Cornish Metals pegs South Crofty tin mine value at $235M

[Redator]

Cornish Metals (TSX-V, AIM: CUSN) said on Tuesday its South Crofty tin project in Cornwall, UK, carries an after-tax net present value (NPV6) of £180 million ($235 million) and an internal rate of return of 20%.

The updated Preliminary Economic Assessment (PEA) outlines a 14-year mine life producing 49,168 tonnes of tin, with average annual output of about 4,700 tonnes between years two and six, which is equivalent to 1.6% of global mined tin. The company estimates a 3.3-year payback period, cumulative after-tax cash flow of £558 million ($750 million), and annual EBITDA of £70 million with margins above 60%.

Pre-production capital stands at £198 million with sustaining capital at £43 million. The all-in sustaining cost is pegged at about $13,400 per tonne in years two through six, placing the project in the lowest quartile globally. EBITDA is forecast at £70 million annually during the same period, with margins above 60%.

Cornish Metals has already begun site works, including shaft and pump station refurbishment, process plant site excavation, and construction of a workshop and utilities. Long-lead equipment such as production and service winders has been ordered. The company says first production is targeted for mid-2028.

The company accelerated the project following a £57 million fundraise earlier this year that brought in the UK’s National Wealth Fund and further backing from Vision Blue Resources. The review was led by Cornish Metals’ strengthened management team and supported by consultants Technical Management Group and Worley.

Chief executive Don Turvey said the PEA marked a key step for South Crofty as Cornish advances towards first tin production. “The project is already in construction and positioned to become a long-life, low-cost producer,” Turvey said.

Beyond economics

Cornish Metals highlighted the project’s role in UK supply chain security and its ESG profile. South Crofty will run on 100% renewable electricity, generate no surface tailings, and is expected to directly employ more than 300 people and create about 1,000 indirect jobs. A training centre is planned to upskill local workers.

Exploration upside remains significant, the company said. The mine’s resource is open at depth and along strike, with a near-mine exploration target of 6 to 13 million tonnes grading 0.5% to 1.8% tin. Historically, South Crofty consistently replaced mined tonnes, and Cornish Metals plans to restart underground drilling alongside construction to extend mine life.

Historical production

Cornish Metals has spent nine years advancing the restart of South Crofty, which closed in 1998 after more than four centuries of near-continuous operation. It was Europe’s last tin mine when it closed down. Attempts to revive it between 2001 and 2013 faltered under weak market conditions, leaving the asset in administration until Cornish Metals stepped in.

The new operation is projected to produce 49,310 tonnes of tin concentrate over its life, peaking above 5,000 tonnes in year four. The company already holds an underground mining licence valid until 2071 and an environmental permit to dewater the mine.