Wrap Text
Alphamin announces Record Annual Tin Production and Ebitda Guidance/Declaration of Final FY2022 Dividend
C/o ADANSONIA MANAGEMENT SERVICES LIMITED, Suite 1,
PERRIERI OFFICE SUITES, C2-302, Level 3, Office Block C,
La Croisette, Grand Baie 30517, Mauritius
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
ALPHAMIN ANNOUNCES RECORD ANNUAL TIN PRODUCTION AND EBITDA GUIDANCE/ DECLARATION OF FINAL FY2022 DIVIDEND
MAURITIUS – January 30, 2023 – 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
update for the year and quarter ended December 2022:
- Record FY2022 tin production of 12,493 tonnes, up 14% from the prior year
- Q4 tin production of 3,113 tonnes exceeds market guidance of 3,000 tonnes
- FY2022 EBITDA3,4 of US$222m at an average tin price of US$30,636/t (Current tin price:
~US$30,000/t)
- Q4 EBITDA3,4 of US$27.1m represents a 41% EBITDA margin3,4 at a weak average tin
price of US$21,436/t
- Final dividend for FY2022 of CAD$0.03 per share declared (FY2022 total dividends:
CAD$0.06 per share)
Operational and Financial Summary for the Year and Quarter ended December 2022(Note 2)
Year Quarter Quarter
Year ended ended ended ended
December December December September
Description Units 2022 2021 Change 2022 2022 Change
Ore Processed Tonnes 436 400 416 173 5% 106 087 112 179 -5%
Tin Grade Processed % Sn 3,82 3,57 7% 4,00 3,90 2%
Overall Plant Recovery % 75 74 1% 73 72 2%
Contained Tin Produced Tonnes 12 493 10 969 14% 3 113 3 139 -1%
Contained Tin Sold Tonnes 12 764 11 521 11% 3 119 3 080 1%
EBITDA 3,4 (FY2022 and Q4
2022 guidance) US$'000 222 215 198 592 12% 27 105 30 001 -10%
AISC 3, 4 (FY2022 and Q4 2022 US$/t
guidance) sold 14 289 14 173 1% 13 420 13 089 3%
Net Cash 4 (Cash less debt) US$'000 109 335 68 233 60% 109 335 111 996 -2%
Dividends paid, including
minorities US$'000 71 518 5 555 1187% 0 35 379 n/a
Average Tin Price Achieved US$/t 30 636 30 629 0% 21 436 22 380 -4%
__________________________________________________________________________________________
1 Data obtained from International Tin Association Tin Industry Review 2022
2 Information is disclosed on a 100% basis. Alphamin indirectly owns 84.14% of its operating subsidiary to which the information relates.
3 FY2022 and Q4 2022 EBITDA represents management’s guidance.
4 This 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
Alphamin achieved record tin production of 12,493 tonnes for the year ended December 2022,
exceeding market guidance of 12,000 tonnes. Underground mining performed particularly well
with both volumes and tin grades exceeding expectations. The processing plant achieved good
recoveries at an average of 75%. A highly mineralised area underground, not previously
included in the mineral resource or mine plan due to its structurally complex nature, was
successfully mined and processed during Q3 and Q4 2022. This area delivered ore at good
tin grades but contained high levels of sulphides which impacted processing recoveries.
Contained tin production of 3,113 tonnes for Q4 2022 was in line with the previous quarter and
above market guidance of 3,000 tonnes.
Sales volumes for FY2022 and Q4 were in line with production at an average achieved tin
price of US$30,636/t and US$21,436/t, respectively. We expect contained tin production and
sales of approximately 12,000 tonnes for the year ending December 2023.
AISC per tonne of tin sold remained relatively flat year-on-year at US$14,289/t in FY2022.
EBITDA for FY2022 and Q4 2022 is estimated at US$222m (2021: US$198.6m) and
US$27.1m (Q3: US$30m), respectively. The record estimated FY2022 EBITDA saw an
average tin price achieved of US$30,636/t, in line with current tin prices of around US$30,000/t.
The Company remains of the opinion that global tin supply is likely to be constrained during
the next five years while demand for tin is expected to increase. In light of these market
fundamentals, the development of the Mpama South project and consequent planned
production expansion to approximately 20,000 tonnes of contained tin per year bodes well for
future cash flow generation. The Mpama South project development remains on track for
commissioning in December 2023.
The Alphamin consolidated Net Cash position of US$109 million at year-end is after dividend
payments of US$71.5m to Alphamin shareholders and minority shareholders of the operating
mine, US$30m cash applied towards the development of the Mpama South project, US$16.7m
spent on exploration activities and DRC taxes paid of US$49.4m. Capital allocation during
FY2023 will be prioritised towards the development of the Mpama South project, DRC income
tax payments and shareholder distributions.
