CORNISH METALS INC. has released its unaudited financial statements and management's discussion and analysis for the three months ended March 31, 2024. The company's South Crofty tin project in Cornwall, UK, has achieved significant milestones, including the completion of the Preliminary Economic Assessment (PEA), purchase of adjacent land, and commencement of NCK shaft refurbishment. The PEA validated the project's economic viability, with an after-tax Net Present Value (NPV) of US$201 million and Internal Rate of Return (IRR) of 29.8%.
The purchase of adjacent land provides direct access to surface infrastructure, potential cost savings, and improved property security. The refurbishment of NCK shaft aims to enhance its functionality and enable access for larger equipment at an earlier stage in its re-development. Additionally, mine dewatering is progressing, with treated water exceeding environmental standards.
The company also announced changes in leadership, with Ken Armstrong appointed as Interim CEO and Director, and Patrick Anderson assuming the role of Executive Chairman during the transition period. The appointment of a permanent CEO is underway, and Samantha Hoe-Richardson joined the Board as an independent non-executive director.
Financially, the company reported an increase in operating expenses due to higher travel and marketing expenditure, as well as ongoing development activities at the South Crofty tin project. The cash balance decreased to $17.0 million at the period end, primarily attributed to project-related expenditures.
Overall, the Q1 2024 financial and operational highlights demonstrate significant progress in advancing the South Crofty tin project and strategic changes in leadership, positioning the company for further evaluation and potential construction decisions.