Company Announcements

31 October 2024

First Tin PLC

("First Tin" or "the Company")

Final Audited Results, Notice of AGM and Retail Investor Webinar

First Tin PLC, a tin development company with advanced, low capex projects in Australia and Germany, today publishes its audited final results for the 18 months ended 30 June 2024.

The Company also announces that its Annual General Meeting will be held at 47/48 Piccadilly, London, W1J 0DT at 12.00pm on Friday 6 December 2024.

Bill Scotting, CEO and Tony Truelove, Technical Director, will provide a live investor presentation relating to its final results for the 18 months ended 30 June 2024 via the Investor Meet Company platform on 7 November 2024 at 10:00am.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9:00am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and click "Add to Meet" First Tin via:

https://www.investormeetcompany.com/first-tin-plc/register-investor

Enquiries:

Notes to Editors

First Tin PLC is an ethical, reliable, and sustainable tin production company led by a team of renowned tin specialists. The Company is focused on becoming a tin supplier in conflict-free, low political risk jurisdictions through the rapid development of high value, low capex tin assets in Germany and Australia, which have been de-risked significantly, with extensive work undertaken to date.

Tin is a critical metal, vital in any plan to decarbonise and electrify the world, yet Europe has very little supply. Rising demand, together with shortages, is expected to lead tin to experience sustained deficit markets for the foreseeable future.

First Tin's goal is to use best-in-class environmental standards to bring two tin mines into production in three years, providing provenance of supply to support the current global clean energy and technological revolutions.

CHAIRMAN'S STATEMENT

FOR THE PERIOD ENDED 30 JUNE 2024

I am pleased to report that the 18 months to 30 June 2024 has been a period of strong progress with significant milestones achieved at both our flagship assets, Taronga, in Australia, and Tellerhäuser, in Germany. We have successfully navigated the ever-changing landscape of the tin industry, resolute in our commitment to advance our projects and deliver a meaningful supply of sustainable, conflict-free tin to the market.

The period under review has been extremely busy, culminating in the publication of the Definitive Feasibility Study (DFS) for our Australian Taronga project, and the announcement of a significant increase to the JORC-compliant Mineral Resource Estimate (MRE) for Tellerhäuser.

The DFS for Taronga highlighted the attractiveness of this low capex, low risk, and high margin project, validating our investment thesis and confirming its potential as a major tin resource. As will be discussed in more detail in the CEO Report, the DFS followed substantial drilling that delivered an expanded MRE, various energy, environmental and processing studies, and metallurgical test work, all of which contribute to Taronga being low risk and competitively positioned towards the lowest quartile of the global cash cost curves.

Importantly, multiple opportunities to extend the mine life and improve recoveries to enhance the overall project value have been identified and we are now focused on proving them up in the near term. Extending the life of the mine through focused infill and extension drilling to define and convert potential additional resources around the current pits is a major opportunity.This work takes advantage of recent soil sampling which indicates wide and continuous mineralisation. 

Higher recoveries from ongoing processing and metallurgical testwork is another key opportunity, and following the end of the reporting period, we were pleased to announce that subsequent mineral processing testwork has revealed improved end-to-end recovery, higher than those previously reported in the DFS. We are collecting more samples to repeat this work, which we hope will confirm these recoveries.

The permitting process continues to progress and since the period end we have received the New South Wales (NSW) Planning Secretary's Environmental Assessment Requirements (SEARs). This brings us closer to submitting Taronga's Environmental Impact Statement (EIS) and then receiving in the second half of 2025 the project's Development Approval.

For those that are new to our business, and this market, tin has a critical role in the manufacturing of electronics, renewable energy technologies, and electric vehicles, and the rise in the solar, battery, and big data industries is driving demand. During the period under review, tin prices rose to near two-year highs, peaking at over $35,000 per tonne in April 2024. This surge was fuelled by supply disruptions in major producing countries like Myanmar and Indonesia, alongside rising demand and optimism about potential interest rate cuts.

Despite tin being the best performer amongst the base metals in 2024, it has not been immune from the recent metals price volatility, with the tin price briefly dropping below US$30,000 per tonne post-period end. It is therefore pleasing to note that the Taronga DFS has confirmed the robust and potentially scalable economics of this prospective project even at a conservative base-case tin price of US$26,000 per tonne. This means that any price above this is additional upside potential on the strong IRR and pre-tax NPV8 reported in May 2024, and with demand expected to outpace supply in the short to medium term, the outlook for tin remains strong.

