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Original-Research: First Tin Plc - von GBC AG

Einstufung von GBC AG zu First Tin Plc

Unternehmen: First Tin Plc

ISIN: GB00BNR45554

Anlass der Studie: Managementinterview

Empfehlung: Managementinterview

Letzte Ratingänderung:

Analyst: Matthias Greiffenberger, Julien Desrosiers

"Both projects have demonstrated robust economics at conservative tin

prices.

"

First Tin is a company dedicated to ethical, reliable, and sustainable tin

development, featuring cutting-edge, low capex projects located in Germany

and Australia. It is spearheaded by a team of distinguished tin experts,

and is committed to establishing itself as a conflict-free tin supplier in

areas of low political risk. The company's primary objective is to quickly

develop high-value, low capex tin assets in Germany and Australia.

GBC AG: Hello Mr. Buenger, you were the COO/CTO of Aurubis AG, a leading

global provider of non-ferrous metals and one of the largest copper

recyclers worldwide. What is your experience with tin and mining?

Thomas Buenger: I am a base metal, copper, PGM, recycling and semiconductor

industry specialist. As a former Head of Aurubis Primary Copper division, I

visited and managed a lot of copper mines around the world. When Aurubis

acquired Metallos Group in 2018, I integrated all the Metallos sites into

the smelter network of Aurubis, therefore enabling Aurubis to become the

largest tin producer.

GBC AG: Tin is used in all electronics. Can you tell us about the upcoming

gap between demand and supply?

Thomas Buenger: Tin is a critical metal for a future economy focused on

decarbonising and electrifying. It is a vital component of semiconductors,

electric vehicles, and other renewable technologies. The International Tin

Association (ITA) conducted analysis to forecast tin demand until 2030. The

result of this, the was that there will be demand for an additional 100,000

t of tin annually. On the supply side there are 11 projects identified that

are mature enough to enter into production until 2030 which can deliver

50,000 tonnes of tin annually, and much of this comes from countries which

are experiencing conflict or which have low sustainability thresholds. This

tells as that there will still be an insufficient supply of tin to meet the

increased demand.

GBC AG: With 97% of the world tin supply comes from emerging and developing

economies. Is it time for ethically and sustainably produced tin?

Thomas Buenger: There is a significantly increased demand for an ethical

and reliable tin supply to create a more sustainable world. This is driven

by legislation - the tin industry is now obliged to disclose their raw

material supply chain to prove provenance of tin supply. Additionally,

manufacturers are under increased pressure, or are required to demonstrate

their scope 1, 2 and 3 emissions, which is creating significant scrutiny

over supply chains.

GBC AG: How important for Germany to rely on an inland source of Tin? What

is the response you are having from the German industrials company?

Thomas Buenger: There is interest in Germany to set up raw material source

within Germany and Europe. The industry follows all mining projects and

recently there have been several large German industrial players announcing

that they have secured their raw material with long term contracts.

GBC AG: In 2021, an Optimised Scoping Study was completed for your two main

assets. Why is it important to do a Definitive Feasibility Study (DFS)?

Thomas Buenger: The DFS provides all figures and data required for the

technical realisation and the profitability calculation for the project.

The DFS results provide the base and the input for the project financing.

GBC AG: You are focusing on mature and low capex assets. What does low

Capex mean in terms of money and how the mature nature of your assets

impacts the timeline of your projects compared to usual junior mining

companies?

Thomas Buenger: The competent persons report provided end of 2021 for

Taronga a pre-production Capex of 76m US$ and for Tellerhäuser a Capex of

46m US$. Both projects have demonstrated robust economics at conservative

tin prices. We are aiming to bring both assets into production until end of

2025/beginning 2026, making them perfectly placed to provide critical

supply at a time of deficit.

GBC AG: For Tellerhauser, you currently have an active Mining Licence

already in place until 30 June 2070 for the extraction of mineral

resources. Are there any additional permits you require before production?

And when do you expect to receive them?

Thomas Buenger: There are some further permitting steps required to

construct and commission our Tellerhäuser mine. I expect that we will have

all our relevant permits for this asset approved in the next 12 months.

GBC AG: There is currently a 24,000m ongoing drilling program. What will

this help you achieve? When can we start expecting results?

Thomas Buenger: There are drilling and data mining programs ongoing at both

our Taronga and Tellerhäuser assets. For Taronga I expect a resource update

during Q2/2023 and for Tellerhäuser I expect a resource update during

July/August 2023.

GBC AG: As of June 30th, 2022, you had 21.90M in cash, are you fully funded

for the DFS completion for both projects?

Thomas Buenger: First tin still has a very healthy cash position which will

be sufficient to complete the DFS at our Taronga asset. As recently

announced in an operational update released to the market on 13th March,

drilling delays at our Tellerhäuser asset have unfortunately resulted in a

delay to this DFS until 2024. However we will still be significantly

advancing our Tellerhäuser asset towards completion with the available

funds we have.

GBC AG: Can you give us an idea when do you expect an investment decision

to be made for the Tellerhauser mine project?

Thomas Buenger: That decision will depend on the result of the DFS, in

addition to the overall market conditions for tin. Notably, the project has

demonstrated robust economics even at US$25,000 per tonne pricing.

GBC AG: In the best-case scenario, when could the asset be producing its

first tin concentrate?

Thomas Buenger: Our Tellerhäuser mine is expected to produce its first tin

concentrate end 2025/beginning 2026.

GBC AG: We cannot emphasis enough of the importance of sustainability focus

for a mining project in Germany. Can you discuss your ESG priorities and

your current ESG ranking?

Thomas Buenger: First Tin Plc achieved a BB rating for its inaugural ESG

rating by DigBee. Despite our short history, ESG has been a central focus

from day one and our vision to leave no trace remains a key priority. The

Digbee ESG assessment is a further demonstration of our commitment to

transparent reporting of our performance and progress as we work to achieve

the highest levels of ESG compliance and practice across our operations. We

also plan to establish a benchmark mine for ESG conformity and minimal

footprint with our Tellerhäuser project.

GBC AG: Finally, can you share your longer-term outlook? Where will First

Tin PLC be in 3 to 5 years' time?

Thomas Buenger: In 3 to 5 years First Tin Plc aims to be a leading tin

concentrate producer both our assets in Germany and Australia in operation

and producing a total output of around 6000 tonnes of tin annually.

GBC AG: Thomas Buenger, thank you very much for the interview.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/26651.pdf

Kontakt für Rückfragen

GBC AG

Halderstrasse 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:

http://www.gbc-ag.de/de/Offenlegung

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Date (time) of completion: 27.03.2023, 17:15

Date (time) first distribution: 29.03.2023, 12:00

-------------------übermittelt durch die EQS Group AG.-------------------

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.

Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung

oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

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