Dual-listed Alphamin Resources has announced record earnings before interest, taxes, depreciation and amortisation (Ebitda) of $53-million for the quarter ended September 30.

Ebitda was also up 56% compared with the second quarter ended June 30.

The higher Ebitda was the result of increased tin production and sales volumes, together with a higher tin price.

The company’s contained tin production was up 17% quarter-on-quarter to 2 832 t.

Alphamin, which operates the Mpama North mine, in the Democratic Republic of the Congo, says underground mining practices relating to stope planning, delineation and blasting were significantly improved from mid-July.

This resulted in an average tin grade of 3.8% processed during August and September, with an average of 3.5% for the quarter.

In addition to improved grade control, run-of-mine volumes and waste development increased by 5% quarter-on-quarter.

The benefit of the newly commissioned fine tin plant increased overall processing recoveries to 75%.

Alphamin was net debt-free at period end, compared with a net debt position of $29.5-million the previous quarter.

The company says it plans to fully settle an outstanding senior loan of $36-million during October.

It will establish an appropriate treasury strategy during the fourth quarter, with the objective of balancing capital allocations between ongoing exploration drilling, the potential fast-track development of the Mpama South deposit and shareholder distributions.

The company notes that Mpama South drilling continues to intercept significant visual mineralisation.

Three phases of drilling have been completed on the Mpama South deposit since December 2020.

Independent laboratory assay results have been released to the market for 39 holes. The assay results of a further 21 drill holes are expected to be released to the market during October.

Phases 1 and 2 and the recently completed Phase 3 have exceeded expectations with both strike and depth continuation of significant visually observed mineralised cassiterite lodes.

A fast-tracked Phase 4 drilling programme of 8 000 m started in mid-September. This programme includes an additional third drill rig and is targeted for completion by year-end.

Drilling comprising 18 500 m is intended to form the basis of a maiden mineral resource estimate, which is also expected to be announced by year-end.

In addition to Mpama North and Mpama South, drilling on the highly prospective Bisie ridge (13 km strike length), which falls within the company’s mining licence, is expected to start when additional drill rigs are delivered.

Alphamin’s unaudited consolidated financial statements are expected to be released on or about November 10.