Cornish Metals (TSX-V, AIM: CUSN) announced on Tuesday that its South Crofty tin project in Cornwall, UK, carries an after-tax net present value (NPV6) of £180 million ($235 million) and an internal rate of return of 20%, according to its updated Preliminary Economic Assessment (PEA).
The study outlines a 14-year mine life with total production of 49,168 tonnes of tin. Average annual output is expected at about 4,700 tonnes between years two and six—equivalent to 1.6% of global mined tin. The project anticipates a 3.3-year payback, cumulative after-tax cash flow of £558 million ($750 million), and annual EBITDA of £70 million with margins above 60%.
Pre-production capital costs are estimated at £198 million, with sustaining capital of £43 million. All-in sustaining costs are projected at around $13,400 per tonne in years two through six, placing South Crofty in the global lowest cost quartile.
Construction is already underway with shaft and pump station refurbishments, site excavation, and utility installations in progress. Long-lead equipment, including production and service winders, has been ordered, and first production is targeted for mid-2028.
The company accelerated development following a £57 million fundraise earlier this year, which included investment from the UK’s National Wealth Fund and Vision Blue Resources. Chief executive Don Turvey described the PEA as a “key step” in advancing South Crofty towards first production, calling it a “long-life, low-cost producer.”
South Crofty will operate on 100% renewable electricity and generate no surface tailings. The project is expected to directly employ more than 300 people and create 1,000 indirect jobs, alongside a dedicated training centre to upskill local workers. Exploration upside remains, with near-mine targets estimated at 6–13 Mt grading 0.5%–1.8% tin.
South Crofty previously operated for over 400 years until its closure in 1998, marking the end of tin mining in Europe. Cornish Metals acquired the asset after failed revival attempts in the early 2000s and now holds mining rights valid until 2071, along with environmental permits to dewater the mine.
