Alphamin Resources boosts tin production by 26% as it raises annual guidance

Alphamin Resources Corporation has announced a robust 26% increase in tin production for the third quarter leading up to the end of September.

The company, which operates the Bisie Mine in the Democratic Republic of Congo (DRC) and is listed on the JSE AltX and the Canadian TSXV markets, reported on Wednesday a total output of 5 190 tons of tin over the quarter, aligning closely with its target of 5 000 tons.

As a result of the strong production performance, Alphamin has raised its annual production guidance for the financial year 2025, now projecting output between 18 000 and 18 500 tons. This revision marks an increase from the previous forecast of 17 000 to 18 000 tons, reflecting the company’s optimistic outlook following operational improvements.

In terms of market performance, Alphamin's shares on the AltX experienced a 2.29% increase on Wednesday morning, trading at R14.32, slightly below last year's price of R15.98.

The company’s favourable operational results have also positively impacted its financial metrics, with third quarter earnings before interest, tax, depreciation, and amortisation (EBITDA) guidance now at $96 million, up a considerable 28% compared to the previous quarter’s actual $75m.

However, the company has also highlighted some challenges in the region, citing an uptick in security events along the border between Massisi and Walikale territories in North Kivu province.

Fortunately, the Bisie Mine remains about 200 kilometres away from these incidents and is currently operating within planned guidance parameters.

Production data reveals that during the quarter, contained tin sales surged by 12% to 5 143 tons, with an increase in ore processed by 32% to 221 581 tons, albeit with a slight drop in tin grade. The average tin price received has also seen a 4% rise, reaching $33 877 per ton, helping to drive the enhanced financial outlook.

Additional financial highlights include a decrease in the third quarter all-in sustaining costs (AISC) per ton of tin sold to an estimated $15 900, 3% lower than the prior quarter, largely due to normalised production rates. Alphamin noted that it has been proactive with its capital expenditure, recently taking delivery of two replacement underground mine trucks, which was included in AISC.

Looking ahead, the company anticipates producing approximately 5000 tons of contained tin in the final quarter of the financial year, which, combined with year-to-date production of 13 566 tons, had bolstered the annual guidance.

As of September 30, Alphamin has reported cash reserves of $57m, down from $110m previously, attributed in part to significant outflows including provisional tax payments, reduction in overdraft balance, and the payment of interim dividends.

Finally, in the operational update, Alphamin outlined its exploration strategy, which aims to expand its resource base at the Mpama North and Mpama South sites, discover new tin deposits in proximity to the Bisie mine, and pursue grassroots exploration for remote tin deposits across its extensive land holdings.

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