ALPHAMIN Resources, a tin producer operating in the Democratic Republic of Congo, announced it would pay a maiden dividend of three Canadian cents per share following a strong showing for its 2021 financial year capped by a strong final quarter.
The company guided to fourth quarter earnings before interest, tax, depreciation and amortisation of $74m which would be 38% higher than the $53.7m in EBITDA recorded in the firm’s third quarter.
Net cash as of December 31 increased to $68.2m from just over $1m in net cash in the third quarter.
Alphamin said the improvement was a result of a 10% increase in tin production from its Bisie mine in the northern part of the DRC. The company produced 3,114 tons of contained tin and sold 3,056 tons of the metal in the quarter, 12% more than in the third quarter.
Higher production met a higher average tin price of $38,084 per ton. The current tin price is $39,000 per ton, said Alphamin. This is a far cry from two years ago when the company was struggling to operate Bisie at a break even tin price of $13,000/t.
Alphamin has guided to production of 12,000 tons in the 2022 financial year.
Work on expansion activities began in December. Alphamin is drilling the Mpama South deposit which is believes is the continuation of Mpama North that currently comprises mining activities. “Drilling activities continue with six rigs on-site and the next large batch of external assay results is expected during January 2022,” it said.
The dividend will be payable on February 11 to shareholders of record as of the close of business on February 4, the company said.