PERRIERI OFFICE SUITES, C2-302, Level 3, Office Block C, La Croisette, Grand Baie 30517, Mauritius ALPHAMIN ANNOUNCES CAD$0.06 PER SHARE INTERIM FY2024 DIVIDEND/ RECORD QUARTERLY TIN PRODUCTION OF 4,917 TONNES/ Q3 EBITDA GUIDANCE OF
NEWS RELEASE
Suite 1,
PERRIERI OFFICE SUITES, C2-302, Level 3, Office Block C,
La Croisette, Grand Baie 30517, Mauritius
ALPHAMIN ANNOUNCES CAD$0.06 PER SHARE INTERIM FY2024 DIVIDEND/ RECORD
QUARTERLY TIN PRODUCTION OF 4,917 TONNES/ Q3 EBITDA GUIDANCE OF
US$91.5 MILLION
MAURITIUS – October 3, 2024 – Alphamin Resources Corp. (AFM:TSXV, APH:JSE
AltX)( “Alphamin” or the “Company”), is pleased to announce the declaration of an interim
FY2024 dividend and provide an operational update for the quarter ended September 2024:
Interim FY2024 dividend increased to CAD$0.06 per share (previously CAD$0.03 per
share)
Record quarterly tin production of 4,917 tonnes, up 22% from the prior quarter
Q3 EBITDA3 guidance of US$91.5m, up 69% from actual EBITDA for the prior quarter
Operational and Financial Summary for the Quarter ended September 20241
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1Information is disclosed on a 100% basis. Alphamin indirectly owns 84.14% of its operating subsidiary to which the information
relates. 2Q3 2024 EBITDA and AISC represent management’s guidance. 3This is not a standardized financial measure and may
not be comparable to similar financial measures of other issuers.See “Use of Non-IFRS Financial Measures” below for the
composition and calculation of this financial measure.
Description Units Quarter ended
September 2024
Quarter ended
June 2024 Change
Ore Processed Tonnes 229,107 166,676 37%
Tin Grade Processed % Sn 2.9 3.2 -9%
Overall Plant Recovery % 73.4 75.4 -3%
Contained Tin Produced Tonnes 4,917 4,028 22%
Contained Tin Sold Tonnes 5,552 3,245 71%
EBITDA
2,3
(Q3 2024 guidance) US$'000 91,500 54,242 69%
AISC
2, 3
(Q3 2024 guidance) US$/t sold 15,700 15,556 1%
Average Tin Price Achieved US$/t 31,757 32,314 -2%
Operational and Financial Performance
Contained tin production of 4,917 tonnes for the quarter ended September 2024 was 22%
above the prior period. This increase is a result of the Mpama South expansion contributing
for a full quarter compared to half of the prior quarter. Ore processed increased by 37% to
229,107 tonnes and the tin grade of the feed ore reduced to 2.9%. This is in line with
expectations as the Company targets annual processing volumes of 900,000 tonnes of ore at
a tin grade of ~3%, producing approximately 20,000 tonnes of contained tin per year. Both
processing facilities performed well during the quarter and achieved an overall plant recovery
of 73.4%, in line with expectations.
Tin sales volumes increased by 71% to 5,552 tonnes which included the clearing of the ~600
tonnes sales backlog experienced in the prior quarter.
Guidance for AISC per tonne of tin sold is in line with the prior quarter at US$15,700 and
includes the impact of tin prices on off-mine costs such as royalties, export duties, the smelter
deductions and marketing fees, which are linked to movements in the tin price. Off-mine costs
are expected to reduce from early Q4 2024 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 Q3 2024 is estimated to increase by 69% to US$91.5m (Q2 2024 actual:
US$54.2m) due to higher tin production and sales volumes.
Alphamin’s unaudited consolidated financial statements and accompanying Management’s
Discussion and Analysis for the quarter ended 30 September 2024 are expected to be released
on or about 8 November 2024.
Alphamin and the tin market
Alphamin’s tin production expansion is being delivered against a period of weakness in global
tin supply with major producing regions experiencing production challenges, while no obvious
major investments are being made in the industry. Demand for tin in solar installations remains
robust and semi-conductor sales, a proxy for tin’s application in electronics, are reportedly
improving. Demand in other applications is expected to recover as major economies enter a
lower interest rate cycle and the recently introduced economic stimulus in China takes effect.
These dynamics bode well for the tin price while exchange traded tin stocks are on the decline.
Interim FY2024 Dividend Declared
The Board has declared an interim FY2024 cash dividend of CAD$0.06 per share on the
common shares (approximately US$57 million in the aggregate) (the “Dividend”). The Dividend
will be payable on November 4, 2024 to shareholders of record as of the close of business on
October 25, 2024.
Qualified Person
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.
_________________________________________________________________________________________
FOR MORE INFORMATION, PLEASE CONTACT:
Maritz Smith
CEO
Alphamin Resources Corp.
Tel: +230 269 4166
E-mail: [email protected]
CAUTION REGARDING FORWARD LOOKING STATEMENTS
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 Q3 2024; expectations regarding annual
targeted processing volumes, tin grades and contained tin production; expectations regarding
the supply and demand for tin and the tin price. 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,
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, adverse political events and risks of security
related incidents which may impact the 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 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 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.