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Alphamin announces record Q3 2021 EBITDA guidance of US$53m and a net debt-free position; production and exploration
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 Q3 2021 EBITDA GUIDANCE OF US$53m AND A
NET DEBT-FREE POSITION; PRODUCTION AND EXPLORATION UPDATE
MAURITIUS – October 4, 2021 – 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 and exploration update for the quarter ended September 2021:
- Record Q3 EBITDA guidance of US$53m, up 56% from prior quarter
- Contained tin production up 17% from the prior quarter to 2,832 tons
- Net debt-free at 30 September 2021 (Net debt 30 June 2021: US$29.5m)
- Mpama South drilling continues to intercept significant visual mineralisation
Operational and Financial Summary for the Quarter ended September 20212
Description Units Actual
Quarter Quarter
ended ended June
September 2021 Change
2021
Tons Processed Tons 108,901 105,294 3%
Tin Grade Processed % Sn 3.5 3.2 8%
Overall Plant Recovery % 75.2 71.5 5%
Contained Tin Produced Tons 2,832 2,412 17%
Contained Tin Sold Tons 2,710 2,404 13%
EBITDA (Q3 2021 guidance)3 US$'000 53,000 34,077 56%
Net Cash / (Net Debt) US$'000 1,036 (29,506) -104%
Tin Price Achieved US$/t 33,863 28,326 20%
__________________________________________________________________________________________
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. 3 Q3 2021 EBITDA
represents management’s guidance. All numbers are rounded.
Operational and Financial Performance
Contained tin production of 2,832 tons is 17% above the previous quarter. Underground mining
practices relating to stope planning, delineation and blasting were significantly improved from
mid July 2021. This resulted in an average tin grade of 3.8% processed during August and
September 2021 with an average of 3.5% for the quarter. In addition to improved grade control,
run-of-mine volumes and waste development increased by 5% quarter-on-quarter.
The benefit of the newly commissioned Fine Tin Plant increased overall processing recoveries
by 5% to 75%.
EBITDA guidance of US$53m for Q3 2021 is 56% higher than the previous quarter’s actual as
a result of increased tin production and sales volumes, together with a higher tin price.
The Company moved to a net cash position at 30 September 2021 compared to a net debt
position of US$29.5m the previous quarter. Our intention is to fully settle the outstanding senior
loan of US$36m during October 2021. The Board will establish an appropriate treasury
strategy during Q4 2021 with the objective of balancing capital allocations between ongoing
exploration drilling, the potential fast-track development of the Mpama South deposit and
shareholder distributions.
Alphamin’s unaudited consolidated financial statements and accompanying Management’s
Discussion and Analysis for the quarter ended 30 September 2021 is expected to be released
on or around 10 November 2021.
Exploration Activities
Three phases of drilling comprising 16,040m (64 holes) have been completed on the Mpama
South deposit since December 2020. Independent laboratory assay results have been
released to the market for 39 holes. An additional 21 drill hole assay results are expected to
be released to the market during October 2021. Phases 1 and 2 and the recently completed
Phase 3 have exceeded expectations with both strike and depth continuation of significant
visually observed mineralised cassiterite lodes. A fast-tracked Phase 4 drilling program of
8,000m has commenced in mid-September. This program includes an additional third drill rig
and is targeting completion by year end 2021. Drilling comprising 18,500m is intended to form
the basis of a Maiden Mineral Resource estimate, which is expected to be announced by year
end 2021.
Drilling at the Mpama North orebody commenced in July 2021 for an initial 15,000 metre (22
hole) drilling campaign to test the strike and dip extension of the current producing orebody.
The first deep holes aggressively targeted as far as 225m further along strike and 200m deeper
than the deepest historical drilling. Thickening of the various lithologies in the hanging wall,
increased structural intricacy, and hole deviation at depth, delivered mixed results. While tell-
tale altered and cassiterite mineralised lithologies were intercepted, they were not to the levels
associated with the ore horizon currently being mined. Drilling activities are now focusing on
extensions closer to previous higher-grade intercepts of the Mpama North orebody and will
work outwards from there along strike and at depth.
In addition to Mpama North and Mpama South, drilling on the highly prospective Bisie ridge
(13km strike length), which falls within the Company’s mining licence, is expected to
commence on delivery of additional drill rigs. An extensive tight-spaced soil sampling program
along the ridge has been on-going since Q1 2021 to assist new target generation. New
pathfinder elements such as uranium and tungsten, in addition to previously known elements,
appear strongly correlated to outcrop and artisanal workings at Mpama North and Mpama
South. In conjunction with this exercise, the Company’s structural specialists, TECT Geological
Consulting, identified several high potential drill targets less than 8km from the current
operating mine which match and are co-incident with the soil sampling results.
Qualified Persons
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.
Mr Jeremy Witley, Pr. Sci. Nat., B.Sc. (Hons.) Mining Geology, M.Sc. (Eng.), is a qualified
person (QP) as defined in National Instrument 43-101 and has reviewed and approved the
exploration information contained in this news release. He is a Principal Mineral Resource
Consultant of The MSA Group (Pty.) Ltd., 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
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 the timing of the release of independent assay results from exploration
drilling; the intention to pay off in full outstanding senior debt; the future allocation of surplus
cash; expected future EBITDA for Q3 2021 and the timing and success of exploration drilling
outcomes. 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
associated with Alphamin’s resource and reserve estimates, uncertainties and risks regarding
the economic viability of the Mpama South deposit prior to the release of a maiden resource
and completion of feasibility studies, 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, 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.
NET DEBT AND NET CASH
Net debt is defined as total current and non-current portions of interest-bearing debt and lease
liabilities less cash and cash equivalents. Net cash is defined as cash and cash equivalents
less total current and non-current portions of interest-bearing debt and lease liabilities.
Date: 04-10-2021 02:26:00
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