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 update for the quarter
ended June 2022:
- Record
quarterly tin production of
3,180
tonnes
-
Q2
EBITDA3 of
US$67m
-
Interim dividend
for FY2022 of CAD$0.03 per
share declared on 5 July 2022
Operational and Financial
Summary for the Quarter ended
June
20222
Description |
Units |
Actual |
|
|
Quarter ended June 2022 |
Quarter ended March 2022 |
Change |
Ore Processed |
Tonnes |
112,569 |
105,565 |
7 |
% |
Tin Grade Processed |
% Sn |
3.65 |
3.73 |
-2 |
% |
Overall Plant Recovery |
% |
77.3 |
77.7 |
-1 |
% |
Contained Tin Produced |
Tonnes |
3,180 |
3,061 |
4 |
% |
Contained Tin Sold |
Tonnes |
3,229 |
3,336 |
-3 |
% |
EBITDA3 |
US$'000 |
67,004 |
98,104 |
-32 |
% |
AISC3 |
US$/t sold |
14,677 |
15,782 |
-7 |
% |
Net Cash3 (Cash less debt) |
US$'000 |
138,146 |
129,775 |
6 |
% |
Tin Price Achieved |
US$/t |
35,345 |
43,834 |
-19 |
% |
__________________________________________________________________________________________
1Data obtained from International Tin
Association Tin Industry Review Update 2021 2Production information
is disclosed on a 100% basis. Alphamin indirectly owns 84.14% of
its operating subsidiary to which the information relates. Totals
may not add due to rounding effects. 3This is not a standardized
financial measure and may not be comparable to similar financial
measures of other issuers.See “Use of Non-IFRS Financial Measures”
below for the composition and calculation of this financial
measure. Operational and
Financial Performance –
Q2 2022
Contained tin production of 3,180 tonnes
represents a quarterly record, 4% above the previous quarter.
Underground mining and processing plant recoveries were in line
with expectations. Year-to-date contained tin production of 6,241
tonnes exceeded the run-rate to achieve market guidance of 12,000
tonnes for the year ending December 2022. We expect contained tin
production and sales of approximately 3,000 tonnes for the quarter
ending September 2022.
AISC per tonne of tin sold decreased by 7% to
US$14,677 following a 4% increase in production and the impact of
lower tin prices on off-mine costs related to product marketing
fees, royalties, export duties and smelter payables.
EBITDA for Q2 2022 amounted to US$67m (Q1:
US$98m) at an average achieved tin price of US$35,345/t (Q1:
US$43,834/t). In addition to a higher tin price, the previous
quarter’s sales volumes included a catch-up from delayed sales
during Q4 2021.
The Alphamin consolidated Net Cash position
increased by US$8,3 million during Q2 2022 to US$138.1 million.
This increase is after a FY2021 corporate tax payment of US$43.5
million to the DRC government in April 2022.
Alphamin’s unaudited consolidated financial
statements and accompanying Management’s Discussion and Analysis
for the quarter ended 30 June 2022 have been filed and are
available under the Company’s profile at www.sedar.com.
Interim
FY2022 Dividend
Declared
On 5 July 2022, the Board resolved to declare an
interim FY2022 cash dividend of CAD$0.03 per share on the common
shares (approximately US$30m in the aggregate) (the “Dividend”).
The Dividend will be payable on 5 August 2022 to shareholders of
record as of the close of business on 29 July 2022. Dividend
distributions will be considered semi-annually based on excess free
cash after taking account of capital funding requirements,
including for the new Mpama South expansion project.
Qualified Person
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._________________________________________________________________________________________
FOR MORE INFORMATION, PLEASE CONTACT:
Maritz
Smith CEO Alphamin
Resources
Corp. Tel:
+230 269 4166E-mail:
msmith@alphaminresources.com
JSE SponsorNedbank Corporate and Investment
Banking, a division of Nedbank Limited
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 contained tin production
guidance for Q3 2022 and FY 2022. 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 regarding estimates of the expected mined tin grades,
processing plant performance and recoveries, uncertainties with
respect to social, community and environmental impacts,
uninterupted access to required infrastructure and third party
service providers, adverse political and geopolitical events,
uncertainties regarding the legislative requirements in the
Democratic Republic of the Congo which may result in unexpected
fines and penalties, 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 CASH
Net cash is defined as cash and cash equivalents
less total current and non-current portions of interest-bearing
debt and lease liabilities.
AISC
This measures the costs to produce and sell a
tonne of contained tin plus the capital sustaining costs to
maintain the mine, processing plant and infrastructure. AISC
includes mine operating production expenses such as mining,
processing, administration, indirect charges (including surface
maintenance and camp and tailings dam construction costs), smelting
costs and deductions, refining and freight, distribution, royalties
and product marketing fees. AISC does not include depreciation,
depletion, and amortization, reclamation expenses, borrowing costs
and exploration expenses.
Sustaining capital expenditures are defined as
those expenditures which do not increase contained tin production
at a mine site and excludes all expenditures at the Company’s
projects and certain expenditures at the Company’s operating sites
which are deemed expansionary in nature.
Reconciliation of operating profit to EBITDA |
Q2 2022 |
Q1 2022 |
Variance |
Q2 2022 |
Q2 2021 |
Variance |
Operating
Profit |
$'000 |
59,534 |
90,438 |
-34% |
59,534 |
27,120 |
120% |
Adjustments; |
|
|
|
|
|
|
|
Depreciation, depletion & amortisation |
$'000 |
7,015 |
6,852 |
2% |
7,015 |
6,419 |
9% |
Depreciation in stock movement |
$'000 |
73 |
398 |
-82% |
73 |
(37) |
-297% |
Borrowing
costs in G&A |
$'000 |
20 |
12 |
67% |
20 |
383 |
-95% |
Share
based payments in G&A |
$'000 |
235 |
278 |
-15% |
235 |
85 |
176% |
Depreciation in G&A |
$'000 |
127 |
126 |
1% |
127 |
107 |
19% |
EBITDA 2,3 |
$'000 |
67,004 |
98,104 |
-32% |
67,004 |
34,077 |
97% |
Further information on the calculation of our
EBITDA and AISC is contained on pages 5 and 6 of our Management’s
Discussion and Analysis – Quarterly Highlights dated July 26, 2022
which has been filed and available on SEDAR at www.sedar.com and is
incorporated by reference herein.
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