Company Announcements

 

CHAIRMAN'S STATEMENT

FOR THE PERIOD ENDED 31 DECEMBER 2025

 

 

The six months ending 31 December 2025 has been a period of significant progress for First Tin, with major milestones achieved that have materially advanced the development of our two key assets in Australia and Germany. 

 

At our Taronga asset in northern New South Wales (NSW), Australia, a key permitting milestone was reached in September 2025 with the completion and submission of the Environmental Impact Statement (EIS) to the regulators for developmental approval. 

 

Importantly, the subsequent mandatory public exhibition period for the EIS concluded in November 2025 with only four objections, allowing the project to proceed through the standard approval pathway.  This avoided the additional time and expense of a referral to the Independent Planning Commission (IPC).

 

In parallel with the permitting work, the team at Taronga has continued to progress the previously identified value-enhancement opportunities. The infill and extension drilling program was successfully completed with final assays confirming extensions to mineralisation, identifying areas of higher-grade mineralisation and potential to upgrade substantial portions of inferred resources to measured and indicated categories.  An updated Mineral Resource Estimate (MRE) is being prepared which should confirm the potential for deeper and wider pits, thereby extending the mine life and improving the project economics.

 

The drilling program also identified silver and copper mineralisation.  Intercepts have shown silver and copper as moderate-grade by-products associated with the tin mineralisation, as well as in discrete zones of high-grade, cross-cutting silver-rich mineralisation.  While Taronga remains a tin-focused project, given the recent price increases for silver and copper, we intend to undertake further technical and economic assessment on recovery of the silver and copper from the processing residues.

 

In October 2025, we published a major update to the Gottesberg, Germany MRE with the total indicated and inferred tin resources increasing from 33,000 tonnes to 90,900 tonnes.  This revised MRE takes First Tin's total tin resource base to 367,600 tonnes of contained tin, the largest undeveloped tin resource base in the OECD, which represents significant strategic value in an unstable geopolitical environment.

 

A crucial enabler for our growth is the ability to raise new finance to support our developmental programme. We were pleased to receive strong support from new and existing shareholders for our capital placement of £6.3m announced in November 2025. Most of this funding is allocated to advancing our flagship Taronga project through final permitting, and completing an update and value enhancement to our Definitive Feasibility Study (DFS).

 

The funding will also support early engineering design work for critical equipment and site works to help prepare the project for development.  The support from our shareholders underscores the confidence in our strategic direction, the value in our projects, and the promising outlook for the tin sector.

 

The management team continue to advance discussions on potential project financing options for Taronga.  The receipt of a non-binding Letter of Interest from the U.S. Export-Import Bank outlining potential financing support of up to US$120 million for the project is another  endorsement of Taronga's strategic importance to the global tin market.

 

Despite macro-economic and geopolitical uncertainties, demand for tin remains robust, driven by the global clean energy transition and the digital transformation.  Over the period under review the tin price increased from US$33,000/tonne at the start of July to over US$40,000/tonne in December 2025.  This trend continued into the new year, with the tin price peaking at US$56,500/tonne on the 29 January 2026, before falling back to ca., US$50,000/tonne in early February ahead of the Chinese new year period.

 

With the International Tin Association forecasting a growing tin supply deficit over the next decade, the need for reliable, responsibly produced tin reinforces our commitment to developing scaleable, sustainable and traceable tin supply.  Located in the stable, low political risk OECD jurisdictions of Australia and Germany, First Tin's projects are well positioned to benefit from this dynamic.   The progress over the past six months continues to show the strong potential to increase our resource base, extend life of mine and create long-term value. 

 

The programme for Calendar year 2026 is well established. At Taronga, we look forward to the completion of the value-enhancing update to the DFS, receipt of the developmental approval, and finalisation of the project financing package to allow us to move into the engineering and build phase of project development.  In Germany, we continue to work with the Mines Authority for the life of mine permit, undertake testwork on germanium and indium recoveries, and work on building out the district-scale potential of our exploration licenses. 

 

On behalf of the Board, I would like to thank our employees for their dedication and hard work, and our shareholders and stakeholders for their continued support and collaboration as we deliver our vision to be a significant global and sustainable tin supplier.

