JSE- and TSX-V-listed Alphamin Resources produced 2 119 t of contained tin in the quarter ended March 31.
This was at the mid-point of its guidance range and compares with the 2 235 t of contained tin produced in the quarter ended December 31, 2019.
The company reported that its processing recoveries were at 71%, which was in line with its target and above the 65% recovery rate achieved in the prior reporting quarter.
Alphamin had set its guidance for the second quarter at between 2 400 t and 2 600 t of contained tin, at a 72% recovery rate.
The company will publish its results for the year ended December 31, in mid-April.
The company comments that its Bisie tin mine, in the Democratic Republic of Congo, is expected to benefit further in the coming quarter, as a result of two new remote controlled load, haul and dump machines that were commissioned in February, which should improve underground loading capacity.
Meanwhile, Alphamin says it has been able to continue with normal production and concentrate sale activities amid the global Covid-19 pandemic.
The main border crossings relevant to its outbound activities are still open to freight movement, while the company’s concentrate offtake customer was able to send product to at least one tin smelter.
Covid-19 has, however, had a negative impact on global commodity prices. The tin price was ranging between $13 500/t and $14 500/t at the end of March, compared with the company’s technical report that assumed a price of $17 000/t for the mine’s viable economics and debt repayments.
The company warns that it needs a higher price to be able to meet its debt payments starting July.
“From a liquidity perspective and current production rates, the prevailing tin price range supported ongoing production and sales costs, together with debt interest payments, but higher tin prices would be required to meet additional monthly debt capital repayments scheduled to start July 31,” Alphamin explains.
The company continues to focus on achieving its full production targets at the lowest possible unit cost.