Interview with Anthony Viljoen, CEO of AfriTin Mining (LON:ATM).

AfriTin Mining Ltd is the only 'pure-play' tin mining company listed on the LSX. They have a portfolio of 'near-production' tin assets in Namibia (Uis Project) and South Africa (Mokopane Tin). Their aim is to be a fully-operational, conflict-free tin producer/mining company with smelting capabilities within the next 2-5 years. AfriTin Mining sees a gap of supply against the growing industrial demand for tin. AfriTin Mining are currently focussed primarily on the Uis Project; Namibia is a 'fantastic jurisdiction' and the tin mine itself is large and open-cast. Uis used to be the largest tin mine of its kind in the world but laid dormant for many years; now, with tin prices rising, Viljoen and AfriTin want to take advantage.

In terms of the share price, AfriTin Mining has had something of a spotty year; with a market cap of GB£19.32M, the share price started the year at 3.25GBX, rising to a peak of 4.30GBX in mid-to-late-January, before the price lurched along a tumultuous trajectory, settling at today's price, near a low for the year, of 3.00GBX.

Tin isn't exactly a word that possesses clear excitement. In fact, most investors don't know quite what it is used for in today's world, short of in cans of the bean variety. It's nothing like as fashionable as battery metals, with their aura of EV potential. However, Viljoen is keen to shine a light on tin's versatility and unique physical properties. Tin is actually an EV metal too! It has a fundamental use in lithium-ion batteries and enables next-generation high energy lithium and sodium batteries. Tin is used to coat other metals to prevent corrosion, to create alloys, in superconducting magnets, in the production of window glass, as a reducing agent, and as a fire retardant.

Viljoen explains the fundamental strategy of AfriTin Mining is reducing costs: by being the lowest cost producer, it ensures AfriTin mining can be competitive against huge producers like Yunnan Tin Group (40,000 ton capacity in China) and PT Timah (30,200 ton capacity in Indonesia). With a meagre production cap of just c. 720 tonnes per year, economic efficiency will be crucial for the company's survival. A focus on tin concentrate instead of tin ore should help matters.

Bushveld Minerals is regarded as the 'sister' of AfriTin mining and owns around 8% of the company. Viljoen is still a director at Bushveld; are his priorities stretched?

After preliminary drilling, AfriTin Mining has also discovered large lithium and tantalum resources, but there will be question marks as to how they can make these economic. Lithium is currently down the tubes, and both elements are merely by-products.

There are large question marks surrounding management remuneration at AfriTin Mining. In 2018 Anthony Viljoen (CEO) was paid £46,050 + £78,000 in AfriTin Mining shares, Frans van Daalen (COO) was paid £41,445 + £78,000 in AfriTin Mining shares. This year Anthony paid himself £126,648 + £45,000 in AfriTin Mining shares, Francis paid himself £112,302 + £26546 in AfriTin Mining shares. This is highly concerning considering the company's performance relative to last year. There has been no improvement, yet capital salary has nearly tripled.

However, the overall quality of the management team is beyond question: it carries over 120 years’ experience in bringing mines into production in Africa with highly experienced geologists, engineers and metallurgists, and also carries in-depth knowledge and capability of the financial markets. There may however be concerns regarding the specific level of tin knowledge/experience.

Company page: http://afritinmining.com/ 

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