Mauritius-based tin miner Alphamin Resources (TSXV : AFM ; JSE AltX : APH) saw production from its Bisie mine in eastern DR Congo fall marginally to 4,106 tonnes in the second quarter.
Production fell 3.8% from Q1 (a 2.0% rise from Q2 2024) due to the 28-day mining halt from mid-March to mid-April following the advance of non-state armed groups in the direction of the mine. This was below the company’s production target of 5,000 tonnes.
The grade of tin processed fell from 3.55% Sn in Q1 to 3.16%, while plant recovery increased above the company’s 75% target to 77%.
Sales rose 18.7% to 4,587 tonnes tin-in-concentrate as the company cleared the sales backlog from the first quarter. The average tin price achieved remained almost unchanged at $32,512 per tonne, yielding an estimated EBITDA of $75 million.
Estimated AISC rose 6.1% year-on-year to $16,500, which the company attributed to the operations stop and restart. Operating costs included fixed expenses and payroll as well as the costs associated with care and maintenance during the suspension and mining restart costs.
The company also provided an update on its exploration programs to expand the Mpama North and Mpama South resources and Bisie life of mine, and prospecting for new deposits locally. Drilling at Bisie intercepted visible tin below the current resources.
Our view: ITA is pleased to see greater stability in production levels following a challenging H1 for Alphamin Resources. The March-April mining halt has exacerbated severe feedstock shortages in Asia with no significant progress reported regarding a restart to mining in Wa, Myanmar. The company appears to be on track to achieve its revised production guidance of 17,500 for 2025.
