MAURITIUS – Alphamin Resources Corp. a producer of 4% of the world’s mined tin1 from its high grade operation in the Democratic Republic of Congo, provides the following update for the year and quarter ended December 2023:
- FY2023 tin production of 12,568 tonnes, up 1% from the prior year
- Q4 tin production of 3,126 tonnes
- Q4 tin sales of 2,046 tonnes impacted by poor road conditions, which have subsequently improved
- FY2023 EBITDA3,4 guidance of US$136m at an average tin price of US$26,009/t, with EBITDA negatively affected by a temporary delay in Q4 tin sales volumes
- US$50 million tin prepayment arrangement and lower marketing commission secured
Operational and Financial Performance
Contained tin production of 3,126 tonnes for the quarter ended December 2023 was in line with the previous quarter. Tin production of 12,568 tonnes for the year ended December 2023 exceeded market guidance of 12,000 tonnes. The Mpama North underground mine continues to deliver ore at tin grades and volumes in line with expectations. The Mpama North processing facility performed well, achieving overall recoveries of 75% during FY2023 (FY2022: 75%).
Poor road conditions resulting from record heavy rainfall, had a negative impact on truck transit times and export revenue receipts during Q4 2023. The rains have subsided significantly from mid December 2023 with rainfall now averaging ~10% of that recorded in October/November 2023. As a result of increased truck transit times, Q4 2023 contained tin sales of 2,046 tonnes was 1,080 tonnes less than the quarter’s production and resulted in high levels of tin in stock. The delay in tin sales should catch-up during Q1 2024 and accordingly only then report to EBITDA and revenue receipts.
Guidance for AISC per tonne of tin sold is US$14,259 and US$14,645 for the year and quarter ended December 2023 respectively. This is in line with that of the prior periods. On-mine operating expenditure increased by 5% compared to the prior year mainly due to a 32% increase in underground development metres at Mpama North and higher diesel prices.
Additional Mpama North underground development has resulted in increased developed reserves, higher run-of-mine ore stockpiles and improved future operational flexibility.
EBITDA for FY2023 and Q4 2023 is estimated at US$136m (FY2022: US$222m) and US$20m (Q3 2023: US$38m), respectively.
The EBITDA variance compared to prior periods is attributable to lower tin prices and a delay in tin sales in Q4 2023 (Q4 sales delay has a ~US$14 million impact on EBITDA for the quarter and year ended December 2023).