PERRIERI OFFICE SUITES, C2-302, Level 3, Office Block C, La Croisette, Grand Baie 30517, Mauritius The above media statement and accompanying material for media use are issued by ALPHAMIN RESOURCES CORP. without embargo unless an embargo is indicated above
NEWS RELEASE
Suite 1,
PERRIERI OFFICE SUITES, C2-302, Level 3, Office Block C,
La Croisette, Grand Baie 30517, Mauritius
The above media statement and accompanying material for media use are issued by
ALPHAMIN RESOURCES CORP. without embargo unless an embargo is indicated above
ALPHAMIN REPORTS PRODUCTION AND SALES VOLUMES FOR Q3 2020
MAURITIUS – October 14, 2020 – Alphamin Resources Cor p. (AFM:TSXV, APH:JSE AltX,
“Alphamin” or the “Company”) is pleased to provide the following production and sales update
for the quarter ended September 2020 :
Tin sales up 3% to 2,695 tons versus previous quarter
Expected EBITDA of US$16 million (previous quarter: US$12.9 million)
Run-of-mine material processed up 5% versus previous quarter
Q4 2020 production guidance of 2,600 - 2,800 tons contained tin
Production and Sales Summary for the Quarter ended September 2020 1
Run-of-mine volumes processed increased 5% to 96,086 tons. Underground mining performed
well in delivering increased material for processing. Volumes mined and processed are in line
with our current target of 96,000 tons per quarter. Our average tin grade was 12% lower than
the previous quarter at 3.8% – importantly, the year to date average tin grade is 3.9%, which
is in line with the target of 4.0% for the financial year ending December 2020.
As a result of increased plant recoveries and throughput, the 12% lower tin grades processed
only resulted in a 6% drop in tin production compared to the prior quarter. This is at the lower
end of our previous production guidance range. Tin sales increased 3% to 2,695 tons for the
quarter.
The Bisie tin mine recorded zero lost-time injuries during the past quarter.
_________________________________________________________________________________________
1 Production and financial information are disclosed on a 100% basis. Alphamin indirectly owns 84,14% of its operating
subsidiary to which the information relates.
Description Units
Quarter
ended
September
2020
Quarter
ended June
2020
Variance
Tons Processed Tons 96 086 91 928 5%
Tin Grade Processed % Sn 3.8 4.3 -12%
Overall Plant Recovery % 71 69 3%
Contained Tin Produced Tons 2 563 2 739 -6%
Contained Tin Sold Tons 2 695 2 613 3%
Actual
The above media statement and accompanying material for media use are issued by
ALPHAMIN RESOURCES CORP. without embargo unless an embargo is indicated above
EBITDA guidance for the quarter ended September 2020
Alphamin’s unaudited consolidated financial stateme nts and accompanying Management’s
Discussion and Analysis for the quarter ended Septe mber 2020 are expected to be released
on or about 2 November 2020. The Q3 2020 average tin price achieved was US$17,436/t
against a current tin price of approximately US$18,0 00/t. EBITDA of approximately US$16
million is expected, net of additional provisions r equired for concentrate grade adjustments
based on smelter assays. The smelter assay results received during Q3 related to Q1 and Q2
sales. The independent operators of the mine site laboratory have subsequently changed their
assay method (since late-June 2020) and comparing samples of their Q3 results to a number
of international laboratories, indications are that concentrate assays for this past quarter are
reported accurately.
Production Guidance for the quarter ending December 2020
We expect contained tin production of between 2,600 and 2,800 2 tons for the quarter ending
December 2020.
Covid-19 Pandemic and Impact on Operations:
The health of our employees is of paramount importance and in this regard the Company has
a range of Covid-19 awareness, prevention and other risk mitigation controls in place.
T o date, the Company has been able to continue with normal production and concentrate sales
activities.
Qualified Person
Mr Vaughn Duke Pr.Eng. PMP , MBA, B.Sc. Mining Engineering (Hons.), is a qualified person
(QP) as defined in National Instrument 43-101 and h as reviewed and approved the scientific
and technical information contained in this news release. He is a Principal Consultant, Partner
and Director of Sound Mining Solutions, an independent technical consultant to the Company.
__________________________________________________________________________________________
FOR MORE INFORMATION, PLEASE CONTACT:
Maritz Smith
CEO
Alphamin Resources Corp.
T el: +230 269 4166
E-mail: [email protected]
2 Production guidance is based on certain estimates and assumptions, including but not limited to: quantity of material
processed, tin grades of processed material and processing recoverie s and assumes mining operations will continue to be
conducted in the same manner as the previous quarter and will not be further impacted by the Covid-19 pandemic.
The above media statement and accompanying material for media use are issued by
ALPHAMIN RESOURCES CORP. without embargo unless an embargo is indicated above
USE OF NON-IFRS FINANCIAL PERFORMANCE MEASURES
This news release refers to the following non-IFRS financial performance measure: Earnings
before interest, taxes, depreciation and amortization (“EBITDA”)
This measure is not recognized under IFRS as it doe s not have any standardized meaning
prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented
by other issuers. We use these measures internally to evaluate the underlying operating
performance of the Company for the reporting periods presented. The use of these measures
enables us to assess performance trends and to evaluate the results of the underlying business
of the Company. We understand that certain investors, and others who follow the Company’s
performance, also assess performance in this way.
We believe that these measures reflect our performa nce and are useful indicators of our
expected performance in future periods. This data is intended to provide additional information
and should not be considered in isolation or as a su bstitute for measures of performance
prepared in accordance with IFRS.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this news release that is not a stat ement of historical fact constitutes forward-
looking information. Forward-looking statements contained herein include, without limitation,
statements relating to anticipated production volumes, anticipated tin grades and processing
recoveries and Q3 EBITDA. Forward-looking statement s 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: uncertainties associated with Alphamin’s resource and reserve estimates,
uncertainties regarding estimates of the expected m ined tin grades, processing plant
performance and recoveries, discrepencies in concen trade tin grade from smelter assays,
uncertainties regarding global supply and demand fo r tin and market and sales prices,
uncertainties with respect to social, community and environmental impacts, adverse political
events, impacts of the global Covid-19 pandemic on mining operations and commodity prices
as well as those risk factors set out in the Compan y’s Management Discussion and Analysis
and other disclosure documents available under the Company’s profile at www.sedar.com.
Forward-looking statements contained herein are mad e 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 result s 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) accept s responsibility for the adequacy or
accuracy of this news release.