Australian tin producer Metals X (ASX: MLX) announced Q3 tin production at its Renison mine fell 17% from Q2 to 2,272 tonnes of contained tin due to processing issues.
The company, which co-owns the Bluestone Mines Tasmania Joint Venture that operates the Renison mine, said that mill throughput was constrained by weather-related downtime and equipment failures, while recovery (76% compared with 81% the previous quarter) was impacted by increased calcium levels.
The company stressed that milling issues were resolved by quarter-end and “excellent recoveries and throughput” were being achieved.
Contained tin mined increased by 8% during the quarter, supported by an 18% increase in the mining rate after reduced activity in Q2. However, this improvement was partially offset by lower average grades of 1.51% Sn. Metals X said this mining rate was still below target due to staffing issues, underground flooding, and tight drill availability.
Revenue was partially cushioned from the decrease in production due to 4% higher tin prices than in Q2, with revenue totalling A$118 million (down 13% from the previous quarter).
Cash costs increased 3% to A$53 million, leading to a 23% increase in unit cash costs to A$23,138 per tonne on the lower production. Unit AISC increased 17% to A$36,048 (approximately US$23,821) per tonne of tin produced due to the reduced output as total costs remained broadly consistent.
EBITDA fell 27% to A$49 million (approximately US$32 million).
Providing an update on the Rentails project, the company said they expect a draft Environmental Impact Statement to be completed in Q4 2025 – a key step towards achieving statutory approvals.
The company also said it had received valid acceptances for 3.11% of joint venture partner Greentech shares in issue as the company aims to increase its ownership of the Renison joint venture.
Our view: Despite setbacks in Q3, Metals X appears to be on track to achieve approximately 10,000 tonnes of tin production in 2025. The company continues to benefit from elevated tin prices and production at near-record levels for the historic mine comes at a fortuitous time for Metals X.
