Alphamin Resources produces 4% of the world’s mined tin at its mine in the Democratic Republic of Congo.
The company has provided an operational update for the quarter ended March 2022. The great news for shareholders is that record EBITDA guidance of USD98 million has been given, up 32% from the prior quarter.
This was driven by a 14% jump in the tin price achieved, 9% growth in contained tin sold and a record plant recovery of 78% (vs. 75% in the previous quarter).
The net cash position has increased substantially from USD68.2 million to USD129.5 million even after a USD30 million dividend payment. There’s a tax payment of USD43.5 million due for payment in April, before shareholders get too excited about that balance.
Interestingly, ore processed and contained tin produced were both 2% lower than the previous quarter but were in line with guidance.
From a capital allocation perspective, the Mpama South Mine is a priority and exploration activity is ongoing. Drilling expenditure of around USD20 million is planned for FY22. Around 85% of drill holes to-date have intercepted visual tin mineralisation. That’s the official geological term for a simple outcome that shareholders love to hear: we have tin!
Mpama South’s development will take Alphamin to around 6.6% of the world’s tin production. The operation is expected to achieve first tin production by December 2023.
Alphamin’s share price is up a whopping 119% over the past year and is up 14% this year.
