MAURITIUS – Alphamin Resources, a producer of 4% of the world’s mined tin from its high grade operation in the Democratic Republic of Congo, has provided the following operational and exploration update for the quarter ended September 2021:
- Record Q3 EBITDA guidance of US$53m, up 56% from prior quarter
- Contained tin production up 17% from the prior quarter to 2,832 tons
- Net debt-free at 30 September 2021 (Net debt 30 June 2021: US$29.5m)
- Mpama South drilling continues to intercept significant visual mineralisation
Contained tin production of 2,832 tons is 17% above the previous quarter. Underground mining practices relating to stope planning, delineation and blasting were significantly improved from mid July 2021. This resulted in an average tin grade of 3.8% processed during August and September 2021 with an average of 3.5% for the quarter. In addition to improved grade control, run-of-mine volumes and waste development increased by 5% quarter-on-quarter.
The benefit of the newly commissioned Fine Tin Plant increased overall processing recoveries by 5% to 75%. EBITDA guidance of US$53m for Q3 2021 is 56% higher than the previous quarter’s actual as a result of increased tin production and sales volumes, together with a higher tin price.
The Company moved to a net cash position at 30 September 2021 compared to a net debt position of US$29.5m the previous quarter. Its intention is to fully settle the outstanding senior loan of US$36m during October 2021.
The Board will establish an appropriate treasury strategy during Q4 2021 with the objective of balancing capital allocations between ongoing exploration drilling, the potential fast-track development of the Mpama South deposit and shareholder distributions.
Alphamin’s unaudited consolidated financial statements and accompanying Management’s Discussion and Analysis for the quarter ended 30 September 2021 is expected to be released on or around 10 November 2021.