key regulatory documents to advance the company’s flagship Oropesa Tin Project in Spain.  

The lodged documents for assessment include: 

• Exploitation (Mining) Licence

• Environmental Impact Study

• Restoration Plan

“We believe we have submitted a project which is not only sensitive and responsible with the approach it takes to mining, processing and rehabilitation but will leave environmentally sensitive areas and wildlife in the region that surrounds the project in a better position,” said Managing Director Joe David.  

Authorities have advised the assessment timeframe is approximately 15 to 18 months. The Oropesa Project was recently assigned into the Government's 'Project Accelerator Unit', which could speed up the current assessment timeframe.

Indicative Oropesa Project Timeline (Source: Elementos)

Construction of Oropesa is expected to take approximately 1.5 years.

Next steps

In parallel with the approvals process, Elementos expects to deliver Oropesa's Definitive Feasibility Study around the first-quarter of 2023.

Elementos considered Oropesa as "one of the world's largest undeveloped, open-cut mineable tin deposits". Previous studies have estimated 13 years of mining operations to deliver a total 3,350 tonnes of tin.

The company's March optimisation study reported a post-tax net present value (NPV) of $198m based on a tin price of US$32,500 a tonne. Momentum behind tin prices provides further upside to Oropesa financials, recent observations include:

• NPV of $586m based-off Marc LME tin pricing of US$42,650 a tonne

• NPV of $915m based off March Shanghai Futures pricing of US$54,000 a tonne

Tin futures (Source: TradingView)

Underappreciated tin

Tin is the metal most impacted by electrification and new green technologies, according to Rio Tinto.

Elementos recently flagged that the tin market was in its 4th consecutive year of deficit, with approximately 3 days of global demand left in LME and Shanghai Futures stockpiles.

Despite the supply tight narrative, tin remains under-the-radar for many investors. Perhaps being considered the 'humble tin can' and lack of listed tin stocks is the blame.