TIN: Alphamin announces record earnings in Q1

Bisie mine operator Alphamin Resources (TSXV: AFM; JSE AltX: APH) has announced Q1 production of 5,016 tonnes tin-in-concentrate and record quarterly EBIDTA on record high tin prices.
While ore tonnage, feed grade, recovery, and tin-in-concentrate production and sales remained flat from the previous quarter, a 29.7% increase in the average tin price achieved boosted EBITDA by 45.6% to US$158 million.
The higher tin prices also resulted in a 6.6% increase in AISC to US$17,968 per tonne of tin produced due to higher royalties, export duties, marketing costs, and net smelter returns. Just over $2,000 of  the unit AISC was attributable to direct diesel consumption.
The company flagged that increased fuel prices did not affect its operations in Q1, but they anticipate an impact in Q2. Alphamin said that additional fuel was being sourced at premiums in the range of 25% to 35% since early march.
Alphamin has approximately 30 days’ supply of diesel at the Bisie site, with a further 75 days’ supply in transit to the site in DR Congo.
Providing an update on its near-mine and regional exploration efforts, the company said drilling activity accelerated in Q1, with a total of 4,673 m of exploratory drilling at Mpama South and North completed. The company highlighted one borehole targeting mineralisation under the Mpama South resource that yielded “encouraging” preliminary in-house assays.
ITA likes to see Alphamin maintaining production in line with the company’s 20,000-tonne annual target, with the company benefitting well from record-high tin prices in recent months.
While increases in international diesel prices and upward pressure on mining costs are unlikely to have a direct impact on the tin market, potential shortages pose a greater threat to supply. The international concentrate market remains very tight, so any losses to existing mine supply could not be easily absorbed.