Alphamin boosts cash reserves after tin price scales new heights in Q1

ALPHAMIN continues to thrive saying today it expected to report first quarter earnings before interest, tax, depreciation and amortisation (EBITDA) of $98m – an increase of 32% over the previous quarter.

The Congo tin producer said that contained tin output of 3, 061 tons was largely flat quarter-on-quarter but sales were 9% higher at 3,336 tons for the period. The big kicker in the numbers was the tin price which averaged $43,813 per ton.

Prices for the metal, used predominantly as a solder in the manufacture of electronics, hit a record of $48,650 a ton in early March. This is more than double the price of 2019 when Alphamin’s balance sheet was badly stretched.

Alphamin’s studies suggest that even at an annual growth rate of between 2% to 3% an additional 8,000 to 10,000/t in tin demand will be generated.

The company, which is listed in Toronto and Johannesburg, operates the Bisie operation located in the northern part of the Democratic Republic of Congo.

Alphamin said today net cash increased $61m to end at $129.5m at quarter close. A dividend of $30m was paid to shareholders during the period. A tax liability of $43.5m is due for payment to the Congolese government in April, the company said.

In January, the company announced it would pay a maiden dividend of three Canadian cents per share following a strong showing for its 2021 financial year. The company has guided to production of 12,000 tons in the 2022 financial year.

Alphamin is targeting an increase in production to 20,000 tons a year through the expansion of the southern portion of Bisie, known as Mpama South. The company said last month it would proceed with the expansion.