Tin mine developer Tin One Mining JSC has released its Feasibility Study for the Syrymbet project in Kazakhstan. The report indicates that the mine could operate for 14 years, producing an average of 6,500 tonnes of tin-in-concentrate annually.
The new Feasibility Study (FS) updates the Pre-Feasibility Study (PFS) completed in 2016. The FS has a number of significant improvements over the PFS, including a simplified processing flow sheet, resulting in substantially improved project economics.
The Syrymbet project has a total resource of 483,000 tonnes of contained tin metal, with a reserve of 145,000 tonnes. This would be extracted over the initial 14 year mine life, which begins this year. However, most tin will be extracted in the years 4 and 5; nearly 30,000 tonnes of tin content will be mined.
The mine will also produce a copper and CaF2 product, which will help to reduce tin mining costs. Over the life of mine, operating costs total US$ 35.72 per tonne milled. On a Cash Cost basis, this puts Syrymbet in the lowest quartile of tin mines.
This schedule coincides with the forecast return on investment – the FS indicates that payback will be achieved in 4.5 years. The project has an NPV (10%) of US$ 283.2 million and an IRR of 19.2%.
Our view: Syrymbet was already one of the most advanced tin projects currently in development, with stripping work beginning last year. Now, backed with strong financials as highlighted in the Feasibility Study, it seems extremely likely that the project will begin producing tin concentrate on schedule. This will likely coincide with a return in tin demand at the end of 2020 and early 2021.