Alphamin doubles Ebitda, lowers debt ahead of dividend decision

Tin is critical element in microprocessor production

ALPHAMIN more than doubled earnings before interest, tax, depreciation and amortisation in the first quarter after reporting higher increasing sales and a 7% lift in the tin price for the period.

The company, which mines tin from the Bisie deposit in the Democratic Republic of Congo, said in December poor road conditions, which were exacerbated by heavy seasonal rains, would result in lower sales for that quarter.

Those conditions had since been improved enabling the sale of 4,126 tons of tin in the first quarter compared to 2,046 tons in the previous quarter. The outcome was Ebitda of $52m compared to $20.3m in the fourth quarter of its 2023 financial year.

A decision on paying a dividend for the 2023 financial year would be taken this month, the company said. Alphamin’s cash position increased to $53.5m end-quarter which helped to reduce net debt to $28m from $73m as of December 31.

Its decision may be influenced by the trajectory of tin prices which at about $30,000 per ton are some 12% above the first quarter price.

Guidance for all-in sustaining costs per tonne of tin sold is up 1% from the previous quarter at $14,785/t. This is largely due to increased royalties, export duties, marketing commissions and net smelter returns, which are calculated with reference to the higher tin price, Alphamin said.

Commenting on its Mpama South expansion, which aims to increase Bisie mine’s annual tin production by 65% to a targeted 20,000 tons from the 2024 financial year, Alphamin said the processing plant was several weeks behind its scheduled April commissioning date.

The original equipment manufacturer for the processing plant’s crusher was on site assisting Alphamin tackle a failed mechanical unit. The mine had replacement spares for the failed unit while the matter was being addressed, the company said.