Overnight, Tin LME stocks have dropped significantly, dropping...

Overnight, Tin LME stocks have dropped significantly, dropping 220 tons to now sit at 3030, marginally above the '08 low of 3010, and the tin price has responded accordingly, moving $345 to $19,855/ton cash settlement, the biggest one day move in more than a month. Tin has fallen below the 3000 ton LME level only once in the past 14 yrs, for a period of two days only, to a low of 2745 in Jun '04. Like '08, Tin prices then went on a 2 year run from around $9,000/ton to $23,000/ton despite tin stocks rising. Both of these price moves where between roughly 150-200% from bottom to top, so starting from a low of approx. $13,500 in Jan '16, this produces figures of approx. $33,000 - $40,000/ton in approx. 18 months from now - very much in the ball park of where some are suggesting Tin prices could end up. Given that Stellar resources has mentioned they are profitable from approx. $14,500/ton and Metals X is profitable from $12,500/ton (from memory from recent readings) then these price levels will produce spectacular profits for companies like these. No wonder Metals X and its partner are looking at spending such a large amount of money just to reprocess their tailings. But, for around 50-60% of their estimated spend they could have access to a much bigger resource, which with further drilling is most likely much bigger than it's current JORC estimate......

kind regards, SEAH.