Elementos Limited (ASX:ELT) - Europe's Sole Tin Project Targets Critical Supply Shortage

Jul 15, 2025

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Interview with Joe David, Managing Director of Elementos Ltd.

Recording date: 10th July 2025

Elementos Limited (ASX:ELT) is positioning itself as a unique player in the critical minerals sector through its vertically integrated tin operation spanning from mine to metal production in Spain. The company's flagship Oropesa project in Andalusia has published a robust Definitive Feasibility Study demonstrating $270 million AUD NPV and 26% internal rate of return using conservative $30,000 per tonne tin pricing, well below current market levels around $33,000.

The project's compelling economics stem from a differentiated vertical integration strategy. Elementos has secured a 50% option over a Spanish tin smelter located 220 kilometers from the mine site, enabling the company to capture European tin premiums of approximately $1,000 per tonne above London Metal Exchange prices. This integration transforms typical concentrate sales receiving 92-93% payables into 98-99% recovery through smelting, effectively making European smelting operations cost-neutral while accessing premium pricing.

Managing Director Joe David emphasizes the strategic scarcity underlying the investment thesis: "The tin market is only 2% of the copper market... if you included every single tin development project that sit within listed companies on any of the exchanges worldwide, I think you can count them on two hands." This scarcity has intensified due to supply disruptions in Myanmar and reduced Chinese smelter utilization rates dropping to 50% from typical 70-80% levels.

The company has made substantial permitting progress in mining-friendly Andalusia, which generates 90% of Spain's metallic mining revenue. Elementos is approaching the public exhibition phase, a significant de-risking milestone requiring regulatory confirmation of project feasibility. The recent Metals X investment provides funding runway while multiple parties across equity, debt, and offtake spectrums have engaged in discussions, reflecting strong commercial interest in the limited global tin development pipeline.

Elementos' positioning aligns with the European Union's Critical Raw Materials Act and represents the only proposed vertically integrated primary tin operation in Europe, offering investors exposure to both structural tin supply deficits and Europe's strategic mineral security initiatives.

View Elementos' company profile: https://www.cruxinvestor.com/companies/elementos-limited