At our Tellerhäuser asset in Saxony, Germany, we also made substantial progress during the period with respect to permitting and preparation for its DFS. We are pleased to report that in March 2023 the Saxonian Mining Authority confirmed the asset's eligibility for a fast-track process, expediting the path to securing the necessary mining permit and that in June 2023 the documentation for the mine permit application was submitted to the authorities. In April 2024, we published an updated MRE for the project. The revised estimates, which incorporate data from historic drilling, reinforce the robustness of our Tellerhäuser resource and increase our confidence in the promising potential of this asset as we move forward with its development.

During the period, we announced the appointment of Bill Scotting as Chief Executive Officer, who officially began his role in January 2024. Bill has over 35 years of industry experience and a proven track record in the metals and mining sector and the Board is confident that under Bill's leadership, First Tin is best placed to continue making strong operational progress at both our flagship assets.

On behalf of the Board, I would like to thank Thomas Buenger for his significant contribution to First Tin since its IPO in April 2022. We wish him all the best for the future.

We were also pleased to welcome Ross Ainger to the Board as a Non-Executive Director on 6 September 2023. Ross, who has been Company Secretary since March 2022, has extensive knowledge of the business and has already proven to be of great value to the Board. Seamus Cornelius stepped down from the Board as a Non-Executive Director on 6 September 2023. On behalf of the Board, I would like to thank Mr Cornelius for his valuable contribution to First Tin since its IPO in April 2022.

Post period end, we successfully completed a strategic placing to raise £2.1 million. This capital raise has strengthened our financial position and provides us with the resources to continue adding value to our portfolio in the near term.  On 28 October 2024 we announced a placing of 133,333,334 million ordinary shares, raising £8 million; this placing remains conditional on shareholder approval at a General Meeting convened for 19 November 2024. The Company has obtained signed undertakings from shareholders representing 172,868,250 ordinary shares in the Company, equating to 54.27% of the current issued share capital, to irrevocably vote in favour of the resolutions. The strong support from both new and existing investors underscores the confidence in our strategic direction and the promising opportunities that lie ahead in the tin mining sector. We were also pleased to welcome Metals X Limited as a key strategic investor during July 2024. Metals X brings decades of tin mining and processing expertise, along with a strong balance sheet, and we look forward to working with them to advance our high margin, low capex projects for the benefit of all stakeholders.

Brett Smith, Executive Director of Metals X, and Peter Gunzburg, Chairman of Metals X, joined the First Tin board as Non-Executive Directors, while Clara Resources' Board representative Nicholas Mather stepped down as a Non-Executive Director, effective 11 July 2024.  Catherine Apthorpe and Ingo Hofmaier also stepped down as Non-Executive Directors on 30 September 2024. I would like to thank Mr. Mather, Ms Apthorpe and Mr Hofmaier for their valuable contributions to the Board during this formative period for the Company since the IPO in 2022. 

As we embark on the next phase of development at both our assets, our focus remains on completing the EIS and navigating final approval processes with regulatory authorities, optimising the DFS value, and advancing discussions around financing and off-take agreements for Taronga, while progressing permitting for Tellerhäuser.

The potential upside of our Taronga project is substantial and I am confident that it is well-positioned to be the world's next new tin mine. Our rigorous development plans aim to unlock the full value of this asset, ensuring a steady and reliable stream of high-quality sustainable tin into the market. This will not only help alleviate the current global supply deficit but also position First Tin as a key player in the tin industry for years to come.

On behalf of the Board, I extend my thanks to everyone at First Tin for their dedication and hard work, which have been instrumental in us achieving this significant progress at both our assets. I would also like to thank our shareholders who have supported us throughout the period.

C Cannon Brookes

Chairman

CHIEF EXECUTIVE OFFICER'S REPORT

FOR THE PERIOD ENDED 30 JUNE 2024

The change in our accounting reference date means that the period under review covers 18 months, from 1 January 2023 to 30 June 2024, and having joined First Tin at the start of 2024, I am pleased with the significant progress made during the period.

This has been a positive period for the Company during which our predominant focus was the delivery in May 2024 of the Definitive Feasibility Study (DFS) at our Taronga asset in Australia, which confirmed its potential as a low capex, low risk and high margin tin mine with attractive economics.  We were pleased to regularly report on the successful progression of numerous crucial workstreams, ranging from proving up the Mineral Resource Estimate (MRE) to power studies, consolidation of our exploration prospects and the recent progress on the permitting process.

