Grand Baie,
- Interim dividend for FY2023 of CAD$0.03 per share declared
- Tin production of 3,151 tonnes for the quarter, in line with the previous period
- Q2 2023 EBITDA3,4 guidance of US$35.4m at a tin price of
US$25,587 /t (Current tin price:US$28,500 /t) - Mine expansion project to increase annual tin production by 60% progressing well
Operational and Financial Summary for the Quarter ended June 20232
Description | Units | |||
Description | Units | Quarter ended | Quarter ended | Change |
Ore Processed | Tonnes | 99,035 | 95,751 | 3% |
Tin Grade Processed | % Sn | 4.20 | 4.38 | -4% |
Overall Plant Recovery | % | 76 | 76 | 0% |
Contained Tin Produced | Tonnes | 3,151 | 3,187 | -1% |
Contained Tin Sold | Tonnes | 3,068 | 3,161 | -3% |
EBITDA3,4 (Q2 2023 guidance) | US$'000 | 35,400 | 41,391 | -14% |
AISC3, 4 (Q2 2023 guidance) | US$/t sold | 13,897 | 13,915 | 0% |
Average Tin Price Achieved | US$/t | 25,587 | 26,432 | -3% |
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1Data obtained from International Tin Association Tin Industry Review 20222Information is disclosed on a 100% basis. Alphamin indirectly owns 84.14% of its operating subsidiary to which the information relates.3Q2 2023 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
Alphamin achieved excellent tin production of 3,151 tonnes for the quarter ended
Sales volumes of 3,068 tonnes of tin, at an average tin price of
Alphamin’s unaudited consolidated financial statements and accompanying Management’s Discussion and Analysis for the quarter ended
Mpama South development progress
A total of 1,460m of underground development at Mpama South has been completed to date, of which 603m was achieved in Q2 2023 (Q1: 418m). Development has accelerated during Q2 2023 as additional underground equipment has arrived on site. During
The new processing facility is progressing well. Following completion of all procurement, design and engineering, fabrication, earthworks and substantially all civils, the focus has moved to plant erection and tracking of steel and equipment in transit. During the quarter, the fine tin plant structure, primary crusher structure and concentrate drying and storage building have been erected. The gravity plant is at first floor level and the secondary crushers on third floor level. The commissioning of the new processing plant is targeted for
The Alphamin project team, together with the existing site team, remains focussed on operational readiness preparation. This primarily involves recruitment and training of personnel, expansion of the laboratory and accommodation facilities and infrastructure, and increasing the supply chain to meet the additional production.
The Mpama South project is expected to increase annual tin production from ~12,000 tonnes to ~20,000 tonnes.
Funding structure and capital allocation
Alphamin’s vision is to become one of the world’s largest sustainable tin producers. From a capital allocation perspective, the Board considers the combination of investment in growth, ongoing exploration, and a high dividend yield a robust value proposition. From a FY2023 capital allocation perspective, the funding of the Mpama South expansion project, DRC income tax payments and shareholder distributions remain the priority.
During the quarter ended
By quarter-end, the Company had spent
The Alphamin consolidated
Interim FY2023 Dividend Declared
The Board has declared an interim FY2023 cash dividend of
Qualified Person
Mr.
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FOR MORE INFORMATION, PLEASE CONTACT:
CEO
Alphamin Resources Corp.
Tel: +230 269 4166
E-mail: msmith@alphaminresources.com
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this news release that is not a statement of historical fact constitutes forward-looking information. Forward-looking statements contained herein include, without limitation, statements relating to expected EBITDA and AISC guidance for Q2 2023; annual production guidance for 2023; planned production expansion resulting from Mpama South; and the timing for commissioning of the processing plant; timing and plans regarding underground development and the total development cost of the Mpama South project. Forward-looking statements are based on assumptions management believes to be reasonable at the time such statements are made. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Although Alphamin has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to: uncertainties regarding Mpama North and Mpama South estimates of the expected mined tin grades, processing plant performance and recoveries, uncertainties regarding the underground conditions for development, uncertainties regarding supply chain and logistics for purposes of Mpama South equipment deliveries and the impact on the timing thereof, uncertainties regarding global supply and demand for tin and market and sales prices, uncertainties with respect to social, community and environmental impacts, uninterupted access to required infrastructure and third party service providers, adverse political and security events, uncertainties regarding the legislative requirements in the
Neither the
USE OF NON-IFRS FINANCIAL PERFORMANCE MEASURES
This announcement refers to the following non-IFRS financial performance measures:
EBITDA
EBITDA is profit before net finance expense, income taxes and depreciation, depletion, and amortization. EBITDA provides insight into our overall business performance (a combination of cost management and growth) and is the corresponding flow driver towards the objective of achieving industry-leading returns. This measure assists readers in understanding the ongoing cash generating potential of the business including liquidity to fund working capital, servicing debt, and funding capital expenditures and investment opportunities.
This measure is not recognized under IFRS as it does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. EBITDA data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Net cash is defined as cash and cash equivalents less total current and non-current portions of interest-bearing debt and lease liabilities.
AISC
This measures the costs to produce and sell a tonne of contained tin plus the capital sustaining costs to maintain the mine, processing plant and infrastructure. AISC includes mine operating production expenses such as mining, processing, administration, indirect charges (including surface maintenance and camp and tailings dam construction costs), smelting costs and deductions, refining and freight, distribution, royalties and product marketing fees and corporate costs. AISC does not include depreciation, depletion and amortization, reclamation expenses, borrowing costs and exploration expenses.
Sustaining capital expenditures are defined as those expenditures which do not increase contained tin production at a mine site and excludes all expenditures at the Company’s projects and certain expenditures at the Company’s operating sites which are deemed expansionary in nature.
Source:
2023 GlobeNewswire, Inc., source