Alphamin hits record production, shares slump

Major tin supplier Alphamin's share price has slumped to more than a year-low despite the company this week reporting record production, which was achieved in the April-June quarter.

 Alphamin's Bisie

Alphamin's Bisie

The company, which is a producer of 4% of the world's mined tin for its high grade operation in the Democratic Republic of Congo, reported production of 3,180 tonnes for the June quarter—with that having risen by 4% from the March quarter.

Alphamin's achieved tin price for the three months was down 19% quarter on quarter at US$35,500 and it has guided that its EBITDA will fall 32% over the same period to US$66.5 million.

The company is also expecting that its all-in sustaining costs will come down by 6% to US$14,800/t sold.

The record June quarter production sees the company's first half production of 6,241 tonnes tracking ahead of the run-rate to achieve 2022 guidance of 12,000 tonnes.

Regarding the fall in EBITDA, Alphamin said, "In addition to a higher tin price, the previous quarter's sales volumes included a catch-up from delayed sales during Q4 2021".

The company's board also resolved to declare an interim FY2022 cash dividend of C$0.03 per share.

Having initiated a strategic review in November last year, Alphamin updated the market to say that, at this point, it does not believe an outright sale transaction would deliver the future value it intends to unlock through ongoing resource development and production growth.

"The company is of the opinion that global tin supply is likely to remain constrained for at least the next five years while demand for tin is expected to increase," it said.

"In addition to the development of Mpama South, the company's vision is to discover more tin deposits on its license areas with a view to deliver additional mine developments and incrementally increase tin supply into an expected widening market deficit," it added.

Alpahmin's share price fell 11% day on day on July 6 to C$0.65 (US$0.50). The stock traded above C$1.4 as recently as April. The company has a market capitalization of C$826.71 million.

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