Tin, an overlooked critical metal essential for the future

Before we delve into the activities during the period, first a look at the tin market. Often called the "glue in electronics," tin holds significant strategic value and is classified as a critical material in many regions due to vulnerabilities in supply chains. Tin has been used for centuries and continues to play a crucial role in today's technology, being essential in industries like electronics, printed circuit boards (PCBs), semiconductors, and renewable energy systems. As a key element in the energy transition and digital transformation, tin is witnessing increased demand, driven by advancements in areas such as electronic devices, robotics, 5G, and artificial intelligence.

Over the reporting period, we observed substantial disruptions in supply, including declining feedstock and ore quality in China, delays in obtaining licenses and operational difficulties with offshore dredging in Indonesia, and conflict-related suspensions of mining activities in Myanmar's Wa state.

Although demand was cyclically constrained in 2023, supply limitations resulted in the tin market closing the year with only a minor surplus. Entering 2024, tin has become the top performer among base metals, as supply issues coincide with a recovery in demand. Tin prices surged from US$23,000 per tonne at the end of November 2023 to over US$35,000 per tonne in April 2024, finishing the review period at US$33,200 per tonne. Post-period, some volatility occurred in line with broader market trends due to macroeconomic uncertainties, with tin briefly dipping below US$30,000 in late July 2024 before rebounding to around US$33,000 by the end of August.

As demand continues to rise, stagnant supply, operational challenges for producers, the depletion or environmental unsustainability of easily mined alluvial deposits, and declining inventories suggest a looming supply deficit. This points to the likelihood of structurally higher prices to support the development of new tin mining projects.

We remain confident that First Tin is well-positioned to capitalise on this opportunity and in line with our vision, emerge as a significant tin supplier. We intend to do this from assets located in developed, conflict-free countries that have low political risk to ensure the security of supply and confidence in the provenance of our product. This is increasingly important in a world experiencing various conflicts and that is focused on clean technologies and responsible business.

Confirming Taronga's attractive economics

The work undertaken during the period at Taronga, Australia, has underpinned our belief that this highly prospective and low-risk development asset is well-positioned to be the world's next new tin mine. We have also confirmed the asset to be highly scalable having identified multiple opportunities to create significant value upside.

The upgrade we delivered to the MRE was a positive step towards the delivery of our DFS. Having kicked off the period under review with positive results from confirmatory and extension drilling totalling 6295.7m in 59 holes since IPO, the potential to deliver a meaningful increase on the previous MRE was clear. This was validated some months later, in September 2023, when we increased the size of the Taronga resource by over 240% to 133 million tonnes, demonstrating the true scale of this strategic asset. Prepared by independent geological consultants H&S Consultants Pty Ltd in accordance with the 2012 JORC Code & Guidelines, the updated MRE was reported using a 0.05% tin (Sn) cut-off to a maximum depth of 300m below surface (650mRL).

(further details including the JORC Table 1 can be found on the Company's website.)

The previous 2014 MRE was calculated using a 0.10% Sn cut-off. The lower cut-off for the updated MRE is based on revised economic considerations including higher 3-year trailing tin prices, lower AUD:USD exchange rates and preliminary estimates of mining, processing and G&A costs.

A direct comparison with the 2014 MRE by using a 0.10% Sn cut-off is:

The comparison represents a 40% increase in total contained tin metal based on the same cut-off. The difference is primarily due to:

·     Exploration drilling by First Tin successfully extending the Mineral Resource to the southwest of the existing estimate

·     A new geological interpretation 

·     A reconfigured grade interpolation technique

The MRE announced during the period also included a Measured Resource category for the first time. This was based on the successful hole twinning drill programme conducted by First Tin which validated the Newmont drilling data alongside a more in-depth study of the Newmont QAQC data which confirmed the reliability of the historic drilling data.

Processing testwork was also a key workstream during the period and having identified that the mineralisation is easily liberated using a simple and cost-effective crushing and gravity separation processing option, it has been pleasing to show continually improved recoveries over the past 18 months. We continue to enhance these further, and post period end we were able to show plus 75% end-to-end tin recovery from a higher-grade sample, suggesting better recoveries than those previously reported and used in the DFS. Looking ahead, it is proposed to collect more samples to repeat this work and confirm these excellent recoveries and excitingly, the potential for even higher recoveries can also be seen with slight modifications to the current process plant design.  We look forward to reporting on this in due course.

The fact that the mineralogy at this asset is amenable to low-tech, and therefore low-cost, processing techniques has played an important role in the compelling economics of Taronga, as demonstrated in the DFS. Not only does it positively affect the capex, but with all-in-sustaining-costs (AISC) of US$15,843 per tonne of tin sold, Taronga sits in the lowest half, close to lowest quartile, on the global cash curve.

