Elementos submits key regulatory documents to advance the Oropesa Tin Project

Thu 07 Apr 22, 10:29am (AEDT)
Elementos documents
Source: Elementos

Key Points

  • Elementos has submitted key regulatory documents to progress its Oropesa Tin Project
  • The assessment timeframe is expected to be approximately 15-18 months
  • Oropesa was recently nominated to the Project Accelerator Unit, which could expedite the approval timeline

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.

Elementos Project Timeline
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 price chart
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.

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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