Stellar Resources (SRZ) Q1 2025 TU earnings summary

Executive summary

• Updated Heemskirk Tin Scoping Study confirms robust economics, using only Indicated Resource material and updated cost estimates, supporting a 12-year mine life at 350ktpa and 22,818t tin in concentrate over LOM.

• Prefeasibility Study (PFS) underway, with a 24-hole, 9,500m diamond drilling program commenced to upgrade resources and provide technical inputs.

• Board and management strengthened with new Non-Executive Chairman and mining engineer; CEO transition completed.

Financial highlights

• Life of mine gross revenue projected at A$877M, with total operating costs (AISC) of A$489M and operating cash flow of A$389M.

• Pre-tax NPV8% of A$122M and IRR of 33% at US$28,000/t tin price; post-tax NPV8% of A$75M.

• Payback period of 3.5 years; pre-tax NPV/capex ratio of 1.7.

• Spot price scenario (US$32,000/t) increases pre-tax NPV8% to A$190M and IRR to 46%.

• Strong cash position of $11.8M at quarter end, including $8M in term deposits.

Outlook and guidance

• PFS to investigate increased mining rates, plant optimization, ore sorting, and alternative tailings management.

• Significant upside potential if Inferred Resources are upgraded and included, potentially extending mine life to 22 years.