GRAND BAIE, MAURITIUS, Jan. 17, 2025 (GLOBE NEWSWIRE) -- Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX)( “Alphamin” or the “Company”) is pleased to provide the following update for the year and quarter ended 31 December 2024:
FY2024 tin production of 17,324 tonnes, up 38% from the prior year
Q4 tin production of 5,237 tonnes (Q3: 4,917 tonnes)
FY2024 EBITDA2,3 guidance of US$274m, an estimated increase of 102% from actual FY2023
Positive exploration results at Mpama North and South
FY2025 contained tin production guidance of approximately 20,000 tonnes
Operational and Financial Summary for the Year and Quarter ended December 20241
Description
Units
Year ended December 2024
Year ended December 2023
Change
Quarter ended December 2024
Quarter ended September 2024
Change
Ore Processed
Tonnes
738 067
400 691
84%
232 860
229 107
2%
Tin Grade Processed
% Sn
3,1
4,2
-25%
3,0
2,9
3%
Overall Plant Recovery
%
74,7
75,5
-1%
75,1
73,5
2%
Contained Tin Produced
Tonnes
17 324
12 568
38%
5 237
4 917
7%
Contained Tin Sold
Tonnes
17 865
11 385
57%
4 942
5 552
-11%
EBITDA2,3 (FY2024 and Q4 2024 guidance)
US$'000
274 100
135 537
102%
76 200
91 567
-17%
AISC2, 3 (FY2024 and Q4 2024 guidance)
US$/t sold
15 323
14 205
8%
15 106
15 728
-4%
Dividends paid (cents per share)
C$ cps
9
6
50%
6
0
n/a
Average Tin Price Achieved
US$/t
30 345
26 009
17%
30 371
31 757
-4%
1Information is disclosed on a 100% basis. Alphamin indirectly owns 84.14% of its operating subsidiary to which the information relates. 2FY2024 and Q4 2024 EBITDA and AISC represent management’s guidance.3This is not a standardized financial measure and may not be comparable to similar financial measures of other issuers.See “Use of Non-IFRS Financial Measures” below for the composition and calculation of this financial measure.
Operational and Financial Performance
Contained tin production of 5,237 tonnes for the quarter ended December 2024 was 7% above the prior period. The volumes and tin grade of ore processed were slightly above that of the previous quarter and in line with the annualised target of 900,000 tonnes at a grade of 3%. The processing facilities performed exceptionally well – overall plant recoveries averaged 75% during the quarter, above the target of 73%. For the year ended 31 December 2024, the Company produced 17,324 tonnes of contained tin, 38% above that of the previous year and within the guidance range of 17,000 to 18,000 tonnes. This increase is a result of production from the Mpama South expansion which was completed during Q2 2024.
Tin sales volumes for the quarter decreased by 11% to 4,942 tonnes – the previous quarter’s sales of 5,552 tonnes included the clearing of a ~600 tonnes sales backlog. As has historically been the case, Q4 experienced high rainfall which impacted the outbound road conditions and transit times and as a result sales volumes for Q4 were 295 tonnes below tin volumes produced with the backlog expected to clear during January 2025.
Q4 guidance for AISC per tonne of tin sold is US$15,106 at 4% below the prior quarter’s actual AISC of US$15,728, primarily due to a ~60% reduction in marketing fees as a condition to the previously announced extension of the tin concentrate off-take agreement with Gerald Metals.
EBITDA for the year ended 31 December 2024 is estimated to increase by 102% to US$274m (FY2023 actual: US$136m) due to higher tin production and sales volumes following the Mpama South expansion as well as the benefit of a 17% increase in the average tin price to US$30,345/t. The Q4 EBITDA guidance of US$76m is 17% below the actual of the previous quarter due to lower sales volumes for the reasons outlined above as well as a 4% lower tin price.
Alphamin’s audited consolidated financial statements and accompanying Management’s Discussion and Analysis for the year and quarter ended 31 December 2024 are expected to be released on or about March 14, 2025.
Production guidance for the year ending December 2025
Production guidance for the year ending December 2025 is approximately 20,000 tonnes of contained tin (FY2024: 17,324 tonnes) with the full year expected to benefit from the Mpama South expansion.
Exploration update
Alphamin’s exploration strategy focuses on three key objectives:
1.Increase the Mpama North and Mpama South Resource base and life of mine
2.Discover the next tin deposit in close proximity to the Bisie mine
3.Ongoing grassroots exploration in search of remote tin deposits on the large prospective land package
Exploration drilling at Mpama North and Mpama South re-commenced during Q4 2024.
Mpama South
A surface drilling campaign at Mpama South targeting both down-dip, up-dip and strike extensions is underway with three holes completed to date. The first two holes to the far south of the current mineralised zone designed to test the lower grade southern extents did not intersect visual tin mineralisation. The subsequent holes were planned 50-80m below the current resource boundary and at depth. The first of these holes (BGH191A) intercepted multiple narrow cassiterite veins 82m below the current Resource boundary over three zones of 9.04 m, 0.86m and 1.04m that potentially extends the mineralised system.