 

C Cannon Brookes
Chairman

 

 

CHIEF EXECUTIVE OFFICER'S REPORT

FOR THE PERIOD ENDED 31 DECEMBER 2025

 

In the period ending 31 December 2025, we made major steps along our developmental path bringing us materially closer to our goal of becoming a sustainable and reliable supplier of traceable tin from our assets in Australia and Germany. 

 

Tin is a critical metal for the clean energy transition, the digital transformation and AI-linked demand, yet its supply chain remains extremely vulnerable and subject to disruption. In an increasingly volatile world, traceable and verifiable tin sourced from secure locations such as First Tin's projects in Australia and Germany is a sustainable solution to the tin supply issues facing industrial consumers. 

 

First Tin now has the largest undeveloped tin resource base in the OECD.  Our primary focus continues to be on unlocking the intrinsic value within our assets by advancing permitting, optimising and enhancing project economics, and increasingly, preparing for project execution.

 

Tin, a critical metal with a tightening supply narrative

 

Tin is a critical, yet often overlooked, clean energy metal. Demand for tin is increasing as it is fundamental for modern technology - every electrical connection needs solder that is predominantly composed of tin. To the structural demand growth from the energy transition and digital transformation can be added the demand impact of increasing AI-related investments.  However, the supply chain for tin is extremely vulnerable to disruption, with a limited pipeline of advanced new projects to meet growing demand.

 

Over 90% of global tin supply comes from emerging and developing economies, prone to conflict and supply disruptions.  Supply has not grown over the past 20 years, resulting in historically low global inventories.  Australia is the only significant producer of tin in concentrate in the OECD.  The USA, Japan, Germany and South Korea, the four largest consumers of refined tin after China, have no tin mines and are reliant on imports for their advanced manufacturing sectors.  As demand growth is outstripping supply, a significant supply deficit is forecast in future years.

 

Over the reporting period we continued to see disruptions to tin supply across major producing regions.  Refined tin exports from Indonesia, the largest exporter, have shown substantial month-on-month volatility with a Government crack-down on illegal mining and licensing issues.  Regulatory changes are likely to create supply uncertainty.  Although the mining ban in Myanmar has been lifted, output has continued to be constrained following the earthquake and recent flooding.  Nevertheless, tin-in-concentrate exports to China have started to increase, but remain well below pre-ban levels.  The reduction in Chinese imports from Myanmar was offset by higher imports from the Democratic Republic of Congo following the Bisie expansion.  However, despite the peace agreement, conflict continues in the region, raising concerns for supply security.

 

Tin demand drivers remained positive over the period.  Record global semi-conductor sales for 2025 were reported, increasing 25% over 2024, with fourth quarter sales up quarter-on-quarter by 13% and year-on-year by 37%. China's solar PV installations were reportedly up 35% year-on-year in 2025 with installations picking up again in the fourth quarter.  Against a backdrop of changing legislation, global EV sales exceeded 20 million units in 2025, an increase of 20% on 2024. 

 

With supply side uncertainty and demand growth, the tin price markedly strengthened over the period, increasing from US$33,000/tonne at the start of July to reach US$40,000/tonne in early December 2025.  It then accelerated in the new year reaching a record US$56,500/tonne on the 29 January 2026, before falling back to ca., US$50,000/tonne in early February ahead of the Chinese new year period.  As our Taronga Definitive Feasibility Study (DFS) and Tellerhäuser PFS have shown, our projects are highly leveraged to increasing tin prices, so this trend is positive for future value of our resource base.

 

Demand in the short term is expected to continue to show steady growth, albeit subject to macro-economic news.  As such, supply side developments will likely drive tin prices in the short-term, reinforcing the longer term structural need for new tin supply.  We are confident that First Tin is well positioned to benefit from this opportunity to become a material tin supplier from its conflict-free and low political risk jurisdictions of Australia and Germany.

 

Unlocking value at our Taronga Asset in Australia

 

The period under review has seen major milestones achieved at Taronga.  Following  publication of the DFS in May 2024, focus has been on advancing the project through the environmental permitting process, while working to confirm the significant value enhancement opportunities identified.

