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Alphamin reports record quarterly tin production in DR Congo, declares dividend

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(Kitco News) - DR Congo-focused tin producer Alphamin Resources (TSXV: AFM) yesterday reported record quarterly production of 3,180 tonnes of tin in Q2 2022, up 4% over the previous quarter.

Importantly, the company said that year-to-date contained tin production of 6,241 tonnes exceeded the run-rate to achieve market guidance of 12,000 tonnes for the year ending December 2022.

The company expects that AISC per tonne of tin sold to decrease by 6% to US$14,800 following a 4% increase in production and the impact of lower tin prices on off-mine costs related to product marketing fees, royalties, export duties and smelter payables.

EBITDA for Q2 2022 is estimated at US$66.5m (Q1: US$98m) at an average achieved tin price of US$35,500/t (Q1: US$43,834/t). In addition to a higher tin price, the previous quarter’s sales volumes included a catch-up from delayed sales during Q4 2021, the company added.

Alphamin noted that its consolidated net cash position increased by US$8.3 million during Q2 2022 to US$138.1 million, adding that this increase is after a FY2021 corporate tax payment of US$43.5 million to the DRC government in April 2022.

The company also announced that its Board resolved to declare an interim FY2022 cash dividend of CAD$0.03 per share on the common shares (approximately US$30m in the aggregate).

As for the previously announced strategic review, the company said that at this point in time, it believes that an outright sale transaction would not deliver the future value it intends to unlock through ongoing resource development and production growth.

Alphamin’s Mpama North mine in DR Congo is the world’s highest grade tin mine, currently producing mined material (run of mine) at an average grade of around 4.5% tin. The Mpama North mine is in production. It has an output of ~10 000 tonnes of contained tin per annum, amounting to ~3% of the world’s mined tin supply.

Alphamin is aiming to increase annual tin output and life of mine through incremental production from Mpama South and by adding more mines in close proximity to the current production and from within its licensed footprint.

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