Alphamin beats production guidance


Alphamin beats production guidance

Published Date: 2021-01-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

Alphamin beats production guidance

The tin miner is developing more resources adjacent to its Mpama North site in the Democratic Republic of Congo.

Alphamin Resources has reported record fourth-quarter tin production but says sales were impacted after extreme seasonal rains in the Democratic Republic of Congo affected export road conditions.

The company, which is headquartered in Mauritius and has a listing on the Toronto Stock Exchange as well as the JSE's AltX, mines tin from the Mpama North resource and has five additional exploration licences in the DRC's North Kivu Province. At a tin grade of roughly 4.5%, Mpama North is the world's highest-grade tin resource - about four times higher than most other operating tin mines in the world. It aims to increase annual tin output and life of mine through incremental production from the adjacent Mpama South and by adding more mines in close proximity to the current licenced footprint.

Production increased by 13% to 2,898 tons over the three months to end-December, beating its previous market guidance, while sales volumes declined by 14% to 2,306 tons from the previous quarter. Alphamin's short-term objective is to increase annualised contained tin production from the current level of 11,000 - 13,000 tons following the commission of its previously announced fine tin recovery plant and a planned increase of 5-10% in processed ore volumes. Over the period, it commenced a drilling campaign at Mpama South, while construction of the fine tin recovery plant was 70% complete and on schedule to commence commissioning in April.

Alphamin said the tin price on the London Metals Exchange had increased from about $18,500 per ton during the fourth quarter of last year to about $21,000 currently, which bode well for this year's earnings.

The company's shares didn't trade on the JSE yesterday, closing unchanged at R3.42.

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