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
C/o ADANSONIA MANAGEMENT SERVICES LIMITED, 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 ANNOUNCES Q4 2020 RESULTS/ ACHIEVES RECORD FOURTH QUARTER
EBITDA AND PRODUCTION
MAURITIUS – March 5, 2021 – Alphamin Resources Corp. (AFM:TSXV , APH:JSE AltX,
“Alphamin” or the “Company”), a producer of 4% of th e world’s mined tin 1 from its high grade
operation in the Democratic Republic of Congo, is pleased to provide the following operational
and financial update for the quarter ended December 2020:
Record EBITDA of $16,7m at a tin price of $18,497/t (Current: ~$24,000/t)
Record tin production of 2,898 tons, up 13% from the previous quarter
Abnormal seasonal rains resulted in logistical cons traints which negatively impacted Q4
2020 sales volumes (down 14% from the previous quarter)
Q1 2021 tin sales guidance of 3,200 tons (Q4 2020: 2,306 tons) on improved road
conditions
Commencement of drilling campaign at the adjacent Mpama South deposit
Fine tin recovery plant construction 80% complete
Operational and Financial Summary for the Quarter ended December 2020 2
Description Units Actual
Quarter
ended
December
2020
Quarter
ended
September
2020
Variance
Tons Processed Tons 93 560 96 086 -3%
Tin Grade Processed % Sn 4,2 3,8 10%
Overall Plant Recovery % 74 71 4%
Contained Tin Produced Tons 2 898 2 563 13%
Contained Tin Sold Tons 2 306 2 695 -14%
EBITDA US$'000 16 748 16 052 4%
AISC per ton tin sold US$/t 11 384 10 777 6%
Tin Price Achieved US$/t 18 497 17 436 6%
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1Data obtained from International Tin Association Tin Industry Review 2020 2 Production information is disclosed on a 100%
basis. Alphamin indirectly owns 84.14% of its operating subsidiary to which the information relates.
Operational and Financial Performance
Tin production increased 13% to a quarterly record of 2,898 tons and was higher than our
previous market guidance of 2,600 to 2,800 tons. This outperformance was due to better than
expected tin feed grades and plant recoveries. The processing plant performed at an average
recovery of 74% for the quarter, including a record recovery of 77% achieved in December
2020.
Quarterly sales decreased by 14% due to extreme sea sonal rains impacting export road
conditions. Weather stations across the export route reported rainfall above 159% of the long-
term mean.
EBITDA for Q4 2020 increased to a record $16,7millio n, albeit negatively impacted by lower
tin sales volumes. The short dry-season (Jan-March) allows road maintenance to be done and
already road conditions have improved. We expect to sell approximately 3,200 tons of
contained tin during Q1 2021 thereby recouping most of the past quarter’s sales shortfall.
AISC per ton of tin sold in Q4 2020 increased by 6% to $11,384 from the previous quarter. The
increase followed additional outbound road maintena nce costs and employee bonus
provisions as well as the impact from lower unit pr oduction costs resulting in a reduced
concentrate stockpile valuation.
The LME tin price has increased from approximately US$18,497/t during Q4 2020 to a current
level of ~US$24,000/t, which bodes well for the Company’s 2021 earnings.
The Bisie tin mine recorded zero lost-time injuries during the past quarter.
Alphamin’s audited consolidated financial statements and accompanying Management’s
Discussion and Analysis for the quarter and year ended 31 December 2020 are available under
the Company’s profile at www.sedar.com.
Production and AISC Guidance for the year ending December 2021 3
Alphamin’s short-term objective is to increase annu alised contained tin production from the
current level of 11,000t to 13,000t. This increase is expected from July 2021 following the
commissioning of the previously announced fine tin recovery plant (“FTP”) and a planned
increase of 5% in processed ore volumes.
On this basis, we expect contained tin production of 5,500t in H1 2021 increasing to 6,500t in
H2 2021, which would achieve our annualised production goal of 13,000t thereafter.
AISC per ton of tin sold is expected to increase on the back of higher tin prices as royalties
and marketing fees escalate. Additionally, sustaini ng capital expenditure will likely be higher
than 2020.
