First Tin Plc · LSE:1SN
First Tin — Investor Presentation (May 2024)
32 slides from First Tin's investor presentation, May 2024
Slide 1: High Value, Advanced Tin Projects in Australia and Germany
HIGH VALUE, ADVANCED TIN PROJECTS IN AUSTRALIA AND GERMANY Introductory Presentation May 2024
Slide 2: Disclaimer
Disclaimer This document (“Presentation”) has been prepared by First Tin plc a public limited company incorporated and not immediately returning it or attending the accompanying verbal Presentation, you are deemed to represent, registered in England and Wales under company number 07931518 “Company”)
Slide 3: Key messages
Key messages Ø Structural changes driving Tin’s importance: • Strong demand growth from multiple sectors • Constrained supply in geopolitically unstable areas Ø New geo-politically secure supply is fundamental to address supply constraints and deficits. Ø First Tin offers: • The most advanced new ti
Slide 4: Structural supply deficit with higher prices for new supply
Structural supply deficit with higher prices for new supply… Tin Supply-Demand Balance Cash Cost Curve Points vs Tin Price (Refined Tin, kt) ( USD/tonne – Real 2022) 550 50000 45000 500 40000 35000 Higher prices, with fly-ups to induce 450 30000 new capacity 25000 20000 Indicative Full 400 Cost Grow
Slide 5: But thin new project pipeline meets just ca. 35% of requirement
…but thin new project pipeline meets just ca. 35% of requirement Probable New Tin Mine Project Capacity (Tin-in-Concentrate, tonnes, start year) 10000 2029 9000 8000 2024 7000 6000 2027 • Existing producers will likely just sustain output ? 5000 2027 2026 ? • Only two projects are DFS ready – Tarong
Slide 6: Why Tin?
Why Tin? TIN IS THE GLUE THAT CONNECTS ALL ELECTRONICS REFINED TIN USAGE, 2022 • Tin remains ever present in modern life, with around 50% 100% = 376,900 Tonnes used in solder. Other • Referred to as the "hidden gem" and the "glue in electronics” 8 tin connects: Cu Alloys 7 — Solar energy systems Bat
Slide 7: Why Tin? Technology and climate change driving demand
Why Tin? TECHNOLOGY AND CLIMATE CHANGE IMPACTING MULTIPLE SECTORS IS DRIVING GLOBAL TIN DEMAND Tin Demand Forecast • Solar, 40% y-on-y growth (Refined Tin Use, ‘000 tonnes) — Solar Ribbon 510 — Junction boxes (connectors) 490 — PV electronics 470 Solar • Electric Vehicles, already 15% of car sales w
Slide 8: Why Tin? Pricing starting to reflect tailwinds
Why Tin? PRICING STARTING TO REFLECT VARIOUS TAILWINDS Daily LME Cash Price YTD 2024, USD/tonne • Tin ended 2023 with lower demand and supply, $40,000 alongside low stock levels. • Tin prices have outperformed other base metals $35,000 since the start of the year. $30,000 • Tin price exceeded $35,00
Slide 9: Why now? Supply concentrated in higher geopolitical risk locations
Why now? SUPPLY HAS NOT GROWN AND IS CONCENTRATED IN HIGHER GEOPOLITICAL RISK LOCATIONS World Tin Mine Production Global Tin-in-Concentrate Production, 2021 (Tin-in-Concentrate, kt) (100% = 299kt) 350 Australia Brazil 300 Other Asia 5% 3% 250 5% China Bolivia 6% 29% 200 150 Africa 8% 100 9% Peru 50
Slide 10: Why now? Significant constraints challenge supply security
Why now? SIGNIFICANT CONSTRAINTS ALREADY CHALLENGE SUPPLY SECURITY Myanmar: • The Wa State announced a suspension of all mining operations from August 1st 2023 and has confiscated all mineral rights owned privately. • Chinese smelters dependent on Wa State tin concentrate supply have until now susta
Slide 11: First Tin - the most advanced, large-scale deposits in OECD countries
