The operator of the Bisie mine, Alphamin Resources Corp. (TSXV: AFM; JSE AltX: APH), announced that its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the first quarter of 2024 increased by 156% year-over-year.
In the quarter ending March 31, 2024, ore processed increased by 4% to 109,424 tons compared to the previous quarter, although the ore grade decreased by 4% to a tin grade of 3.83%. With the tin recovery rate unchanged at 75%, the total production of tin in concentrate slightly increased from 3,126 tons to 3,142 tons. Additionally, sales volumes jumped from 2,046 tons in the previous quarter to 4,126 tons, an increase of 102%.
The company’s EBITDA grew from $20.3 million to $52 million, a significant rise mainly due to the clearing of sales backlogs from the fourth quarter of 2023 and a 7% increase in tin prices. During the fourth quarter of 2023, concentrate sales were disrupted due to extreme rainfall in the Democratic Republic of the Congo, which damaged infrastructure along major trade routes.
With the rise in tin prices, royalties, export duties, marketing commissions, and smelter net proceeds increased, leading to a slight rise in all-in sustaining costs (AISC) to $14,785 per ton of tin sold. As of March 31, 2024, the company’s cash reserves increased from $7.2 million on December 31, 2023, to $53.5 million, and net debt decreased from $73 million to $28 million.
The company’s major expansion project, Mpama South in the Democratic Republic of the Congo, is behind schedule due to delays in commissioning the new plant. The engineering team is currently in the final stages of commissioning the plant, with crushed ore stockpiles reaching 5,300 tons. The expansion is expected to increase Alphamin’s production capacity from approximately 12,500 tons of tin per year to 20,000 tons per year.
ITA Viewpoint: As of 2023, the Bisie mine’s production accounted for 4.0% of global tin production. Given ongoing supply disruptions in other regions of the world, the market eagerly anticipates the completion of the significant Mpama South expansion project.
[Source – 上海有色网] 扩建工程将使Alphamin公司生产能力提高到每年2万吨锡 https://news.smm.cn/news/102731860