__________________________________________________________________________
3 Production and sales 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, truck availabilities for tin sales 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.
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 and has not been negatively affected by the Covid-19 pandemic.
Growth Initiatives
The fine tin recovery plant is 80% complete with full commissioning targeted during June 2021.
Estimated expenditure at completion is substantially in line with the budget of US$4.6 million.
The fine tin recovery plant has the potential to in crease contained tin production by 5%-10%
effective July 2021.
Drilling at the Mpama South deposit, located only 750m south of the current processing facility,
commenced in December 2020. Drilling has progressed well with 4,152m (20 holes) completed
by 28 February 2021. Our objective is to declare a maiden Mineral Resource during 2021 and
to test the limits of mineralisation on this deposi t to depths of up to 500m below surface and
along strike to better understand the potential for establishing another long life, high grade
mine at the Bisie complex. The lead time to convert drill holes to final assays is two to three
months – assays for the first batch of seven drill h oles are expected to be completed during
the next week whereafter a market announcement will be made.
While Mpama South could provide an opportunity to i ncrease the production rate and life of
operations at Bisie, an extension of the life of mi ne at Mpama North (the current producing
orebody) can be confirmed by drilling down-dip and along strike beyond the northernmost
holes drilled in the 2014 drilling campaign. A diam ond drilling campaign is planned for 2021
from an underground drilling drive (under development) located on Level 6 at Mpama North.
Further, the 14km long Bisie Ridge, hosting both Mpa ma North and South, has a plethora of
anomalous geochemical targets for follow up and lies entirely within Alphamin’s tenements. In
this regard, the Company has identified two drill targets for 2021 (in addition to Mpama North
and Mpama South).
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]
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 mining, processing and production and sales volumes, timing
and cost of completion of the Company’s fine tin recovery plant and its impact on production,
the timing and success of additional exploration drilling, and road conditions for the export of
tin produced. 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. Accordin gly, 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 m aterially 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 inc lude, but are not limited to: uncertainties
associated with Alphamin’s resource and reserve estimates, uncertainties regarding estimates
of the expected mined tin grades, processing plant performance and recoveries, uncertainties
regarding global supply and demand for tin and mark et and sales prices, uncertainties with
respect to social, community and environmental impa cts, uninterupted access to required
infrastructure, adverse political events, impacts o f the global Covid-19 pandemic on mining
operations and commodity prices as well as those ri sk factors set out in the Company’s
Management Discussion and Analysis and other disclo sure documents available under the
Company’s profile at www.sedar.com. Forward-looking statements contained herein are made
as of the date of this news release and Alphamin di sclaims 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) accept s 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:
Earnings before interest, taxes, depreciation and a mortization (“EBITDA”) and All-In
Sustaining Cost (“AISC”).
These measures are not recognized under IFRS as the y do not have any standardized
meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures
presented by other issuers. We use these measures i nternally 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 an d to evaluate the results of the
underlying business of the Company. We understand t hat 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.
EBITDA
EBITDA provides insight into our overall business p erformance (a combination of cost
management and growth) and is the corresponding flo w drivers 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 expenditures and investment opportunities. EBITDA is profit before
net finance expense, income taxes and depreciation, depletion, and amortization.
Cash Costs
This measures the cash costs to produce a ton of pa yable tin. This measure includes mine
operating production expenses such as mining, proce ssing, administration, indirect charges
(including surface maintenance and camp and tailings dam construction costs), smelting costs
and deductions, refining and freight, distribution, royalties and product marketing fees. Cash
Costs do not include depreciation, depletion, and amortization, reclamation expenses, capital
sustaining, borrowing costs and exploration expenses.
AISC
This measures the cash costs to produce a ton of payable tin plus the capital sustaining costs
to maintain the mine, processing plant and infrastr ucture. This measure includes the Cash
Cost per ton and capital sustaining costs less concentrate stock movement divided by tons of
payable tin sold. All-In Sustaining Cost per ton do es not include depreciation, depletion, and
amortization, reclamation, borrowing costs and exploration expenses.
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. The following table reconciles sustaining capital expenditures to
the Company’s total capital expenditures: