1

The King of Tin is Alphamin

When I last wrote about one of the highest grade tin producers, with production of roughly 4% of global volume, their share price was C$0.69/share. That was in July, 2021. Yesterday, this company’s stock closed at, wait for it, C$0.69/share. What have they done in the interim? Increase cash and cash equivalents by US$124 million to US$147 million, reduce debt to almost zero (US$9 million at June 30, 2022), declare a dividend of roughly 4% and announce plans to increase production to 6% of global volume by 2024. Naturally, this left me a little confused, so I think we should have a closer look at what’s going on here.

The company in question is Alphamin Resources Corp. (TSX: AFM), a low cost tin concentrate producer from its high grade deposit at Mpama North on its mining and exploration licenses covering a total of 1,270km2 in the North Kivu Province of the Democratic Republic of the Congo (DRC). At a tin grade of roughly 4.5%, Mpama North is the world’s highest-grade tin resource – about four times higher than most other operating tin mines in the world. It is also one of the largest tin mines outside of China or Indonesia.

The Company recently announced Q2 results, which were very positive, showing quarter-over-quarter growth in ore processed (+7%), tin produced (+4%) and a reduction in AISC (-7%). A slightly lower tin grade processed for the quarter (-2%) coupled with a materially lower price (-19%) led to a marked drop in EBITDA (-32%). But we’re still talking about a very positive quarter which allowed the Company to add US$6.5 million to cash and cash equivalents even after an incremental tax hit of US$11.7 million due to a special “superprofit tax” applied by the Democratic Republic of the Congo (DRC). And on top of this Alphamin announced an interim dividend for FY 2022 of C$0.03/share. I like their use of the term “interim” as it implies, at least to me, that there could be more to come before the year is over.

As part of corporate plans to further expand production, this week the Company announced an updated Mineral Resource and Mineral Reserve estimates along with an updated life of mine schedule (LoM) for the Mpama North Mine. Without getting into all the numbers, the press release can be summarized by saying all the work Alphamin has done has resulted in all contained tin depleted since December 31, 2019 has been replaced in the new LoM schedule. The 154.5kt contained tin in the updated LoM versus the previous 154.2kt has also been accompanied by a valuable grade increase of 19.6% to 4.78% Sn from 4.00% Sn previously scheduled. In a nutshell, before we even get into the reserve adds from the Mpama South project, Alphamin is expanding Mpama North as quickly as it is mining it. I find this reasonably impressive when you consider it accounts for 4% of global production.

As for Mpama South, the Company stated with its Q2 guidance that exploration drilling delivered an additional 124,700t contained tin in inferred Resource and 21,400t contained tin in indicated Resource at Mpama South. Mine development of the Mpama South deposit (adjacent to Mpama North) has commenced and is expected to increase annual contained tin production from the current 12,000tpa to ~20,000tpa, approximating 6.6% of the world’s mined tin, effective FY2024. This is critical given Alphamin states that according to the International Tin Association there is a tin supply deficit forecast for the foreseeable future.

I couldn’t find this forecast myself (perhaps it’s behind a pay wall), however, the logic behind it seems sound. Four countries currently produce 75% of global tin concentrate and they all appear to be facing some sort of headwind. Chinese mines are maturing and are facing stricter environmental laws (but the cynic in me would suggest the latter is only an issue in a balanced to over supplied market).

Indonesian on-shore mining is declining and export bans are looming. Myanmar’s high-grade surface material is almost depleted and they are now moving into lower grade underground mines, which completely overlooks the political turmoil where the military junta is simply executing anyone opposing them. And Peru has commissioned tailings retreatment in an attempt to restore their declining production profile to levels from 10 years ago.

Source: International Tin Association

Returning to my opening challenge of why is it that the stock price is the same as 13 months ago, all I can suggest is that perhaps it’s the fact that tin prices today are US$24,675/t versus the July 15, 2021 close of US$33,510. If you are simply trading Alphamin as a proxy for tin prices then I guess it sort of makes sense that all the success the Company has achieved over the last year is offset by lower commodity prices — this formula is perhaps reasonable.




