Elementos Ltd Obtains Buy Rating and Price Target of AU$0.62 from Petra Capital, Backed by Oropesa’s Tin Project

Elementos Ltd (ASX:ELT, OTC:ELTLF) has been given a “buy” rating with a share price target of $0.62 from Petra Capital, backed by its 100% owned Oropesa tin project % in Spain’s Andalusian province, which the research firm has described as a world-class tin asset.

Petra’s recommendation is based on Oropesa’s open pit resources of 18.9 million tonnes at 0.40% tin and access to key infrastructure, making the project a simple, low cost source. expensive and significant source of tin concentrate on the main European markets.

Located in a prime mining region, home to several operations including MATSA (SFR), Cobre Las Crusas (First Quantum) and Rio Tinto (Atalya Mining), Andalucia is mining-friendly and recently designated Oropesa as a “Major Crown Project”, which means that the mining and environmental licensing process is expedited.

With first production scheduled for 2025, Oropesa will enter service in a market where tin prices are high, due to a growing supply shortfall.

Trading at a current share price of A$0.33, Elementos has a significant advantage over Petra’s price target, which is backed by 1xP/NPV on Oropesa using a tin price US$30,000 per ton.

Here is an excerpt from the research report:

Oropesa: a world-class tin asset

  • Oropesa hosts a resource of 18.9 million tonnes at 0.40% tin containing 75,400 tonnes of tin; 88% of the resource is in the measured and indicated category with a higher level of confidence.
  • Close to key infrastructure including highways, ports, water and electricity, as well as a skilled mining workforce.
  • The March 2022 optimization study confirmed a mine life of 13 years producing 3,350 tonnes of tin in concentrate per annum, with an after-tax NPV of AUD 198 million, an IRR of 38% and an estimated payback period of 2.5 years, based on the $32,500 per tonne tin price.

Tin is essential for the green transition and the technological revolution

  • MIT Research says tin is the #1 metal most impacted by new technologies, used in robotics, computing, electric vehicle energy storage and renewable energy.
  • World consumption is modest at 360,000 tonnes per year. Elemental’s Oropesa will supply approximately 1% of the global market.
  • 48% of pewter demand comes from soldering in electronics; Soldering is the “glue” connecting all electronics. Semiconductor demand increased by 26.3% in 2021 and is expected to increase further in 2022.
  • 75% of tin production comes from non-classified 1 countries and non-OECD members. Reserves are dwindling and inventories represent just one week of global demand.
  • Market deficit increasing to 20% of demand by 2030 (70,000 tons).

Upcoming key dates

  • 1H 2023 – definitive feasibility study (DFS).
  • Mid-2023 – Environmental and project approvals.
  • 2025 – First pewter production.

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