Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX)( “Alphamin” or
the “Company”), is pleased to announce the declaration of an
interim FY2024 dividend and provide an operational update for the
quarter ended September 2024:
- Interim FY2024 dividend
increased to CAD$0.06 per share (previously CAD$0.03 per
share)
- Record quarterly tin
production of 4,917 tonnes, up 22% from the prior
quarter
- Q3
EBITDA3 guidance of US$91.5m, up
69% from actual EBITDA for the prior quarter
Operational and Financial Summary for
the Quarter ended September 20241
__________________________________________________________________________________________
1Information is disclosed on a 100% basis.
Alphamin indirectly owns 84.14% of its operating subsidiary to
which the information relates. 2Q3 2024 EBITDA and AISC represent
management’s guidance. 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
Contained tin production of 4,917 tonnes for the
quarter ended September 2024 was 22% above the prior period. This
increase is a result of the Mpama South expansion contributing for
a full quarter compared to half of the prior quarter. Ore processed
increased by 37% to 229,107 tonnes and the tin grade of the feed
ore reduced to 2.9%. This is in line with expectations as the
Company targets annual processing volumes of 900,000 tonnes of ore
at a tin grade of ~3%, producing approximately 20,000 tonnes of
contained tin per year. Both processing facilities performed well
during the quarter and achieved an overall plant recovery of 73.4%,
in line with expectations.
Tin sales volumes increased by 71% to 5,552
tonnes which included the clearing of the ~600 tonnes sales backlog
experienced in the prior quarter.
Guidance for AISC per tonne of tin sold is in
line with the prior quarter at US$15,700 and includes the impact of
tin prices on off-mine costs such as royalties, export duties, the
smelter deductions and marketing fees, which are linked to
movements in the tin price. Off-mine costs are expected to reduce
from early Q4 2024 due to a ~60% reduction in marketing fees as a
condition to the previously announced extension of the tin
concentrate off-take agreement with Gerald Metals.
EBITDA for Q3 2024 is estimated to increase by
69% to US$91.5m (Q2 2024 actual: US$54.2m) due to higher tin
production and sales volumes.
Alphamin’s unaudited consolidated financial
statements and accompanying Management’s Discussion and Analysis
for the quarter ended 30 September 2024 are expected to be released
on or about 8 November 2024.
Alphamin and the tin market
Alphamin’s tin production expansion is being
delivered against a period of weakness in global tin supply with
major producing regions experiencing production challenges, while
no obvious major investments are being made in the industry. Demand
for tin in solar installations remains robust and semi-conductor
sales, a proxy for tin’s application in electronics, are reportedly
improving. Demand in other applications is expected to recover as
major economies enter a lower interest rate cycle and the recently
introduced economic stimulus in China takes effect. These dynamics
bode well for the tin price while exchange traded tin stocks are on
the decline.
Interim FY2024 Dividend
Declared
The Board has declared an interim FY2024 cash
dividend of CAD$0.06 per share on the common shares (approximately
US$57 million in the aggregate) (the “Dividend”). The Dividend will
be payable on November 4, 2024 to shareholders of record as of the
close of business on October 25, 2024.
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 EBITDA and AISC guidance
for Q3 2024; expectations regarding annual targeted processing
volumes, tin grades and contained tin production; expectations
regarding the supply and demand for tin and the tin price.
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: the availability of ore
at expected quantities and grades, uncertainties regarding global
supply and demand for tin and market and sales prices together with
the impact of reported and unreported global tin stocks on the tin
price, uncertainties with respect to social, community and
environmental impacts, uninterupted access to required
infrastructure and third party service providers, uncertainties
regarding the state of inbound and outbound roads and truck
availabilities, adverse political events and risks of security
related incidents which may impact the operation or safety of its
people, uncertainties regarding the legislative requirements in the
Democratic Republic of the Congo which may result in unexpected
fines and penalties or the ability to continue with normal
operations, 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 annual Management Discussion
and Analysis and other disclosure documents available under the
Company’s profile at www.sedarplus.ca. 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.
CASH COSTS
This measures the cash costs to produce and sell
a tonne of contained tin. This measure includes mine operating
production expenses such as mining, processing, administration,
indirect charges (including surface maintenance and camp and head
office costs), and smelting, refining and freight, distribution and
royalties. Cash Costs do not include depreciation, depletion, and
amortization, reclamation expenses, capital sustaining, borrowing
costs and exploration expenses. On mine costs, exclusive of stock
movement, are calculated on a cost per tonne produced basis, off
mine costs are calculated on a cost per tonne sold basis.
AISC
This measures the cash costs to produce and sell
a tonne of contained tin plus the capital sustaining costs to
maintain the mine, processing plant and infrastructure. This
measure includes the Cash Cost per tonne and capital sustaining
costs together divided by tonnes of contained tin produced. All-In
Sustaining Cost per tonne does not include depreciation, depletion,
and amortization, reclamation, borrowing costs, foreign exchange
gains and losses, exploration expenses and expansion capital
expenditures.
Sustaining capital expenditures are defined as
those expenditures which do not increase payable mineral 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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