Alphamin reports increased tin recoveries and throughput
Alphamin Resources Corp. reports that run-of-mine volumes processed increased 5% to 96,086 tons for the quarter ended September 2020.
Underground mining performed well in delivering increased material for processing. Volumes mined and processed are in line with our current target of 96,000 tons per quarter. The average tin grade was 12% lower than the previous quarter at 3.8% – importantly, the year to date average tin grade is 3.9%, which is in line with the target of 4.0% for the financial year ending December 2020.
As a result of increased plant recoveries and throughput, the 12% lower tin grades processed only resulted in a 6% drop in tin production compared to the prior quarter. This is at the lower end of our previous production guidance range. Tin sales increased 3% to 2,695 tons for the quarter.
The Bisie tin mine recorded zero lost-time injuries during the past quarter.
Production and financial information are disclosed on a 100% basis. Alphamin indirectly owns 84,14% of its operating subsidiary to which the information relates.
The Q3 2020 average tin price achieved was US$17,436/t against a current tin price of approximately US$18,000/t. EBITDA of approximately US$16 million is expected, net of additional provisions required for concentrate grade adjustments based on smelter assays.
The smelter assay results received during Q3 related to Q1 and Q2 sales. The independent operators of the mine site laboratory have subsequently changed their assay method (since late-June 2020) and comparing samples of their Q3 results to a number of international laboratories, indications are that concentrate assays for this past quarter are reported accurately.
PRODUCTION GUIDANCE FOR THE QUARTER ENDING DECEMBER 2020
Alphamin Resources expect contained tin production of between 2,600 and 2,8002 tons for the quarter ending December 2020.
Production guidance is based on certain estimates and assumptions, including but not limited to: quantity of material processed, tin grades of processed material and processing recoveries and assumes mining operations will continue to be conducted in the same manner as the previous quarter and will not be further impacted by the Covid-19 pandemic.
The Bisie Tin Project in the DRC is 84.55% owned by Alphamin Resources through its subsidiary ABM, while the DRC Government owns 5% and the Industrial Development Corporation of South Africa (IDC) owns the remaining 10.45%. The project has generated 450 permanent jobs during operations.