At a conservative base case tin price of US$26,000 per tonne, the DFS provides a pre-tax NPV8 and IRR of A$143 million and 24% respectively for an operation delivering an average annual production of 3,600 tonnes of tin in concentrate. At a tin price of US$33,097 per tonne, which was in place at the same time as the DFS was published, the pre-tax NPV8 increases to A$331 million and IRR to 42%, demonstrating the significant leverage this project has to higher tin prices.

In addition, the DFS confirmed the following based on a 5Mtpa (million tonnes per annum) throughput:

·     Pre-production CAPEX of A$176 million, including A$28 million for an on-site solar and gas power plant for behind the grid power generation

·     EBITDA margin above 50% at current tin price

·     Payback - after tax of 2.97 years at a US$26,000 per tonne price

Power trade-off studies for the DFS concluded that a combination of gas engines for base load power and night-time operations, complemented by solar panels for daytime support, emerges as the most economical and environmentally conscious power solution for Taronga. To enable this, the main three stage crusher would only operate during day-light hours. With this approach, it is estimated that 53% of the site's power demand would be generated by solar, and potentially reduce the power cost by 58% compared to grid power.  It is estimated that around 14,700 tonnes per year of CO2 emissions will be saved compared to the use of grid power.

Delivering on Taronga's substantial expansion potential

Looking to the months ahead, we have identified the potential to drive value for shareholders through a life of mine extension from 9 to 15 years. To prove this up, we will be conducting infill and extension drilling to define and convert potential additional resources including from:

·    Converting inferred resources as per pit optimisation work to enable deeper, wider pits

·    Potential parallel zones immediately NW of the current pits

·    Extensions to the NE and SW of the current pits (mineralisation not closed off)

·    Between the two pits where recent drilling has returned previously unknown mineralisation

·    Potential parallel zones to the SE of the current pits

We are also progressing with our Environmental Impact Statement (EIS), which is on track for completion early in 2025.  As such, on 5 September 2024, we announced receipt of the New South Wales (NSW) Planning Secretary's Environmental Assessment Requirements (SEARs), allowing work on the EIS to continue advancing.

On the topic of expansion, during the period, we were successful in confirming the thesis that the Taronga deposit is part of a bigger tin district.

This first came to light through the receipt of results from wide spaced drilling undertaken in August 2023 at our Tin Beetle prospect, approximately 9km from the Taronga project and one of at least six additional satellite prospects near Taronga.

Mineralisation was confirmed over the 2.3km² area tested with significant intercepts including:

·    48m @ 0.18% Sn from 2m incl. 21m @ 0.32% Sn from 2m and 3m @ 0.28% Sn from 42m

·    30m @ 0.10% Sn from surface incl. 7m @ 0.16% Sn from 21m (entire hole mineralised)

·    18m @ 0.07% Sn from 17m incl. 9m @ 0.10% Sn from 17m

·    78m @ 0.08% Sn from 7m incl. 12m @ 0.11% Sn from 7m and 12m @ 0.13% Sn from 48m

·    57m @ 0.05% Sn from 62m

·    27m @ 0.08% Sn from 76m incl. 14m @ 0.12% Sn from 77m and 5m @ 0.18% Sn from 85m

These results have underpinned our confidence that there may be potential for a hub and spoke approach, whereby the Taronga processing facility represents a hub for several potential satellite deposits, potentially enabling both increased tin production and additional extensions to the life of mine beyond that of the Taronga deposit itself. We now have at least six advanced additional prospects, Tin Beetle, Pound Flat, McDonalds, Big Plant Creek, Poverty Point and Taylors/Dalcoath which are at the target definition or drill testing/resource definition stage. We are excited to prove these up in the future and have further drilling proposed.

As a result, we are increasing our landholding and in October 2023 we were granted a large, 276.6km² Exploration License covering the majority of the Tingha Tin Field, located approximately 50km southwest of the Taronga Project. Tingha is one of three main tin fields in northern NSW and south-eastern Queensland that form the New England Tin Corridor.  Our fully owned subsidiary Taronga Mines Pty Ltd currently holds the majority of the Emmaville Tin Field under its existing tenure and following the granting of the Tingha license, it now has access to most of the known tin mineralised areas in north-eastern New South Wales.

In May 2024, we further consolidated our tenement holdings in the Taronga district by acquiring an additional licence, EL 9200, which covers the majority of the known deep lead deposits in the district. These have been the source of around half the tin historically mined in the district and represent an attractive target to supplement tin production from the Taronga hard rock deposit.  The grades in the deep leads can be significant, with historical reports of 1.5 hundredweight of cassiterite per cubic yard (approximately 3% Sn), which compares well with the average grades mined in alluvial operations of 0.02% to 0.10% Sn.  As well as the deep leads, potential exists for extensions of the Tin Beetle and Pound Flat mineralisation into this new licence area.