Figure 01: Mpama South down-dip extension hole BGH191A viewed from the South
Figure 02: Mpama South (viewing from the East) current exploration drilling program targeting extensions of tin mineralisation at depth which is still open with a strike length of ~500m
A short campaign of geological fan drilling from underground at Mpama North on the northern open extensions of the mineralised zone started in Q4 2024. This campaign was aimed at better understanding the geological structure in this area. These eight holes totalling 1,525m, intersected a number of chlorite alteration zones associated with tin mineralisation as well as minor cassiterite veins. One hole in particular intersected wide zones of massive sulphides which are frequently used as a hanging wall marker horizon potentially indicating further cassiterite mineralisation at depth.
The next drill holes at Mpama North are targeting an extension to mineralisation at depth along strike to the north. The first of these drillholes (MNUD008A) was completed in early January 2025 and intersected a thick chlorite altered zone of visual tin cassiterite approximately 20m north of the previously most northerly Resource drillhole and some 200m below the bottom of the current mining echelon. Two more step-out holes are planned from underground targeting these strike and dip extensions, after which surface drilling targeting further dip and strike extension is planned.
Figure 03: Core photographs from Mpama North drillhole MNUD008A of highly mineralized tin cassiterite intercepts
No external laboratory assays have been received to date.
Qualified Persons
Mr. Clive Brown, Pr. Eng., B.Sc. Engineering (Mining), is a qualified person (QP) as defined in National Instrument 43-101 and has reviewed and approved the scientific and technical information (excluding the Exploration Update section) contained in this news release. He is a Principal Consultant and Director of Bara Consulting Pty Limited, an independent technical consultant to the Company.
Mr. Jeremy Witley, Pr. Sci. Nat., BSc. (Hons) Mining Geology, MSc (Eng), is a qualified person (QP) as defined in National Instrument 43-101 and has reviewed and approved the Exploration Update section in this news release. He is Head of Mineral Resources at the MSA Group (Pty) Ltd and is an independent technical consultant to the Company.
Information in this news release that is not a statement of historical fact constitutes forward-looking information. Forward-looking statements contained herein include, without limitation, statements relating to EBITDA and AISC guidance for Q4 2024; guidance for contained tin production for the year ending 31 December 2025 and anticipated exploration activities. Forward-looking statements are based on assumptions management believes to be reasonable at the time such statements are made. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Although Alphamin has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to: the availability of ore at expected quantities and grades, uninterrupted processing of ore at targeted processing recoveries, uncertainties regarding global supply and demand for tin and market and sales prices together with the impact of reported and unreported global tin stocks on the tin price, uncertainties with respect to social, community and environmental impacts, uninterupted access to required infrastructure and third party service providers, uncertainties regarding the state of inbound and outbound roads and truck availabilities impacting sales and the availability of spares and consumables, adverse political events and risks of security related incidents or security threats which may impact the ongoing operation or safety of its people, uncertainties regarding the legislative requirements in the Democratic Republic of the Congo which may result in unexpected fines and penalties or the ability to continue with normal operations, impacts of the global Covid-19 pandemic or other health crises on mining operations and commodity prices as well as those risk factors set out in the Company’s most recent annual Management Discussion and Analysis and other disclosure documents available under the Company’s profile at www.sedarplus.ca. Forward-looking statements contained herein are made as of the date of this news release and Alphamin disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
USE OF NON-IFRS FINANCIAL PERFORMANCE MEASURES
This announcement refers to the following non-IFRS financial performance measures:
EBITDA
EBITDA is profit before net finance expense, income taxes and depreciation, depletion, and amortization. EBITDA provides insight into our overall business performance (a combination of cost management and growth) and is the corresponding flow driver towards the objective of achieving industry-leading returns. This measure assists readers in understanding the ongoing cash generating potential of the business including liquidity to fund working capital, servicing debt, and funding capital and exploration expenditures and investment opportunities.
This measure is not recognized under IFRS as it does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. EBITDA data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
CASH COSTS
This measures the cash costs to produce and sell a tonne of contained tin. This measure includes mine operating production expenses such as mining, processing, administration, indirect charges (including surface maintenance and camp and head office costs), and smelting, refining and freight, distribution and royalties. Cash Costs do not include depreciation, depletion, and amortization, reclamation expenses, capital sustaining, borrowing costs and exploration expenses. On mine costs, exclusive of stock movement, are calculated on a cost per tonne produced basis, off mine costs are calculated on a cost per tonne sold basis.
AISC
This measures the cash costs to produce and sell a tonne of contained tin plus the capital sustaining costs to maintain the mine, processing plant and infrastructure. This measure includes the Cash Cost per tonne and capital sustaining costs together divided by tonnes of contained tin produced. All-In Sustaining Cost per tonne does not include depreciation, depletion, and amortization, reclamation, borrowing costs, foreign exchange gains and losses, exploration expenses and expansion capital expenditures.
Sustaining capital expenditures are defined as those expenditures which do not increase payable mineral production at a mine site and excludes all expenditures at the Company’s projects and certain expenditures at the Company’s operating sites which are deemed expansionary in nature.
