Alphamin: Tin production of 3,104 t in line with the previous quarter
MAURITIUS – Alphamin Resources, a producer of 4% of the world’s mined tin1 from its high grade operation in the Democratic Republic of Congo, has provided the following update for the quarter ended September 2023:
- Tin production of 3,104 tonnes for the quarter, in line with the previous quarter
- Q3 2023 EBITDA3,4 guidance of US$38.3m, up 8% from the previous quarter
- Mpama South development projected to increase annual tin production by 60% progressing well
- Additional debt facilities secured
Contained tin production of 3,104 tonnes for the quarter ended September 2023 was in line with the previous quarter. Tin production of 9,442 tonnes for the nine months ended September 2023 exceeds the run-rate to achieve market guidance of 12,000 tonnes for the year ending December 2023. The run-of-mine and crushed ore stockpiles ahead of the processing plant were at record levels at quarter-end, being 30,393 tonnes at an average tin grade of 4,79% (Q2: 27,439 tonnes at 6.74%).
Sales volumes of 3,111 tonnes of tin for Q3 2023 were slightly higher than the previous quarter and averaged a tin price of US$26,557/t (Q2 2023: US$25,587/t).
Guidance for AISC per tonne of tin sold is US$14,812, 6% above the previous quarter.
Approximately half of the AISC cost increase relates to the timing effect of sustaining capital
expenditure. The remaining variance in AISC follows the impact of the higher tin price on off-mine costs, higher diesel prices and a 7% increase in underground development metres at Mpama North. The higher underground development rate at Mpama North is expected to increase developed ore reserves and improved mining flexibility.
Stable production and sales volumes at the slightly higher tin price resulted in expected EBITDA of US$38.3 million for the quarter ended September 2023 (Q2 2023: US$35.4 million).
Alphamin’s unaudited consolidated financial statements and accompanying Management’s Discussion and Analysis for the three and nine months ended 30 September 2023 are expected to be released on or about November 17, 2023.
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, ongoing exploration, and a high dividend yield a robust value proposition. From a FY2023 capital allocation perspective, the funding of the Mpama South expansion project, DRC incomebtax payments and shareholder distributions remain the priority.
By quarter-end, the Company had spent US$99 million of cash resources on the Mpama South project of which US$24.5 million was spent in Q3 2023. The project is forecasted to be substantially completed within the budget of US$116 million.
In late September 2023, a bridge on the primary export/import route was damaged. As a result, inbound and outbound trucks had to be re-routed resulting in longer than normal transit times and delays in revenue receipts. Additional road maintenance teams have been mobilized to ensure the efficient passage of inbound and outbound traffic via alternative routes which have been proven to be effective in the past. The negative liquidity impact from the damaged bridge is expected to reverse during Q4, 2023.
