ALPHAMIN Resources is due to report record quarterly income owing to a major boost in tin sales from its Bisie mine in the Democratic Republic of Congo (DRC).
The Johannesburg-listed firm said in a trading statement today that it was likely that first quarter earnings before interest, tax, depreciation and amortisation (EBITDA) would come in at about $36.5m.
The performance was aided by a significant improvement in the tin price which at $23,083 per ton for the period was one quarter higher than the previous (December) quarter. Tin sales at 3,351 tons, was 45% higher quarter-on-quarter.
There may be more good news to come for the current period as the tin price was currently averaging about $25,000/t.
Alphamin required a price of about $17,000/t in order to break even when it commissioned the mine in 2019. The initial onset of Covid-19 in March and April of last year took prices down to $13,000/t precipitating a period of balance sheet management for the company. The company then agreed new loan terms that reduced the break-even level of the mine by $2,000 to $3,000 per ton to about a tin price of $13,000/t for the next two years.
Alphamin said in its trading statement that the full commissioning of its fine tin recovery plant (FTP) was on schedule for June. The FTP has the potential to increase contained tin production by 5% to 10% effective July 2021. Capital expenditure for the project at some $4.6m, was in line with budget, the company said.