Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX)( “Alphamin” or
the “Company”), 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 and exploration update
for the quarter ended September 2021:
- Record Q3 EBITDA
guidance of US$53m, up 56% from
prior quarter
- Contained tin production up
17% from the prior quarter to 2,832
tons
- Net debt-free at
30 September 2021 (Net debt 30 June 2021: US$29.5m)
- Mpama South
drilling continues to intercept significant visual
mineralisation
Operational and Financial Summary for
the Quarter ended September 20212
Description |
Units |
Actual |
|
|
QuarterendedSeptember2021 |
Quarterended June2021 |
Change |
Tons Processed |
Tons |
108,901 |
105,294 |
3% |
Tin Grade Processed |
% Sn |
3.5 |
3.2 |
8% |
Overall Plant Recovery |
% |
75.2 |
71.5 |
5% |
Contained Tin Produced |
Tons |
2,832 |
2,412 |
17% |
Contained Tin Sold |
Tons |
2,710 |
2,404 |
13% |
EBITDA (Q3 2021 guidance)3 |
US$'000 |
53,000 |
34,077 |
56% |
Net Cash / (Net Debt) |
US$'000 |
1,036 |
(29,506) |
-104% |
Tin Price Achieved |
US$/t |
33,863 |
28,326 |
20% |
__________________________1Data obtained from International Tin
Association Tin Industry Review 2020. 2Production information
is disclosed on a 100% basis. Alphamin indirectly owns 84.14% of
its operating subsidiary to which the information relates. 3Q3
2021 EBITDA represents management’s guidance. All numbers are
rounded.
Operational and Financial Performance
Contained tin production of 2,832 tons is 17%
above the previous quarter. Underground mining practices relating
to stope planning, delineation and blasting were significantly
improved from mid July 2021. This resulted in an average tin grade
of 3.8% processed during August and September 2021 with an average
of 3.5% for the quarter. In addition to improved grade control,
run-of-mine volumes and waste development increased by 5%
quarter-on-quarter.
The benefit of the newly commissioned Fine Tin
Plant increased overall processing recoveries by 5% to 75%.
EBITDA guidance of US$53m for Q3 2021 is 56%
higher than the previous quarter’s actual as a result of increased
tin production and sales volumes, together with a higher tin
price.
The Company moved to a net cash position at 30
September 2021 compared to a net debt position of US$29.5m the
previous quarter. Our intention is to fully settle the outstanding
senior loan of US$36m during October 2021. The Board will establish
an appropriate treasury strategy during Q4 2021 with the objective
of balancing capital allocations between ongoing exploration
drilling, the potential fast-track development of the Mpama South
deposit and shareholder distributions.
Alphamin’s unaudited consolidated financial
statements and accompanying Management’s Discussion and Analysis
for the quarter ended 30 September 2021 is expected to be released
on or around 10 November 2021.
Exploration Activities
Three phases of drilling comprising 16,040m (64
holes) have been completed on the Mpama South deposit since
December 2020. Independent laboratory assay results have been
released to the market for 39 holes. An additional 21 drill hole
assay results are expected to be released to the market during
October 2021. Phases 1 and 2 and the recently completed Phase 3
have exceeded expectations with both strike and depth continuation
of significant visually observed mineralised cassiterite lodes. A
fast-tracked Phase 4 drilling program of 8,000m has commenced in
mid-September. This program includes an additional third drill rig
and is targeting completion by year end 2021. Drilling comprising
18,500m is intended to form the basis of a Maiden Mineral Resource
estimate, which is expected to be announced by year end 2021.
Drilling at the Mpama North orebody commenced in
July 2021 for an initial 15,000 metre (22 hole) drilling campaign
to test the strike and dip extension of the current producing
orebody. The first deep holes aggressively targeted as far as 225m
further along strike and 200m deeper than the deepest historical
drilling. Thickening of the various lithologies in the hanging
wall, increased structural intricacy, and hole deviation at depth,
delivered mixed results. While tell-tale altered and cassiterite
mineralised lithologies were intercepted, they were not to the
levels associated with the ore horizon currently being mined.
Drilling activities are now focusing on extensions closer to
previous higher-grade intercepts of the Mpama North orebody and
will work outwards from there along strike and at depth.
