Elementos’ DFS confirms strong economics for Oropesa tin project
Australian tin developer Elementos (ASX: ELT) has released a definitive feasibility study for its Oropesa tin project in Spain, confirming robust project economics and outlining a maiden ore reserve.
Located in Andalucia, the Oropesa project is set to make the company Europe’s first vertically integrated mine-to-metal tin producer. The DFS outlines a 1.4 million tonne per year open-pit mine producing an average of 3,405 tonnes of tin annually over a 12-year mine life to be toll treated at a local Spanish smelter.
In mid-2024, Elementos entered into an agreement with Spanish tin producer CRM to acquire up to 50% of the Robledallano smelter, enabling the company to domestically produce refined tin from the Oropesa concentrates.
Earlier this year, Elementos announced testwork with Atlantic Copper to upgrade recovery and tin production through smelting low-grade ore and waste at Atlantic Copper’s CirCular plant in Huelva, Spain.
The study estimates capital costs of US$156 million, including a 10.4% contingency. Average life-of-mine all-in sustaining costs (AISC) are forecast at US$15,000 per tonne of tin metal, with C1 cash costs at US$14,440 per tonne.
At a base-case tin price of US$30,000/t, the project delivers a post-tax net present value of US$129.8 million, using an 8% discount rate, with an internal rate of return (IRR) of 24%, and a payback period of 2.7 years.
Elementos also announced a maiden ore reserve of 15.9 million tonnes grading 0.36% tin, containing 57,900 tonnes of metal. The reserve is based on a cut-off grade of 0.15% Sn and comprises 38% proved and 62% probable material. It represents 81% of the project’s 2023 mineral resource estimate.
Acknowledging the capital cost of the project has increased since the 2022 Scoping Study, Non-Executive Chairman Andry Greig commented that the project is now “much better defined” and the new study still delivers improved NPV and payback. Greig concluded that the company has a “robust, economically excellent project”.
Oropesa is part of the Andalucian government’s Project Accelerator Unit, which supports streamlined regulatory approval. Elementos submitted applications for both environmental and mining licenses in early April, with plans fully aligned with those laid out in the DFS.
Managing Director Joe David said the permitting submissions reflect “all the feedback and understanding [the company has] gained from recent interactions with the key Andalucian Government departments”.
With major supply disruptions affecting the tin market in the last 18 months in Asia and Africa, highlighting supply chain insecurity, ITA is pleased to see progress towards building a more diversified supply chain. Elementos’ recent progress at Oropesa is promising as the project advances towards a final investment decision alongside permitting, placing it as one of the first new supply projects likely to come online.
