Sky Metals Ltd (ASX: SKY) is forging ahead on a number of fronts with its Tallebung tin project, keeping it firmly in the sights of the analysts at Morgans, who rate the stock a buy.
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Positive news
The company last week released an update on the Tallebung project to the ASX, saying the key step of submitting a scoping report to the New South Wales Government had been ticked off.
Sky Managing Director Oliver Davies said regarding the milestone:
This marks a significant step forward for SKY, with Tallebung advancing on both the approvals and technical fronts. The initiation of the NSW State Significant Development (SSD) process is a key milestone as we position the project for near-term development. At the same time, ongoing drilling continues to deliver shallow, high-grade tin-tungsten-silver results, highlighting the strength, continuity and scale of the Tallebung system. With more than 500 drill holes completed and further results imminent, we are well positioned for the upcoming updated Mineral Resource Estimate and Pre-Feasibility Study in the first half of 2026. SKY is well-funded and focused on accelerating Tallebung toward development as a near‑term, strategic source of tin and tungsten.
Recent drilling at the project has delivered results including 8m of 1.24% tin and 13.2 grams per tonne of silver from a depth of 68m, and 16m at 0.38% tin and 37.4 grams per tonne of silver from 46m.
The submission of the scoping report, the company said, "allows key environmental, technical and permitting workstreams to progress in parallel, advancing the project towards near-term development''.
The company added:
The recent appointment of environmental consultants and an Environmental Manager at SKY is driving the SSD process, baseline studies and ongoing stakeholder engagement. These activities are aligned and continue to exceed the Company's planned development schedule, underpinning its strategy to advance Tallebung as a near‑term tin, tungsten and silver development opportunity.
Shares looking cheap
Morgans said the progression of the Tallebung project was positive, and added:
We rate SKY a speculative buy with a target price of 35 cents per share, offering leveraged exposure to tin, a strategically important critical metal supported by electronics-led demand and a structurally tight, disruption-prone supply base. Tallebung provides investors access to an ASX-listed tin development opportunity, complemented by an established resource base and strong ore sorting amenability, which underpins a capital-efficient development pathway and project economics.
Morgans said Sky had a proven management team, and the spot tin price was currently sitting above its bull case assumptions.
Sky shares are currently changing hands for 19 cents. The company is valued at $187.8 million.
