TIN miner Alphamin, which had to temporarily suspend operations at its Bisie mine in Northeast DRC for almost a month earlier this year because of fighting between the M23 rebel group and Congolese army, has detected visible mineralisation in its Mpama South licence area, it said.
The company, in which International Resource Holdings of Abu Dhabi recently agreed to buy a controlling 56% stake, is continuing to explore around Bisie to discover the next viable tin deposit close to the mine.
Alphamin is a significant producer in global terms, producing about 6% of annual tin supply.
Due to the suspension of operations, Alphamin recorded a 4% drop in tin production to 4,106 tonnes in the June quarter compared to the March quarter. Mining stopped from 13 March to 15 April and then resumed on a phased basis. Because of the stoppage, AISC was higher than normal because Alphamin had to continue paying fixed costs and wages as well as care and maintenance.
It said that in May and June its output was in line with the annualised target of 20,000t of tin for the year.
Alphamin expects to increase EBITDA in Q2 by 21% to $75 million, mainly because it sold more tin in Q2 to clear the backlog from Q1. Although the average tin price received, at $32,512/t, was similar to that of the previous quarter, the price of the metal is currently trading higher at $33,700/t.
At the end of June, Alphamin held $110 million in cash.
