Sky Metals (ASX: SKY) has confirmed the Tallebung Tin-Tungsten and Silver project as a low-cost, high-margin development opportunity following the completion of a Pre-Feasibility Study (PFS).
The study outlines a single 3Mtpa open-cut mining operation with an initial mine life of 7.3 years, producing an average of 2,040t of tin, 31,700mtu of tungsten trioxide, and 315,000oz of silver annually. Notably, the mine plan incorporates only 66% of the current global Mineral Resource Estimate, highlighting further expansion potential.
The current mine life is constrained by existing Measured and Indicated resources, with Sky Metals already restarting drilling aimed at upgrading Inferred resources and extending the life of mine.
Using base-case commodity price assumptions of US$45,000/t tin, US$1,500/mtu tungsten trioxide, and US$50/oz silver, the PFS delivered compelling project economics, including a pre-tax internal rate of return (IRR) of 69%, an average annual EBITDA exceeding A$115M, and a pre-tax net present value (NPV) discounted at 8% of approximately A$438M. Capital payback is forecast in less than 17 months, while all-in sustaining costs are estimated at US$5,653/t of tin produced, net of by-product credits.
Project economics improve substantially under current spot commodity prices of US$56,450/t tin, US$3,075/mtu tungsten trioxide, and US$61.90/oz silver. Under this scenario, Tallebung generates a pre-tax IRR of 130%, average annual EBITDA of more than A$221M, and a pre-tax NPV8 of around A$1B. Capital payback falls below nine months, while all-in sustaining costs become negative at US$18,935/t of tin produced after co-product credits.
The study also highlighted Tallebung’s relatively modest pre-production capital requirement of A$138.8M, including A$113.4M for the processing plant and A$26.3M for site and mine establishment, excluding contingency.
Sky Metals is advancing funding discussions with strategic offtake, royalty, streaming, and financing groups seeking exposure to future supplies of tin, tungsten, and silver from Australia. Meanwhile, project approvals continue to progress, with mining approval targeted for late 2027 and first production expected in mid-2028.
The company ended 30 June 2026 with A$17.6M in cash, providing a solid funding position as it advances Tallebung towards a final investment decision next year.
Oliver Davies, managing director and CEO of Sky Metals, commented, “The completion of the Tallebung PFS is a significant milestone for SKY, clearly demonstrating that Tallebung has the potential to become a simple, high-margin, low
cost Australian producer of tin, tungsten and silver. The study outlines a project with exceptional projecteconomics, rapid capital payback, modest upfront capital requirements and strong cash generation.
“Importantly, we see outstanding potential to further enhance the outcomes of the PFS, with only 66% of the current global Mineral Resource base at Tallebung currently included in the PFS mine plan. Drilling is now underway to upgrade the +11Mt of Inferred Resources not included in this study for inclusion in ongoing optimisation studies, as well as to expand the Resource beyond the existing envelope.
“Tallebung is not only a compelling economic opportunity, but also a strategically significant project. With tin and tungsten continuing to face supply constraints, Tallebung has the potential to become an important new source of reliable supply from a stable mining jurisdiction. We believe this positions the Project strongly as manufacturers, refiners and governments seek to lock-in secure future supply chains for these increasingly critical commodities. “With this first PFS now complete, our focus shifts to project extension, optimisation, completing environmental approvals, and progressing financing and offtake discussions. These workstreams are designed to position Tallebung for a Final Investment Decision during 2027, targeting first production in mid-2028.”
Sky Metals’ Managing Director, Oliver Davies, will host a live investor webinar on Tuesday 11 August 2026, at 10.00am (AWST) /12.00pm (AEST) to discuss the key outcomes of the Pre-Feasibility Study on the Tallebung Tin-Tungsten-Silver Project in NSW.
To attend the webinar: Register Here
Meet with Sky Metals at the upcoming 121 Mining Investment event:
For the Global Online event on 13-14 October 2026, please register here: https://online.121mininginvestment.com/home
To learn more about this, please visit https://www.skymetals.com.au/
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