 

The completion and submission in September 2025 of Taronga's Environmental Impact Study (EIS) marked the conclusion of over three years of extensive studies by numerous external specialists to address the statutory EIS assessment requirements of the Department of Planning, Housing and Infrastructure (DPHI).  These studies related to biodiversity, land and soil capability, material characterisation, assessment of impacts on air quality, noise, traffic, health, water, greenhouse gases, Aboriginal and historic heritage, agriculture, and economic value to the Commonwealth, State and local region.  Additional studies were also completed for the proposed mine camp near Glen Innes Airport, and the proposed upgrades to the Grampians Road, the main access road to the mine site.

 

The EIS is a comprehensive document that describes all the components of the Taronga Project and provides information on the environmental issues addressed in its design and assessment.  It addresses the requirements of the New South Wales Planning Secretary for Environmental Assessment Requirements (SEARs), as well as the requirements of other Government agencies, the local communities, surrounding landowners and a range of specialist consultants' assessments. 

 

The team at Taronga has engaged extensively with the local community to understand their issues and concerns and reflect these in the design of the Project.  The support of the Glen Innes Severn Council (GISC) is highlighted by the agreement to place the mine camp on GISC-owned land adjacent to the Glen Innes Airport, which is strategically located for transport and traffic management and has existing infrastructure in place.  The support of the local community and GISC is critical for the Project, and this is reflected in the outcome of the mandatory public exhibition period for the EIS, which concluded in November with only four objections.  As this is well below the threshold of 50, the project can proceed through the standard approval pathway, avoiding the additional time and expense of a referral to the Independent Planning Commission (IPC).

 

Another major milestone at Taronga was the successful completion of the infill and extension drilling programme.  The programme, which totalled 7,459 metres across 97 reverse circulation (RC) drillholes, was primarily designed to convert Inferred resources to Measured and Indicated status, as well as to test several interpreted zones of mineralisation adjacent to the proposed pits.  The assay results are very encouraging, validating our interpretation that additional mineralisation exists within and adjacent to the current pit outlines:

 

·      Extended Mineralisation: Assay results confirm the extension of mineralisation to the northeast and southwest, indicating the potential for wider, deeper pits, which would extend the mine life and improve project economics.

·      Improved Ore Conversion: Potential conversion of waste rock to ore, improving the already excellent 1:1 strip ratio and reducing mining costs.

·      Higher-Grade Mineralisation: Significant higher-grade intersections were identified within, between and outside the current pit shells. Notably, the northern extension of known mineralisation in the South Pit showed high grade intercepts over at least 150m strike and still open to the north. 

·      Potential upgrade of Inferred Resource to Measured and Indicated categories: Drilling has shown the Hillside Extended Zone (in the north of both pits) to be well mineralised and it is expected to upgrade substantial portions of the Inferred Resource to Measured and Indicated categories. Similarly, results from infill drilling in the southern part of the South Pit should allow conversion of Inferred Resources to Indicated category.  

·      New Mineralised Area:  Mineralisation confirmed in an undrilled area to the north of the North Pit (new North Zone), with some high-grade intersections, warranting further drilling.

 

The drilling program also identified silver and copper mineralisation.  Intercepts have shown silver and copper as moderate-grade by-products associated with the tin mineralisation, as well as in discrete zones of high-grade, cross-cutting silver-rich mineralisation.  Metallurgical testwork undertaken as part of the current tin processing flowsheet refinement indicates that silver and copper are partially concentrated into sulphide flotation residues generated during tin concentration, dressing and clean-up.

 

Assays from recent test work show sulphide residues averaging 137g/t silver (4.4oz/t) and 1.74% copper, derived from average head grades of 5.8g/t Ag and 0.11% Cu.  Approximately 30,000 tonnes of sulphide residues are expected to be generated annually under the current process design.  These residues are currently planned to be stored separately in the Residue Storage Facility ("RSF"), preserving the option for future retreatment to recover silver and copper, subject to further test work and economic assessment.

 

All the assay data has been provided to an independent consultant to prepare an updated Mineral Resource Estimate (MRE).  The potential upgrading of resources from Inferred to Measured and Indicated status is expected to ultimately support a longer life of mine and with tin prices currently near USD 50,000/tonne enhance the project economics.