Strong tin prices, new PEA and major expansion plan boost Alphamin Resources’ already strong revenues

Tin prices have dipped recently but are still up over 100% from where they were just two and a half years ago. This means that tin producers continue to do extremely well in this high price environment.

Today’s company has been achieving near record tin production and selling prices. This has resulted in very strong revenue and EBITDA results over the past year. Plus they have been growing their resource and have plans to further expand production.

The company is Alphamin Resources Corp. (TSXV: AFM) (Alphamin). Alphamin is a high grade, low cost, tin concentrate producer at its Mpama North Mine in the Democratic Republic of Congo (DRC). Alphamin has the highest grade tin resource globally with a Resource Reserve of 3.33MT @ 4.01% Sn (tin) resulting in 133.4 kt of contained tin. Alphamin’s production equates to ~4% of the world’s mined tin.

Near-record tin production, sales and EBITDA in 2021 and Q1, 2022

As reported on May 13, 2022, Alphamin achieved 3,061 tonnes of tin production in Q1, 2022, boosted by recoveries improving from 75% to 78%. Contained tin sales increased by 9% to 3,336 tonnes at an average tin price of US$43,834/t. The AISC of contained tin sold during Q1 2022 increased by 4% to US$15,782/t. Alphamin stated: “As a result of steady production, good cost control and higher revenue, EBITDA for Q1 2022 amounted to US$98.1 million, up 32% from US$74.3 million the previous quarter.”

Growing their resource at Mpama South

As announced on April 4, 2022, Alphamin increased the Inferred Resource at Mpama South by 75%. The Mpama South Mineral Resource is now an Indicated 0.85Mt @ 2.55% Sn (21.5kt contained tin) and Inferred 3.42Mt @ 2.45% Sn (83.7kt contained tin).

Mpama North also had some excellent recent drill results from hole MND019: 14.4 metres @ 21.75% Sn from 432.2 metres, including 11.0 metres @ 27.81%from 432.2 metres.

Mpama South resource model

Source: Alphamin Resources news April 4, 2022

Mpama PEA and tin production expansion plans

Alphamin announced a very positive PEA for Mpama South on March 7, 2022. Alphamin CEO Maritz Smith commented:

“We are delighted to declare a Maiden Mineral Resource estimate and the outcome of a PEA study on Mpama South. The PEA quantifies the potentially value accretive economics of expanding production with the development of the adjacent Mpama South mine. Our current producing Mpama North mine absorbs large fixed costs, which facilitates incremental production from Mpama South at a competitive marginal cost. Developing Mpama South would bring Alphamin closer to its vision of becoming one of the world’s largest low-cost tin producers.”

Alphamin announced a positive PEA for the Mpama South project

Source: Alphamin news on March 7, 2022

Alphamin plans to increase annual contained tin production from the current 12,000tpa to ~20,000tpa (from FY2024), which equates to ~6.6% of the world’s mined tin. The estimated capital development cost is US$116 million. First tin production from Mpama South is targeted for December 2023.

Closing remarks

Alphamin has been producing strong revenues from tin production at their DRC tin mine. All of this has allowed the Company to rapidly grow their resource and announce a very large expansion plan from 12,000tpa to 20,000tpa, set to begin ramping from December 2023. This equates to a 66% increase in production.

Looking at Alphamin’s market cap it is currently at C$1.27 billion and trades on a 2022 PE of only 6.59, partially due to tin prices being lower in 2022. Not bad for a company set to rapidly grow production in 2024. Some increased risk due to the DRC location. Stay tuned.




Maritz Smith on Alphamin Resources’ extraordinary low-cost high-grade producing tin mines

In a recent InvestorIntel interview, Byron King spoke with Maritz Smith, CEO of Alphamin Resources Corp. (TSXV: AFM) about achieving record fourth quarter EBITDA and production, and about how Alphamin is positioned to become one of the world’s largest low-cost tin producers.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Maritz Smith said that tin is a strategic metal “without which technology cannot exist” and went on to highlight the supply constraints in the tin market because of decades of underinvestment in exploration and development of new tin mines. “Alphamin’s mine is the first major tin mine that has been developed in the last 40 years,” he added. As a producer of 4% of the world’s mined tin, Maritz provided an update on Alphamin’s maiden mineral resource estimate and positive PEA for their Mpama South Mine.

