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Africa-focused tin producer Alphamin reports record production and EBITDA

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(Kitco News) - Alphamin Resources (AFM:TSXV, APH:JSE), a producer of 4% of the world’s mined tin from its high-grade operation in the Democratic Republic of Congo, today reported record EBITDA of $16.7 million and record tin production of 2,898 tons in Q4 2020, up 13% from the previous quarter.

According to the company’s statement, tin production increased 13% to a quarterly record of 2,898 tons and was higher than its previous market guidance of 2,600 to 2,800 tons. This outperformance was due to better-than-expected tin feed grades and plant recoveries. The processing plant performed at an average recovery of 74% for the quarter, including a record recovery of 77% achieved in December 2020.

Quarterly sales decreased by 14% due to extreme seasonal rains impacting export road conditions. Weather stations across the export route reported rainfall above 159% of the long-term mean.

Alphamin added that EBITDA for Q4 2020 increased to a record $16,7million, albeit negatively impacted by lower tin sales volumes. The short dry-season (Jan-March) allows road maintenance to be done and already road conditions have improved. The company expects to sell approximately 3,200 tons of contained tin during Q1 2021 thereby recouping most of the past quarter’s sales shortfall.

The LME tin price has increased from approximately US$18,497/t during Q4 2020 to a current level of ~US$24,000/t, which bodes well for the company’s 2021 earnings.

Alphamin’s short-term objective is to increase annualised contained tin production from the current level of 11,000t to 13,000t. This increase is expected from July 2021 following the commissioning of the previously announced fine tin recovery plant and a planned increase of 5% in processed ore volumes.

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