JSE- and TSX-V-listed Alphamin has generated a new quarterly record earnings before taxes, interest, depreciation and amortisation (Ebitda) of $36.5-million for the first quarter of the year.
The higher Ebitda is on the back of 3 351 t of tin sales, which is a 45% improvement on the prior quarter, while the tin price is averaging $25 000/t.
The company generated $16-million of Ebitda in the quarter ended December 31, 2020.
Alphamin did advise, however, that its contained tin production of 2 611 t in the quarter ended March 31 was impacted by a lower feed grade of 3.8% tin, compared with a grade of 4.2% in the prior quarter.
The processing plant performed well during the quarter under review, averaging a recovery rate of 74% and treating more material than in the prior quarter.
The company continues undertaking exploration activity to extend the life of mine at its Mpama North operation and to declare a maiden mineral resource estimate for the Mpama South deposit.
Alphamin plans to conduct between 8 000 m and 14 000 m of drilling at Mpama South to declare a mineral resource estimate by the end of the year, while an initial 7 500 m drilling campaign is planned for Mpama North starting in May to test the strike and dip extension of the current producing orebody.