Alphamin’s latest quarter saw the company achieve record tin production, surpassing levels set in the previous year.
The Bisie mine – located in the Democratic Republic of the Congo – saw tin metal production reach 3,187 tonnes in the first quarter. This marginally breaks the previous record of 3,180 tonnes achieved in Q2 2022.
Despite similar levels of production between the two mentioned periods, there were notable variations in the quantity and quality of material processed. The company significantly scaled back the run-of-mine volumes this quarter to increase the recovery of the higher-grade material that they processed. The average tin grade of 4.4% achieved was at the highest level since 2019, whilst the 95,752 tonnes of ore processed was the lowest recorded since early 2021.
Tin sales were also strong for the quarter, and in line with production (3,161 tonnes). With the tin price also performing well the company reported an expected EBITDA of US$ 31.4 million – a 53% quarter-on-quarter increase.
In February this year, Alphamin released an updated MRE for its developing project, Mpama South. In the latest note, Alphamin shared an update on the progress of the project’s processing plant. Whilst providing details of progress across separate areas of the plant, the plant “as a whole is 66% complete” and remains on track to be commissioned in December.
Our view: Alphamin will be pleased that the recovery rates are increasing following a drop in the second half of last year. Whilst tin demand has taken a hit in the past year, the additional 8,000 tonnes contained tin from Mpama South will be crucial to narrow deficits that we forecast later in the decade.
