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 update for the quarter ended March
2023:
- Record
quarterly tin production of
3,187
tonnes
- Q1 2023
EBITDA3,4
guidance of
US$41.4m,
up 53% from the previous quarter
- Tin
expansion project
expected to increase annual tin production
by up to 60% progressing
to plan
Operational and Financial
Summary for the Quarter ended
March
20232
|
|
|
|
|
Description |
Units |
|
Description |
Units |
Quarter ended March 2023 |
Quarter ended December 2022 |
Change |
Ore Processed |
Tonnes |
95,751 |
106,087 |
-10% |
Tin Grade Processed |
% Sn |
4.38 |
4.00 |
10% |
Overall Plant Recovery |
% |
76 |
73 |
3% |
Contained Tin Produced |
Tonnes |
3,187 |
3,113 |
2% |
Contained Tin Sold |
Tonnes |
3,161 |
3,119 |
1% |
EBITDA3,4 (Q1 2023 guidance) |
US$'000 |
41,400 |
27,105 |
53% |
AISC3, 4 (Q1 2023 guidance) |
US$/t sold |
13,900 |
13,420 |
4% |
Net Cash4 (Cash less debt) |
US$'000 |
86,245 |
109,335 |
-21% |
Dividends paid, including minorities |
US$'000 |
28,200 |
0 |
n/a |
Average Tin Price Achieved |
US$/t |
26,432 |
21,436 |
23% |
__________________________________________________________________________________________
1Data obtained from International Tin
Association Tin Industry Review 2022 2Information is disclosed on a
100% basis. Alphamin indirectly owns 84.14% of its operating
subsidiary to which the information relates. 3Q1 2023 EBITDA and
AISC represent management’s guidance. 4This 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
Alphamin achieved record tin production of 3,187
tonnes for the quarter ended March 2023, exceeding market guidance
of 3,000 tonnes. Run-of-mine volumes processed were scaled back due
to the higher tin grades in order to increase recoveries. The
run-of-mine and crushed ore stockpiles ahead of the processing
plant were at record levels at quarter-end, being 15,011 tonnes at
an average tin grade of 5,98%.
Sales volumes were in line with production at a
tin price of US$26,432/t. Guidance for AISC per tonne of tin sold
is 4% higher than the prior quarter at US$13,900 due to the
increase in tin prices which impacts off-mine costs such as
royalties, export duties, the smelter deductor and marketing fees.
Commendable production and sales together with a higher tin price
resulted in a 53% increase in expected EBITDA of US$41.4 million
for the quarter.
The Alphamin consolidated Net Cash position of
US$86 million at quarter-end is after a final FY2022 dividend
payment of US$28.2m (CAD0.03 per share) to Alphamin shareholders.
The total FY2022 dividend amounted to CAD0.06 per share. During the
quarter, US$15m of cash was applied towards the development of the
Mpama South project. Capital allocation during FY2023 will be
prioritised towards the development of the Mpama South project, DRC
income tax payments and shareholder distributions.
Alphamin’s unaudited consolidated financial
statements and accompanying Management’s Discussion and Analysis
for the quarter ended 31 March 2023 are expected to be released on
or about May 16, 2023.
Mpama South
development progress
A total of 808m of underground development on
two levels to connect Mpama North and Mpama South has been
completed to date, of which 369m of development was completed in Q1
2023. The Mpama South deposit has been intersected in a number of
planned underground crosscuts. Development is expected to
significantly accelerate from May 2023 as additional underground
fleet equipment arrives on site. Additional grade control drilling
is being completed to enable detailed short-term planning for the
commencement of stoping later in 2023.
Work commenced on the Mpama South portal with
the excavation, stabilising and shotcreting of the portal area
being completed. The adit was established with 49m of adit and
associated cubbies having been excavated and supported through
moderately weathered ground. Ground conditions will improve
significantly when hard rock is encountered towards the end of
April 2023 and advance rates will increase thereafter.
Additional underground mining and maintenance
staff have been recruited and are being mobilised in line with the
mechanised machine deliveries.
Progress on the processing plant is as
follows:
- Procurement is complete.
- Design and engineering are 92%
complete.
- Fabrication is 79% complete.
- 24% of the processing plant has
been moved to site.
- Bulk earthworks are complete.
- Civils are 41% complete.
- SMPPEI (structural, mechanical,
piping and platework, electrical and instrumentation) has commenced
and steelwork is starting to be erected on site.
The processing plant as a whole is 66% complete
and is progressing well towards the planned December 2023
commissioning date. Items on the critical path are being monitored
and interventions are being made as and when required.
The Alphamin project team, together with the
existing site team, remains focussed on operational readiness
preparation. This primarily involves recruitment and training of
personnel, expansion of the laboratory and accommodation facilities
and infrastructure, and increasing the supply chain to meet the
increase in production.
The Mpama South development project is
forecasted to be complete within the budget of US$116m with
commissioning targeted in December 2023. The project is expected to
increase annual contained tin production from ~12,000 tonnes to
~20,000 tonnes.
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
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 expected EBITDA and AISC
guidance for Q1 2023, planned production expansion resulting from
Mpama South and the timing for commissioning and total development
cost of the Mpama South project and planned allocations of capital
during the 2023 fiscal year. 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 Mpama North and Mpama South estimates of
the expected mined tin grades, processing plant performance and
recoveries, deviations from current development plans and mining
methods, uncertainty of cost estimates, uncertainties regarding
supply chain and logistics for purposes of Mpama South equipment
deliveries and the impact on the timing thereof, uncertainties
regarding global supply and demand for tin and market and sales
prices, inflation and geopolitical events, uncertainties with
respect to social, community and environmental impacts,
uninterupted access to required infrastructure and third party
service providers, adverse political and security 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 or
other health crises 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 and corporate costs. 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.
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