To watch the full interview, click here.

About Alphamin Resources Corp.

Alphamin Resources is a low-cost tin concentrate producer from its high-grade deposit at Mpama North. This is on its mining license, and it has an additional five exploration licenses covering a total of 1,270km2 in the North Kivu Province of the Democratic Republic of Congo (DRC). Alphamin is headquartered in Mauritius and listed both on the Toronto Stock Exchange (TSXV: AFM) and on the Johannesburg Stock Exchange AltX (JSE AltX: APH). At a tin grade of roughly 4.5%, Mpama North is the world’s highest-grade producing tin resource – about four times higher than most other operating tin mines in the world. The Mpama North mine is in production. It has an output of ~10 000 tonnes of contained tin per annum, amounting to ~3% of the world’s mined tin supply. Alphamin is aiming to increase annual tin output and life of mine through incremental production from Mpama South and by adding more mines in close proximity to the current producer from within its licensed footprint. The management team has successfully developed and brought the Bisie tin mine into production and is focused on taking the business to the next level as they pursue their objective of realizing the full value potential of this extraordinary tin complex.

To learn more about Alphamin Resources Corp., click here

Disclaimer: Alphamin Resources Corp. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at info@investorintel.com.




With the price of tin skyrocketing, investors eye the high grades of Alphamin

The tin price boom continues with the price now at US$43,023/t, up ~3.5x from the 2020 low. The main drivers have been surging tin demand from the electronics and green energy sectors and a limited supply.

Tin is mostly used as solder, particularly in photovoltaic installations, electric vehicles, and electronics. The good thing about tin is that tin solder prices can go up, but that, so far, has had minimal impact on a company’s costs. The biggest producers of tin are China, Malaysia, Indonesia, Peru, Thailand, Bolivia and Myanmar.

According to the International Tin Association (“ITA”), the global tin market deficit is forecast to rise to 12,700t in 2022, from a 10,200t deficit in 2021. The ITA says that a US$30,000/t tin price is required to incentivize additional supply in response to demand growth.

Today’s company is riding the wave of the tin price boom with increasing production from its Mpama North Mine in the Democratic Republic of Congo, DRC.

Tin prices – 10 year chart

Source: Trading Economics

Alphamin Resources Corp. (TSXV: AFM) (“Alphamin”) stock price is up exactly 100% in the past year thanks to booming tin prices and its growing production.

Alphamin is a high grade, low cost, tin concentrate producer at its Mpama North Mine in the Democratic Republic of Congo (DRC). Alphamin has the highest-grade tin resource, globally, with a Resource Reserve of 3.33MT @ 4.01% Sn (tin) resulting in 133.4 kt of contained tin. Alphamin’s production equates to ~4% of the world’s mined tin.

Alphamin state:

Source: Alphamin website

Q4, 2021 results from Alphamin were a knockout. The Company announced the following:

  • “Contained tin production up 10% from the prior quarter to 3,114 tons
  • Contained tin sales up 13% from the prior quarter to 3,056 tons
  • Record Q4 EBITDA4 guidance of US$74 millionup 38% from prior quarter actual
  • Net cash position increases to US$68 million
  • FY2021 dividend of CAD$0.03 per share declared.”

The 3,114 tons in Q4 2021 puts Alphamin on an annual run rate of 12,456 tons pa. At current spot prices of US$43,023 Alphamin would be on track for another year of record revenues (~US$535 million) in 2022. In the above Q4 release the Company guided cautiously for 12,000t of production in 2022. There was also mention of an ongoing drilling campaign with six rigs on-site.

