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Alphamin announces record Q3 2021 EBITDA of US$53,7m and a net debt-free position/ initiation of strategic review
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” or the “Company”)
ALPHAMIN ANNOUNCES RECORD Q3 2021 EBITDA OF US$53,7m AND A NET DEBT-
FREE POSITION/ INITIATION OF STRATEGIC REVIEW
MAURITIUS – November 9, 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, has released its unaudited consolidated
financial statements and accompanying Management’s Discussion and Analysis for the
quarter ended September 2021:
- Record Q3 EBITDA of US$53,7m, up 58% 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$29,5m)
- Initiates strategic review to maximize shareholder value
Operational and Financial Summary for the Quarter ended September 20212
Description Units Actual
Quarter Quarter Change
ended ended June
September 2021
2021
Tons Processed Tons 108,901 105,294 3%
Tin Grade Processed % Sn 3.5 3.2 8%
Overall Plant Recovery % 75.2 71.5 5%
Contained Tin Produced Tons 2,832 2,412 17%
Contained Tin Sold Tons 2,710 2,404 13%
EBITDA US$'000 53,715 34,077 58%
Net Cash / (Net Debt) US$'000 1,036 (29,506) -104%
Tin Price Achieved US$/t 33,704 28,308 20%
AISC US$/t 14,765 15,112 -2%
__________________________________________________________________________________________
1 Data 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
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%.
Record EBITDA of US$53,7m for Q3 2021 is 58% higher than the previous quarter as a result
of increased tin production and sales volumes, together with a higher tin price of US$33,704/t
(Current tin price: ~US$37,000/t).
AISC per ton of contained tin sold decreased 2% quarter on quarter as a result of higher sales
and production volumes off-set to some extent by the impact of the higher tin price on
marketing commissions, royalties, export duties and smelter deductions.
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. 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 have been filed and are
available under the Company’s profile at www.sedar.com.
Strategic Review
The Company has determined to initiate a strategic review to explore alternatives with a view
to maximising shareholder value (the “Strategic Review”). Such strategic alternatives may
include, but are not limited to, fast-tracking the Company’s expansion and life-of-mine
extension potential, balance sheet restructuring including revenue prepayments and
streaming, shareholder distributions or a corporate merger or sale transaction. The Company
has appointed a financial advisor to provide advisory services in relation to the overall Strategic
Review.
The Company has not established a definitive timeline to complete the Strategic Review and
no decisions related to any strategic alternative have been reached at this time. There can be
no assurance that any strategic transaction or transactions will result from the Strategic
Review. The Company does not intend to comment further with respect to the Strategic Review
unless and until it determines that additional disclosure is appropriate in the circumstances
and in accordance with the requirements of applicable securities laws.
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
The JSE link to the supporting document is
https://senspdf.jse.co.za/documents/2021/jse/isse/APHE/Q32021.pdf
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 future allocation of surplus cash and the Strategic Review and any
transactions arising from the Strategic Review. 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.
AISC
This measures the cash costs to produce a ton of contained tin plus the capital sustaining
costs to maintain the mine, processing plant and infrastructure. This measure includes the
Cash Cost per ton and capital sustaining costs less concentrate stock movement divided by
tons of contained tin sold. All-In Sustaining Cost per ton does not include depreciation,
depletion, and amortization, reclamation, 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.
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: 09-11-2021 02:40:00
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