Alphamin Resources has announced Q4 production at the Bisie mine, DR Congo, of 5,237 tonnes tin-in-concentrate, bringing 2024 production to 17,324 t, up 38% from 2023 following the Mpama South expansion.
Ore processed at Bisie increased 2% to 232,860 t, whiles grades increased from 2.9% Sn in Q3 to 3.0% Sn in Q4. Plant recovery also increased by 2% to 75.1%. As expected, due to the impact of the September-November rainy season on road conditions and transit times, sales decreased 11% to 4,942 t but are anticipated to recover in January.
EBITDA decreased 17% Q/Q to US$76.2 million, which the company attributed to the usual seasonal fall in sales and a 4% decline in the tin price. AISC decreased 4% to US$15,106 per tonne tin sold, primarily due to a reduction in marketing fees negotiated with offtake partner Gerald Metals.
EBITDA for 2024 is estimated to increase by 102% Y/Y to a total of US$274 million. Alphamin attributed this to stronger tin prices alongside the increase in sales and production related to the Mpama South expansion completed in mid-2024.
Looking to 2025, the company issued production guidance of 20,000 t as the full year is expected to benefit from the expansion.
Alphamin also provided an update on its exploration projects to increase the Mpama North and South resources and life of mine. At Mpama South, drilling intersected an alteration zone including narrow cassiterite veins 42.58 m wide, 82 m below the current resource boundary. At Mpama North, eight drill holes intersected alteration zones associated with tin mineralisation and minor cassiterite veins, with further drilling planned.
Our view: During a year of supply disruptions in Asia, Alphamin’s strong output was welcome in the market, with DR Congo becoming China’s largest source of tin concentrate. The company’s expansion has made it the fourth largest producer of tin concentrate, representing 6% of global mined tin supply in 2024.
ITA considers that Alphamin is unaffected by recent developments in eastern DR Congo, as concentrates from Bisie are transported on routes far from the affected areas.