GRAND BAIE, MAURITIUS, April 17, 2025 (GLOBE NEWSWIRE) -- Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX)( “Alphamin” or the “Company”) is pleased to provide an operational update as follows:
Q1 2025 contained tin production of 4,270 tonnes until operations ceased on 13 March 2025 (Q4 2024: 5,237 tonnes)
Q1 2025 EBITDA2,3 guidance of US$62m (Q4 2024 actual: US$76m)
FY2025 contained tin production guidance revised to 17,500 tonnes due to security-related production interruption (previously 20,000 tonnes)
Phased resumption of tin production commenced on 15 April 2025
Operational and Financial Summary for the Quarter ended March 20251
1Information is disclosed on a 100% basis. Alphamin indirectly owns 84.14% of its operating subsidiary to which the information relates.2Q1 2025 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 4,270 tonnes for the quarter ended March 2025 was 18% below the prior period following a cessation of mining and processing activities on 13 March 2025 due to security concerns. The tin grade of ore processed was 18% higher at 3,55% and as a result daily throughput volumes were reduced to optimise plant recoveries at the higher feed grade. The FY2025 mineplan still targets an average ore grade of 3% with the outperformance in grade during Q1 2025 expected to average down during the remainder of the financial year. The processing facilities continued to perform well – overall plant recoveries averaged 75% during the quarter, above the target of 73%.
Q1 2025 contained tin sales of 3,863 tonnes was recorded against production of 4,270 tonnes with a significant amount sold and exported post quarter end totalling 4,581 tonnes for the year to 16 April 2025.
Q1 2025 AISC per tonne of tin sold was US$16,339 and 9% above the prior quarter’s AISC of US$15,034, primarily due to the impact of the operational stop on 13 March 2025. Operating expenditure included fixed costs and payroll for the full month of March 2025 as well as care and maintenance and mine evacuation costs while tin production was halted on 13 March 2025. As a result, EBITDA guidance for Q1 2025 is US$62m, 19% lower than the previous quarter’s actual of US$76m.
Following the temporary cessation of operations on 13 March 2025 due to security concerns, the Company announced on 9 April 2025 its intention to resume operations at the mine. Tin production recommenced on 15 April 2025 through the treatment of run-of-mine ore stockpiles and are expected to ramp-up to nameplate within a week. Underground mining activities are planned to recommence later in April 2025 as employees continue to return in a phased manner. Following the resumption of mine operations, inbound and outbound logistics providers have re-mobilised fleets of trucks in order to continue with normal mine procurement and export product deliveries. The mine is adequately supplied with consumables and spares to support the resumption of production and tin concentrate exports are expected to continue normally as was the case during Q1 2025 and subsequently.
As a result of the production interruption between 13 March 2025 and April 2025, the Company has reduced its FY2025 tin production guidance from 20,000 tonnes to 17,500 tonnes.
The Company has US$99 million in cash at 17 April 2025 with US$38m of sales receipts expected prior to the end of April 2025. During this time, the Company has not utilised its up to US$50 million tin prepayment arrangement. The Company’s US$53 million overdraft facility was agreed for renewal, subject to formal documentation, for a further 12 months and subject to either a US$28 million international bank guarantee against off-shore cash or a US$28 million repayment by 31 May 2025. In the event that the operation ceases, the facility will reduce to US$25 million with full repayment required should the cessation continue for 6 months. A final FY2024 DRC income tax payment of US$38m is due by 30 April 2025.
Due to the timing of the security related production interruption between 13 March 2025 and April 2025, the Board considered it prudent not to declare a final FY2024 dividend in April 2025.
