Alphamin Resources Corp. (TSX-V:AFM) (JSE AltX:APH) 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 update for the quarter ended June 2022:
Operational and Financial Summary for the Quarter ended June 20222
|Quarter ended June 2022||Quarter ended March 2022||Change|
|Ore Processed||Tonnes||112 569||105 565||7%|
|Tin Grade Processed||% Sn||3,65||3,73||-2%|
|Overall Plant Recovery||%||77,3||77,7||-1%|
|Contained Tin Produced||Tonnes||3 180||3 061||4%|
|Contained Tin Sold||Tonnes||3 229||3 336||-3%|
|EBITDA3,4 (Q2 2022 guidance)||US$’000||66 500||98 104||-32%|
|AISC3, 4 (Q2 2022 guidance)||US$/t sold||14 800||15 782||-6%|
|Net Cash4 (Cash less debt)||US$’000||138 100||129 775||6%|
|Tin Price Achieved||US$/t||35 500||43 834||-19%|
1Data obtained from International Tin Association Tin Industry Review Update 2021 2Production information is disclosed on a 100% basis. Alphamin indirectly owns 84.14% of its operating subsidiary to which the information relates. Totals may not add due to rounding effects. 3Q2 2022 EBITDA and AISC represent management’s guidance. 4This 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 – Q2 2022
Contained tin production of 3,180 tonnes represents a quarterly record, 4% above the previous quarter. Underground mining and processing plant recoveries were in line with expectations. 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.
AISC per tonne of tin sold is expected 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 Alphamin consolidated Net Cash position increased by US$8,3 million during Q2 2022 to US$138.1 million. This increase is after a FY2021 corporate tax payment of US$43.5 million to the DRC government in April 2022.
Alphamin’s unaudited consolidated financial statements and accompanying Management’s Discussion and Analysis for the quarter ended 30 June 2022 are expected to be released on or about 26 July 2022.
Interim FY2022 Dividend Declared
The 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) (the “Dividend”). The Dividend will be payable on 5 August 2022 to shareholders of record as of the close of business on 22 July 2022. Dividend distributions will be considered semi-annually based on excess free cash after taking account of capital funding requirements, including for the new Mpama South expansion project
Strategic Review Update
On 9 November 2021, the Company announced the initiation of a strategic review to explore alternatives such as fast-tracking the Company’s expansion and life-of-mine extension potential, balance sheet restructuring including revenue prepayments and streaming, shareholder distributions or a corporate merger or sale transaction.
The Company wishes to update shareholders and other market participants on this initiative:
Mr. Clive Brown, Pr. Eng., B.Sc. Engineering (Mining), is a qualified person 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.
Rock Tech Lithium Inc. (TSX-V: RCK) (OTCQX: RCKTF) (FWB: RJIB) (WKN: A1X... READ MORE
Power Metals Corp. (TSX-V: PWM) (FRANKFURT: OAA1) (OTCQB: PWRMF... READ MORE
Vox Royalty Corp. (TSX-V: VOX) (OTCQX: VOXCF) a returns focused ... READ MORE
Aldebaran Resources Inc. (TSX-V: ALDE) (OTCQX: ADBRF) is pleased ... READ MORE
Scorpio Gold Corporation (TSX-V: SGN) announces that further to i... READ MORE
We acknowledge the [financial] support of the Government of Canada.