Wrap Text
Alphamin announces record production volumes/ Q4 2021 EBITDA guidance of US$74m/ declaration of FY2021 dividend
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 PRODUCTION VOLUMES/ Q4 2021 EBITDA
GUIDANCE OF US$74m/ DECLARATION OF FY2021 DIVIDEND
MAURITIUS – January 11, 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
update for the quarter ended December 2021:
- Contained tin production up 10% from the prior quarter to 3,114 tons
- Contained tin sales up 13% from the prior quarter to 3,056 tons
- Record Q4 EBITDA4 guidance of US$74m, up 38% from prior quarter actual
- Net cash position increases to US$68m
- FY2021 dividend of CAD$0.03 per share declared
Operational and Financial Summary for the Quarter ended December 20212
Description Units Actual
Quarter Quarter
ended ended Change
December September
2021 2021
Tons Processed Tons 107 981 108 901 -1%
Tin Grade Processed % Sn 3,9 3,5 12%
Overall Plant Recovery % 75 75 -1%
Contained Tin Produced Tons 3 114 2 832 10%
Contained Tin Sold Tons 3 056 2 710 13%
EBITDA 4 (Q4 2021 guidance) US$'000 74 000 3 53 715 38%
Net Cash 4 US$'000 68 233 1 036 6486%
Tin Price Achieved US$/t 38 084 33 704 13%
__________________________________________________________________________________________
1
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. 3Q4 2021 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
Contained tin production of 3,114 tons is 10% above the previous quarter. Improved
underground mining practices relating to stope planning, delineation and blasting resulted in
better grade control with an average tin grade of 3,8% processed during the five months ended
December 2021. Waste development is now well ahead of current mining areas providing
flexibility in blending high- and low-grade areas for a more consistent grade profile.
Contained tin sales of 3,056 tons increased 13% from the prior quarter.
EBITDA guidance of US$74m for Q4 2021 is estimated to be 38% higher than the actual
EBITDA for the previous quarter of US$53,7m as a result of increased tin production and sales
volumes, together with a higher average tin price achieved of US$38,084/t (Current tin price:
~US$39,000/t).
The Group Net Cash position as at 31 December 2021 increased by US$67m from the prior
quarter.
Contained tin production guidance for the financial year ending December 2022 is 12,000 tons.
The mineral resource estimation exercise for the Mpama South deposit commenced in
December 2021. Drilling activities continue with six rigs on-site and the next large batch of
external assay results is expected during January 2022.
Alphamin’s audited consolidated financial statements and accompanying Management’s
Discussion and Analysis for the quarter and year ended 31 December 2021 are expected to
be released on or about 7 March 2022.
FY2021 Dividend Declared
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 significant exploration,
investment in growth and a high dividend yield a robust value proposition. Dividend
distributions will be considered based on excess free cash after taking account of working
capital requirements, reserve contingencies and expansion opportunities.
On this basis, the Board resolved to declare a FY2021 CAD$0.03 per share cash dividend on
the common shares (approximately US$30m in the aggregate) (“the Dividend”). The Dividend
will be payable on 11 February, 2022 to shareholders of record as of the close of business on
4 February, 2022.
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
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 guidance for Q4 2021 and contained tin production
guidance for the financial year ending December 31, 2022. 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.
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.
Date: 11-01-2022 08:30:00
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