29th Oct 2024 11:07
(Alliance News) - First Tin PLC late on Monday said its loss narrowed during its most recent financial year, as it raised GBP8.0 million through a share placing.
In an announcement after the London market close on Monday, the tin development company with projects in Germany and Australia said its pretax loss for the 18 months that ended June 30 narrowed to GBP3.0 million from GBP3.2 million in calendar year 2022.
Reporting for the 18-month period follows the company's decision to change its financial year-end to June 30 from December 31, which it announced in March this year.
The narrowed loss follows a 35% increase in the mineral resource estimate at its Tellerhauser project in Germany, which was lifted to 138,000 tonnes of tin from the 2019 estimate of 102,900 tonnes of tin.
First Tin also said a definitive feasibility study at its Taronga project in Australia confirmed the mine had "excellent potential to be developed into a low capex, low risk, and high margin tin mine, with attractive economics". The study more than tripled the mineral resource estimate for the project to 138,300 tonnes of contained tin.
The company made no revenue in either reporting period.
First Tin on Monday conditionally raised around GBP8.0 million through a placing of 133 million shares at 6.00 pence each. This represents a 6.0% discount to the closing price of 6.38p per share on Friday. The majority of this funding will be allocated to the company's Taronga project in Australia, to reach its goal of growing the project's net present value to around AUD400 million, or GBP202.7 million, as well as to help the project reach its final permitting requirements.
Shares in First Tin were down 2.0% at 6.25 pence each in London on Tuesday morning. The company has a GBP19.9 million market capitalisation.
Chief Executive Officer Bill Scotting said: "We are delighted with the significant value we have added to our portfolio during the period, which has been further validated by Australia's largest tin producer [Metals X Ltd], acquiring a 23% stake in First Tin immediately post-period end. Our portfolio holds tremendous potential, especially at Taronga in Australia, which we believe is on track to become the world's next major tin mine. With several opportunities identified to scale the project, we are confident that we can significantly enhance the strong economic case we've already demonstrated.
"Tin has been designated a critical mineral in numerous jurisdictions, but with primary tin supply stagnating and major producers facing challenges, including diminishing reserves and operational disruptions, a supply deficit looms. This means that our assets, which are located in developed countries with strong oversight of environmental standards, are of even more strategic importance. With this in mind, we remain highly optimistic about the tin market and believe our portfolio is well-positioned for continued success."
By Emily Parsons, Alliance News reporter
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