First Tin - the most advanced, large-scale deposits in OECD countries First Tin’s assets represent the 5th largest undeveloped tin reserves globally, outside Russia, Kazakhstan and the Democratic Republic of Congo. First Tin’s resource base of 309,700 tonnes of contained tin is the 4th largest undev
Slide 12: Taronga, Australia - large scale, low risk, simple mineralogy
Taronga, Australia - large scale, low risk, simple mineralogy A LOW-RISK ASSET IN A LOW-RISK JURISDICTION Freehold Land Ownership* Low Risk Open pit, low Strip Ratio Mining Low Cost Simple Mineralogy and Processing Low Cost Solar + Gas Turbine Power Low Cost, Clean Water Rights allocation received D
Slide 13: Natural advantages allow low tech, low risk, low capex, high margin
Natural advantages allow low tech, low risk, low capex, high margin… GEOLOGY MINERALOGY GEOGRAPHY TARONGA FIRST TIN INTRODUCTORY PRESENTATION | MAY 2024 12
Slide 14: With attractive economics and significant upside
…with attractive economics and significant upside Indicative Taronga Pre-Tax NPV Staircase (AUDm)* Further upside: 620 • Brownfield expansions • Fine tin flotation Convert Inferred circuit 251 259 resources as per Recovery • Higher tin price pit optimisations improvements Spot price already above US
Slide 15: High margin allows strong translation of Revenue to NPV
High margin allows strong translation of Revenue to NPV Cost and Margin Staircase USD 40,000 35,000 Spot Tin Price: US$ 33,097/t tin sold 30,000 DFS Tin Price: US$ 26,000/t 25,000 52% 20,000 Full Cost US$ 19,345/t AISC: US$ 15,843/t 15,000 C1 Cost: US$ 12,007/t 10,000 5,000 0 Mining Processing G&A G
Slide 16: Accessible ore body, low strip ratio open-pit
Accessible ore body, low strip ratio open-pit = low mining cost <A$7/t ore LOW STRIP OPEN PIT MINING (‘000 TONNES* PA) 10,000 50% 5,000 100% 50% Material Waste ROM Ore Movement Rock 0.13% Sn * Rounded numbers FIRST TIN INTRODUCTORY PRESENTATION | MAY 2024 15
Slide 17: Mineralogy allows early cassiterite liberation
Mineralogy allows early cassiterite liberation, reducing volume, scale, cost PROCESSING (‘000 TONNES* PA) Conventional Crushing** Gravity and grinding concentration Circuit*** Tin Dressing Circuit 85% Sn Recovery 70% Sn Processing Recovery 5,000 46% 100% 2,700 30 54% 53% 0.48% 0.6% 6 30 0.12% ROM Or
Slide 18: Resultant operating costs are very low
Resultant operating costs are very low… C1 Cash Cost Split 100% = AUD 556m* LOM A$/tonne A$/tonne US$/tonne Ore Tin Tin** Other Mining 6.73 8,724 5,758 Maintenance 12% External 3% Services Processing 5.28 6,853 4,523 30% Diesel 7% G&A 2.02 2,615 1,726 Electricity 11% C1 Cash 14.26 18,192 12,007 Cost
Slide 19: Positioning Taronga towards the lowest quartile of the cash cost curves
…positioning Taronga towards the lowest quartile of the cash cost curves Competitor Comparisons AISC*/tonne Tin: • Alphamin: US$13,900 2023 “lowest quartile” • Taronga: US$15,843**, DFS • Metals X: US$18,296**, 2023 Taronga Full Cost US$19,345 Cash Costs/Tonne Tin • Minsur, San Rafael: US$ 9,431, 20
Slide 20: Taronga is highly leveraged to increasing tin price
Taronga is highly leveraged to increasing tin price Pre-Tax NPV Sensitivity to Tin Price NPV 800 mAUD 700 600 Spot Price 26/4 @ USD 33,500 Tin Price 08/22 500 USD 48,650 400 300 ITA Inducement DFS Breakeven Price USD 20,510 200 USD 33,800 100 DFS @ USD 26,000 0 20 21 22 23 24 25 26 27 28 29 30 31 32
Slide 21: Upside potential identified for LOM extension to 15 years
Upside potential identified for LOM extension to 15 years Infill and extension drilling to define and convert potential additional resources including: • Convert inferred resources as per pit optimisation work to enable deeper, wider pit • Potential parallel zones immediately NW of the current pits.
