Sky Metals PFS shows sub-17-month payback at Tallebung tin-silver project

Sky Metals (ASX: SKY) published a pre-feasibility study for its Tallebung tin, tungsten and silver project in New South Wales. The base case models a 3 million tonne per annum open-pit operation running roughly seven years.

Pre-production capital sits at A$138.8 million. The study delivers a pre-tax internal rate of return of 69% and a pre-tax net present value of A$438 million. Payback period is under 17 months from first production.

Those numbers use conservative long-term price assumptions. At spot prices for tin, tungsten and silver, the IRR rises to 88% and NPV climbs to A$695 million. Payback shrinks to 13 months.

The project carries 8.1 million tonnes at 0.39% tin, 0.05% tungsten trioxide and 7.9 grams per tonne silver in the indicated category, plus 1.9 million tonnes at similar grades in the inferred category. Total contained tin sits at roughly 36,000 tonnes.

Managing Director Oliver Davies said the study confirmed Tallebung can generate strong returns across a range of price environments. The company now shifts focus to extension drilling, optimisation work, and the environmental approvals pathway.

Sky has started the New South Wales State Significant Development process. It targets lodgement of the Environmental Impact Statement and Development Application by May 2027, with mining approval expected in late 2027.

“With this first PFS now complete, our focus shifts to project extension, optimisation, completing environmental approvals, and progressing financing and offtake discussions,” Davies said. “These workstreams are designed to position Tallebung for FID during 2027, targeting first production in mid-2028.”

Financing options under evaluation include debt, equity and strategic partnership pathways. The company has not yet announced any offtake agreements.

The ASX-listed stock has a market capitalisation of roughly A$26 million. Shares last traded at A$0.048.