On February 1, 2022, Alphamin announced the results of the above-mentioned drilling campaign. Results were again spectacular and included:

  • “Mpama South high-grade assay results2 received, including BGH079 which is the best drillhole assayed to date at Mpama South by contained tin: BGH079: 15.6 metres @ 5.00% Sn from 290.2 metres, including 10.0 metres @ 6.1% from 291.1 metres…….
  • Mpama North high-grade assay results2 received, including MND011 which is the second best drillhole assayed to date at Mpama North by contained tin: MND011: 19.6 metres @ 17.16% Sn from 419.3 metres, including 14.5 metres @ 23.0%.”

Imagine the excitement drilling “14.5 metres @ 23.0% tin (“Sn”) when tin prices are at US$43,023/t.

Mpama South is shaping up to potentially be another large high-grade resource – Maiden Resource due soon

Source: Alphamin news Feb. 1, 2022

Next steps

The next step for Alphamin is the release of a Maiden Mineral Resource estimation for Mpama South due in Q1 2022. Following this will be quarterly results throughout 2022.

Alphamin investment highlights

Source: Alphamin company presentation

Closing remarks

It is a great time to be a tin producer. Even better if you are a high-grade, low-cost, tin producer expanding production. And even better again if you can drill into 23% tin grades and grow your resource.

2022 is shaping up to be another very good year for Alphamin Resources. The Company trades on a market cap of ~US$1.3 billion up over 36% on when I wrote on them in Sept. 2021 on a then market cap of C$953 million. Stay tuned for the Mpama South Maiden Resource release soon.




Maritz Smith on the global shortage of tin and Alphamin’s record Q3 EBITDA

In a recent InvestorIntel interview, Tracy Weslosky spoke with Maritz Smith, CEO of Alphamin Resources Corp. (TSXV: AFM) about Alphamin’s recent news release on achieving record Q3 EBITDA, and about its net debt free position supported by rising tin prices and increased tin production at Alphamin’s Mpama North Mine.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Maritz Smith said that, primarily used for soldering circuit board connections, tin is the glue that holds our technology, as well as circuit boards, together, but that there is a global shortage of tin at the moment because of decades of limited investment in tin exploration. Currently producing 4% of the world’s tin, Maritz said that Alphamin is well-positioned to capitalize on the growth potential in the tin market and ultimately fill a substantial portion of the supply gap going forward.

To watch the full interview, click here.

About Alphamin Resources Corp.

Alphamin Resources is a low cost tin concentrate producer from its high grade deposit at Mpama North. This is on its mining license and it has an additional five exploration licenses covering a total of 1,270km2 in the North Kivu Province of the Democratic Republic of Congo (DRC). Alphamin is headquartered in Mauritius and listed both on the Toronto Stock Exchange (TSXV: AFM) and on the Johannesburg Stock Exchange AltX (JSE AltX: APH). At a tin grade of roughly 4.5%, Mpama North is the world’s highest-grade producing tin resource – about four times higher than most other operating tin mines in the world. The Mpama North mine is in production. It has an output of ~10 000 tonnes of contained tin per annum, amounting to ~3% of the world’s mined tin supply. Alphamin is aiming to increase annual tin output and life of mine through incremental production from Mpama South and by adding more mines in close proximity to the current production and from within its licensed footprint. The management team has successfully developed and brought the Bisie tin mine into production and is focused on taking the business to the next level as they pursue their objective of realizing the full value potential of this extraordinary tin complex.

To learn more about Alphamin Resources Corp., click here

Disclaimer: Alphamin Resources Corp. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp. (IIC) does not contain, nor does it purport to contain, a summary of all the material information concerning the Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete. 

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation.  Forward-looking statements are based on the opinions and assumptions of management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken,  as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please email info@investorintel.com.




Tin producer Alphamin Resources is Making All the Right Moves in 2021

When investing in miners, investors love to see rising commodity prices, growing production numbers, growing EBITDA or cash flows, falling or zero net debt, and ideally some dividends. Today’s company has achieved 4 of the 5 and will potentially have the 5th component ‘dividends’ added soon.

Alphamin Resources Corp. (TSXV: AFM) (“Alphamin”) is a pure-play, low-cost, tin concentrate producer, from its high-grade deposit at the Mpama North, Bisie Tin Mine, in the Democratic Republic of Congo (DRC). Alphamin has a Resource Reserve of 3.33MT @ 4.01% Sn (tin) resulting in 133.4 kt of contained tin.

