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
1Data 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 4166E-mail: msmith@alphaminresources.com
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.
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