Alphamin Resources has reported record tin production from its Bisie mine, which it achieved during the final quarter of 2021.

The mine, which now produces around 4% of global tin concentrate, saw tin metal production exceed 3,000 tonnes in Q4 2021, some 10% above the previous quarter (2,832 tonnes). Sale of this material also improved some 13% to 3,056 tonnes in the final quarter of the year.

A recovery in tin grades was a major driver behind the record output at Bisie. As expected following its Q3 announcement, Alphamin did hit a pocket of higher-grade material. However, rather than recording a major jump in grade (like Q1-Q2 2020: 3.5% Sn to 4.3% Sn), the company blended the high-grade material with waste. This will continue in the future to keep a more consistent grade profile, according to Alphamin.

Due to the improved output, combined with a strong tin price, Alphamin’s financials have continued to shine. The company’s profitability, measured by its EBITDA, grew from US$ 53.7 million to US$ 74.0 million. As a result, net cash held by the company increased from just US$ 1.0 million to US$ 68.2 million over the quarter, a 6,486% increase. Due to the strong financial situation, Alphamin is planning to return nearly 50% of its net cash to investors in the form of a CAD$ 0.03 dividend.

Looking ahead, Alphamin has announced guidance of some 12,000 tonnes of tin-in-concentrate in 2022. The company is not expecting to hit any significantly higher-grade mineralisation, so improvements will come from recoveries at the Fine Tin Recovery (FTR) Plant. The FTR Plant was commissioned in Q3 2021 and increased contained tin production by some 5% during its first week. Alphamin is continuing to develop its Mpama South orebody, with results from the latest assay expected during January 2022.

Our view: Alphamin has performed strongly and consistently over the course of a challenging year. The company narrowly missed out on its objective of 11,000 tonnes of contained tin in 2021, producing 10,969 tonnes during the year.

Given that the FTR Plant saw a 5% increase in output during its first week, Bisie is expected to produce at least 11,500 tonnes of tin this year. However, actual output will likely be higher: the FTR Plant will have been refined and consistent high grades are expected.

Alphamin Resources is a member of ITA’s Explorers and Developers Group.