Regional security update
Since late January 2025, insurgents have advanced from their previous positions and seized the cities of Goma and Bukavu, the capital cities of the North and South Kivu provinces, in eastern Democratic Republic of the Congo (DRC). On February 18, 2025 the Company announced that the seizure of the city of Bukavu, the second largest city of the eastern DRC, in addition to Goma, had increased the security risk and operating risk profile of the Company. On March 13, 2025 the Company announced the temporary cessation of mining operations due to insurgents’ advance westwards towards the mine location and within 110km from the mine. Insurgents subsequently occupied the town of Walikale on 20 March 2025. On April 9, 2025 the Company announced the initiation of a phased resumption of operations following the withdrawal of insurgents from the town of Walikale eastwards towards Masisi. The safety of the Company’s employees and contractors and compliance with the DRC and international laws remains its committed focus. The Company is closely monitoring the situation as it continues to progress, and will provide further updates if required.
Changes to operating subsidiary, Alphamin Bisie Mining (ABM), board
Mr. John Robertson, the current Managing Director of ABM, has elected to retire. The Board wishes to thank Mr. Robertson for his valuable input and contribution to the Company’s steady-state operations and successful expansion to becoming one of the world’s largest low-cost tin producers.
Subject to regulatory approval, Mr. Jac van Heerden (50), a mining professional with 25 years of mining experience in Africa, has been appointed Managing Director of ABM. He has significant surface and underground mine management experience in both base and precious metals and a strong background in mine technical services, general and executive management. We look forward to the impact of Jac’s leadership qualities as we continue to create sustainable value for the benefit of all of ABM’s stakeholders.
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 contained in this news release. He is a Principal Consultant and Director of Bara Consulting Pty Limited, 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, Q1 2025 EBITDA and AISC guidance, guidance for contained tin production for the year ending 31 December 2025, our expectations for ore grades during the remainder of 2025, sales following customary patterns following resumption of production and not being disrupted, the timing and quantum of receipt of funds from prior tin concentrate sales and expected commencement of underground activities later in April 2025. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Such factors include, without limitation: uncertainties regarding Mpama North and Mpama South estimates of the expected mined tin grades, processing plant performance and recoveries, uncertainties regarding the underground conditions for development, uncertainties regarding the logistical roads within the DRC for purposes of transporting product for sale and inbound consumables and equipment, uncertainties regarding global supply and demand for tin and market and sales prices, uncertainties with respect to social, community and environmental impacts, uninterrupted access to required infrastructure and third party service providers, adverse political events and risks of security related incidents which may impact the operation, outbound roads used to transport product and consumables or the safety of our people, uncertainties regarding the legislative requirements in the Democratic Republic of the Congo which may result in unexpected fines and penalties and tax payments, impacts of the global Covid-19 pandemic or other health crises on mining operations and commodity prices, price volatility in the spot and forward markets for tin and other commodities; significant capital requirements and the availability and management of capital resources; uncertainties regarding lenders and bankers’ reaction to their exposure to the Company during this period of unstable regional security in the eastern DRC which may lead to additional funding requirements; fluctuations in the international currency markets and in the rates of exchange of the currencies of the Democratic Republic of Congo (DRC) and the United States of America (US); discrepancies between actual and estimated production and the costs thereof; between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local government legislation in the DRC or any other country in which Alphamin currently or may in the future conduct business; taxation; controls, regulations and political or economic developments in the countries in which Alphamin does or may conduct business; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction in which Alphamin operates, including, but not limited to: obtaining and maintaining the necessary permits for the Bisie Project; the lack of certainty with respect to foreign legal systems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; the uncertainties inherent to current and future legal challenges Alphamin is or may become a party to; diminishing quantities or grades of reserves and resources; competition; loss of key employees; inclement weather conditions; availability of power, water, transportation routes and other required infrastructure for the Bisie tin project; general economic conditions and inflation and rising costs of labour, supplies, fuel and equipment; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic studies; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties; risks, uncertainties and unanticipated delays associated with obtaining and maintaining necessary licenses, permits and authorisations and complying with permitting requirements, including those associated with the environment. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental events and hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and losses of processed tin (and the risk of inadequate insurance or inability to obtain insurance to cover these risks), as well as “Risk Factors” included elsewhere in this MD&A and Alphamin’s public disclosure documents filed on and available at www.sedarplus.ca.
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.
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.
