The only UK listed pure-play tin mining investment opportunity with large scale and producing tin projects in Africa
I’m pleased to be releasing my first research note of 2021. I don’t produce that many research notes because it takes time to find companies that tick my investing check-list and of course it takes plenty of grunt work! You can check out the other research notes I have produced here
Afritin is one such company that ticks my boxes in that it has large scale projects with what appears to be a growing tail-wind in it’s underlying commodity, Tin. In fact Afritin is the only UK pure-play tin listed option you can find, so if things continue to hot-up on the tin front, expect it to get a lot of attention!
In fact Tin has rapidly risen back to pre-covid levels and is close to breaking out of its five year range.
The recent move appears to be driven by depleting stocks and what is a building narrative around tin’s future supply/demand dynamics. You can read more about that in the research note. Only this week we are hearing of ‘chip’ shortages – semiconductors being a large consumer of tin!
In summary, Afritin hosts one of the largest Tin mines in the world and are at a pivotal stage in their development having achieved first production in Q4 2020 with a staged Phase 1 ramp-up that should drive out further value by way of increased recoveries and processing of additional by-products tantalum and lithium. We can expect further test-work results on these shortly.
Moving onto Phase 2 the company will be targeting c.10x annual production which at today’s tin price will equate to more than $100m annual revenue.
This is really a story about tin and growth though, tin’s forward dynamics look interesting and given he scale of Afritin’s resource the growth and leveraged upside could be huge.
At just over £25m Market Cap, the company remains valued at less than some early-stage junior explorers yet is now a revenue producing company in what appears to be a ‘hot commodity’ !
You can read more in the research note here
Research materials prepared based upon my own analysis and research. Accuracy cannot be guaranteed and research notes should not be taken as investment advice. Please always do your own research.
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