Alphamin operates the high grade, low cost, producing Bisie Tin Mine in the DRC

Source: Alphamin company presentation

High tin prices

The tin market continues to go from strength to strength, the tin price is currently at US$34,930/t. Tin prices are up 93.28% over the past year, driven by strong demand (consumer electronics and other green energy related products) and weak supply (notably from COVID-19 impacted Malaysia & Indonesia). For 2021, tin supply is forecast to be in deficit by 10,200 tons which should continue to support tin prices in the short term.

Growing production numbers and growing EBITDA

Alphamin has taken full advantage of the stronger tin prices in 2021 by increasing tin production an impressive 17% in the last quarter (measured as over the June quarter). This has resulted in a record Q3 EBITDA guidance of US$53 millionup 56% for the third quarter, 2021,from the prior quarter.

Debt falling to zero

All of this has put Alphamin in a great financial position of being able to reduce their debt to zero. This is an outstanding achievement given the net debt was US$59.9 million as of 31 December 2020.

As announced on October 4, Alphamin stated that for the quarter ended September 2021:

“The Company moved to a net cash position at 30 September 2021, compared to a net debt position of US$29.5m the previous quarter. Our intention is to fully settle the outstanding senior loan of US$36m during October 2021. The Board will establish an appropriate treasury strategy during Q4 2021 with the objective of balancing capital allocations between ongoing exploration drilling, the potential fast-track development of the Mpama South deposit and shareholder distributions.”

Dividends

As suggested in the quote above, investors should potentially be able to look forward to some dividends (“shareholder distributions”) in 2022. This will considerably strengthen the appeal of Alphamin to a broader group, including those investors seeking an income.

Exploration upside (Mpama North expansion on the existing resource, Mpama South, and Bisie Ridge)

  • Drilling at Mpama North is to test the strike and dip extension of the current producing orebody.
  • Considerable drilling at the Mpama South deposit is expected to lead to a Maiden Mineral Resource to be announced by year end 2021. More details here.
  • Drilling at Bisie Ridge (13km strike length) is expected to commence on delivery of additional drill rigs. Exploration has identified several high potential drill targets less than 8km from the current operating mine which match and are co-incident with the soil sampling results.

Alphamin’s stock price has tracked the tin price higher boosted by strong global tin demand

Source: Alphamin company presentation

Closing remarks

Tin has been named “the forgotten critical mineral” for good reason. It is because tin is used in electrical and electronic solders, and it is therefore found everywhere in electronics and green energy products. Some say that tin is “the metal most impacted by new technology“.

Alphamin Resources is now ticking all the boxes – A pure play, low cost, high grade tin concentrate producer with exploration upside; high tin prices supported by strong demand from electronics and new and green technology; growing production numbers and growing EBITDA, debt falling to zero, and the very real prospect of dividends commencing in 2022.

Alphamin Resources Corp. trades on a market cap of C$1.039 billion and a forecast 2021 PE of 11.5, even after the stock price has risen 295% over the past one year. Some DRC risk applies but for now, the Company is making all the right moves.




A First-Class Growing Tin Producer in South Africa

Did you know that tin is on the list of U.S critical minerals? Many investors know very little about tin, yet tin prices have risen substantially the past year and a half. The reason for the price surge has been strong demand and weak supply. In particular Covid-19 lockdowns in Malaysia and Indonesia have reduced supply. For 2021 tin supply is forecast to be in deficit by 10,200 tons.

Tin prices have risen dramatically in 2021 now at US$33,737/t

Source: Trading Economics

According to the International Tin Association (“ITA”) a US$30,000/t tin price is required to incentivize additional supply in response to demand growth. This suggests we may see tin prices remain quite high for some time, ever after the Covid-19 supply disruption is resolved.

