Alphamin hits new record, mine not for sale
Alphamin‘s latest quarter saw the company achieve record tin production, surpassing levels set in the previous period.
During the second quarter, the company mined some 112,600 tonnes of ore from its Mpama North mine, part of its growing Bisie complex. Despite slightly lower tin grades and plant recoveries, the company produced some 3,180 tonnes of tin contained. This was a new record for Alphamin, surpassing levels set in the previous quarter. Despite higher production, however, sales of tin concentrate fell quarter-on-quarter. According to the company, this was due to a catch-up in sales during the first quarter following delayed sales from Q4 2021. Year-to-date production of 6,241 tonnes in on track to meet the company’s production guidance of 12,000 tonnes tin-in-concentrate for 2022.
The cost of production at Mpama North is expected to decrease by some 6% as lower tin prices reduce off-mine costs such as royalties and export duties. All-in Sustaining Costs of some US$ 14,800 continue to see Alphamin operate in the lower half of the tin cost curve.
In the latest note, Alphamin also shared an update on its Strategic Review. The review, which was initiated in November 2021, explored alternative methods for achieving future value for shareholders. The company has concluded that continued expansion of the Bisie complex through the development of Mpama South, rather than an outright sale, is the best course of action.
Lower tin prices in recent months, combined with Chinese smelter maintenance, means that the concentrate market for tin is currently oversupplied. Other, smaller, African producers are cutting back output and stockpiling material while they wait for prices to recover. Alphamin‘s sales volumes are unlikely to be materially affected over the coming months due to strong long-term offtake deals.
