MLX, VMS: Two ASX stocks operating in tin space

Highlights

• Tin holds a vast potential for transforming our modern world.
• Tin finds its use in almost all products and processes of daily use.
• ASX-listed companies are advancing their tin-focused projects.

Tin, which helped our ancestors’ transition from the stone age to the bronze age, is also assisting us today in making a greener and cleaner world. The silvery-white metal has high malleability and corrosion-resistant properties. Its low toxicity and corrosion-resistant nature are responsible for producing tinplate, manufactured by coating tin on steel sheets.

Tinplate's lustre, along with low toxicity and resistance to corrosion, makes it a suitable compound for carrying food, beverages, and non-food items; hence, it is majorly used in manufacturing "tin cans".

Tin’s low melting point makes it very suitable for producing alloys, such as bronze: an alloy of copper and tin. Bronze was one of the most important and used materials by our ancestors and was even a deciding factor in their transformation from early man to modern man.  

Also read: Five ASX tin shares under AU$1

Tin as a spice element:

Even today, tin has applications in various new-age technologies. The metal finds use in almost all everyday objects. The presence of tin, even in small quantities in virtually all essential objects, led to its global popularity as a “spice element”.

To justify this statement, we can take the example of a car in which, tin is present in almost all the components. Plastic in vehicles uses tin-based PVC stabilisers. Tin is used in all electronic components via solders and fuses. Tin alloy is used in cars’ lead-acid batteries; brass alloy solder is present in the radiator, wiring is made of tinned copper, fuel tank contains tin-zinc coating, and so on. This example shows the importance of tin in our daily lives.   

Tin's vast potential for transforming the modern world:

Tin, an electric vehicle metal, has been listed as a critical mineral by numerous countries around the world.

In today's time, the tin space attracts the interest of many recent research and development activities. Some of these projects are exploring tin’s potential as an additive to enhance the lithium anode's capacity and experimenting with LSSPS (lithium tin silicon phosphorus sulphur) for its use as a solid electrolyte for EV batteries.  

Laboratory experiments also find tin application in enhancing the efficiency of solar cells and solar water heaters. Scientists are also experimenting with tin's use in developing a transparent tin dioxide semiconductor. This more conductive semiconductor may be applicable in next-generation LED lights, photovoltaic solar panels, etc.

With this backdrop, we at Kalkine Media® are discussing a few ASX-listed companies that are committed to developing their tin-focused projects.

Metals X Limited (ASX:MLX): Australia’s largest tin producer, Metals X holds a portfolio of assets at various stages of development.

The company has an equity interest of 50% in one of the world’s largest operating underground tin mines (Renison tin operation) via its 50% stake in the Bluestone Mines Tasmania Joint Venture (BMTJV). Renison Tin Operation is located on the west coast of Tasmania, approximately 15km northeast of Zeehan.

Metals X shipped 4,537 tonnes of tin-in-concentrate in the FY22 ended 30 June 2022, which is 699 tonnes greater than FY21 values. Renison Tin Operation delivered a revenue of AU$228.876 million during the reported period.  

The company had AU$122.248 million in cash at June end.

MLX shares traded at AU$ 0.260 on 21 September 2022.

Venture Minerals Limited (ASX:VMS): The ASX-listed company is committed to advancing its mineral deposits in world-class locations. During the June 2022 quarter, the company commenced non-process infrastructure studies for its Mount Lindsay Tin-Tungsten Project.

Mount Lindsay is among the world’s largest undeveloped tin projects. Believed to contain 80,000 tonnes of tin metal, Mount Lindsay is also a globally significant tungsten resource with 3.2 million metric tonne units of tungsten trioxide.

The company is currently advancing the Underground Mine Feasibility Study, with outcomes expected later this year.

The company is in discussions with power providers about its access to wind and hydropower being assessed. Metallurgical testing is also underway to optimise a cost-effective, gravity-focused processing flowsheet.

The company had a strong financial footing with AU$9.4 million in cash and June end.    

VMS shares traded at AU$ 0.028 on 21 September 2022.