Alphamin announces record Q1 2021 earnings
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 financial update for the quarter ended March 2021:
- Record Q1 EBITDA of $36,5m, at a tin price of $23,083/t (Current: ~$29,000/t);
- Tin sales of 3,351 tons, up 45% from the previous quarter;
- Main Zone mineralisation intercepted at Mpama South, based on visual inspection and interpretation, is comparable to the Resource mined at the high grade Mpama North Mine;
- New parallel mineralisation zone discovered in the footwall of the Main Zone at Mpama South;
- Mpama North deeps drilling to commence May 2021 (previously August 2021)
- Fine tin recovery plant on schedule for commissioning during June 2021
OPERATIONAL AND FINANCIAL PERFORMANCE
Contained tin sales of 3,351 tons was 45% higher than the previous quarter as we recouped the sales shortfall of Q4 2020. Contained tin production of 2,611 tons was impacted by a lower feed grade of 3.8% Sn compared to 4.2% Sn the previous quarter.
Tin feed grades are variable between quarters but on average trend close to the targeted 4% Sn Reserve Grade over a rolling 12-month period. The processing plant performed well at an average recovery of 74% whilst treating more material than the previous quarter.
EBITDA of $36,5m for Q1 2021 is 118% above the previous quarter due to increased sales volumes benefiting from a 25% higher tin price. Tin prices are currently trading at around $29,000/t, some 26% above prices achieved during Q1 2021.
AISC per ton of contained tin sold increased 7% to $12,162 from the previous quarter. AISC includes government royalties, export fees, product marketing commissions and smelter deductors all of which are directly linked to the tin price.
As a consequence, the AISC increase is a direct result of the higher tin price achieved during Q1 2021. On average, 15%-20% of the tin price increase feeds to AISC.
Alphamin Resources expects contained tin production and sales of approximately 2,700 tons for the quarter ending June 2021.
Fine Tin Recovery Plant (FTP) – The FTP is on schedule for full commissioning during June 2021. Estimated expenditure at completion is substantially in line with the budget of US$4.6 million. The FTP has the potential to increase contained tin production by 5%-10% effective July 2021.