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 growth update for
the quarter ended June 2021:
- Q2 EBITDA guidance
of $34m, at a tin price of $28,326/t versus
current of $31,800/t
- Net Debt reduced
to $29.9m
- Contained tin
production of 2,412 tons (11% below prior
guidance and 8% below the prior quarter)
- Fine tin recovery
plant fully commissioned and producing from 26 June
2021
- Mpama South phase 3
drilling progressing to plan with strong visual
mineralisation from initial step-out holes
- Mpama North Deeps
drilling commenced 2 July 2021 with additional rigs under
mobilisation to accelerate drilling campaign
Operational and Financial Summary for
the Quarter ended June 20212
Description |
Units |
Actual |
|
|
Quarterended June2021 |
Quarterended March2021 |
Variance |
Tons Processed |
Tons |
105,294 |
93,997 |
12% |
Tin Grade Processed |
% Sn |
3.2 |
3.8 |
-16% |
Overall Plant Recovery |
% |
72 |
74 |
-3% |
Contained Tin Produced |
Tons |
2,412 |
2,611 |
-8% |
Contained Tin Sold |
Tons |
2,404 |
3,351 |
-28% |
EBITDA3 (Q2 2021 guidance) |
US$'000 |
34,000 |
36,453 |
-7% |
Tin Price Achieved |
US$/t |
28,326 |
23,083 |
23% |
____________________________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. 3Q2 2021
EBITDA represents management’s guidance.
Operational and Financial Performance
Contained tin production of 2,412 tons was 11%
below guidance (2,700 tons), impacted by a low feed grade of 3.2%
Sn compared to 3.8% Sn the previous quarter. The month of June 2021
saw lower than expected grades from underground. The variable
nature of tin mineralisation in the orebody may cause large
fluctuations in delivered grade – as a mitigating tool we will
increase planned waste development for the remainder of the year in
order to provide more mining flexibility for blending high- and
low-grade areas.
Taking into consideration the lower feed grade,
the processing plant performed well, treating 12% more material and
achieving recoveries of 72%.
Our EBITDA guidance of $34m for Q2 2021 is 7%
below Q1 2021 – the previous quarter benefitted from a significant
catch-up in tin sales following logistical bottlenecks during Q4
2020. Tin prices are currently trading at around $31,800/t, 12%
above prices achieved during the past quarter.
Net debt amounted to $29.9m at 30 June 2021,
down 50% from the start of the financial year (31 December 2020:
$59.9m).
The Company has appointed Mr. Jan Trouw as the
on-mine Managing Director of its 84.14% subsidiary, Alphamin Bisie
Mining, effective 1 July 2021. Mr Trouw is well known to the
Alphamin team and has over 40 years of African mining experience –
recently as head of the Frontier copper mine in the DRC and prior
to that as General Manager of the high-grade Chibuluma copper mine
in Zambia. He was instrumental during late 2019 in developing the
new mining method and mine design criteria for Alphamin’s Bisie tin
mine. We look forward to working with Mr Trouw in realising our
vision of becoming one of the world’s largest long-life tin
producers.
Alphamin’s unaudited consolidated financial
statements and accompanying Management’s Discussion and Analysis
for the quarter ended 30 June 2021 is expected to be released on or
around 9 August 2021.
Growth Initiatives
Fine Tin Recovery Plant (FTP) -
The FTP is fully commissioned and produced at steady state from 26
June 2021. Expenditure at completion is substantially in line with
the budget of US$4.6 million. Production from the FTP during its
first week of operations increased overall contained tin production
by 5%. This exceeded expectations so early after commissioning. The
exceptionally high grade of the FTP concentrates provides further
scope to reduce product grade in pursuit of higher tin
recoveries.
Exploration Activities -
Alphamin’s exploration initiative aims to: extend the life-of-mine
at its currently producing Mpama North operation; to declare a
Maiden Mineral Resource for Mpama South (located 750 metres south
of Mpama North); and to discover at least one additional orebody on
the highly prospective Bisie Ridge (13km strike length).
Drilling at the Mpama North orebody commenced on
2 July 2021. An initial 15,000 metre (22 holes) drilling campaign
over 4 months is planned to test the strike and dip extension of
the current producing orebody, below 400m in depth from the mine
portal.
The Mpama South phases 1 and 2 drilling of
10,015 metres (46 holes) have been completed with external assays
for 29 holes announced to date. The remaining external lab assays
are expected in two batches during July and early August 2021.
Phase 3 drilling of 6,800 metres is progressing to plan - to date,
5 of the 24 holes have been completed showing strong visual
mineralisation over wide intercepts within the interpreted
high-grade shoot.
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 in August 2021. Access roads have been
established and initial drill targets are being developed in
consultation with the Company’s appointed structural specialists,
TECT Geological Consulting.
Qualified Person
Mr Vaughn Duke Pr.Eng. PMP, MBA, B.Sc. Mining
Engineering (Hons.), 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, Partner and Director of
Sound Mining Solutions, 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 future EBITDA
for Q2 2021, the impact of the Company’s fine tin recovery plant on
production and the timing and success of additional 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 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, uninterupted access to required
infrastructure, 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 measure:
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.
Alphamin Resources (TSXV:AFM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Alphamin Resources (TSXV:AFM)
Historical Stock Chart
From Apr 2023 to Apr 2024