Tin is a key component in electronics and in many green energy products. In fact it is said that tin is the metal most impacted by the growth in new technology. Tin is used in many alloys, especially in tin/lead solders used to create a electrically conducting permanent bond between metal pieces such as the components and wires  on and in circuit boards used in billions of everyday electronic products. Tin is also commonly used to coat other metals to prevent corrosion. Tin is used in green energy products such as electric vehicles, next-generation LED lights, and  solar panels.

Tin is used in new technology products such as EVs, robotics, renewable energy and consumer electronic products. A tin price >US$30,000/t is needed to incentivize new projects

Source: Alphamin Resources company presentation

Alphamin Resources Corp. (TSXV: AFM) (“Alphamin”) is a pure play, low cost, tin concentrate producer from its high grade deposit at Mpama North, in the Democratic Republic of Congo (DRC).

Alphamin has a Resource Reserve of 3.33MT @ 4.01% Sn (tin) resulting in 133.4 kt of contained tin. There is significant resource extension potential and production growth potential. According to Alphamin, at a tin grade of roughly 4.5%, Mpama North is the world’s highest-grade tin resource – about four times higher than most other operating tin mines in the world. Alphamin produces ~11,000 tonnes pa of tin, around 3% of the world’s mined tin.

Production guidance for H2 2021 is approximately 5,500t of contained tin. Alphamin is aiming to increase annual tin output and life of mine through incremental production from Mpama South and by bringing to production additional deposits in close proximity to the current production. Alphamin’s goal is to become one of the world’s largest longmine-life tin producers.

Ongoing drilling is occurring at the Mpama South phase 3 drilling and Mpama North Deeps. The Company stated in August 2021:

“Alphamin’s exploration initiative aims to: extend the life-of-mine at its currently producing Mpama North operation; to declare a Maiden Mineral Resource for Mpama South (located 750 metres south of Mpama North); and to discover at least one additional orebody on the highly prospective Bisie Ridge (13km strike length).”

Alphamin also recently commissioned a fine tin recovery plant (“FTP”) starting 26 June 2021 to help boost tin recovery. Alphamin stated: “Production from the FTP since commissioning increased overall contained tin production by 5%. This exceeded expectations so early after commissioning. Optimisation work in pursuit of higher FTP recoveries is ongoing.”

Alphamin’s tin operation in the DRC

Source: Alphamin website

Alphamin’s financial performance

On August 6, 2021, Alphamin announced Q2 2021 EBITDA of US$34.1m, based on achieving contained tin production of 2,412 tons and selling at an average of US$28,308/t tin. Given that the tin price is now significantly higher at US$33,737/t Q3 is looking very promising. Net debt has been reduced to $29.5m at 30 June 2021, down 50% from the start of the financial year (31 December 2020: $59.9m).

Revenue is forecast to sharply increase from US$187M in 2020 to US$318M in 2021.

Closing remarks

The tin price is currently on a strong bull run near a ten year high. The outlook for tin is good with strong demand for tin as a critical metal used in more and more of today’s technology which demand is only increasing each year.

Alphamin is a DRC tin miner with high grades and low costs. Stronger tin prices are helping the company to boost cash flow and rapidly reduce debts. In time this helps to support profits. Alphamin has recently boosted tin recoveries and continues to work towards expanding production and resources.

Alphamin trades on a market cap of C$953M and is worthy of consideration by investors positive on the outlook for tin.

Further viewing

 




Alphamin Resources’ Maritz Smith on commencing production at its fine tin recovery plant

In a recent InvestorIntel interview, Tracy Weslosky speaks with Maritz Smith, CEO of Alphamin Resources Corp. (TSXV: AFM) about Alphamin’s recent milestones including substantially reducing net debt and fully commissioning and commencing production at its fine tin recovery plant.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Maritz went on to say that the fine tin recovery plant is expected to increase production by 5-10%. He added, “Alphamin is a high-margin pure tin producer with margins in excess of 50%.” Alphamin currently produces 4% of the world’s mined tin from Mpama North which is the world’s highest-grade tin resource – about four times higher than most other operating tin mines in the world. Maritz told InvestorIntel that Alphamin is expected to be debt-free in this calendar year and is progressing well with its various drilling campaigns with an objective to substantially increase the resource base and double the current production rate.

