Australian tin developer Elementos (ASX: ELT) released the definitive feasibility study (DFS) for its Oropesa tin project in Spain, confirming the project's strong economics, and issued its first ore reserve report.
Located in Andalusia, the Oropesa project will make the company the first vertically integrated tin producer in Europe, from mine to metal. The feasibility study outlines an open-pit mine with an annual capacity of 1.4 million mt, expected to produce an average of 3,405 mt of tin per year over a 12-year mine life, with processing at a local smelter in Spain.
In mid-2024, Elementos reached an agreement with Spanish tin producer CRM to acquire up to 50% of the Robledallano smelter, enabling local tin smelting of Oropesa concentrates within Spain.
Earlier this year, Elementos announced a partnership with Atlantic Copper to smelt low-grade ore and scrap at Atlantic Copper's CirCular plant in Huelva, Spain, to enhance recovery rates and tin production.
The study estimates capital costs at $156 million (approximately 1.12 billion yuan), including a 10.4% contingency. The all-in sustaining cost (AISC) over the mine life is expected to average $15,000 per mt of tin metal, with a C1 cash cost of $14,440 per mt.
Under the base case scenario, assuming a tin price of $30,000 per mt, the project's post-tax net present value (NPV) is $129.8 million (approximately 930 million yuan), using an 8% discount rate, with an internal rate of return (IRR) of 24% and a payback period of 2.7 years.
Additionally, Elementos released the first ore reserve report for the Oropesa project, with reserves of 15.9 million mt, a tin grade of 0.36%, and a metal content of 57,900 mt. The reserves are based on a cut-off grade of 0.15% tin, comprising 38% proven reserves and 62% probable reserves, accounting for 81% of the project's 2023 mineral resource estimate.
Non-executive Chairman Andry Greig noted that capital costs have increased since the 2022 preliminary study, but he stated that the project is now "more clearly defined," with the new study still offering a higher NPV and a shorter payback period. Greig concluded that the company has a "robust, highly economic project."
The Oropesa project is part of the Andalusia government's "Accelerator Unit," which supports streamlined regulatory approval processes. Elementos submitted environmental and mining license applications in early April, fully aligned with the plans outlined in the definitive feasibility study.
Managing Director Joe David stated that the license applications reflect "all the feedback and understanding gained from recent interactions with key departments of the Andalusia government."