Alphamin’s audited consolidated financial statements and accompanying Management’s
Discussion and Analysis for the year and quarter ended 31 December 2022 are expected to
be released on or about March 13, 2023.
Final FY2022 Dividend Declared
The Board has declared a final FY2022 cash dividend of CAD$0.03 per share on the common
shares (approximately US$28.7m in the aggregate) (the “Dividend”). The Dividend will be
payable on 10 March 2023 to shareholders of record as of the close of business on 24 February
2023. Together with the interim FY2022 dividend of CAD$0.03 per share declared on 5 July
2022, the total FY2022 dividends declared amount to CAD$0.06 per share.
In respect of holders of Alphamin shares on the Johannesburg Stock Exchange (“JSE”), the
following information is applicable.
The Board of is pleased to announce the declaration of a cash dividend number 3 in the gross
amount of CAD$0.03 per Alphamin share, being the equivalent of ZAR0.38694 cents per
Alphamin share (based on an exchange rate of CAD$1.00 = ZAR12.8980 as at 27 January
2023).
The salient dates of the cash dividend on the JSE are as follows:
2023
Declaration of cash dividend Monday, 30 January
Last day to trade cum cash dividend Tuesday, 21 February
Alphamin shares commence trading ex-dividend Wednesday, 22 February
Record date to receive the cash dividend Friday, 24 February
Payment date of the cash dividend Friday, 10 March
Shares certificates on the South African branch register may not be rematerialised or
dematerialised between Wednesday, 22 February 2023 and Friday, 24 February 2023, both
days inclusive, nor may transfer between the Canadian share register and the South African
share register take place between Wednesday, 22 February 2023 and Friday, 24 February
2023, both days inclusive.
In accordance with the JSE Listings Requirements, the following additional information is
disclosed for South African resident shareholders:
1. the cash dividend has been declared out of income reserves and is being sourced from
the Republic of Mauritius;
2. Alphamin has no tax registration in South Africa;
3. the local dividend tax (“Dividend Tax”) rate is 20%, resulting in a gross cash dividend
of CAD$0.03 (ZAR0.38694) and a net cash dividend amount of CAD$0.024
(ZAR0.30955) for South African shareholders who are not exempt from paying
Dividend Tax;
4. Alphamin has 1 271 859 570 shares in issue; and
5. Alphamin shareholders who are in doubt as to their tax status or position, including any
exchange control requirements, should consult an appropriate independent
professional advisor in their relevant jurisdiction without delay.
Mpama South project progress
Works completed since the Company’s announcement of the development decision on 29
March 2022 are as follows:
The underground mine design has been finalised and approximately 580 metres of
underground development on 2 levels connecting Mpama North and Mpama South has been
completed. Development remains ongoing and on schedule.
The Mpama South portal geotechnical investigation has been completed and the design
finalised. Surface excavation and adit development infrastructure have been completed with
underground portal development having commenced in January 2023.
Several units of the underground mechanised fleet have arrived on site with regular deliveries
scheduled in the coming months. Full fleet mobilisation is expected by the end of July 2023.
Progress on the processing plant is as follows:
• EPCM, bulk earthworks, civils, and SMPPEI contracts have been awarded;
• Design and engineering is 75% complete;
• Procurement is 96% complete;
• Fabrication of structures and platework is 50% complete; and
• 11% of the processing plant has been moved to site.
The bulk earthworks and civils teams have mobilised to site with 50% of the bulk earthworks
and 10% of the civil works having been completed. The SMPPEI construction team
mobilisation and training has commenced. An advance team has started the erection of the
concentrate drying and product storage building. The main team mobilisation is scheduled for
March 2023.
The owner’s team has commenced with operational readiness preparation.
A new self-contained 500 room accommodation camp is being commissioned with 144 rooms
ready for occupation.
The Mpama South development project is currently forecasted to complete within the budget
of US$116m with commissioning targeted in December 2023.
External laboratory assays on the last batch of in-fill drill holes are expected imminently
whereafter the updated Mpama South Resource will be finalised and announced to the market.
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: msmith@alphaminresources.com
JSE Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
30 January 2023
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 expected EBITDA, EBITDA margin and AISC guidance for FY2022 and
Q4 2022 and contained tin production and sales guidance and capital allocation priorities for
the financial year ending December 31, 2023; planned production expansion resulting from
Mpama South; and the timing for commissioning and total development cost of the Mpama
South project. 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, uncertainties with respect to social, community and environmental impacts,
uninterupted access to required infrastructure and third party service providers, adverse
political 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 www.sedar.com. 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.
EBITDA MARGIN
EBITDA margin is EBITDA divided by gross revenue.
NET CASH
Net cash is defined as cash and cash equivalents less total current and non-current portions
of interest-bearing debt and lease liabilities.
AISC
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 and
corporate costs. 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
nature.
Date: 30-01-2023 04:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