To watch the full interview, click here

About Alphamin Resources Corp.

Alphamin Resources is a low cost tin concentrate producer from its high grade deposit at Mpama North. This is on its mining license and it has an additional five exploration licenses covering a total of 1,270km2 in the North Kivu Province of the Democratic Republic of Congo (DRC). Alphamin is headquartered in Mauritius and listed on the Toronto Stock Exchange (TSXV: AFM) and the Johannesburg Stock Exchange AltX (JSE AltX: APH). At a tin grade of roughly 4.5%, Mpama North is the world’s highest-grade tin resource – about four times higher than most other operating tin mines in the world. The Mpama North mine is in production. It has an output of ~10 000 tonnes of contained tin per annum, amounting to ~3% of the world’s mined tin supply. Alphamin is aiming to increase annual tin output and life of mine through incremental production from Mpama South and by adding more mines in close proximity to the current production and from within our licensed footprint. Their management team has successfully developed and brought the Bisie tin mine to production and is focused on taking the business to the next level as they pursue their objective of realising the full value potential of this extraordinary tin complex.

To learn more about Alphamin Resources Corp., click here

Disclaimer: Alphamin Resources Corp. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp. (IIC) does not contain, nor does it purport to contain, a summary of all the material information concerning the Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete. 

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation.  Forward-looking statements are based on the opinions and assumptions of management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken,  as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please email info@investorintel.com.




Critical Minerals Corner: Jack Lifton, Christopher Ecclestone and Maritz Smith on the escalating EV demand and price for tin

In this episode of the Critical Minerals Corner with Jack Lifton, Jack is joined by Maritz Smith, CEO of Alphamin Resources Corp. (TSXV: AFM) and Christopher Ecclestone, Principal and mining strategist at Hallgarten & Company to discuss the ‘price rally’ in tin. A critical material, they discuss the increasing demand for tin in the EV market, the rising shortfall and why “tin is the glue that holds the electronics and technology world together.”

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Maritz went on to explain why there is a shortfall in tin supply. Alphamin’s Mpama North is the world’s highest-grade tin resource – about four times higher than most other operating tin mines in the world. Currently producing 4% of the world’s mined tin, Alphamin is the first tin major since the 1970s. Maritz added that Alphamin has robust margins and cash flow and the Company is allocating internal cash flow to fund drilling campaigns to double its current orebody and discover another high-grade deposit south of Alphamin’s operating Bisie mine.

To watch the full video, click here

About Alphamin Resources Corp.

Alphamin Resources is a low cost tin concentrate producer from its high grade deposit at Mpama North. This is on its mining license and it has an additional five exploration licenses covering a total of 1,270km2 in the North Kivu Province of the Democratic Republic of Congo (DRC). Alphamin is headquartered in Mauritius and listed on the Toronto Stock Exchange (TSXV: AFM) and the Johannesburg Stock Exchange AltX (JSE AltX: APH). At a tin grade of roughly 4.5%, Mpama North is the world’s highest-grade tin resource – about four times higher than most other operating tin mines in the world. The Mpama North mine is in production. It has an output of ~10 000 tonnes of contained tin per annum, amounting to ~3% of the world’s mined tin supply. Alphamin is aiming to increase annual tin output and life of mine through incremental production from Mpama South and by adding more mines in close proximity to the current production and from within our licensed footprint. Their management team has successfully developed and brought the Bisie tin mine to production and is focused on taking the business to the next level as they pursue their objective of realising the full value potential of this extraordinary tin complex.

To learn more about Alphamin Resources Corp., click here

Disclaimer: Alphamin Resources Corp. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp. (IIC) does not contain, nor does it purport to contain, a summary of all the material information concerning the Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete. 

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation.  Forward-looking statements are based on the opinions and assumptions of management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken,  as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please email info@investorintel.com.




Alphamin Resources is producing the glue of technology

When last we looked at Alphamin Resources Corp. (TSXV: AFM) in early May the stock was up 177% in 5 months. It was a cash flow machine with exploration upside of a critical material – Tin. Since then not a lot has changed, the company is still generating massive amounts of cash flow and is using much of that free cash to expand its resource base with the goal of extending mine life out by decades. Interestingly though, tin prices are up another 12% since then while Alphamin’s stock price is actually down a little bit, closing yesterday at $0.69/share versus it’s May 11th close of $0.72.

