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ALPHAMIN RESOURCES CORPORATION - Alphamin announces record Q1 2022 EBITDA guidance of US$98m / Tin sold up 9% to 3,336 tonnes for the quarter

Release Date: 05/04/2022 08:00
Code(s): APH     PDF:  
Wrap Text
Alphamin announces record Q1 2022 EBITDA guidance of US$98m / Tin sold up 9% to 3,336 tonnes for the quarter

Alphamin Resources Corp.
Continued in the Republic of Mauritius
Date of incorporation: 12 August 1981
Corporation number: C125884 C1/GBL
TSX-V share code: AFM
JSE share code: APH
ISIN: MU0456S00006

               SOLD UP 9% TO 3,336 TONNES FOR THE QUARTER

MAURITIUS – April 4, 2022 – Alphamin Resources Corp. (AFM:TSXV, APH:JSE
AltX)( “Alphamin” or the “Company”), a producer of 4% of the world’s mined tin1 from its high
grade operation in the Democratic Republic of Congo, is pleased to provide the following
operational update for the quarter ended March 2022:

-   Record Q1 EBITDA4 guidance of US$98m, up 32% from prior quarter actual
-   Contained tin sold up 9% from the prior quarter to 3,336 tonnes
-   Record plant recovery of 78% achieved (previous quarter: 75%)
-   Net cash position increases to US$129.5m, after a US$30m dividend payment

Operational and Financial Summary for the Quarter ended March 20222

Description                                Units                              Actual

                                                       Quarter ended        Quarter ended            Change
                                                          March 2022        December 2021

Ore Processed                             Tonnes             105 565              107 981               -2%
Tin Grade Processed                         % Sn                 3,7                  3,9               -4%
Overall Plant Recovery                         %                  78                   75                4%
Contained Tin Produced                    Tonnes               3 061                3 114               -2%
Contained Tin Sold                        Tonnes               3 336                3 056                9%
      4                                                             3
EBITDA (Q1 2022 guidance)                US$'000              98 000               74 347               32%
Net Cash (Cash less debt)                US$'000             129 505               68 233               90%
Tin Price Achieved                         US$/t              43 813               38 432               14%

 Data obtained from International Tin Association Tin Industry Review Update 2021 2Production information is disclosed on a
100% basis. Alphamin indirectly owns 84.14% of its operating subsidiary to which the information relates. Totals may not add due
to rounding effects. 3Q1 2022 EBITDA represents management’s guidance. 4This 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 – Q1 2022

Contained tin production of 3,061 tonnes is in line with the previous quarter and FY2022
guidance. Underground mining continued to deliver steady results and processing plant
recoveries increased to 78% from 75% the previous quarter. Contained tin sales increased by
9% to 3,336 tonnes at an average tin price of US$43,813/t. The AISC4 per tonne of contained
tin sold during Q1 2022 is expected to be in line with the prior quarter. As a result of steady
production, good cost control and higher revenue, EBITDA for Q1 2022 is estimated at
US$98m, up 32% from the actual EBITDA for the previous quarter.

Alphamin’s unaudited consolidated financial statements and accompanying Management’s
Discussion and Analysis for the quarter ended 31 March 2022 are expected to be released on
or about 11 May 2022.

Capital Allocation

Alphamin’s vision is to become one of the world’s largest sustainable tin producers. From a
capital allocation perspective, the Board considers the combination of investment in growth,
significant exploration, and a high dividend yield a robust value proposition. Dividend
distributions will be considered semi-annually based on excess free cash after taking account
of the capital funding requirements for the new Mpama South Mine expansion project recently

Exploration activity continues to be a focus area with expansionary and infill drilling expenditure
of ~US$20million planned for FY2022. To date, approximately 85% of drill holes completed
intercepted visual tin mineralisation.

The Alphamin consolidated Net Cash position increased by US$61 million during Q1 2022 to
US$129.5 million. This increase is after a US$30 million cash dividend paid to shareholders
on 11 February 2022. The FY2021 DRC government corporate tax liability of US$43.5 million
is due for payment in April 2022.

Mpama South updated resource and decision to commence with development

On 29 March 2022, the Company announced an updated resource for Mpama South and the
decision to commence with development. Mpama South’s development is expected to
increase annual contained tin production from the current 12,000tpa to ~20,000tpa,
approximating 6.6% of the world’s mined tin1. First tin production from Mpama South is
targeted for December 2023.

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.

Maritz Smith
Alphamin Resources Corp.
Tel: +230 269 4166

JSE Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited

5 April 2022

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 expected EBITDA and AISC for Q1 2022, possible future dividend
declarations and the expected tin production from Mpama South and first tin production
targeted date. 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: uncertainties
regarding estimates of the expected mined tin grades, processing plant performance and
recoveries, uncertainties regarding global supply and demand for tin and market and sales
prices, effects of inflation, global supply chain and other possible disruptions and delays which
may impact the Mpama South development schedule and time to completion as well as the
cost to complete development, uncertainties with respect to social, community and
environmental impacts, uninterupted access to required infrastructure and third party service
providers, adverse political and geopolitical events, uncertainties regarding the legislative
requirements in the Democratic Republic of the Congo which may result in unexpected fines
and penalties, impacts of the global Covid-19 pandemic on mining operations and commodity
prices as well as those risk factors set out in the Company’s Management Discussion and
Analysis and other disclosure documents available under the Company’s profile at 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.

This announcement refers to the following non-IFRS financial performance measures:


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.


Net cash is defined as cash and cash equivalents less total current and non-current portions
of interest-bearing debt and lease liabilities.


This measures the costs to produce and sell a tonne of contained tin plus the capital sustaining
costs to maintain the mine, processing plant and infrastructure. AISC includes mine operating
production expenses such as mining, processing, 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. AISC does
not include depreciation, depletion, and amortization, reclamation expenses, borrowing costs
and exploration expenses.

Sustaining capital expenditures are defined as those expenditures which do not increase
contained tin 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

Date: 05-04-2022 08:00:00
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