Alphamin announces record Q1 2022 guidance of US$98m, tin sold up 9%

Alphamin announces record Q1 2022 guidance of US$98m, tin sold up 9%

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, is pleased to provide the following operational update for the quarter ended March 2022:

  • Record Q1 EBITDA4 guidance of US$98m, up 32% from prior quarter actual
  • Contained tin sold up 9% from the prior quarter to 3,336 tonnes
  • Record plant recovery of 78% achieved (previous quarter: 75%)
  • Net cash position increases to US$129.5m, after a US$30m dividend payment

OPERATIONAL AND FINANCIAL PERFORMANCE – Q1 2022

Contained tin production of 3,061 tonnes is in line with the previous quarter and FY2022 guidance. Underground mining continued to deliver steady results and processing plant recoveries increased to 78% from 75% the previous quarter. Contained tin sales increased by 9% to 3,336 tonnes at an average tin price of US$43,813/t.

The AISC4 per tonne of contained tin sold during Q1 2022 is expected to be in line with the prior quarter. As a result of steady production, good cost control and higher revenue, EBITDA for Q1 2022 is estimated at US$98m, up 32% from the actual EBITDA for the previous quarter.

Alphamin’s unaudited consolidated financial statements and accompanying Management’s Discussion and Analysis for the quarter ended 31 March 2022 are expected to be released on or about 11 May 2022.

CAPITAL ALLOCATION

Alphamin’s vision is to become one of the world’s largest sustainable tin producers. From a capital allocation perspective, the Board considers the combination of investment in growth, significant exploration, and a high dividend yield a robust value proposition.

Exploration activity continues to be a focus area with expansionary and infill drilling expenditure

of ~US$20million planned for FY2022. To date, approximately 85% of drill holes completed intercepted visual tin mineralisation.

The Alphamin consolidated Net Cash position increased by US$61 million during Q1 2022 to US$129.5 million. This increase is after a US$30 million cash dividend paid to shareholders on 11 February 2022. The FY2021 DRC government corporate tax liability of US$43.5 million is due for payment in April 2022.

MPAMA SOUTH TO COMMENCE WITH DEVELOPMENT

On 29 March 2022, the Company announced an updated resource for Mpama South and the decision to commence with development. Mpama South’s development is expected to increase annual contained tin production from the current 12,000tpa to ~20,000tpa, approximating 6.6% of the world’s mined tin1. First tin production from Mpama South is targeted for December 2023.

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