Elementos (ASX:ELT) has completed a Definitive Feasibility Study (DFS) demonstrating the technical and economic viability of its Oropesa Tin Project in Spain. The DFS outlines a 1.4 million tonnes per year open-cut mining operation, projecting an average annual production of 3,405 tonnes of tin ingot for the European market. With an estimated 12-year mine life, the all-in sustaining cost is projected at US$15,000 per tonne of tin.
Capital costs for the DFS are estimated at US$156 million, including a 10.4% contingency. Based on a London Metal Exchange (LME) reference tin price of US$30,000 per tonne, the DFS confirms a pre-tax net present value (NPV) of $270 million and an internal rate of return (IRR) of 26%, with a payback period of 2.7 years. Using the spot LME tin price of US$38,575 per tonne, the pre-tax NPV increases to $587 million, with an IRR of 42% and a payback period of 1.7 years. Elementos has also announced a maiden ore reserve estimate of 15.9 million tonnes at 0.36% tin.
Non-executive Chairman Andry Greig notes the DFS will serve as the basis for offtake agreements, financing, and a final investment decision. Elementos’ Spanish subsidiary has also submitted primary license documents to the Andalucian Administration, key to securing the environmental and mining licenses required for project construction and operation. Managing Director Joe David considers the submission a significant milestone in the project’s progression. The Oropesa Project is poised to revitalize the economy of the Guadiato Valley and Northern Cordoba region, marking it as a crucial tin development within the European Union.