In summary, as well as confirming the attractive economics associated with developing the Taronga deposit as currently defined during the period, we are delighted to have confirmed the upside potential available through a range of workstreams - expansion of the resource, enhancement of the recoveries and through the development of the wider area.

As such, there is a lot to be excited about with this project, and it was pleasing to see this sentiment shared by Australia's largest tin producer, Metals X Limited ("Metals X") which became a 23% shareholder of First Tin post period end, in July 2024. Metals X brings decades of expertise in tin mining and processing, along with a strong balance sheet, which we are confident will be highly beneficial as we advance our portfolio.

Upgrading the MRE at Tellerhäuser

We have also made progress at Tellerhäuser in Germany during the period. Like Taronga, this asset is close to infrastructure and located in a developed, conflict-free economy in a historic tin district.

In April 2024, we were delighted to publish the updated MRE for this advanced asset, in accordance with the 2012 JORC Code & Guidelines. As such:

·    The total Indicated plus Inferred tin MRE at 0.20% Sn cut-off increased by 35% to 138,600t tin from the H&S Consultants Pty Ltd ("H&SC") 2019 estimate of 102,900t tin

·    The total Indicated only tin MRE at 0.20% Sn cut-off increased from the H&SC estimate by 37% from 32,700t tin to 45,000t tin

·    The additional MRE tonnage in the Indicated category, obtained by a combination of lower cut-off grade and increased data density, will enable a longer mine life to be considered in economic evaluations

The updated MRE is:

This was based on an additional 42,726 tin assays being included in the database, of which 1,164 were above the cut-off grade. Much of this was derived from our assessment of additional historic drilling data from previously inaccessible old Wismut exploration drillholes discovered in archives pertaining to the Tellerhäuser project area. The Wismut drillhole data could now be reviewed due to a change in the law (Geological Data Act). The additional identified data represents an equivalent of 1311 underground drillholes, surface drillholes, and channel samples with a total length of more than 44,900m, meaning this updated MRE was delivered at a relatively low cost to the Company.

As highlighted when we published the Tellerhäuser MRE, the cut-off has been reduced from 0.50% Sn to 0.20% Sn due to improved tin prices.  At the previously reported 0.50% cut-off grade, there is a 49% increase in Indicated and Inferred tin MRE from the previous Bara estimate 2021, which was quoted in the IPO prospectus.

Alongside the MRE work, further progress on permitting was made over the reporting period.  In March 2023 the Saxonian Mining Authority confirmed the asset's eligibility to move straight to the construction and operational permitting process, which is expected to reduce the overall permitting timeframe by a period of up to 12-18 months.  This decision was supported by the project's minimal environmental footprint anticipated throughout both the construction and production phases. Subsequently, in June 2023 the Company submitted the documentation for its mine permit application to the Saxonian Mining Authority. 

Infrastructure requirements were progressed, with an analysis and comparison of alternative transport routes from the site completed. The German Rail Infrastructure Agency (DB InfraGo AG) informed us that space has been reserved at the railway station (Grünstädtel) for our future planning. Work commenced on the baseline study for power requirements underground as well as on the surface.

Gottesberg, Germany

Progress on Gottesberg has been relatively constrained as the Company has focused on Taronga and Tellerhäuser.  It has a large resource base and excellent mineral processing characteristics and could benefit from lessons learned at Taronga. It is proposed to more closely evaluate this project over the next 12-24 months.

Outlook

We are positive about the months ahead, during which our focus is on: 

·     The completion of the EIS and permitting process for Taronga leading to receipt of Developmental Approval.

·     Optimisation and enhancement of the value of the Taronga DFS through additional metallurgical testing work and increase to the mine life from planned extension and infill drilling and conversion of inferred resources.

·     Progress permitting and undertake fieldwork to retain exploration licenses in Germany.

·     Evaluating project financing options to advance Taronga through engineering design and into construction.

With primary supply stagnating and major producers facing challenges, including diminishing reserves and operational disruptions, a supply deficit looms. This means that our assets, which are located in developed countries with strong oversight of environmental standards, are of even more strategic importance. With this in mind, we are confident with respect to the tin market and believe that our assets are well positioned for future success.

I would like to thank all our shareholders for your ongoing support of First Tin.

W A (Bill) Scotting

Chief Executive Officer