Slide 22: Upside potential identified from mineral processing work
Upside potential identified from mineral processing work • Pit optimisations and subsequent detailed designs are based on the initial, far too conservative, average 54% recovery formula. • Ongoing mineral processing test work has shown a total recovery of 60.2% for a low grade sample (0.10% head gra
Slide 23: Taronga is part of a broader northern NSW tin district
Taronga is part of a broader northern NSW tin district offering longer term brownfield developmental potential Potential hub-and-spoke system FIRST TIN INTRODUCTORY PRESENTATION | MAY 2024 22
Slide 24: Tellerhäuser, Germany – a large, high grade, polymetallic resource
Tellerhäuser, Germany – a large, high grade, polymetallic resource Contained Assay Metal Category Mt (% Sn) (Tonnes) Indicated 9.97 0.45 45,000 Inferred 17.97 0.52 93,600 Total 27.93 0.5 138,600 * Resources reported in accordance with JORC 2012 guidelines (details and Table 1 on First Tin website) T
Slide 25: Updated Mineral Resource Estimate (MRE) in April 2024
Updated Mineral Resource Estimate (MRE) in April 2024 • Historic drilling data from Wismut. • Equivalent of 1311 underground drillholes, surface drillholes and channel samples • Total length of more than 44,900m. FIRST TIN INTRODUCTORY PRESENTATION | MAY 2024 24
Slide 26: Larger tin district potential around Tellerhäuser
Larger tin district potential around Tellerhäuser Recent Drilling Tellerhauser Deeps - Dreiberg 1.4m @ 1.26% Sn 1.0m @ 2.02% Sn 1.35m @ 1.49% Sn Gottesberg 73.3m @ 0.49% Sn 6.95m @ 1.46% Sn FIRST TIN INTRODUCTORY PRESENTATION | MAY 2024 25
Slide 27: Investment case
Investment case COMPELLING VALUATION VERSUS GLOBAL TIN PEERS • 100% ownership of two low capex tin development projects in low-risk OECD jurisdictions with existing infrastructure, which offers greater security of supply FIRST TIN OFFERS • Quick and de-risked path to production due to established re
Slide 28: Contact
CONTACT BILL SCOTTING Chief Executive Officer Bill.scotting@firsttin.com +44 773 499 3547
Slide 29: First Tin offers sustainable supply
First Tin offers sustainable supply ASSURED PROVENANCE, TRACEABLE, ESG-COMPLIANT SUPPLY OF CRITICAL RAW MATERIAL OUR VALUES OUR VISION OUR PRIORITIES INTEGRITY A conflict-free source of tin through sustainable, • SAFETY - a core value; we aim for a fatality, • Do what is right injury and illness fre
Slide 30: Corporate overview
Corporate overview Significant shareholders over 5% Market LSE and FSX Number of Total share Ticker 1SN Stakeholders Shares % Shares in Issue 266m Clara Resources Australia Ltd 60,000,000 22.60% Market Cap (7th May 2024) £17.3m Baker Steel Resources Trust Limited 37,128,014 13.98% Cash (as at 31st D
Slide 31: Experienced management team with deep tin expertise
Experienced management team with deep tin expertise Management Advisors Bill Scotting Tony Truelove Rob Kidd Matthias Faust Ron Goodman Mark Thompson Chief Executive Officer Head Geologist and GM Operations, Taronga MD, Germany Technical Advisor Commercial Advisor Chief Technical Officer >35 years’
Slide 32: Highly experienced board
Highly experienced board MANAGEMENT & BOARD OWN c.10% OF FIRST TIN - ALIGNMENT WITH SHAREHOLDERS Bill Scotting Charles Cannon- Catherine Apthorpe Ross Ainger Ingo Hofmaier Nicholas Mather Chief Executive Officer Brookes Non-Executive Director Non-Executive Director Non-Executive Director Non-Executi