Tin Market Dynamics and Investment Opportunities

Sep 5, 2024

Battery Show Lecture: Focus on Tin

Introduction

  • Discussion on tin supply-demand fundamentals, market players, and investment opportunities.
  • Presentation by Rome Resources executives Paul Barrett (CEO, Geologist) and Marc Garcon (Chairman).
  • Exploration of doing business in the Democratic Republic of Congo (DRC).

Tin Market Overview

  • Size and Growth:

    • Tin market is relatively small at 400,000 tons/year.
    • Growth driven by electronics and increasing demand from AI, solar energy, and electric vehicles.
    • Tin is critical in electronics with no current alternatives.

  • Supply Challenges:

    • Limited number of producers, disruptions in Myanmar and Indonesia impact supply.
    • China is both a major producer and consumer.

Demand Drivers

  • Electronics:

    • Used as solder; essential in smartphones, computers, etc.
    • Growing demand from AI and solar technology.

  • Electric Vehicles:

    • Contains significantly more tin than conventional vehicles.
    • Expected demand growth due to emerging technology applications.

Market Dynamics

  • Supply Constraints and Opportunities:

    • Limited new mines, slow production ramp-up elsewhere.
    • Potential increase in demand outpacing supply.

  • Investment Landscape:

    • Limited public market players, mostly private companies.
    • Institutional interest unclear; potential growth with demonstrated resources and scale.

Doing Business in DRC

  • Ethical Operations:

    • Adherence to Western standards with no tolerance for corruption or child labor.

  • Mining Code:

    • Offers security for investments, with strict adherence to commitments required.
    • Positive examples of successful, stable projects (e.g., Kibali Gold Mine).

Future Outlook

  • Price Projections:

    • Predicted upward pressure on tin prices due to increasing demand and supply deficits.
    • Potential tin deficit as early as 2025.

  • Green Transition:

    • Rising demand from solar energy and AI.
    • Growth in green technology applications will increase tin usage.

Conclusion

  • Tin market presents unique investment opportunities due to its essential role in multiple technologies and limited supply.
  • Prospective projects must navigate ethical and operational challenges in regions like DRC.
  • Ongoing research and market engagement crucial for understanding future trends and opportunities.