Pierpont: Tale of two miners shows tin is tough – by Trevor Sykes (Australian Financial Review – September 1, 2016)


Anguished reader Geoff Muers emailed Pierpont for help a fortnight ago because he didn’t understand what was happening to Kashbah Resources (KAS). He thought it looked very odd because of its history of huge share price rallies, numerous trading halts and volatile share prices.

The fact that the share price had recently run from 4¢ to 6¢ and then back to 3¢ might also have been preying on his mind. Pierpont may not be the ideal savant to help Geoff, though, because he has a longstanding dread of investing in Australian-based tin companies, with the outstanding exception of Metals X.

Metals X has successfully revived the great old tin working of Renison, thanks to a decade of really hard work by chief executive Peter Cook and his chairman Peter (Talky) Newton. Renison accounts for some 6 per cent of world tin production and is one of the few listed tin miners in the world.

Pierpont classifies his investment portfolio as falling into two categories: Companies in which he holds too many shares and those in which he holds too few. His tiny holding in Metals X has performed magnificently and Pierpont regrets not having bought more when they were cheaper.

Tin has been a jolly useful metal to mankind for 5000 years. Until then, chaps wanting to commit homicide had to use flint axes or copper spears, but once they discovered how to combine copper and tin they developed bronze axes, which meant the Bronze Age upgraded the quality of their warfare and was therefore a major step forward in civilisation.

For the rest of this article, click here: http://www.afr.com/business/mining/tin/pierpont-tale-of-two-miners-shows-tin-is-tough-20160901-gr6hlv