RCR releases equity research report on global tin companies February 9, 2009

Resource Capital Research (“RCR”), an equity research company which focuses on small and mid size resource companies, today launched its in-depth equity research report covering 10 global tin exploration and development companies with a focus on Australia and Canada. RCR also publishes a quarterly Uranium Sector Review and Gold Company Review.

Key Points

Tin price and equity performance:

• The tin price peaked at US$25,495/t in May 2008 but then slumped by more than 50% in five months due to the global financial crisis. The price is currently around US$11,425/t.
• Prices are volatile but have found support at ~US$11,000/t. The current LME spot price is US$11,200/t and the 3 month forward price is US$11,025/t (backwardation).
• RCR anticipates that tin will trade in the US$9,000k/t-US$15,000k/t range in 2009, with an average price of US$12,750/t.
• The share prices of a selection of 20 tin companies covered in the report have increased an average 56% over 12-month lows but are 74% below 12-month highs.

Tin market:

• Global demand for refined tin was ~350kt in 2008, a 3.6% decrease from 2007 (ITRI). China consumed 36% of supply in 2007.
• In 2008, mine production was ~333kt tin, up from 320kt in 2007 (USGS). Of this, 72% was mined in China and Indonesia.
• Falls in production due to the financial crisis suggest a 2009 production forecast of 305kt Sn, a 6.5% drop from 2008.
• LME tin stocks recently hit four-year lows and remain relatively depleted.
• Production cutbacks and low stocks could exacerbate pre-crisis supply problems when demand for tin returns, leading to higher prices.

Click here to read the media release with more conclusions.

To access the free summary of the tin report or to purchase the 40 page comprehensive report, go to http://www.rcresearch.com.au/reports. Copies of RCR’s December Quarter gold and uranium reports are also available for download.

For further information, please contact:

Trent Allen, Resource Analyst (+61 (0) 438 873 682)
or
John Wilson, Managing Director

Resource Capital Research
Phone:
(+61- 2) 9252 9405

Email:
trentallen@rcresearch.com.au
johnwilson@rcresearch.com.au