Alphamin Resources reports tin production up 29% in DRC

Alphamin Resources Corp. [AFM-TSXV; AFMJF-OTC] reported its production and earnings before interest, taxes, depreciation and amortization (EBITDA) update for the quarter ended June, 2020 from its 80.75%-owned Bisie Mine in east-central Democratic Republic of Congo.

Tin production was up 29% to 2,739 tons versus previous quarter. All-in sustaining cost 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 to 2,800 tons of contained tin.

Tin production was higher than the company’s 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 mining method. During the quarter, mined volumes exceeded plant throughput by approximately 4,000 tons increasing the ROM stockpiles. The processing plant is performing well and various initiatives aimed at achieving consistently higher throughput are under way.

The AISC per ton of payable tin sold reduction was mainly attributable to increased tin production. Additionally, the previous quarter’s costs were negatively affected by high arsenic penalties and exceptional logistical costs incurred while the national road bridge was under repair.

The EBITDA of US$12.9-million was recorded at an average tin price of US$15,359 per ton. This represents an EBITDA margin of 32% in a relatively low tin price environment.

The tin price has recently increased to around US$17,000 per ton compared with a price of US$15,359 per ton during this past quarter, which if maintained, bodes well for the next quarter’s EBITDA and cash flow generation.