JSE-listed Alphamin Resources achieved record quarterly tin production of 3 187 t from its high-grade operation in the Democratic Republic of Congo (DRC) for the quarter ended March, exceeding its market guidance of 3 000 t.
Run-of-mine (RoM) volumes processed were scaled back owing to the higher tin grades to increase recoveries.
The RoM and crushed ore stockpiles ahead of the processing plant were at record levels at quarter-end, being 15 011 t at an average tin grade of 5.98%.
Sales volumes were in line with production at a tin price of $26 432/t. Guidance for all in-sustaining costs (AISC) per tonne of tin sold is 4% higher than the prior quarter at $13 900 owing to the increase in tin prices which impacts off-mine costs such as royalties, export duties, the smelter deductor and marketing fees, Alphamin says.
It highlights that “commendable” production and sales, together with a higher tin price resulted in a 53% increase in expected earnings before interest, taxes, depreciation and amortisation (Ebitda) of $41.4-million for the quarter.
The Alphamin consolidated net cash position of $86-million at quarter-end is after a final full-year 2022 dividend payment of $28.2-million to Alphamin shareholders.
During the quarter, $15-million of cash was applied towards the development of the Mpama South project.
Capital allocation during full-year 2023 will be prioritised towards the development of the Mpama South project, DRC income tax payments and shareholder distributions.
Alphamin’s unaudited consolidated financial statements and accompanying Management’s Discussion and Analysis for the quarter ended March 31 are expected to be released on or about May 16.
MPAMA SOUTH DEVELOPMENT
A total of 808 m of underground development on two levels to connect Mpama North and Mpama South has been completed to date, of which 369 m of development was completed in the first quarter.
The Mpama South deposit has been intersected in a number of planned underground crosscuts. Development is expected to significantly accelerate from May as additional underground fleet equipment arrives on site.
Additional grade control drilling is being completed to enable detailed short-term planning for the beginning of stoping later this year.
Work began on the Mpama South portal with the excavation, stabilising and shotcreting of the portal area having been completed.
The adit was established with 49 m of adit and associated cubbies having been excavated and supported through moderately weathered ground.
Ground conditions will improve considerably when hard rock is encountered towards the end of April and advance rates will increase thereafter, Alphamin points out.
Additional underground mining and maintenance staff have been recruited and are being mobilised in line with the mechanised machine deliveries.
There has also been progress on the processing plant, with this as a whole 66% complete and progressing well towards the planned December commissioning date.
Items on the critical path are being monitored and interventions are being made as and when required.
“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 increase in production,” the company says.
The Mpama South development project is expected to be complete within the budget of $116-million. The project is aimed at increasing yearly contained tin production from about 12 000 t to about 20 000 t.