DRC-focused tin producer Alphamin expects EBITDA to increase 118% in Q1 2021
(Kitco News) - Alphamin Resources (AFM:TSXV), a producer of 4% of the world’s mined tin from its high grade operation in the Democratic Republic of Congo (DRC), announced today that contained tin sales of 3,351 tons in Q1 2021 were 45% higher than in the previous quarter as the company recouped
the sales shortfall of Q4 2020.
Contained tin production of 2,611 tons was 10% lower than in Q4 2020 (2,898 tons) and was impacted by a lower feed grade of 3.8% Sn compared to 4.2% Sn the previous quarter. The processing plant performed well at an average recovery of 74% whilst treating more material than the previous quarter.
The company said that its EBITDA guidance of $36.5 million for Q1 2021 is 118% above the previous quarter due to increased sales volumes benefiting from a 25% higher tin price. Tin prices are currently trending at around $25,000/t, some 10% above prices achieved during the past quarter.
The company added that fine tin recovery plant (FTP) is on schedule for commissioning during June 2021. Estimated expenditure at completion is substantially in line with the budget of US$4.6 million. The FTP has the potential to increase contained tin production by 5%-10% effective July 2021.