Before we have a look at what’s currently going on at Alphamin let’s talk a little more about tin first. Why are tin prices continuing to rock ‘n’ roll even when we’ve seen many other commodities (like copper and lumber) retreat from their recent highs? As noted, tin is a critical material, making the U.S. Department of the Interior’s 2018 list of 35 mineral commodities considered critical to the economic and national security of the United States. The reason it’s so important is because tin is the glue of technology (a great quote I borrowed from Alphamin’s CEO Maritz Smith in an interview with InvestorIntel’s Tracy Weslosky earlier this week). Half of the world’s tin demand is from solder, which is used in all circuit boards and will be a critical component of future technological developments. It’s also a relatively scarce element with an abundance in the earth’s crust of about 2 parts per million (ppm), compared with 94 ppm for zinc, 63 ppm for copper, and 12 ppm for lead. And lastly, any near term supply additions from the likes of Indonesia, China and Myanmar require an estimated price of roughly US$30,000/tonne to make economic sense to bring incremental production online.

Perhaps that’s why tin closed at US$33,510/tonne yesterday. Things look pretty good from both a supply and demand perspective. So who better to talk about in this environment than the company that owns the world’s highest grade tin resource, about four times higher than most other operating tin mines in the world, responsible for approximately 4% of global tin production. It should come as no surprise that the latest guidance from Alphamin is for EBITDA of $34 million for the quarter ending June 2021 which has led to a debt reduction of 50% from the start of the financial year to $29.9 million. Granted the EBITDA number is slightly lower than Q1 but that’s due to the previous quarter benefitting from significant catch-up sales following logistical bottlenecks during Q4.

Naysayers may also focus on slightly lower tin grades and plant recovery rates versus Q1 but the variable nature of tin mineralisation in the orebody can cause material fluctuations in delivered grade. Ultimately, the overall resource estimate at Mpama North is a tin grade of 4.5% versus the latest quarter achieving a grade of only 3.2%. My simplistic view is that over time this number should revert to the mean but I’m not sure if that’s how geology and resource estimates work. The positive is that the plant processed 12% more ore quarter over quarter and the fine tin recovery plant is fully commissioned and producing effective June 26th, which has the potential to increase contained tin production by 5%-10%. Also, the average Q2 tin price was US$28,326/tonne, well below current prices. My takeaway is far more positives than negatives but the market will ultimately decide, regardless of my opinion.

Those are all the tangible numbers you can sink your teeth into but the exciting part (to me at least) is the anticipation of a massive exploration program. In early June, Alphamin announced results from the first 29 of their 70-hole drill programme. Drill results at Mpama South (which account for 46 holes of the overall plan) showed continued presence and orientation of high-grade samples pointing to the potential for another high-grade deposit 750m south of current operations. They say a picture is worth a thousand words, so rather than ramble on about various drill highlights I’ll let you look at a picture.

Source: Alphamin Resources June 8, 2021 Press Release

Results are still pending on the last 17 holes drilled at Mpama South. Drilling at the Mpama North orebody commenced on July 2nd with an initial 15,000 metre (22 holes) drilling campaign over the next 4 months. Drilling is planned to test the strike and dip extension of the current producing orebody with the aim to extend the life-of-mine. In addition, the Company is planning to drill on the highly prospective Bisie ridge (13km strike length), which falls within the Company’s mining licence. This is expected to commence in August, with access roads having been established and initial drill targets being developed.

There’s nothing better than a story that has lots of cash flow, potentially debt free in the foreseeable future and lots of exploration upside in a commodity with a pretty good supply/demand outlook. The one caveat is that it’s a single mine asset in a potentially challenging geographic and geopolitical location (Democratic Republic of Congo). To me that’s what makes investing so interesting.

Disclosure: The author is long Alphamin Resources Corp. (TSXV: AFM).