Alphamin reports record quarter


Alphamin reports record quarter


Published Date: 2021-05-10 | Source: Stephen Gunnion | Author: Stephen Gunnion

Alphamin reports record quarter

The tin mining company grew sales into a rising price environment for the metal.

Alphamin Resources has reported record first-quarter earnings after tin sales rose sharply.

The company, which is headquartered in Mauritius and has a listing on the Toronto Stock Exchange as well as the JSE's AltX, produces 4% of the world's mined tin from its high-grade operation in the Democratic Republic of Congo (DRC).

Contained tin sales for the three months to 31 March reached 3,351 tons, up 45% from the previous quarter, as it recouped the sales shortfall from the previous quarter. Contained tin production of 2,611 tones was impacted by a lower feed grade.

Earnings before interest, tax, depreciation, and amortisation (Ebitda) rose 118% to $36.5-million due to the increased sales volumes and a 25% higher tin price of $23,083 per ton. It said tin prices had since risen to $29,000. All-in sustaining costs (AISC) of contained tin sold increased by 7% to $12,162 per ton. AISC includes government royalties, export fees, product marketing commissions and smelter deductors all of which are directly linked to the tin price.

Alphamin's main asset is the Mpama North mine and it 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. The company 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.

The company said main zone mineralisation intercepted at Mpama South, based on visual inspection and interpretation, was comparable to the resource mined at Mpama North, with a new parallel mineralisation zone discovered in the footwall of the main zone at Mpama South.

The company expected contained tin production and sales of approximately 2,700 tons for the June quarter. It said its Fine Tin Recovery Plant (FTP) was on schedule for full commissioning in June. Estimated expenditure at completion was substantially in line with the budget of $4.6-million. It said the FTP had the potential to increase contained tin production by 5%-10% from July.

Its shares closed unchanged at R8 on Friday. They rose 16% to R7.55 on 9 April after it published guidance on its performance.


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