First Tin starts trading on London Stock Exchange
First Tin, a tin development company with advanced low capex projects in Germany and Australia, began trading on the London Stock Exchange at 8am today.
The ISIN of the Ordinary Shares is GB00BNR45554. Shares are currently priced around GBX29.00, with a trading volume of over 131,915 shares.
The admission follows a subscription, institutional placing and retail offer via PrimaryBid which raised in aggregate £20mn (before expenses) at a placing price of 30 pence per share.
The funds raised will be used to develop two tin projects in Germany and Australia before the end of 2025, with development studies due to be completed over the next 18 months.
The Tier 1 assets are located near good infrastructure, with established reserves and simple mineralogy creating a quick path to production. Both assets also have active mining licenses granted over them. Together they represent the fifth largest undeveloped tin reserve globally, outside Russia, Kazakhstan and the Democratic Republic of Congo.
According to recent third-party studies, the combined development CAPEX of both projects totals around US$125mn compared to a combined NPV8 for both projects (at US$40,000 tin) of around US$771mn. The post money market cap of First tin after the £20mn fundraise will be approximately £80mn.
Global demand for tin has significantly increased in recent times driven by the global clean energy and technological revolutions. Given the very low physical inventory levels currently sitting at the London and Shanghai metal exchanges coupled with significant supply challenges being faced by leading tin producing countries such as Myanmar and Indonesia, the macro outlook for the tin market remains robust.
The International Tin Association (ITA) expects tin demand to exceed 400,000tpy by 2025 driven by semiconductor demand in clean energy and new technologies, with a supply deficit expected beyond 2030.
CEO Thomas Buenger said the flotation was an exciting milestone for the company.
“First Tin is deeply committed to our mission of supplying a sustainable answer to the global supply shortage many industrial users of tin are currently facing and we very much look forward to accelerating this process with the benefit of our Admission to the Main Market," he said.
"We are now well placed to create near term value for our investors through low-capex development work to advance two assets towards production before the end of 2025.”
