Metals X (ASX:MLX) is increasing its investment in Elementos (ASX:ELT) to 19.98% with a $5 million injection via a private placement. This strategic move allows Metals X to further participate in developing tin projects globally, leveraging its operational expertise. Elementos will seek shareholder approval for the issuance of additional shares following the initial tranche. Metals X, already a major tin producer through its Renison Tin Operation in Tasmania, sees this investment as a way to capitalize on the increasing demand for tin, driven by the growth in solar panels, semiconductors, and electric vehicles. Following its investment, Metals X will have the right to nominate two directors to the Elementos board, signalling a closer collaboration in the future development of the company’s projects.
The investment coincides with rising tin prices, which have jumped over 82% on the London Metal Exchange (LME) since November 2022, reaching US$32,816 a tonne, driven by supply interruptions and increased demand. Elementos’ Oropesa Tin Project in Spain, outlined in a recent Definitive Feasibility Study (DFS), plans for a 1.4 million-tonne-per-year open-cut mining operation, producing 3,405 tonnes of tin per year, with an estimated 12-year mine life. The DFS projects a pre-tax net present value (NPV) of $270 million and an internal rate of return (IRR) of 26%, based on an LME tin price of US$30,000 per tonne. Elementos intends to use the capital to fund and continue the development of both the Oropesa Project and the Cleveland Tin Project in Tasmania.
