Alphamin Resources is set to report record second-quarter EBITDA after stronger tin prices more than compensated for higher operating costs and weaker processing metrics at its Bisie operation in the Democratic Republic of Congo.
The company, listed on the TSX Venture Exchange and Johannesburg’s AltX, expects second-quarter EBITDA of US$167.3 million, up 6% from US$157.8 million in the first quarter. Production remained broadly stable, indicating that the increase was driven predominantly by higher realised tin prices. Alphamin produced 5,013 tonnes of tin during the quarter and sold 5,014 tonnes. Rolling production over four quarters at Bisie reached approximately 20,000 tonnes, in line with the operation’s annualised production target.
Higher tin prices strengthen quarterly earnings
Average realised tin prices increased 5% to US$51,957 per tonne, while the market price moved towards US$53,000 per tonne. The higher pricing more than offset deterioration in several operating indicators. Ore processed rose 5% to 211,034 tonnes, but the head grade declined from 3.4% to 3.3% tin. Recovery also decreased from 74.2% to 72.8%, limiting the benefit from the higher volume processed.
Alphamin’s all-in sustaining costs increased 6% to US$19,043 per tonne. The company attributed the increase to higher royalties, export duties, marketing expenditure, fuel and transportation costs, together with the timing of sustaining capital expenditure. Despite the cost increase, the gap between realised tin prices and AISC remained close to US$33,000 per tonne, supporting strong cash generation from Bisie.
Shareholder distributions reduce net cash
Alphamin’s net cash position fell from approximately US$140 million to US$90.7 million during the quarter. The decline was associated with distributions rather than weaker operating performance. The company paid or provided for US$160 million in shareholder distributions. This included US$121 million for Alphamin shareholders, US$26 million for minority investors in its Congolese subsidiary and US$13 million in related withholding tax. Alphamin also paid approximately US$26 million in corporate tax during the period.
Exploration advances at Mpama South
Exploration is providing a further area of activity for the company, with drilling increasing to 5,547 metres. At Mpama South, visible cassiterite mineralisation was identified across intervals measuring 19.29 metres and 17.48 metres. Assay results for those intersections remain pending. An earlier hole returned 12.94 metres grading 2.10% tin.
Alphamin expects updated mineral-resource and reserve estimates during the fourth quarter, providing the next major resource-related update for the Bisie operation.
Operations continue amid regional health measures
The company reported stable security conditions and normal operations at Bisie. Health-screening measures remain in place following Ebola cases elsewhere in eastern Congo. The Bisie operation continues to combine high tin grades with strong margins, while Alphamin remains exposed to the operating and jurisdictional conditions surrounding its Congolese assets. The quarterly financial performance was primarily supported by the prevailing tin price rather than an increase in production. With realised tin prices at US$51,957 per tonne, higher royalties, logistics and fuel expenses and lower recoveries have been offset by the commodity-price environment.
