Alphamin Resources Corp. has reported its operational and financial results for the quarter ended June 2020. Tin production increased 29% to a quarterly record 2,739 tons and was higher than Alphamin’s previous market guidance due to better than expected tin feed grades.
Plant throughput increased 8% to 91,928 tons from higher underground volumes derived from the new Open Stoping with Hydraulic Backfill (LHS) mining method.
During the quarter, mined volumes exceeded plant throughput by some 4,000 tons increasing the run-of-mine stockpiles. The processing plant is performing well and various initiatives aimed at achieving consistently higher throughput are underway.
The all-in sustaining cost per ton of payable tin sold reduced by 13% to US$10,849 mainly attributable to increased tin production. Additionally, the previous quarter’s costs were negatively affected by high arsenic penalties and exceptional logistical costs incurred while the national road bridge was under repair.
The Bisie tin mine recorded two lost-time injuries during the past quarter. An employee and a contractor sustained minor injuries during two separate accidents – and both have returned to work.
PRODUCTION GUIDANCE FOR THE NEXT QUARTER
Alphamin expects contained tin production of between 2,600 and 2,800 tons for the quarter ending September 2020. The tin price has recently increased to around US$18,000/t compared to a price realized of US$15,359/t during this past quarter which, if maintained, bodes well for the next quarter’s EBITDA and cash flow generation.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
- Tin production up 29% to 2,739 tons versus previous quarter
- AISC per ton of tin sold down 13% to US$10,849 versus previous quarter
- EBITDA of US$12,9 million
- Q3 2020 production guidance of 2,600 – 2,800 tons contained tin
- Increase in ownership of the Bisie tin mine from 80.75% to 84.14%
- $31.2m debt reduction concluded concurrently with $31m offering of shares
- Significant improvement in debt terms following the restructure including an interest rate reduction and partial debt holiday in 2020
- Initiation of significant growth initiatives post quarter-end
Alphamin Resources Corporation is a tin concentrate producer from its high grade deposit at Mpama North, North Kivu DRC. At a tin grade of roughly 4.5%, Mpama North is the world’s highest-grade tin resource – about four times higher than most other operating tin mines in the world.
The Mpama North mine is in production. It has an output of ~10 000 tonnes of contained tin per annum, amounting to ~3% of the world’s mined tin supply.
Alphamin management team has successfully developed and brought the Bisie tin mine to production and is focused on taking the business to the next level as it pursues the company objective of realising the full value potential of this extraordinary tin complex.