 

Mineral Processing Testwork continued to refine the processing flowsheet with results confirming the upgrading and concentration potential of the Taronga mineralisation through our simple, low capex and low opex gravity flowsheet.  Together with the results from the drilling programme and updated MRE, this work will inform the update to the DFS that is underway.

 

With Taronga's EIS submitted, discussions have advanced on potential project financing options and in November we announced the receipt of a non-binding Letter of Interest from the U.S. Export-Import Bank (EXIM).   This indicated EXIM's capacity to consider up to US$120 million in financing for a maximum repayment term of 12 years to support Taronga's development, linked to the supply of tin concentrate to the USA.  The US currently has no domestic mine production and the project may qualify for special consideration under EXIM's China and Transformational Exports Program (CTEP), aimed at strengthening US supply chain resilience in critical minerals. 

 

Growing our Resource Base in Germany

 

Similarly to Taronga, our German assets represent another large-scale tin resource, located in the historic tin district of Saxony in Germany, and also benefiting from existing infrastructure that reduces risk and anticipated capital expenditure. 

 

Following the successful and low cost use of historic drilling data that enabled an increase to the Tellerhäuser MRE, the team commenced a similar review of historic drilling data, supplemented with more recent exploration mapping and sampling, for the Gottesberg deposit.  In October, we published an updated MRE for Gottesberg with a significant increase in the resource base under the 2012 JORC Code & Guidelines.

 

Based on revised economic considerations, including the increased tin price, and an improved geological understanding of the mineralisation that suggests the mineralisation is more robust at lower cut-off grades, the cut-off has been reduced from 0.35% Sn to 0.15% Sn.  This resulted in the total Indicated and Inferred Resource base increasing from the previously reported 33,000t tin to 90,900t tin with average grade decreasing from 0.49% Sn to 0.25% Sn.  This revised resource is more in line with previously reported historical resource estimates, with wireframes now being more geologically constrained rather than grade constrained.

 

The revised estimate takes First Tin's total tin resource base to 367,600 tonnes tin, the largest undeveloped tin resource base in the OECD and one of the largest undeveloped tin resource bases globally.

 

While there was insufficient assay data to quantify associated elements into resources status, Exploration Targets have been estimated for copper, tungsten, bismuth, arsenic, silver and gallium.  The presence of these critical raw materials, which are essential for various industries, including electronics, defence, batteries, robotics, EV's and green energy technologies, further enhances the strategic importance of our German assets

 

Finance Review

 

In December, the Group announced the successful equity fundraising of £6.3 million (before expenses) by way of a subscription for 90,000,000 new ordinary shares of £0.001 each in the capital of the Company at a price of 7 pence per ordinary share.  This fundraising marks another important milestone for First Tin as we continue to advance our strategy of developing high-quality, low-capex tin projects in stable jurisdictions. The majority of the proceeds are to be allocated to Taronga to accelerate critical early works, including preparatory groundworks, infrastructure upgrades, and support the completion of our updated DFS, while also supporting progress at our German assets.

 

For the 6 months to 31 December 2025, the Group reported a  loss after tax of £0.71m (period ended 31 December 2024: £0.91m) and a net asset value of £50.27m (period ended 30 June 2025: £44.31m).

 

At 31 December 2025 the Group had cash balances of £9.03m (period ended 30 June 2025: £6.37m).

 

Outlook

 

Following the successful capital raise we are in a strong financial position to deliver our planned developmental and value enhancement programme. 

 

Our focus over the next 6 months is on:

 

·      Finalisation of our response to submissions to the DPHI for Taronga's permitting.

·      Optimisation and enhancement of the value of the Taronga DFS from:

o  Completion of the mineral testwork programme and refinements to the processing flowsheet.

o  Completion of an updated MRE confirming the potential for an increased life of mine.

·      Progress detailed engineering design for the proposed mine camp and Taronga's mine water management system.

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

·      Progressing Mining Authority approval for Tellerhäuser.

·      Field work around our exploration licenses in both Australia and Germany.