In addition to Mpama North and Mpama South,
drilling on the highly prospective Bisie ridge (13km strike
length), which falls within the Company’s mining licence, is
expected to commence on delivery of additional drill rigs. An
extensive tight-spaced soil sampling program along the ridge has
been on-going since Q1 2021 to assist new target generation. New
pathfinder elements such as uranium and tungsten, in addition to
previously known elements, appear strongly correlated to outcrop
and artisanal workings at Mpama North and Mpama South. In
conjunction with this exercise, the Company’s structural
specialists, TECT Geological Consulting, identified several high
potential drill targets less than 8km from the current operating
mine which match and are co-incident with the soil sampling
results.
Qualified Persons
Mr. Clive Brown, Pr. Eng., B.Sc. Engineering
(Mining), is a qualified person (QP) as defined in National
Instrument 43-101 and has reviewed and approved the scientific and
technical information contained in this news release. He is a
Principal Consultant and Director of Bara Consulting Pty Limited,
an independent technical consultant to the Company.
Mr. Jeremy Witley, Pr. Sci. Nat., B.Sc. (Hons.)
Mining Geology, M.Sc. (Eng.), is a qualified person (QP) as defined
in National Instrument 43-101 and has reviewed and approved the
exploration information contained in this news release. He is a
Principal Mineral Resource Consultant of The MSA Group (Pty.) Ltd.,
an independent technical consultant to the
Company.__________________________
FOR MORE INFORMATION, PLEASE CONTACT:
Maritz SmithCEOAlphamin
Resources Corp.Tel: +230 269 4166E-mail:
msmith@alphaminresources.com
__________________________
CAUTION REGARDING FORWARD LOOKING
STATEMENTS
Information in this news release that is not a
statement of historical fact constitutes forward-looking
information. Forward-looking statements contained herein include,
without limitation, statements relating to the timing of the
release of independent assay results from exploration drilling; the
intention to pay off in full outstanding senior debt; the future
allocation of surplus cash; expected future EBITDA for Q3 2021 and
the timing and success of exploration drilling outcomes.
Forward-looking statements are based on assumptions management
believes to be reasonable at the time such statements are made.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. Although Alphamin has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. Factors that may cause actual results to differ
materially from expected results described in forward-looking
statements include, but are not limited to: uncertainties
associated with Alphamin’s resource and reserve estimates,
uncertainties and risks regarding the economic viability of the
Mpama South deposit prior to the release of a maiden resource and
completion of feasibility studies, uncertainties regarding
estimates of the expected mined tin grades, processing plant
performance and recoveries, uncertainties regarding global supply
and demand for tin and market and sales prices, uncertainties with
respect to social, community and environmental impacts,
uninterrupted access to required infrastructure and third party
service providers, adverse political events, impacts of the global
Covid-19 pandemic on mining operations and commodity prices as well
as those risk factors set out in the Company’s Management
Discussion and Analysis and other disclosure documents available
under the Company’s profile at www.sedar.com. Forward-looking
statements contained herein are made as of the date of this news
release and Alphamin disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, except as required by
applicable securities laws.
Neither the TSX Venture Exchange nor its
regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
USE OF NON-IFRS FINANCIAL PERFORMANCE
MEASURES
This announcement refers to the following
non-IFRS financial performance measures:
EBITDA
EBITDA is profit before net finance expense,
income taxes and depreciation, depletion, and amortization. EBITDA
provides insight into our overall business performance (a
combination of cost management and growth) and is the corresponding
flow driver towards the objective of achieving industry-leading
returns. This measure assists readers in understanding the ongoing
cash generating potential of the business including liquidity to
fund working capital, servicing debt, and funding capital
expenditures and investment opportunities.
This measure is not recognized under IFRS as it
does not have any standardized meaning prescribed by IFRS and is
therefore unlikely to be comparable to similar measures presented
by other issuers. EBITDA data is intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS.
NET DEBT AND NET CASH
Net debt is defined as total current and
non-current portions of interest-bearing debt and lease liabilities
less cash and cash equivalents. Net cash is defined as cash and
cash equivalents less total current and non-current portions of
interest-bearing debt and lease liabilities.
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