Tin for tomorrow New sources for new applications

Peter Kettle - Manager, Markets, ITRI Ltd

ITRI Explorers & Developers Group Australian Tin Tour, September 2012

Leading companies’ 2011 production

0 10 20 30 40 50 60

Gejiu Zi-Li

Metallo Chimique

EM Vinto

Yunnan Chengfeng

Guangxi China Tin

Thaisarco

Minsur

PT Timah

MSC Group

Yunnan Tin

’000 tonnes

Data: ITRI

Refined tin production in blue, mine output in red

ITRI represents most

leading tin producers,

which account for two-

thirds of world refined

metal production. Its main

objective over 80 years

has been to support tin

usage

5 things to remember about tin

1 Small but serious - and traded on the world’s

largest metals exchange

2 Strong price outlook, based on supply

constraints

3 A vital ingredient in a wide range of products

4 New applications should offset substitution

and economisation

5 Investment in new mines needed

Long-term tin price history

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1900 1920 1940 1960 1980 2000

US$/tonne, inflation adjusted 2010 prices

The price roller-coaster

CRU Commodity Heat Chart

Four Year Outlook % Change Climate

Palladium 88% HotTin 56% HotZinc 53% HotUranium 45% HotAlumina 42% HotAluminium 38% HotPlatinum 28% HotLead 21% Hot

Nickel 18% HotMet Coke 18% HotVanadium 9% WarmPhosphate DAP 7% WarmCobalt 5% WarmIron Ore -4% CoolManganese -5% ColdGold -6% ColdCopper -6% Cold

Coking Coal -7% ColdPotash -16% FreezingAmmonia -17% FreezingUrea -17% FreezingSilver -42% FreezingSulphuric Acid -48% FreezingSulphur -56% Freezing

2Q2012 to 2016

Asia drives growth in tin use

Data: ITRI 0

100

200

300

400

1980 1985 1990 1995 2000 2005 2010

‘000 tonne

s

Tin usage by country/region, 1980-2011

Other Europe Other Americas USA Other Asia Japan China

Global tin use by industry sector

0

20,000

40,000

60,000

80,000

100,000

120,000Others

Float Glass

Brass & Bronze

Chemicals

Tinplate

Solder - industrial

Solder - electronic

Estimates based on

ITRI annual surveys

since 2005 as part of

our Sustainability

Project

Potential new markets

Potential new markets - 2

World tin supply – major producers

Data: ITRI

0

50

100

150

200

250

300

1950 1960 1970 1980 1990 2000 2010

Leading tin producing countries – long term trends

China

Indonesia

Malaysia

Bolivia

Peru

ROW

’000t

China refined tin and mine output

0

20

40

60

80

100

120

140

160

1970 1975 1980 1985 1990 1995 2000 2005 2010

Gap between

mine and refined

tin production

filled by raw

material imports

and secondary

production

’000 tonnes

Indonesian production falls

Output of tin-in-concentrate, tonnes

Surveys of tin resources and reserves

5.0 5.17.7

4.8

17.0

37.0

0

10

20

30

40

Paley 1952 Robertson

1965

Sainsbury

1969

USDI 1973 USGS 1990 USGS 2012

Millio

n t

on

nes t

in

World Resources

World Reserves

Western WorldReserves

New reserves will

continue to be

discovered and

developed. Reserves

today are the same

as 60 years ago –

although 14 million

tonnes has been

mined since then.

Many deposits – few real projects

~130 known

deposits

~ 60 with historical

resources

10 with compliant

resources

4 at scoping

stage

1 at feasibility stage

~4.8Mt of estimated reserves

(USGS)

~3.2Mt as historical

resources

824Kt as compliant

resources

310Kt at

scoping

stage

90Kt at feasibility stage

Data: ITRI, Greenfields

Research, USGS, Infomine,

company websites

World undeveloped tin resources

Data: ITRI 0 50,000 100,000 150,000 200,000 250,000

Mt Garnet

Geyer-Southwest

Heemskirk

Mount Pleasant

Narsiin Khundlen

Taronga

Colquiri Tailings

Sleitat

Mount Lindsay

Rentails

Kuala Langat

San Rafael Tailings

Syrymbet

Cinovec

Pravourmiyskoe

Gottesberg

Achmmach

Catavi Tailings

Pyrkakay

JORC or

NI43-101

Compliant

Known larger undeveloped

deposits – ’000 tonnes Sn

Projects controlled

by ITRI Explorers

and Developers

Group members

shown in red. Many

of the others are

inactive or

uneconomic at

current prices

Major global tin projects

Syrymbet

Kuala Langat

Tin mining country (2011)

Narsiin Khundlen

San Rafael Tailings

Achmmach

AbuDabbab

Mt Garnet

Rentails

Heemskirk

Mt Lindsay

Geyer

Gottesberg

Cinovec

Santa Maria Oropesa

Non-tin mining country (2011)

Major tin mine project

New locations for safer projects

Country Ranking (of 181)

Canada 4th

Australia 5th

- -

USA 10th

- -

Germany 20th

- -

UK 25th

- -

Spain 27th

Country Ranking (of 181)

Peru 56th

- -

China 71st

Brazil 72nd

- -

Indonesia 111th

- -

Bolivia 125th

- -

DR Congo 159th

Data: Greenfields Research

Country risk rankings combine inter-

governmental and industry data sets

The evolving tin supply curve

Data: ITRI/Greenfields Research

Operating (2012)

Brownfields

Greyfields

Greenfields New projects

need to enter the

cost curve here!

These projects

currently not

economic

Forecast changes in mine production

-35 -30 -25 -20 -15 -10 -5 0 5 10 15 20 25

Indonesia

China

Russia

Bolivia

Peru

Malaysia

Brazil

Africa

Other Countries

Australia

Forecast change from 2011 – 2016, ’000 tpy

Forecast weeks’ supply and prices

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1990 1995 2000 2005 2010 2015

Weeks' supply Prices

Weeks’ supply, price in US$/tonne

Forecast

5 things to remember about tin

1 Small but serious

2 Strong price outlook

3 A vital ingredient

4 New applications

5 Investment needed