Tin production was up 29% to 2,739 tons versus previous quarter. All-In Sustaining Costs per ton of tin sold was down 13% to US$10,849 versus previous quarter. EBITDA was US$12.9 million. Q3 2020 production guidance is 2,600 – 2,800 tons of contained tin.
Increase in ownership of the Bisie tin mine increased from 80.75% to 84.14%. There was a
$31.2 million in debt reduction concluded concurrently with a $31 million offering of shares.
There was a significant improvement in debt terms following the restructure including an interest rate reduction and partial debt holiday in 2020. Initiation of significant growth initiatives post quarter-end was launched.
During the quarter, mined volumes exceeded plant throughput by some 4,000 tons increasing the run-of-mine stockpiles. The processing plant is performing well and various initiatives aimed at achieving consistently higher throughput are underway.Tin production was higher than previous market guidance due to better than expected tin feed grades. Plant throughput increased 8% to 91,928 tons from higher underground volumes derived from the new open stoping with the hydraulic backfill (LHS) mining method.
The company expects contained tin production of between 2,600 and 2,802 tons for the quarter ending September 2020. The tin price has recently increased to around US$18,000/t compared to a price realized of US$15,359/t during this past quarter which, if maintained, bodes well for the next quarter’s EBITDA and cash flow generation.
Subject to regulatory approval, Mrs. Zain Madarun and Sean Naylor were appointed to the board of directors.