Alphamin’s record production volumes


Alphamin’s record production volumes


Published Date: 2022-01-12 | Source: INCE|Community | Author: The Finance Ghost

Alphamin’s record production volumes

Alphamin produces around 4% of the world's mined tin from its operation in the Democratic Republic of Congo. In the past year, the share price is up a whopping 250% and the market cap of this company is over R14.5 billion, so this is a substantial operation.

For the quarter ended December 2021, the company achieved record production volumes and earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance.

Contained tin production increased 10% vs. the prior quarter and sales were up 13%. The price per ton of tin also increased by 13%. The company highlights a number of improved underground mining practices as the driver behind the production improvements.

This drove a 38% quarter-on-quarter increase in EBITDA to USD74 million. The net cash position has increased to USD68 million.

The company is listed in Canada as well as on the JSE, so the dividend is declared in Canadian dollars even though the financials are reported in USD. The final dividend is CAD0.03 per share. This equates to a dividend of around USD30 million in total for shareholders.

The company expects to produce 12,000 tons in the year ended December 2022. This is a reasonable annualization of the latest quarterly result of 3,114 tons produced.

The share price closed 6.67% higher on the day.


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